International Wheat Agreement

Otago Daily Times, Issue 26748, 17 April 1948, Page 4

International Wheat Agreement

of the international wheat agreement have come from the Prime Minister of Australia, Mr Chifley. He says that the agreement provides for a range of prices, in Australian currency, from Us 6d to 12s a bushel in the first year to a minimum of 6s to 6s 6d in the last year of the five-year agreement which will operate from August 1 next. All the prices are on the basis of “ in store, Fort William, Canada,” which means that the Australian prices will vary according to freight charges and whether sales are to near or far countries. The total quantities covered in the agreement were 500.000,000 bushels a year, of which Australia’s share would be 85,000,000 bushels, tb.e other participating exporters being Canada (230,000,000 bushels) and the United States of America (185,000,000 bushels). Russia and tl*e Argentine, both exporting countries, are not parties to the agreement; the 36 countries which arc parties to it comprise 33 which import and three exporters. Australia’s 1947-48 crop approximates 200,000,000 bushels, of which the exportable surplus is estimated at 144,000,000 bushels. Under contracts made before the agreement was proposed, Australia agreed to supply Britain with 80,000,000 bushels at 17s a bushel, India with 25,000,000 bushels, and New Zealand with 4.500,000 bushels at 6s 4d. Wheat and flour have been sold to other countries at prices ranging around £1 (Australia) a bushel. An official of the Australian Wheat Board has stated that possibly half the wheat for Britain and India would be shipped before August 1 next and x paid for at the contract price, but that the rest would be affected by the new agreement. The New Zealand Minister of Industries and Commerce, Mr Nordmeyer. has stated however, that under the agreement New Zealand guarantees to purchase 5,511,000 bushels a year. He added that the agree-/ ment did not affect contract prices entered into before March 1,1947, and that the revised contract price for New Zealand's imports of 4.500,000 bushels a year form Australia would not be affected.