PRICE OF WHEAT.

Lyttelton Times, Volume CXVII, Issue 17877, 24 August 1918, Page 7

PRICE OF WHEAT.

TO THE SDITOB. Sir.—The public often ask tho reason for the disparity of prices between Australian and New Zealand wheat. It is easily explained. Australia is protected with a Customs tariff more than double the Dominion one, obviously to protect the grower under normal conditions from the dumping of Indian and American wbeat, as the world's wheat calendar shows a harvest tor every month of the year, and it is conclusive that protection was necessary, which the war has since revealed. The Australian Governments, especially the New South Wales one. offered exceptionally easy terms to prospective wheatgrowers, land at 17s 6d per acre, supplied the seed wheat to be paid for on liarvesting, and otherwise encouraged the industry in every conceivable manner, and the labour employed was infinitesimal to New Zealand's system. For instance, the Australian wheat lands are simply scarified, and when the crop is ready it is stripped, and the grain lost in this process creates a second growth, thereby saving an immense quantity of seed wheat, and the straw does the manuring. With Australia's dry climate very little storage is required, and its railages are much lower than New Zealand's. With ample efficient labour advantage has been taken of these conditions to make it one of the granaries of the world since 1916. It had a severe drought and crops a failure during 1914 and 1915, and imported wheat soared to 7s 6d and 8s 6d a bushel, and American flour was transferred from Eastern ports to Australia. It is apparent Australia is not a country for NewZealand to rely upon fdr its food supply. Our New Zealand wheatgrowers under pre-war conditions were continually harangued by Free Traders at every sitting of Parliament to remove the paltry protection on wheat and flour, and some who Were not in the business furnished figures to show that the wheatgrower should be a philanthropist and take the risk of elements and markets to ensure cheapness. The result was that a large number of wheaitgrowers ceased, to avoid disaster, and went in for sheep raising',', and it takes quite twelve months at the least to change one's mode of farming, and there must be pecuniary inducement to do so. This opportunity gave the Free Traders scope to show their mettle, but there was no response, the same as in dear old England. I remember many years ago in Canterbury wheat was sold as low as 2s Id per bushel f.0.b., through the absence of ample protection, while Austvnlia was getting over 3s per bushel. What was the result? Wheatgrowers and a number of their' backers collapsed, find it was only the frozen mutton and wool industries that rallied Canterbury. In America to-day wheat is 8s fid per bushel owing to the heavy drain on its supplies by our Allies and England, and is not rfiort of efficient labour the same as New Zealand. Ample protection is just as essential as the nljen poll tax to ' prevent wages hev r brought down to the Asiatic level, as we may bo forgotten for a time, and we are now experiencing this as' repn wis shipping and requirements. New Zealand should make itself self-sup-porting, as outside markets are as tricky as the .weather, and how will they "be after the war with an empty world wis regards stocks, with a keen demand for everything, as well as, money? - Australia's average 13 to 15 bushels. New Zealand's average yield per acre is 25 to 26 bushels. I am, eta, >••■'■'■ P< VIRTUE.