PRICE OF FLOUR RAISED

Evening Post, Volume CIX, Issue 118, 21 May 1930, Page 12

PRICE OF FLOUR RAISED

ADVANCED AS FROM TO-DAY

New Zealand flourmfllers have notified their customers that tho price of flour has been advanced by 10s per ton. The price up to yesterday was £16 5s per ton, less 2J per cent., free on board vessels at South Island ports; the price to-day is £16 15s, less 2$ per cent. Bran and pollard prices remain at £8 and £8 10s per ton respectively.

The Wellington Master Bakers' Association raised tho price of bread, on 26th* April, from Gd to 6-Jd per 21b loaf over the counter. The "question that may be asked is, will the extra 10s per ton now to be borne by New Zealand flour be passed on to tho consumer? Dominion farmers not growing wheat, but requiring grain and mill offals for their stock, at a meeting at Palmerston North on Ist May, strongly objected- to the present high New Zealand duties on grains. Through the Hon. E. Newman, M.L.C., they unanimously resolved that

The Government bo asked to remove duties on all grains and concentrated foods required for stock foods and thus enable New Zealand farmers to obtain these stock foods

at the world's competitive prices,

The case of bread and flour for human consumption was not taken cognisance of in the resolution, which related solely to the pressing need of producers who have to competo in the world's markets, to obtain grains and similar foodstuffs produced in New Zealand on world's parity prices. What that parity means is illustrated in tho table hereunder: —

New Zealand. Australia. Flour, per ton £1« 15s Od £11 0s Od Milling wheat, per bush. 5/8 to (;/- 4/G to 4/8 Average bushels per acre 31.08 7.13

The Australian price quoted for flour is for Melbourne domestic trade iv minimum lots of three tons cash with order, and is quoted by the Victorian Millowners' Association as official. For export at world parity the price would be under that for the local market in accordance with* ,Australian practice. The Australian wheat prices above quoted are sellers' prices last week, wKen business in the Melbourne local and export markets was officially described as "quiet and inactive." The world's parity price for wheat based on Chicago and London prices is about 4s 6d per bushel, as compared with the latest Christchureh quotations for New Zealand at 5s 8d to 5s 9d for Tuscan; 5s 9d to 5s lOd for Hunters; 5s lid to 6s for pearl. These prices are for wheat when placed by farmers on trucks at country stations; the Melbourne price quoted by sellers was for wheat at the ship's side. The average production figure of 7.13 per bushel is for the State of Victoria; that\for New Zealand is for both Islands. SPLENDID HARVESTS. New. Zealand had a superabundant -harvest last year,, and the wheat pool was left with 2,000,000 bushels of wheat more than was required, according to Mr. W. W. Mulhplland, chairman of the Wheat Pool. Speaking at Timaru at a meeting of growers, Mr. Mulholland said it had previously been decided that if there were a surplus the price would have to com- down to export parity, which was 3s 6d. There- were, two courses open, one of which was to bring the price dowai to export parity ancl the other to hold the wheat in store. llio directors of the pool had decided in favour of the latter course. It was also stated at this meeting by Mr. B. M'Pherson, general manager of the pool, that the New Zealand wheat production, of 1928 was responsible for a carry-over of 1,500,000 bushels, increased by 500,----000 bushels for 1929, and 1,275,000 bushels were carried over into 1930 season. The pqol prevented a slump in wheat in New Zealand.

At that meeting Mr. M' Pherson also explained to members of the pool, "Today (7th March) Now Zealand wheat on world parity is worth 3s per bushel, f.0.b." Wheat, however, was not sold under 5s 3d, and commanded up to 5s 9d on trucks. :

Relief had to be sought (according to Mr. M'Pherson) in shipments of wheat overseas to rid the Dominion of its "surplus wheat. The pool hoped to got rid of surplus wheat in store before the 1931 crop came on to the market. The law of supply and demand is put out of gear in the New Zealand wheat market with a superabundance that is causing farmers some anxiety, but the price is kept round about 5s 6d to Cs. On the otlier hand, Australia has a very thin harvest and greatly reduced yield, but the price is nevertheless governed by world conditions to which it has to conform.