POTATO SURPLUS

Otago Daily Times, Issue 23591, 30 August 1938, Page 12

POTATO SURPLUS

MARKET COLLAPSE LACK OF EXPORT TRADE GOVERNMENT’S ASSURANCE HOPES NOT REALISED (Special to Daily Times) AUCKLAND, Aug, 29. In spite of the continued assurances by the Government that a market would be found for the surplus potato crop, the position has now become so serious that growers may soon have to choose between dumping potatoes at sea and leaving them in the ground to rot. Although the full effect of the 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 sleeve, the position is hopeless,’ - said a grain and produce merchant. “Growers in the south are very bitter about the promises from the Government. Instead of placing their faith in them, the majority are very sorry that they did not accept the rates ruling some weeks ago. They were buoyed up with false hopes only to find the market collapse, and now they are faced with the problem of disposing of the large surplus.” Announcement Recalled When announcing that the Government had arranged to buy and ship overseas some of the surplus, the Minister of Marketing (Mr Nash) said he hoped that the withdrawal of these supplies from the local market would mean that the growers would be able to dispose of their crops at an economic price. Although the surplus is estimated at about 9000 tons, in the opinion of merchants only about 600 or 700 tons will be exported. The Government was understood to have arranged to ship 2000 tons of potatoes from Lyttelton to South America at the end of this month, but it is understood that only about 600 tons will be shipped. Very small shipments also have gone to Singapore. Merchants state that recently they were 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 have shown a loss when the potatoes were landed in Auckland. The present price is about £5 5s a ton. ex store, but one merchant said he would not be surprised if potatoes could be bought for £2 a ton from the wharf in a few weeks. Stagnant Market New potatoes from Pukekohe will be available in the middle of October. Supplies in Auckland at present have not seriously accumulated, but as regular weekly shipments from the south are arriving on a stagnant market a glut is expected in a few weeks. The Waiana is due to-morrow with a shipment of 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.