WHEAT OF THE WORLD

Evening Post, Volume CIX, Issue 73, 27 March 1930, Page 12

WHEAT OF THE WORLD

THE GREAT PRICE PROBLEM

■^.References. to 'the: world -wheat situation have been made in this column horn, time to..'time. . But events in production and d jsTribution . move so quickly, that ■', only tliose"actually engaged in activities associated;w.itli'wheat, from, harvest .field, tb oven can keep in touch with' them. Vitally as<if 'is-concerned in the long run with the production, price, and distribution of Wheat, the. general public with' so many ofKer; distractions cannot be blamed if it forgets-to-day what happened yesterday, audjhas.no interest in what is likely to happen to-morrow in respect to wheat. ';Biit there is a colossal .fight going on between North United States and.-Canad-ian ?wheat growers and British and.Continental'wheat 'buyers. It is a case of-North America contra mundum, and it>,-seems tjmtjlhe world is getting the best of it. The-origin of.this,conflict is to be sought ■ in.ft He' days immediately before the Great War.; "Dollar" wheat was tlien considered to !be=tho price-ideal of Canadian and^United !States wheat growers, and at a dollar it could': be grown at a; good profit. Then came the war and "with/ it the withdrawal of:-millions of men from production of wheat or anything else. These men were "wanted for-unproductive war service, and they,"had"to be fed and fed more abundantly, than ordinary while engaged on ;ic- . tive'|iirvice.-'. The sequel was a sharp advance in prices of all necessary commodi-r tics and especially of foodstuffs. Whether ".wheat began it" it is difficult to say, but the price of wheat went up with a bound immediately a Great War iv Europe appeared to be inevitable. r'.'Tbe farmer fixed theprice.the supplier dominated the market.;l We" have no need to go outside New Zealand foryproof of this, for Professor Copland shows: in his "Wheat Produption in New. Zealand" . that ' whereas wheat pricfesin *; Christohurch for 1913-14 were never, higher than 3si 10% d ■ peri bushel, or lower/than 3s 7Md, they;jum'ped^to'4s S)d a month ;after the war began,- and an 1916 they.ireached 7s with consequent increases. IJere, as iall over the world, in, wages to toeet th'e> increased prices for bread and; other ,w.beat, L produets- and food and clothing in/general and with increased , wages j'also. ■■advanced: ,■■ the . cost; of •wheat production' 'and "-'the ; expenses generally • of; -conducting ■ husbandry in °: all branches. ' The .: farmer • >the w^ortd over.at any rate of the great: wheat exporting countries, cannot produce.wheat at the 1914 prices except at a. loss.; But ■wheatis now practically down, to pre-war prices in Canada/'the;United Sfates, Australia, and Argentine, and; in .Europe itself; New;. Zealand-wheat-growing is conductedunder -"most.favoured" conditions, sanctioned by '• that render wheats growers practically immune from fluctua,tipns.:'ih^woi,']d,:prices for wheat. It holds the,lbcal market as a close preserve co .that thfe.price, o/ wheat in New Zealand is-from.'4o'to 50' per cent, above world par- , ity.- •-:/ .■'•■• r':--;,; ••.Cahadiari v growers', with their 1929 harvestj would; nj)t meet the. market. They held and-that in the 'assurance' of reduced yields -in- the Dominion- itself, and in the United'-.States,- 'and.-..reported, shortage of yield.in the.Argentine and an ascertained reduction'in: the yield in Australia..'But the world-market was not brought to heel. Wheat in Canada fell only a fortnight ago t0."98 3-8 cents for cash, the lowest price for many, years. ■ ;. trade, and especially rail and ■water transport services - suffered acutely f^bm the. holding back of wheat. Argentine, took the market, Australia also sold (flot for what it required but for what it could get), and Canada and the United States, have still a very heavy carry-over. "GROW MORE WHEAT!" !.Mr.:Scullin;: Prime Minister of the Com-monwealth,-in face, of the existing state of the world's wheat market, takes a long view, .and evidently thinks that increased production rather than expectation of continuation of high prices is the ideal for Australia. . He holds that "the primary industry 4which most readily responds to production has steadily increased until it ■wheat .growing. The area under wheat production has steadily incrased until it reached nearly 15,000,000 acres in 1928-29. ... ..If the wheat growers of Australia are prepared to heed appeals to increase the'area under cultivation they are entitled to some guarantee in the matter of price and to assurances that their wheat will be marketed' in a thoroughly businesslike ■ manner ." That guarantee has been proposed as 4s per bushel at country sidings. Mr.'Seulli'n is hopeful of a strong all-Aus-tiilia poel ■ being formed. Action has be'en taken .that.wjU .lead to the formation o£- a.; body. tiha.t .will speak for wheatgr.owcrs throughout Australia. : ■ ..-A SPECIAL APPEAL. States. co-operation is required to complete the scheme Mr. Scullin thinks that is already assured. He has pointed out ijMii "the present state of affairs in Aus.Vaiia'wMch is partly due to the drop iv the price •of wool may force some wool powers to cultivate larger areas of wheat tiian: hitherto. We shall be compelled to, take stock of our position. We are- realising that we have a long way to go to reach full prbductivity. There are large areas of land/producing only wool that coiild produce'both"wheat and wool. Intensive cultivation will go far towards the salvation.of? Australia. The wheat farmers have a, golden opportunity to give the lead. : •■'■■' "Mr. Hogan,. Premier of Victoria, has been telling! the people how in 1927 when the Victorian Government made an appeal for the planting of greater areas under wheat 700,000 more- acres were planted. •Mr. Hogan is now ; appealing for an increase of a million acres in Victoria. We make.a similar'appeal to growers in'all States, ajid we believe that we shall not Tic disappointed.' There is every promise oi^a, good-season. The omens are exceljeat,.:. let.,-jis take, advantage o£ them.'';