HIGHER PRICES

New Zealand Herald, Volume LXXVI, Issue 23481, 19 October 1939, Page 13

HIGHER PRICES

OVERSEAS FERTILISERS MARKED RISE IN RATES HEAVIER COSTS TO FARMERS Higher prices for imported fertilisers probably will have to bo paid this year, because of the war and the new freight'rates. It is anticipated in Auckland that basic slag will cost about 50 per cent more than in 1938, and that a 35 per cent increase will be imposed on African phosphates. Farmers will, therefore, be faced with higher production costs, which may mean the decreased use of fertilisers, at least for the time being, and difficulty in maintaining and increasing production. Instead of paving £5 17s a ton for basic slag, as they did for the most part last year, farmers will have to pay about £B. Situation In Last War It was pointed out yesterday by a representative of the industry that a similar situation arose in the previous war. The price rose from £4 10s in 1914 to £7 10s in 1915, to £8 10s the following year, and soon after the war ended it soared to £l4. The position in 1939 was made worse, he said, with the 25 per cent exchange rate above sterling, which accentuated rises in oversea quotations. There was also the depreciation of sterling in relation to Belgian currency, since Belgium was the chief source of supply of basic slag for New Zealand, as well as increased shipping freights to about £2 a ton, and war risk insurances of £4 for every £IOO of value, which added 6s 3d a ton to the price. Negotiations with Shippors Negotiations with London shippers for more favourable terms were now nearly complete, he continued, and similar efforts had been made concerning supplies of phosphates and guano. Freight charges on phosphates from Tunis, North Africa, may bo almost doubled, and war risk insurance will be about £3 a £IOO. Existing freight offers meant that farmers would have to pay about £5 5s to £5 15s a ton, as against £4 5s in 1938, "although the position might improve if freight conditions permitted. In 1915 North African phosphates brought £7 a ton, and advanced to £l4 in 1920. Limited Sulphur Stocks Freight would be the determining element in raising the price of Seychelles guano by 10s to 12s a ton, with quotations generally ranging from £5 to £5 os, this man said. Last season the importation of basic slag aggrogated 32,000 tons, and African phosphates slightly less. Higher freight rates might have to be paid for shipments of Nauru rock phosphate, because the British Government had commandeered many ships engaged in the trade, and new charters might mean extra costs.

New Zealand fertiliser works were well stocked with reserves of rock phosphates, he concluded, but there were limited stocks of sulphur for the making of superphosphate. Most of the sulphur came from Texas, and it was difficult to find ships to bring it across the Pacific. Since the war began in September, two shipments intended for this country had been diverted.