WHEAT POSITION.

Otago Witness, Issue 3673, 5 August 1924, Page 14

WHEAT POSITION.

(From Ovs Own Correspondent.) WELLINGTON, July 31. When interviewed this afternoon regarding the press comment on his recent statement in the House that the Government proposed to ask Parliament to alter the flour duty from £2 10s to £3 a ten, the Hon. Mr Nosworthy (Minister of Agriculture*) reiterated his statement that the increase in flour duty would be sought for the reason that the Government desired to place this duty on a purity with wheat, approximately Is 3d per bushel, and above all to give every possible encouragement to the farmers to grow wheat in sufficient quantities to make New Zealand independent of outside supplies. It bad been shown, stated the Minister, that owing to the shortage of wheat from last harvest the Government hacl to provide on the current year’s Estimates the huge sum of £1,125,000 for wheat purchases overse\s. money which, in the Minister’s view, it would he better in the national interests to expend in the dominion. Mr Noswovtby pointed out that from the year 1838 the duty on wheat was 9rl per cental and flour Is per cental, and it remained at these rates with but one change in ISO 7, when foreign flour was called upon to pay an additional 22-5 d per cental. In the tariff legislation of 1921 the present wheat and flour duties Were imposed and gave effect to a promise he had made to farmers to afford greater protection to the wheat, growing industry, and to place Now Zea!a.nd on a.n equal footing with the duties ruling in the Commonwealth of Australia. In deciding .early this year to control •flour- and bread prices provided the farmers and millers agreed upon wheat prices the Government, in Mr Nosworthy’s opinion, acted in tho best interests of the people of the dominion. Lie drew attention to the fact that during the current month there had been dramatic increases in the world’s prices for wheat and flour, and recent cablegrams showed that wheat could not be purchased and landed in New Zealand after paying the necessary handling and shipping charges and duty under 8s 3d per ' bushel, as against the current price of 5s 9d per bushel at main ports in the South Island. Synchronously the price of flour had been increased in uncontrolled markets, and yesterday’s quotations from London showed that flour was being sold for £l7 per ton, and that in the commonwealth recent advices indicated that during the past few months flour had increased from £lO to £ls per ton. In the American markets wheat was quoted at approximately 6s per bushel, and in Australia supplies were practically unprocurable to-day at 6s Id. Mr Nosworthy added that early in the year he had made a personal appeal to farmers to grow wheat, and although the result of his appeal could not be stated v ; i any definiteness, he had information to show that the acreage already put in about eaualled that of last year—namely, 185,(XX) The sales of seed wheat for spring sowing were recorded as active, and he expressed the hope that at least 250,000 acres would be put down before the sowing season was over. To a large extent the farmers of the South Canterbury districts had been held up by the unseasonably drv weather experienced, but good rains had fallen within the past three weeks, and this, together with the fact that world’s prices looked so favourable, hacl resulted in larger areas being ploughed and prepared for sowing. ■ In the North Canterbury district the area being put under wheat crop was undoubtedly as large, if not larger, than that of last year. Summed up, the Minister stated that whilst some farmers were looking upon tho growing of wheat as a national duty, ether farmers considered it purely from the business standpoint. Judged even from this latter point of view. Mr Nosworthy was emphatic that the indications of prices the world over would act as a strong incentive to growers to put in wheat He repeated that after February 28 next the Govern rnent would exercise no control beyond the duties mentioned. The Government was prepared to cnrrv out its promise, and at the earliest possible opportunity he would ask Parliament to support him in imposing the additional 10s on flour. He expressed tho sincere hope that this encouragement would he given to farmers, and that during the remaining sowing months, August and September, a very large addition would be made to the acreage sown in wheat. THE DASRYINC INDUSTRY. HOLDING OF CHEESE PROVES DISASTROUS. HAWERA, July 29. Some interesting remarks on the marketing of dairy produce were made by Mr J. It. Corrigan, M.P., chairman at the annual meeting of the Kawera Dairy Company The feature of this season’s marketing, he said, had been the holding of cheese with the idea of feeling the market and steadying the price. This experiment, which had previously been successful when tried in a small way, proved disastrous this season as the market continued to fall. Buyers, being awaro of the quantities held, only bought their actual requirements. Finally, this cheese had to bo released, tho release in some cases being a necessity on account of the damage to the cheese allegedly through faulty storage. He understood that m South Taranaki only one factory had profited

by holding cheese, a few consignments having missed the 82-s market by being held a few weeks and released at about 925. Mast, of the holders of the cheese held their produce when the market was between 92s and IOOs. The directors of the dairy companies had had a trying time during the past year. Suppliers should not be unmindful of these difficulties when they were comparing results and be prompted to criticise harshly. In reply to a question regarding the high rate of exchange the chairman explained that the solution lav hr the hands of the Associated Banks. The companies had dons their best to induce the banks to reduce tho rate, but tihe combination was too strong to bo influenced. A question was asked whether it was the Dairy Control Board that held the cheese up in London with the result that it started to deteriorate. The chairman said that it was not the Control Board but certain directorates who wished to hold the consignments pending a rise in the price, thinking that the cheese was in a cool store when actually it was not. He added that th; Control Baird at present was investigating the whole question of marketing, and should soon be in a position to give sound advice.

taammmammt ESSSSSSS^SBSSSB&^B&BBSEB. Mr Corrigan disputed the idea that the Control Board and the Natioal Dairy Association overlapped. The former had taken over nothing except shipping from the National Dairy Association. The lattes was now chiefly a trade organisation.

CANTERBURY CRAIN AND PRODUCE MARKET. CHRISTCHURCH, August 1. The potato market has fluctuated extraordinarily during the past few days. At the beginning of the week sales were made as low as £5 2s 6d, f.0.b.,5.i. Yesterday, notwithstanding that Melbourne was easing, sales were made at £6, and in an exceptional case or two for small quantities at £6 ss. These prices were paid by oversellers, but the fact that such figures had been given indicates that very few potatoes are held in store, and that growers are still optimistic. Quotations are £4, on trucks, and are ahead of Melbourne parity. A feature of the whole position is that notwithstanding the paucity of Canterbury deliveries there is practically no evidence of growers, beyond one or two, coming on the market. There are a few oats in country. It ia reported that some farmers, tempted by

the high price, are threshing the few stacks intended for chaff, but in the aggregate that will not be much. The market is very firm, and B’s have been sold at as high as 5s 10d, f.0.b.,5,i., and at 6s 4d. Chaff is scarcely so firm, but there i 3 practically no change in values. From £6 15s to £7. on trucks, i 3 the quotation. The fine weather during the past week is doubtless responsible for the slacker tone Peas jumped up quite unaccountably one day, and 7 S a bushel, f.0.b.,5.i., was paid. The previous day, and the one after, top values were 6s 6d. This is the price to-day. Generally the seed market is very quiet, though firm. Cocksfoot has been selling freely at 12£d for standard seed. Practically all the crop is in merchants’ hands. Cowgrass has been ‘‘sick” all the season, and ryegra-S3 firm, although southern reports indicate that the stocks held there by merchants are ample.