FERTILIZER PRICE

Dominion, Volume 32, Issue 257, 28 July 1939, Page 10

FERTILIZER PRICE

Comment By Farmers’ Union "It is understood that the superphosphate producers made application to the Government for permission to increase their prices some time ago, and that this p mission was refused.” says an official statement issued by the New Zealand Farmers’ Union yesterday. “It is, therefore, fairly evident that the fertilizer companies have taken the responsibility of iucreitsing the wage rates and have taken the risk of getting an increase in the price.

“Assuming that tin re are 800 men em ployed in the industry (which is a generous estimate), an increase o£ l}d. a ton amounts to £10,400. “The estimated output of superpltosphate for the year 1938 was 450.000 tons, and at 4/- tr ton the increase in returns is £90.000. So that if the superphosphate companies wer; permitted to increase their price by -1/- a ton on account of Hie increase in wages, they would stand to make a profit on tiie deal of approximately £BO.OOO. If this were permitted it would la 1 nothing more nor less than plain profiteering, trnd it is inconceivable that the Government would give its p mission for this to be dune. The increase of £ 10,400 spread over 450.000 tons would give an actual increase in costs of less titan (id a ton. "It would appear, therefore, that the report from Auckland is incorrect, for it dot's not seem likely that the fertilizer companies would mtrke such an unfair r. quest.”