THE WHEAT GLUT

Otago Daily Times, Issue 23706, 13 January 1939, Page 7

THE WHEAT GLUT

PROBLEM OF SURPLUS PROPOSALS FOR CONFERENCE DISCUSSIONS IN LONDON (United Press Association) (By Electric Telegraph—Copyright) LONDON, Jan. ,11. The political correspondent of the Australian Associated Press says it is now almost certain that the Wheat Committee will agree to recommending the world conference to consider specific proposals for solving the wheat glut. The proposals will probably be:— 1. Co-operation between exporting. and importing countries.

2. Any agreement should be for at least five years. 3. Normal expoi’ters should agree to a scale of minimum prices representing a substantial increase on the present prices, and to abolition of export subsidies, and an arrangement for sharing the estimated world demand on the basis of export quotas. Fourteen countries expressed themselves as being in favour of the general principle of the conference. The views of the others will be heard to-morrow. Australia, the United States, Hungary, and Germany support it almost without reservation, and the Soviet and India reserve the right to consult their Governments.

Poland and Holland expressed the opinion that the conference should deal with all types of grain.

The committee, on a recommendation from the Winnipeg Grain Dealers’ Association, discusssed industrial uses for wheat, but reached no decision, pending consideration of the proposal for a world conference. Poland stated that it had made considerable progress in the manufacture of petrol dope from wheat used to give aeroplanes additional power for taking-off from the ground. \ ““ ” " ' AUSTRALIAN ACREAGE REDUCTION ESSENTIAL LONDON, Jan. 11. The political correspondent of the Australian Associated Press says strong criticism was made of the Australian, Canadian, and the Argentine agricultural policies in the report of the Wheat Committee, the secretariat giving vital statistics of the international wheat situation. The report said:—“ The world stocks of old wheat in August, 1938, are estimated to be 1,194,000,000 bushels, approximately the same as the previous record high figure in 1934. The avoidance of a further increase in stocks rests on the hope that Australia, Canada, and the Argentine will at last realise that their 'present level of wheat acreage cannot be maintained for a considerable period. It would be better to make a co-ordinated substantial reduction than await compulsion from inevitable economic pressure, The world wheat acreage, excepting the Soviet and China, reached a record high level in 1938 for the third successive year—namely, 292,900,000 acres, which is 4.000. above 1937 and 20,000,000 above the 1932-6 average. While it is too soon to forecast the acres to be sown in 1939, it can be predicted with confidence that it will be very considerably below 1938. Large payments, above the open market price, were made by Australia, Canada, and the Argentine for 1938. The United States offered their wheatgrowers 185,000,000 dollars if they would reduce the 1939 wheat area by 26,000,000 acres. The official estimate of the area sown for 1939 is 46,200,000 acres, which is a reduction of 11,000,000 acres. It is assumed that the combined reduction in the winter and soring wheat will be about 16,000,000 acres. The cost of the total reduction is approximately 115.000. dollars. The world yield per acre in 1938 was estimated at 15.3 bushels, compared with 13.3 bushels in 1937. The world production in 1938 was estimated at the record high level of 4,480,000,000 bushels, which is 422,000,000 bushels above the previous record high level in 1928. The world 1938-39 net exports, including flour, is estimated at 560,000,000, compared with 547.000. in 1937-38. MARKETING PROBLEMS CONFERENCE IN CANADA OTTAWA, Jan. 11. •

The Government is calling a conference of all members representing wheat growing areas to discuss marketing problems. Under the Government-pegged price of 80 cents, Canada stands to lose heavily unless wheat prices advance within a few months. The conference will consider a proposal that next year’s price be based on acreage. Social credit members in the House of Commons will move a resolution that the pegged price be 90 cents.