COST OF FERTILISERS.

Hawera Star, Volume XLVI, 19 August 1926, Page 8

COST OF FERTILISERS.

RED COTTONS ANNOUNCED. (BY TELEGRAPH —PRESS ASSOCIATION.) WELLINGTON, Aug. 17. Ini the House of Representatives, this afternoon the Prime Minister made a' statement on the subject of cheapening fertilisers, in the course of -which he .said :

The Government is convinced; of the great possibilities existing for increased production of primary products' in the Dominion by the further development of our farming methods. One of the most important factors in bringing about increased production lies in the great extension of the general use of nhosphatie fertilisers, particularly in the form of top-dressing of pastures. The pi’ico which the farmer has. to pay for his fertilisers .naturally has a decided bearing upon the extent to which he will make use of them, and a good deal of unrest has existed regarding this, question of .selling prices, the farmers having considered that- as regards fertilisers', and particularly those derived from Nauru and Ocean Islands, the prices charged to them were, too high. With a view toi doing its share towards reducing the cost to the farmers, tire question of the existing railway rates for the carriage' of fertilisers has been examined by the Government, and a decision arrived at that these rates shall be materially reduced. Before bringing about, this reduction, however, it. is deemed desirable to confer with' the various interests concerned in the manufacture, handling and sale of fertilisers' with a view to obtaining a practical form; of co-operation by further reductions on their part. Two conferences have be'en l held at which representatives of the manufacturers, distributors, freezing companies andl harbour boards were present, together with the Ministers and, departmental officers. The position' is clearer now than heretofore, and it is hoped in due course that further improvements which will he of benefit to. the producers will come about. As regards' railway concession it is anticipated that the cheaper rate at which the farmer will he able to : secure fertilisers' will result in a! mu-cli increased us'e of them and a markedly greater output of primary produce l for carriage on* the railways, thus going, a long way towards offsetting the reduced rates. The manufacture arid sale of superphosphates is now one of the most important factors in the fertiliser trade, and the manufacturers have agreed l to supplement their reductions ini prices made just recently by a further reduction of Is 6cl per ton. Thi.s present reduction of Is' Gd per ton would' no doubt have been greater hut for the fact that the price of the raw materials for superphosphates manufacture was recently increased' by 4s per ton. This increase in the price of raw materials was unavoidable as regards rock phosphate, consequent upon the prolonged bad weather condition's, a-t Nauru and Ocean Islands having prevented normal shipments and created a. shortage which had' to be .supplied at a higher cost from outside, sources by the Phosphate: Commission, which spread the increase over tall supplies, thus establishing an assured stability. There lias also been an increase in the price of sulphur. The freezing companies have agreed to reduce their prices pro rata, to those of the manufacturers, a. fact which is specially appreciated in view of their present position. • The Wellington Harbour Board- has made, a reduction of is per ton in its wharfage rates for material landed direct into railway trucks, and the Auckland Harbour Board has made a small reduction in its wharfage rates on sulphur, which is an essential in the manufacture of superphosphates. The distributors and manufacturers of mixed manures, definitely expressed the. opinion that they could make no reduction as regards their .share of intermediate costs, hut as regards any materail for incorporation into mixed manures' obtained at reduced 1 . prices from manufacturers the reduction will he passed on to the consumers, together with nuy saving effected by the reduced railway rates upon ft. I’he reduction ini railway rates, whic-h will apply to all fertilisers, .will he> one of If) per cent for truck loads and' 25 per cent for lesser quantites over one ton. and it will come into force as from August 30. The cost of this reduction will be borne in proportions of one-third .by the Railway Department and two-thirds by' the Department of Agriculture. It! may he added that the manufacturers . and other interests Concerned have given an assurance, that, rill monetary benefits 1 accruing from the reduction, in raliway rates will be passed on to the producers.. “In conclusion,” said Air. Coates. “J desire to express' my thanks to those representatives of the various interests concerned who visited Wellington for the imr,nose of these discussions, and my appreciation of their frankness in furnishing information and their desire to co-operate with t-hev Goyermpent in this very important mritter.’ v ■