HIGH WHEAT PRICES.

New Zealand Herald, Volume LXVII, Issue 20602, 28 June 1930, Page 14

HIGH WHEAT PRICES.

POULTRY INDUSTRY SUFFERS. POSITION OF PRODUCERS. EFFECT OF SLIDING DUTY. The high price of good wholo fowl wheat caused by tho New Zealand sliding scale duty on importations of wheat is having a detrimental effect upon tho poultry industry in tho Dominion. A number of poultrykeopers in tho Auckland Province, including owners of both small and large runs, have been forced on account of tho high values for wheat to give up their farms. The industry is not in a flourishing condition and on a recent official estimate tho cost of fowl wheat to produce a dozen eggs was Is 2d. Prices for eggs aro now decreasing and it is feared that when the values fall in September to about their lowest rato more poultrykeepers will be compelled to give up their farms. In November of last year tho average wholesale prico of eggs fell as low as Is 2d a dozen. Additions to Original Price. Under tho sliding scale system the rate of 5s 6d a bushel of 601b. of wheat, f.0.b., Australian ports, is taken as a basis. The corresponding duty is Is 3d a bushel, tho duty falling by £d for every £d by which the value rises and vice versa. Freight, primage duty, wharfage fees and other incidental expenses amount to Is a bushel, so that the wholesale price on the Auckland market is 7s 9d a bushel. The corresponding retail price to allow for a margin of profit is about 8s Id a busheL If tho current domestic value at the port of export were 4s 6d, under the sliding scale the duty would be 2s 3d, thus bringing tho retail prico to about 8s Id a bushel. Tho present wholesale price of New Zealand wheat in Auckland is 7s lOd a bushel, in singlo sack lots. Mr. A. M. Doull, of Turners and Growers, Limited, stated yesterday that owing to its high prico practically no Australian wheat was bought by poultrykeepers in New Zealand, but was used solely for milling. On tho other hand, New Zealand milling wheat, owing to its high price as compared with New Zealand fowl wheat, which was tho wheat rejected by millers' graders, was very rarely used in tho poultry industry. Good wholo New Zealand fowl wheat on prompt shipment cost 6s l£d a bushel, being landed at Auckland at 7s 3£d a bushel. With tho wharfago, and other charges tho wholesale prico was raised to 7s lOd a bushel. Tho July, August and September quotations for New Zealand wheat were 6s 3d a bushel, which would mean a wholesale rato of about 8s a bushel. Present indications pointed to a firming in the values. Wheat Sent to England.

Tho shipment of milling wheat through the South Island wheat pool to England last year, Mr. Doull said, had been unprofitable. If the f.o.b. price to Auckland had been reduced by 6d a bushel at the time of exporting, the growers, by sending the wheat to Auckland, would havo realised more. Tho freight from the South Island to Auckland was 20s 6d a ton, while the freight on last year's exports to England was on a basis of 24s to 25s a ton.

At tho present time, Mr. Doull stated, over five sacks of maize were being sold to every one of wheat. A bushel of 561b. of maize at the old retail prico of 6s 9d a bushel was cheaper than a bushel of 601b. of wheat at 7s lOd a bushel. Maize was now selling at 6s 3d a bushel.