Wheat marketing plan delayed

Press, 24 May 1985, Page 22

Wheat marketing plan delayed

The Wheat Board has delayed a final decision on the 1986 marketing plan for another month, pending further industry discussions. The chairman of the board, Sir James Stewart, announced the new timetable following a board meeting last week. He said that as part of the move to the deregulation of the wheat and flour industries, the board had been asked to have in place for the 1985 wheat plantings a basis of pricing wheat to farmers that would see domestic wheat prices continuously competitive with imported wheat and flour. The board towards the end of 1984 retained a con-

suitant to advise it on an improved system of marketing for the 1986 harvest. His report together with the board’s preliminary proposals were circulated and following industry group discussions, marketing proposals were announced by the board on April 2. The proposals were based on grades of wheat delivered to the board’s nominated assembly points and they provided opportunity for millers to contract direct with growers for up to one half of their wheat for quota flour production. The board has now received many submissions on its proposals, particu-

larly on grading and on the pricing points. The Flour Millers’ Association has proposed an entirely new grading system devised by the Wheat Research Institute and has advised the board that it will be the basis on which millers will buy wheat in the future. In the light of this and following joint representation to the board by millers and representatives of the growers urging a deferal of the final decision on the 1986 marketing system to allow further development and consideration of the proposals, the board has agreed to delay a final

decision for about one month. A working group of grower, miller and board representatives has been set up to work with the Wheat Research Institute on the technicalities of the new proposal. Sir James said it should be made clear that there will be no departure from the already announced principle of relating the New Zealand wheat price to the Australian N.S.W. price. The Wheat Board has again reviewed the retention rate on 1985 category B wheat now that the harvest in all wheat production areas is largely completed. Initially the category B

retention rate was set at $34 per tonne and was, after review, subsequently reduced to $2O per tonne from March 1. The board has now decided that a second partial refund of the retention rate should be made. It was decided to reduce the rate to $lO per tonne with effect from June 1 and to refund $lO per tonne plus interest on all Category B wheat transactions processed up to and including May 31. Refunds will be made through the board’s brokers early in June. The revised retention level of $lO per tonne will be kept under review.