BREAD PRICES

Evening Post, Volume CXI, Issue 78, 2 April 1931, Page 18

BREAD PRICES

(To the Editor.)

.Sirf^-^Lux" in your issue of 23rd March, refers to Mi-. MacPherson's figures and.those of Mr. A. J. Clegg. . There is not the slightest doubt but that the former gave a most wonderful array of figurative workings in stating his case for the farmer, which have been combated by Mr. ■Clegg, and now "Lux" comes on the scone, but his reasoning is somewhat obscure. : In the first place, presumably the miller has to work upon 48 bushels o£ wheat to the ton, not 37 bushels each 601b, per 20cwt. However, "Lux" considers that 1276 two lb loaves ot bread :can be produced by the baker, but 1 should imagine that with the addition of water, salt, yeast, and probably potatoes, bnt more especially water (it is recognised that Australian wheat flour is worth anywhere from 5s to 10s per ton more than New Zealand flour, because it can take more water) 1300 21b loaves would be the result. If New Zealand flour costs the baker, say, 17s 5d a ton into his store (per.ton of 20001b) and the baker sells bread at 6^d and 7d as most of them do, at'even &£& per 21b loaf the baker is getting £27 per ton, and on top of this he has the excess quantity of loaves wltich, put down even at 250 at 6V4d per loaf, snakes an additional £6 5s at least. A total of £33 5s per ton. This is practically 100 per cent, profit against which the baker has to pay wages, salaries, delivery charges, and surely this is more than sufficient. n aHe tnen a small-goods man; how many of them use just about 1 to 2 ions per week of flour and do well out of it? . "Lux" goes on to refer to the matter from the milling point of view. As he quotes from the use of 48 bushels of wheat to the ton at 5s 9d per bushel (and how many lines of wheat may I ask are bought cheaper than 5s 9d), he quite overlooks the fuot tbat the miller has all the profit:to work on in the sales of bran and pollard which at the present time are £4 ys and £4 15s per ton, f.0.b.5.i., South Island ports. At 5s 9d per bushel for milling wheat (I take this price as an extreme one for milling quality) this represents a cost of £13 16s per ton of 20001b. .Allow 20s per ton for profit on offals manl^actured this brings down the cost to £12 16s per ton. If the millers elect to *€)! their flour through a, fountain head, which presumably means the addition of piobably 6 per cent., say, 15s a ton, for which.we as consumers have to pay for protecting the miller no doubt, and then allows 2%,-per cent, discount to wholesale farms «s. selling agents (note there are two selling channels) and then Vh per cent. discount to the baker or grocer this easily adds another 15s per ton, or a total of £14 6s. The millers get a clear profit, as I ■understand the selling price is £16 5s per-ipn. South Island ports, of £2 per too or in other words over 14 per cent. The flour miller has been on a wonderful basis for many years past,, not overlooking the fact- that the wheat farmer is on a betier footing than the miller, and our politicians in the House have by a majority ,each session for years past, kept the iniquitous sliding scale of duties on. flour and wheat in existence. ' I certainly consider that protection is required, but not tothe high-handed extent it has been, and now ■ especially in this time of stress everything should be done to lower the price of the chief article of diet to the poor and rich. The Government is certainly.in dire straits for revenue, and,, despite what the farmer and flour miller might say, are both these two velvet-clad parties sufficiently patriotic to suggest to the Government that, say, 2,000,000 bushels of Australian wheat should be allowed into New Zealand on which importers would be glad to pay 2s per cental duty, and even then the wheat would be loaded here about 9d per bushel cheaper than New Zealand wheat. The Government would benefit to the extent of £200,----fIOO, and we as consumers would get our bread'and'small goods far cheaper than at the present time. . .Incidentally I may. state that if the Government had not taken off the duty on Australian bran and pollard, instead of the price being now £4 5s and £4 15s per fipn.j f.o.b.sii., South Island ports, it would probably be £5 5s and £6, and just imagine what extra profits the New Zealand flour millers were making before the duty was taken off, or at times when Australia- could not compete with New Zea-Ja-nd offals. -..Doubtless the miller was then making 16 per cent, and over.—l am, etc, .■'•"" ■ •-■■■• QUID NUNC.