NEW SEASON'S WHEAT.

New Zealand Herald, Volume LX, Issue 18294, 10 January 1923, Page 8

NEW SEASON'S WHEAT.

FACTORS GOVERNING PRICE.

COST OF AUSTRALIAN ~FLOUR.

FREIGHT CHARGES AND DUTY

[BY TELEGRAPH.OWN CORRESPONDENT.) CHEISTCHUBCH. Tuesday. In view of the conferences of farmers that are being held in different centres of the province to discuss wheat prices, the following review of the position by a Christchurch grain, expert may interest growers:"ln the first place," said the. expert, ; "it is well to remember that the New Zealand Government last year increased the protective, tariff on flour from £1 a ton to £2 10s a ton, and on wheat from 9d a cental to 2s a cental. This was done to ensure the farmers her© getting a reasonable price for their wheat, and to' induce them to continue to grow at least sufficient for home requirements. It would".not be advisable for ' either farmers or millers to ask for any further protection. "The point now is, how much can the farmers get for their wheat? Th© value of Australian wheat on the London market to-day "is about 52s per quarter c.i.f London. This should make the value of New-Zealand wheat (best quality) about bOs per quarter c.i.f. London. Fifty shillings per quarter is the equivalent of 4s 6d per bushel f.o.b. Lyttelton, sacks in, or 4s per bushel on trucks, country stations', sacks extra. , Price Obtainable Locally.

"This is the export position, but, -as perhaps there may not be a large surplus for export, the farmers are more concerned with the price to be obtained locally from millers. The import value of flour now has to be considered because the miller cannot pay more than this equivalent as otherwise buyers of flour would import from Australia, and the New Zealand millers and the New Zealand farmers Would be without a market for their goods. Flour is being quoted by Melbourne for export to New Zealand at £11 per ton, f.0.b., Melbourne. The cost of landing this flour in the North Island from Australia is £11 per ton, f.o.b. Melbourne, plus £1 17s 6d; freight from Melbourne to Wellington, £2 10s for duty, 2s for insurance, and 2s for exchange; total, £15 lis 6d. To quote flour on a level with this, the New Zealand price must not exceed £14 10s per ton, f.0.b., South Island ports. Possibly then, -heat may fetch about 4sj6d on trucks for local manufacture into flour or about 6d per bushel more than tho export value. Import Value WIT Ruler.

"There was some talk of a wheat pool some little time ago, but whether a pool is formed or prices are fixed by the farmers the same . conditions ..ruling the value will obtain. The farmer can find his best market in New Zealand, but it will be impossible to get more than the import value of flour allows. One of the reasons why flour is comparatively cheap in Australia is that pollard and bran on the other side are quoted at considerably higher prices than those ruling in New Zealand." '' .' ■ Since the above was written, the grain expert stated that lower quotations for flour had been received from Australia. However, he had stated the case sufficiently fully to indicate to growers the lines on which they should be guided when discussing the new season's prices.