POTATO GLUT

New Zealand Herald, Volume LXXV, Issue 23129, 30 August 1938, Page 12

POTATO GLUT

VERY CHEAP PRICES SUPPLIES MAY BE DUMPED SMALL RELIEF BY EXPORT In spito of continued assurances by the Government that a markot would bo found for tho surplus potato crop the position has now become so serious that growers may soon have to choose between dumping tho potatoes at sea and leaving them in tho ground to rot. Although tho full effect of tho glut has not yet been felt in Auckland prices for South Island potatoes have dropped by 25s a ton in the last fortnight, and considerably lower levels are expected.

"Unless the Government has something up its sleovo tho position is hopeloss," said a grain and produce merchant yesterday. "Growers in the South aro very bittei' about tho promises from tho Government and tho majority aro very sorry that they did not accept tho rates ruling some weeks ago. They were buoyed up with falso hopes, only to find tho market collapse, and now thoy are faced with tho problem of disposing of a large surplus." Hopes Not Fulfilled When announcing that tho Government had arranged to buy and ship overseas some of tho surplus the Minister of Marketing, the lion. W. Nash, said ho hoped that the withdrawal of these supplies from the local markot would mean that growers would be ablo to dispose of tneir crops at an economic price. Although the surplus is estimated at about 9000 tons, in the opinion of merchants only about GOO or 700 tons will bo exported. The Government was understood to have arranged to ship 2000 tons of potatoes from Lyttelton to South America at tho end of this month, but it is understood that only about 600 tons will be sent. Very small shipments also have gone to Singapore. Merchants state that recently they wero offered potatoes at £3 10s a ton from Lyttelton, which was the lowest price for over 15 years, but even at this figure they would havo shown a loss when landed in Auckland. Tho present price is about £5 5s a ton, ex store, but one merchant said ho would not bo surprised if potatoes could be bought fcr £2 a ton from tho wharf in a few weeks. The New Crop

Now potatoes from Pukekoho will be available in the middle of October. Supplies in Auckland at present have not seriously accumulated, but as the regular weekly shipments from the South are arriving to a stagnant market, a glut is expected in a few weeks. The Waiaiia is due to-day with from 5000 to 6000 sacks. Merchants state that unless some unforeseen export eventuates there will be plenty of cheap potatoes in Auckland in a few weeks.