BARLEY FOR BEER

New Zealand Times, Volume LII, Issue 12096, 25 March 1925, Page 2

BARLEY FOR BEER

MARLBOROUGH GROWERS. NEGOTIATIONS WITH BREWERS. The members of the Blenheim branch of the Farmers’ Union were undoubtedly pleased with the facts conveyed in a report submitted to the last meeting regarding the conference which was held between representatives of Marlborough, barley-growers and New Zealand Breweries, Ltd., in Wellington, with reference to the terms of the barley contracts. Although the representations made by the growers through the union have not so far been productive of offers of higher prices, .wliat is considered a greater gain is the fact that certain allegedlyobnoxious clauses in the contract notes have been deleted or else modified. Mr W. Smith, chairman of the branch, who, with Mr F. S. Bames, of the Seddon branch, waited upon New Zealand Breweries, Ltd., said the brewers refused to grant all that was asked for, but they granted certain concessions which was a gain. Nothing definite was promised in regard to price, but the speaker thought there was a chance of the farmers obtaining an increase of 6d or Is on the os nowbeing offered. They could certainly not expect more than 6s. The company had been very fair, and had taken the deputation fully into its confidence, showing its balance-sheets for the past year. They showed that the gross profit last year was over £300,000, and the Government taxation over £200,000, leaving less than £IOO,OOO to ha distributed to shareholders. Last year they paid- a dividend of 8 per cent., which was Ices than usual, and they claimed that, any increase in price would definitely reduce the amount of net profit. If they gave 6s 6d a bushel it would be a direct reduction of the profits by £30,000, and at that price it would not be possible to carry on business. In connection with the clause debarring the grower from growing any barley other . than what he grows on contract for Breweries, Ltd., the company had conceded the union’s point by saying that they would take the whole of the barley grown by a man, but if he wished to grow more than they could take ho would be permitted to plant free barley, but it would have to be a different variety to the contract crop.