N.Z. TOBACCO DEAL

Evening Star, Issue 19583, 15 June 1927, Page 2

N.Z. TOBACCO DEAL

WILLS FIRM PURCHASES NELSOH CROP LONDON MARKET TO BE TESTED [SrsciAL iro thb • Stab.’] WELLINGTON, June 14. An important deal announced by the Minister of Agriculture (Mr Hawken) to-night is the purchase from growers of practically the whole Nelson tobacco crop by the firm of W. I), and H. 0. Wills. The deal is the result of negotiations which have been going on for some time, and which were finalised when Mr Hrodie, manager of the Wills firm, visited Nelson a few days ago. Tobacco growing began in Nelson this vear for export under a Government guarantee of 2s 3d lb gross for yellow lemon-colored leaf, and Is 4d lb for the darker leaf, up to a total of £3.500, which represented a crop of something over twenty tons. All the tobacco had to be grown under Government supervision, and a special officer of the Horticultural Department was appointed to supervise production. The actual crop was a little over ten tons, and this, after discussion with the Department of Horticulture, growers have sold to the Wills firm for between £I,BOO and £1.900 at the guarantee price. Special samples of the leaf are to be selected and‘sent Home, and if the price realised on the London market is greater than the guarantee price. Wills have unde/taken to make up the difference to the grower. The tobacco is now being graded and packed in Nelson, and the sample chosen. Shipment to Wellington is to be made as soon ns the Customs certificate is issued. It is understood that in the. earlier stages there was some difficulty over leaf which had been grown late and sun dried having gone a little mouldy; but the firm ultimately decided to include this in its purchase. Wills’s deal thus marks the beginning of the production of high-grade tobacco for the local market, as well as affording an opportunity to growers to test the London market for tbeir leaf.