PRICE FOR FERTILISERS

Poverty Bay Herald, Volume LXIV, Issue 19372, 9 July 1937, Page 5

PRICE FOR FERTILISERS

FIXED DOMINION RATES EXPIRY OF AGREEMENT NEW TERMS AWAITED (Special to the Herald.) DUNEDIN, this clay. ' The price to be paid by farmers for fertlisers during the 1937-1938 season is at the moment in the melting pot. Last year's agreement on the subject of fertiliser prices between the manufacturers and the Government expired on June 30 and so far nothing has been done in the way of fixing the rate for the coming season.

Local manufacturers and distributors are still completely in the dark with respect to the probable price that will be declared, but they do not anticipate an increase on last year's rates. The cost of fertilisers to the farmers is determined each year after discussions in which the Government representatives and the manufacturing interests take part. The foundation of the discussion is the 1932 rate which is regarded as a basic price.

Reaching Basic Price

The cost of raw materials, phosphates and sulphur and wages in the manufacturing industry are considered in relation to the basic price, and a figure is finally decided upon to operate for the whole season.

Last year the agreement provided for a price of £3 16s per ton in the North Island and £4 2s in the South Island. The disparity between the rates for the two islands arises from the difference in the methods of delivery and selling,

South Island merchants and distributors are allowed an additional 5s a ton in consideration of free delivery points which they recognise in various parts of Otago and Southland. Delivery at these points is free to the farmer, but is paid for by the distributors. In addition a higher merchant's commission is recognised in the south and this adds further to the cost of the superphosphate. Asked by a reporter at what figure deliveries were being made at the present time a representative of a local distributing organisation said that all business was being done at last year's price. Such transactions would stand, no matter what price might be arranged in the new agreement, provided, of course, that the Government did not make the agreement retrospective to July 1. No indication had yet been given by the Government as to when it proposed entering into negotiations with the manufacturers to fix the rates for the new season.