PRICE OF WHEAT

Evening Post, Volume CIX, Issue 116, 20 May 1925, Page 9

PRICE OF WHEAT

NEXT SEASON'S CROP

Cabinet has concurred in • the agreement recently come to by wheat-growers and millers as to

prices for next season's wheat.

In making an announcement to this effect last night, the Minister of Agriculture (the Hon. W. Nosworthy). stated that the proposals were as follow:—

(1) Millers to pay for the . crop that will be sown this year and harvested in the summer of 1925-26, the following f.o.b; prices:—Tuscan, 6s sd; Hunter's, 6s 7d; Velvet, 6s 9d. Any surplus over milling requirements is also to be pur-chased-by millers at these prices. (2) Flour to remain at £18 per ton, as at present, and bran and pollard to be reduced £1 per ton to £7 and £8 respectively, all f.o.b. South Island main ports—Lyttelton, Timaru, and Oamaru. "When representatives of the farmers and the millers met me in Wellington a few days ago," said Mr. Nosworthy, "I made the stipulation that Government concurrence in these proposals would be entirely contingent upon an undertaking by the wheat-growers to sow an area in wheat this year calculated to provide approximately the whole of the Dominion's requirements. "The prices mentioned are considered to be sufficiently, remunerative to encourage farmers to grow wheat, and the Department of Industries and Commerce considers that the interests of consumers of bread and flour have been protected, and that the millers' prices for flour and offal allow of a reasonable profit only. The prices of bread generally throughout the Dominion will not be increased on present-day prices. Being satisfied on these points Cabinet has ratified tho proposale.

"Any scheme, for t"he encouragement of ■-wheat-Browing, by the promise of guaranteed prices,- naturally involves consideration of the question of the competition of; Australian flour. Australia requires large quantities of bran and pollard, and is.naturally anxious to grist as much wheat as possible to. have these by-products. Australian millers therefore, endeavour to increase. export sales of flour by frequently quoting prices lower than home consumption figures We have in New Zealand power to eDforce an anti-dumping duty, but, in piactice, this is found not to bean easy matter. An embargo on importation is considered to be the most practical means of preventing unfair competition and the Minister of Agriculture has been given power to apply this next year if it is found necessary to protect the local flour industry. The duty on wheat will remain as at present, and its importation will not be interfered with " If there is sufficient wheat Irrown in the Dominion, !t is clear that the Dominion will meet its own needs in flour and by-products, and there would be no necessity for outside supplies. Thus the embargo will impose no hardship on the country as a whole.

" These arrangements," said the Minister, in conclusion, "are, I think, the "? st, th. a J t T"l be, -made in furtherance of the ideal of making New Zealand independent of outside sources for its most important foodstuffs, and I have every confidence that the response of the wheat-rrowers will be soch an to make this ideal an accomplished fecfe"