Merchants see lower grade wheat openings

Press, 9 November 1984, Page 20

Merchants see lower grade wheat openings

Grain merchants are predicting their industry could soon rival kiwifruit as an export earner.

This follows the Government’s move to deregulate the wheat and flour industry from 1987. The decision to remove price quota controls and compulsory acquisition by the Wheat Board of the total crop has been described by the Agricultural Merchants Federation as “a $lOO million opportunity.” The national president, Mr Clive Paine, of Invercargill, said at a federation executive meeting in Auckland last week that grain growers could realistically expect their sector to become one of New Zealand’s bigger export earners. The merchants overseas marketing company, Cereal Exports New Zealand, is already seeking authority to grow wheat specifically for export. It is also initiating market research trialling, and breeding varieties specifically for export markets.

About 80 per cent of

milling wheat currently grown in New Zealand comes from the South Island (mainly Canterbury), but from 1987 Mr Paine says imports of milling quality Australian wheat direct to the consuming areas could substantially reduce domestic demand.

“This will provide the industry with the opportunity it has been waiting for — to concentrate on high yielding non-milling varieties of wheat for export. We could be looking at a threefold increase in the volume of non-millable varieties and an industry with an annual export potential of $lOO million to $3OO million,” Mr Paine said. Cereal Exports said that it had for some time been investigating the possibilities of growing both lower grade milling and special purpose wheat for export.

Merchant members of Cereal Exports engaged in research and development of new wheat cultivars had for some years identified high yielding varieties which had not measured up

to the stringent quality standards set by the Wheat Board, said the general manager of the company, Mr Jack Hartley. In many cases varieties could yield as much as 30 to 35 per cent more with suitable quality as far as screenings are concerned. These had been widely trialled in New Zealand and in some cases were being grown as special purpose and feed wheats and so seed would be available for some of these new varieties, he said.

Many of these varieties were strongly resistant to the races of yellow stripe rust which had been identified in New Zealand.

“Growers can be assured that Cereal Exports will, if permission is given, be growing lower grade milling wheat for export in the 1985 growing season.

“It would be our intention to Offer growers a participation export pool contract, ensuring growers receive the best possible price available at the time of marketing,” said Mr Hartley.

Sound wheats of 10 or 11 baking score were readily saleable overseas, he said.