WHEAT FROM AUSTRALIA.

New Zealand Herald, Volume LV, Issue 16926, 12 August 1918, Page 4

WHEAT FROM AUSTRALIA.

SECOND PURCHASE MADE.

TWO MILLION BUSHELS.

SHIPPING SPACE ARRANGED.

A further purchase of 2,000,000 bushels of wheat in Australia was announced last evening by the Minister for Agriculture.

Mr. Mac Donald said the Government last month purchased 2,000,000 bushels from the Australian Government at 53 7Jd a bushel, delivery extending over 12 months, at the rate of 1,000,000 every six months. The Government had an option to purchase an additional 2,000,000 bushels on the same terms and conditions, and it has been decided to exercise it. The New Zealand Govrnment will provide the ship ping, the Australian Government delivering the wheat f.o.b. Special arrangements have been made for the shipment of the wheat to New Zealand without interfering with the carrying capacity of the present inter-colonial steamers. A shipment is already on the way from Australia, and the vessel will arrive at Auckland within the next fewdays. Practically all the wheat on this vessel will be for Auckland consumption. Referring to the wheat production of the Dominion, the Minister said the winter sowing was considerably less than last rear. The question of price was not altogether responsible for this. Farmers had been hampered by weather conditions; portions of Canterbury were very dry for a long period, and latterly snow and other difficulties had arisen. It was difficult to obtain any advance estimate of the spring sowing, but it was generally anticipated that it would be less than last year. Farmers had been unfortunate for the past three years in getting low yields, but if the average during the coming season was 28 or 50 bushels an acre this, with the addition of a million bushels from Australia half-yearly, would assure the supply 0 wheat for the Dominion s requirements, which were 600,000 bushels monthly for flour purposes "d 100,000 bushels for other uses. The outcome of the wheat-growing operations of next season would in his opinion, largely determine' the future of the Dominion so far as wheat production was concerned. If the farmers obtained what they considered a fair price and a guarantee for the following year, it was probable that a fairly large quantity would be grown, always provided that sufficient labour was available. Latterly the high price of meat and other produce had offered a considerable inducement to the fanner to go out of agriculture, but he considered that under fair conditions there would always be a fairlv large quantity of wheat grown in the Dominion. In regard to tho price to be paid' for the coming season's wheat, the Minister said the price already proposed-a minimum Of 6s 4d, with a free market—would be gazetted in a few days as the amount fixed. Farmers would, however, certainly be entitled to something over and above k t «: £ n offer of 7s had been ma de, but tho Government was not prepared to accept it. There was a difference in price of several pence, between . the different varieties of wheat, and some would probably be worth much more than 6s 4d a bushel. Tho question of price was one which rested to a great extent with the millers.

In regard to the arrangement for farmers to sell in a free market, Mr. MacDonald said he was not prepared to say whether the Government's and the farmers' ideas of a " free market" would coincide, but it was not the intention of the Government to prejudice a reasonable market price. Whatever was a fair market price over and above 63 4d, the Government would be prepared to pay the farmers.