FLOUR MILLING INDUSTRY

Nelson Evening Mail, Volume LXI, 28 June 1926, Page 3

FLOUR MILLING INDUSTRY

A SERIOUS POSITION CANTERBURY MILLS MAY CLOSE I (By Telegraph.—Special to The Mail.) OnftISTCUURCH, Juno 26. The position that has arisen in regard i,i ih,. Ilnur ipilling industry in Canterbury is undoubtedly a serious one, and one without precedent in the history of the trade (says to-night’s Star). Unless something unforeseen happens it

is probable that every mill in the province will bo closed down soon. Stocks of wheat are getting done, and millers do not know wherc-go buy further supplies, at least at a price that they urc prepared to pay. Growers are app-»real-ly still expecting 7s a bushel on ‘.rucks at country station for their wheat, whilst the price that millers aie offering is 6s 8d f.o.b. The difference between the two prices is übmt 7s a bush'd. It is a difference, and one that is not likely to be bridged unless each side is prepared to make a concession. If the millers could get the wheat that is still held a Lk- country it would help to keep their mills gon.g for a certain time, but it. i.~ dcnniful

whether the quantity of available wheat is as large as it is thought in some importing wheat seems to be out of the question. With the duty included it takes about 8s 8d a bushel to land Australian wheat in New Zealand, and Canterbury millers cannit afford to pay ■this price and sell flour at LlB a ton. This season wheat has been imported from Australia by a flour mill in Auckland, but Auckland flour millers charge 30f» a ton more for their flour, and also more for their bran and pollard, the difference representing the cost, ut ttansporting 'wheat or wheat, products from Canterbury to Auckland. .Even at the higher price, the Auckland company, it. is stated, are not able to grind flour from Australian wheat a a profit, and their main reason for importing wheat is to keep their mill going. In the case of the Canterbury millers the loss on flour ground from Australian wheat, would be greater, in fact, it would be so great, as to be unwarranted even for

tiio purpose of keeping the mills going. Some lime ago there was talk of importing wheat from Canada at a lower price than Australian wheat, but as far as can bo learnt not a great deal has come of this. Referring to the position, a, Christchurch miller said to-dav that the public would not be affected much, j us they wouhlkstjll be able to get their flour and bread at the same price. It I was a serious matter, however, from the point of view of the millers and their employees. There was little doubt that unless something unforeseen happened every mill in Canterbury would be affected. He could not remember anything like this happening in the trade before. If the mills were closed men who have been in their employ for years would have to be dismissed, and this was a bad time of the year to bp out of work. J If anyone could show the millers how tljgy could get at a price which would enable them to sell the (lour and other products so that tiiey could pay expenses they would gladly welcome the propositon r J hey would not mind even it they could get wheat at a price which would not entail too great a loss, but they could not afford to keep their mills running at a- big loss. Probably some of the millers would be prepared to grind wheat on behalf of farmers. What Hie millers were chiefly concerned with was iioyv to keep their mills running, iiicy did not, desire to blame anyone tor the position that had arisen. It had arisen, and they .would have to try to find the best solution of the difficulty they could..

AUCKLAND COMMENT

(United Press Association.)

AUCKLAND, This Day. Commenting on the Canterbury flour ■milling- position, Mr Pratt, manager of the Northern Roller Milling Company, said only half the crop had been harvested in New Zealand, and growers considered that they were entitled to as high n price as possible for it. The only remedy was remission of the duty on Australian wheat to enable New Zealand millers to grind and market flour at a price that could compete with Australian flour. The Minister of Agriculture has been asked to remit the duty, or some of it, on wheat, but so far without result. The millers could not pay the prices asked by local growers for their wheat and even if they did the local supply was only sufficient for about a month.