WHEAT MARKETING

Gisborne Times, Volume LXXIII, Issue 11827, 7 January 1933, Page 5

WHEAT MARKETING

STATE SELLING OF CEREAL. REGULATIONS GAZETTED. (Press Association.) WELLINGTON, Jan. 6. Regulations were Gazetted to-niglit providing -for the establishment of - a Wheat Purchase Beard with an office in Christchurch. The hoard will; consist of .eight members, representing the millers - and'growers, all tobp appointed by the Minister, and will be empowered to make purchases and sales of wheat through authorised brokers. It will be empowered also to require growers to make return*? of- wheat grown and to divide the profits among growers in the form of a bonus. ■>'l COMPULSORY POOL TO BE 5 ESTABLISHED \ BIG EXPORTABLE SURPLUS THIS SEASON (Press Association-? WELLINGTON, Jan. 6. Tho Hon. R-. Masters, Minister for Industries and Commerce, has made tho following statement bearing upon the regulations gazetted for the establishment of a Wheat Purchase Board.

The object of the regulations is to meet the position which lias arisen through the existence of very low prices in the worlds wheat markets and tho probability of a- fairly substantial exportable surplus of New Zealand wheat from the coming harvest”, said the Minister. “Tho regulations provide for the formation and operation of’ what- i s in cAect a ‘compulsory pool’, so that growers may receive the average value ol their product based upon (a.) New Zealand home consumption value of approximately 4s 3d to 4s 7d per bush el and (b) the export value of probably not more than 2s 6d per bushel. Unless some action is taken to regulate the matter prices would probably fall generally to such a low level that, growers would receive a price very much below the costs of production with resultant very serious effects on the position of the primary producer. While- prices would, no doubt, subsequently increase, the grower would, meantime, have suffered such heavy Jos* as to result in conditions of bankruptcy, lor many of the producers are now largely dependent upon this, industry.

“Under the pooling system provided for in the regulations, all the wheat, unless specially exempted from the operation of the regulations, mu'st be offered for purchase by the Wheat. Purchase Board. W heat which vs fair average quality milling wheat will be purchased by tli© hoard and re-sold either for gristing in New Zealand or for export. The price paid to the grower will he lower than that charged to tho mills to provide for the loss on export and the balance ol the funds in hand at the end of the year will be used to make- a final pro rata paymeufi’to growers whoso wheat has been dealt with by the Board. Wheat which, is not up to fair average quality milling standard will he rejected and as ‘free wheat’ may bo dealt, with in the ordinary course ol trade and disposed of as stock and poultry food. Wheat grown in the North Island will, on certain conditions, be excluded from the operations of the regulations.

“The Board’s operations in the matter of Diirchase and sale will bo carried out through the ordinary channels of trade and merchant brokers ivi’J be appointed as licensed agents on behalf of the Board at the usual brokerage remuneration. General control of rthe pool will be in. the hands of representatives of the two main industries directly concerned— the wheat growing and flour milling industries —with a chairman appointed by the Government. The Board, which will have its headquarters at Christchurch, will he appointed at an early date and twill no doubt take steps to inform the interested parties on matters of detail.”