WHEAT POOLS

Hawera Star, Volume XLVI, 14 April 1926, Page 5

WHEAT POOLS

CANADIAN SYSTEM. / v METHOD EXPLAINED. PROTECTION FOR FARMERS. (By Telegraph—Special to the Star.) WELLINGTON, April 13. Efforts are to be made by the Canadian farmers’ wheat pool organisations to bring into line the wheat pools of three Australian States, and a, delegation from Canada will shortly -'visit Australia with that object in view. This information wps' gained from Mr J. M. McDonald, chairman of'the South Australian Wheat- Pool, who isrpassing through Wellington on his return from attending, in a representative capacity a conference of Canadian and American wheat- pools a.t St. Paul! “There are pools in West and South Australia -and in New South Wales,” explained Mr McDonald to your, correspondent, “but they have been slipping and they are losing ground. Take.this year as an example. , A - ’ - - HOW WE FAILED. “The Canadian and American harvest comes on the > market two- months before the Australian crop. They regulate their offerings and the market, goes up. Australian farmers under/these condiitons; instead 1 of pooling their wheat, took -the higli.-price immediately. Our weakness is, that we hdve a voluntary pool with no contract; on the other hand, the Canadian system is that farmers’ contract, to deliver all wheat to the pool for five years, and there is absolute control by the, pools in three provinces of 200 million bushels of wheat; the total exportable of Canadian crops being'34o to 350 million bushels.' “How is the marketing controlled?” Mr McDonald was asked. _He replied that the 5 growers elect district representatives, who in turn appoint a central selling board, so that there is only one seller of Canadian wheat. ’ “'And is the price,-regulated by cost of production?” lie was -asked. “No. They do not discuss a minimum, but they have the best , world knowledge of the visible supply, and they fix a fail- price and meet the' market. Under the old system everybody sold at once, which depressed the market. Under this they regulate sup-, plies according to requirements, and immediately wheat is delivered from the farmer he gets a certificate which enables him to Tais-e an advance from his bank. This season the preliminary advance was one dollar per bushel.. I like the Canadians for their attitude; they are not out to corner the market, though they do- not want, anyone- to depress it. Someone has to hold the wheat. The speculator who buys at the lowest price quits as soon as possible, but the buyer has to hold per- \ haps for three or six months. Under the' Canadian wheat pool system the wheat pools do the holding. Canadians intended to send a delegationv.to Australia to meet the Wheat. Control Board and growers with the object of securing stabilisation of the' market. They showed great interest,', too, in New Zealand, ,not so much because of the wheat crop, but- owing to the, competition of your butter with the Canadian product. ” The present situation .. regarding wheat prices was briefly explained to Mr McDonald, who was asked to give his opinion as to what, under the circumstances, would be a fair price for the New. Zealand grown crop. •• “The import joarity; Everybody else gets it.” he replied. “If’you have protection then the price is’ what it costs to get wheat from outside past the tariff.”