THE WHEAT QUESTION

Manawatu Times, Volume XLIX, Issue 3308, 30 March 1926, Page 5

THE WHEAT QUESTION

COMPETITIOX FROM AUSTRALIA THE PRICE OF FLOUR At a meeting of the executive of the North Canterbury branch of the New Zealand Farmers’ Union held last Wednesday, a motion was carried urging farmers to hold cut for 7s a bushel for their wheat, the opinion being expressed that the millers could quite well afford to pay this. Referring to this, a merchant who was interviewed recently by a representative of the “Lyttelton Times,” said that he did not think that the millers would pay more for wheat than they were paying at present .namely, 6s Sd, Gs lOd and 7s a bushel according to variety. The millers stated that this was the most that they could pay and he thought that they know more about the matter than the Farmers’ Union. Personally it did not matter to him what the price of wheat was, but he had advised his clinets to sell at present prices. These prices were above world’s parity, making New Zealand wheat the dearest in the world. However, it was not the price at which Australian wheat could be landed in New Zealand that concerned the miller, but the price of Australian flour. Australian flour had captured the North Island trade, and this was not to be wondered at, seeing that it could be, landed there cheaper than flour from the South Island. At the present time Australian flour was being quoted at £l2 10s a ton f.o.b. Melbourne. To this has to be added fl 10s for freight. £3 duty, 3s primage and 2s for insurance and other charges, making a total of £l7 5s a ton, the price at which Australian flour could be landed in ttie North Island. On the other hand, the price of New Zealand flour was £lB a ton. This was subject to a trade discount of 2J per cent., making the actual price £l7 11s; but to this had to be added about £1 10s for freight and other charges in transporting the flour to the North Island so that South Island flour would cost £l9 Is to land there aganst the Australian of £l7 ss. In view of this he did not see how- the millers could be expected to give more for wheat than they wore already giving.