WHEAT MUDDLE

Evening Star, Issue 19143, 9 January 1926, Page 3

WHEAT MUDDLE

GROWERS AMD HILLERS QUESTION OF CONTROL , Representatives of the wheat-grow-ers, millers, brokers, and the Wheat Control Office will probably meet in conference in Christ church on January •JO, to discuss questions arising out of the control of the wheat yield. The conference has not yet boon definitely fixed, and whether the. question of basic prices will be discussed or not is not clear. That issue may ho left to the growers alone, said an officer prominently connected with the industry to a representative of the Christchurch 4 Press ’ this week. “ At present the whole thing is in (ho air, lint the growers have been agitating for a reconsideration of the prices fixed for some time. Great pressure, has been brought, upon the Government, for the question of basic prices to bo reopened, and no doubt the attack made by the ‘ Press ’ is now hearing fruit. Of course,” he continued, “ the millers will not want the basic prices to he discussed, but'all the others concerned will. There, is no question hut that the industry could be worked without Government control.” ft was not the imported wheat, but the flour, that, caused competition from overseas. This was what the farmers wanted to meet. If the duty was increased by the Government, then the flour-miller would ho protected. Tbev could give the farmer 7s per bushel, making an increase of 2£d on each 41b loaf. CONSUMPTION OF FLOUR. The consumption of flour in New Zealand was declining per head. In Britain the consumption was 3501 b per head per year, which was much less than France. 1731 b, and more than U.S.A., which was 2741 h. In .South Africa it was clear that, whatever the reason, the consumption of wheat was considerably less than might lie expected. Wheat was now a less important part of the food of the people than formerly, and the same conditions existed in New Zealand. The following is n table showing the amount of flour per betid per year consumed by the New Zealand people:— unc 2iiib 1017 221 111 1918 2191!) 1919 ... ... 2461 b 1920 2301 b 1921 ... ... „. 2131 b 1922 1951 b

From 1922 to dnie the average hovers about 2001 b. which shows that flour is becoming a less important item. The reason for Ibis decrease is that flour is made, nowadays, into biscuits and fancy goods, also a greater variety of food in the shape of vegetables, meats, and fancy dishes is going into the average .household. THE MONTHLY INCREMENT. It is considered that tho question of tiie monthly increment which has to be decided upon may be seized by the producing interests as an opportunity of assisting to correct a situation caused by tlie agreement prices being uudor the world parity. Another matter for discussion will be tho whole scheme of control, as well ns the proposed regulations, and the questions of brokerage and the cost of administration. Endear previous control schemes tho brokerage fee paid-by millers ha.s been added to the price charged to the millers by the Government. Costs of administration will also havo to bo discussed, and it may be that a rate will be struck to cover this, which tho miller will be. required to pay. .An important question arising out of the last subject is whether the Government will load rates with the idea of reaping a profit for itself, or of creating a. reserve against contingencies. The last complete control scheme was in 1022, when the difference between the price paid to tho farmer and by the miller was 9d per bushel. After allowing a brokerage fee of Id a bushel the Government retained the balance between the two prices, and thus made a good profit. But as an offset to such profit it made lasses on a surplus of the yield, a portion of which it exported. while the balance was carried into the following year. This season there is a large deficit, consequently the Government must, under tiro scheme, import wheat. There is a possibility, however, that New Zealand prices to the miller may be loaded, with the idea of equalising costs between New Zealand and Australian wheat. When the wheat yield was controlled last the grower wus given a monthly increase on the price of 3A a bushel between May and October inclusive. COMPENSATION. Growers are likely to demand a high increment by way of compensation for relatively low basic prices. On this point they will probably coma into

sharp conflict with the millers. Millers apparently consider that a high increment will bo an inducement to farmers to bold their supplies back _ from the markets, an attitude which will prevent an accurate estimation of the supplies needed from Australia to balance the deficit in the yield. The Government has been asked to consider whether it will depart from its decision to control the distribution of wheat and the fixation of prices. But should it abandon its intention to exercise control, the proposed conference will not take place.