40% of wheat farmers ‘might go to the wall’

Press, 15 May 1987, Page 2

40% of wheat farmers ‘might go to the wall’

Tariffs on imported wheat or subsidies to New Zealand growers were needed to protect Canterbury’s wheat industry, said the Chairman of the Canterbury United Council, Mrs Margaret Murray, yesterday.

The bulk of New Zealand’s wheat was grown in Canterbury and the industry now faced a crisis because of a Government decision to expose it to international competition, she said.

About 40 per cent of wheat farmers were not planning to grow crops next season and might go to the wall because of low domestic prices and cheap imports. Mrs Murray said about 4500 people in Canterbury were directly supported by wheatgrowing, milling, and the breakfast-food industry,

“If wheatgrowing becomes unviable, a large proportion of these people could lose the basis of their livelihood, encouraging further, population drift from the South

Island and the Canterbury region in particular,” Mrs Murray said. In a submission to the Government, the United Council urged temporary tariffs on imported wheat to help New Zealand growers. This would be difficult under the C.E.R. agreement with Australia from where most imports were likely to come. A system of “subsidies or bounty payments” was needed as an interim measure if a tariff could not be Imposed.

"Failure to do so will result in a considerable reduction in the wheat crop planted in Canterbury for the 1987-88 season,” said Mrs Murray.

“A great deal of actual damage occurring in the region could be overcome by the Government’s indicating to the milling industry that strong measures will be taken to stop dumped imports undermining this extremely important industry to the Canterbury region.”