PRODUCE PRICES

Dominion, Volume 18, Issue 152, 21 March 1924, Page 8

PRODUCE PRICES

WHEAT, OATS, AND POTATOES WHAT A BUSINESS MAN HAS TO SAY In view of the existing .uncertainty regarding prices and supplies of leading lines of produce, a Dominion representative interviewed a leading business man in the North Island on the subject. This gentleman has just returned from a trip througn the South Island, made with a view te ascertaining the true position. He disclaimed any desire to appear in print in regard to the matter, but admitted that the public had a right to information winch was at his disposal. . “Let mo deal first,” he said, with wheat, about which there has been a good deal of controversy, and I .will endeavour to put the matter as briefly and as plainly as possible. The position is that if we had had a decent growing season iu Canterbury this country would, liavo ’oeen able to vest nearly as much wheat as it would require; but, unfortunately, Canterbury had a drought, and we will have to import 2,000,000 to 3,000,000 bushels of wheat to meet our requirements. The Government are keeping absolute •control over its importation, and are importing wheat themselves.. .It is open to question whether this is better than allowing open comjietition amongst the merchants. The Almister of Agriculture, however, seems quite able to justify the action of the Government until the end of the season, when I believe it is. hie intention to institute a free market withoutfixed or guaranteed prices. Regarding statements made by tho Wheat Growers’ Association that the Government s decision not to guarantee prices tor tho 1925 harvest will have the effect of preventing wheat being grown at a profit in New Zealand. I. can only say that, to my mind, .it is the veriest humbug, as even if the .Australian wheat remains as low in price as it is this season, the duty on it and flour, plus the cost of bringing it here, should enable growers to compete on very favourable terms with Australian imports. To my mind the Government have had a very difficult job. to try and please everybody, but. looking at the matter from all points, it seems as though their action is the best which could have been pursued.’ “The position in Canterbury in regard to oats,” he continued, “is that the crops are very short, but the deficiency is very nearly made up by the bumper crops in Southland. White oats in New Zealand could have b.een bought twelve months ago at about Is. 6d. a bushel less than they are quoted at here to-day. Last year about 1,500,000 bushels were.used for poultry feed on account of being much cheaper than fowl wheat, but the latter is lower in price this year. Therefore, practically no oats afe being used for- that purpose. In addition to this, New Zealand exported to Australia last year over 500,000 bushels of oats. This .year Australian oats have already been imported here at prices below New Zealand parity, even after paying duty and heavy charges. It appears unlikely that oats will be consumed by fowls or that they will bo exported to Australia this year, and that will more than make up the shortage of Canterbury oats. Therefore, oats are far too dear, and North Island merchants have made arrangements to bring large parcels of Australian and Canadian oats to our ports, some of which, indeed, have already arrived, at a lower price than the New Zealand parity to-day, and the local market must, apparently, come down.”

“Potatoes at the present time are a.t a false price,” he added. “Consumers are being called upon to pay too high prices in view of the crop available here for distribution. The New Zealand mauket seems to have been unduly held. up in price by speculators who are acting concertedlv with growers to try and take advantage of a shortage which does not exist. The acreage grown this season is quite equal to that 12 months ago, and crops have never looked better than they do at tho present time. There is practically no disease amongst the potatoes, yet a year ago at this time they could be bought three to six months ahead at £4 10s. to £4 15s. per ton. f.o.b. South Island ports, sacks in. A few months ago Canterbury merchants were offering potatoes at that price for delivery ahead, commencing in April. There is no reason why potatoes should be worth any more today, but through the manipulation of the market they have been forced up to the vicinity of £7 10s., f.o.b. South Island ports. In consequence of this North Island merchants have been importing. and have contracted ahead for Tasmanian potatoes landed here cheaper than they could procure the New Zealand article, after paying duty, freight, and other'charges. And that must necessarily have the desired effect of forcing New Zealand potatoes down to a reasonable figure. It does not seem right that this country should have to import potatoes when there are plenty of locally giown triers available which can be sold at a profi'; at lower p.u'ces.”