THE BREAD PROBLEM

Evening Post, Volume XC, Issue 42, 18 August 1915, Page 8

THE BREAD PROBLEM

RECENT FALL IN THE PRICE OF FLOUR. When flour reached £17 10s per ton, its highest point, the Wellington consumer accepted the tenpenny loal as philosophically as he could. Now that the price is down to £15 pet ton and is reported as having been been sold at £14 10s, the consumer not unnaturally wanta to know where he comes in. The prices of flour above given, it should be explained, are at Southern ports. There must be added the costs of freight, wharfage, cartage, and other charges, of course. So far ac can be learned from the baker it has to be said for him that no matter what price flour may be today he bought on a higher 6cale and therefore cannot yet afford to sell for less. In other words, the consumer must pay the present rate until the baker has worked off his high-prided flour. On 13th . August bread was sold at 8d per 41b loaf xn Christchurch, to-day it is lOd in Wellington. Unless Wellington bakers have made substantial purchases of flour ahead at £17 to £17 10s free on board Southern ports, ono would be surprised at this great disparity between the prices of bread in the two cities. • But have all the bakers bought heavily on the £17 to £17 10s per ton basis' 1 / If they havo it is not difficult to understand the tardiness in lowering the price here. But then where has all the Canadian and United States flour gone to? The importations already have amounted to somo thousands of tons and deliveries will be made up to as late as next month. The flour has been bought even though there may not be sufficient cargo space available to bring it here. Is it to be assumed that these importations of North American flour at £15 to £16 per ton have had no influence on the stocks of bakers throughout the Dominion? If the bakers have not bought the flour, who has? If they have, then they ought not to hay© paid £17 to £17 10s per ton for it or anything like that. In Auckland flour is selling at £15 15s per ton at the Northern Roller Mills. In Wellington, which is 500 miles by tea nearer thd New Zealand flour exporting bases, flour is costing £15 17s 6d, or £16 per ton f.o.b. The baker i» understood to be "covering" himself now when ho has bought at £15 17s 6d, and is still selling bread at lOd, for the advance in the price he did not make when the price of flonr went up in the first instance, The price was brought down with a run by the action of milling interests, who acted as they did for reasons of their own. It is the opinion of some in tho trade that wheat bought at 6s 6d to 7s per bushel cannot be milled except ft a severe loss. Figures could be given, if necessary, to Bhow this to be the case. The whole thing boils down to this: There is a 6ever© "cut" in the price of New Zealand flour, and all mills liM'« had to fall into line. What the nmtiws impelling the " cut " were concerns only those in the trade. There it i»> and there is also New Zealand milling wheat fwnly held V-y farmers who have any at 6s 9d to 7s per bushel^ Still, in fact, holders show no inclination to se'il, ovf.n at those prices. No doubt tha con.«.^mers will reasonably ask, " Where iio we come in? >( With trad© campaigns, operations as between farmers, milters, ftiid bakers, they are not concerned. All they can see is that with flour purchasable at £2 10a a ton less than it w;is a week or so ago they ought to participate in the benefit of the fall, for they liAd to bear their portion of tho rise.