PRICE OF FLOUR

Southland Times, Issue 19837, 7 April 1926, Page 14

PRICE OF FLOUR

COMPARISON WITH AUSTRALIA. In the controversy that has occurred over the wheat question mention has often been made of the fact that the Australian miller apparently can produce flour much cheaper than can the New Zealand miller. From this it has been argued that the New Zealand miller could give the grower more for his wheat, continue to sell flour at the present price, and still make a good profit. However, according to a miller who was interviewed by a Lyttelton Times reporter, the New Zealand millers are producing flour practically as cheaply as the Australian millers, whilst in each case the profits are about the same. He said that the latest number of the Australasian stated that the price of flour charged by the Victorian Mill Owners’ Association was £l3 15s a ton, cash on delivery, for a minimum quantity of 50 bags. The Australian miller paid 6s lAd a bushel for his wheat, whilst the New Zealand miller paid, on an average, 6s 94d, or 8d a bushel more. This meant that the New Zealand miller had to pay £1 12s a ton more for the wheat necessary to make a ton of flour than the Australian miller. In Australia wheat was sold “sacks in,” whilst in New Zealand it was sold “sacks extra.” This meant an addition of £1 3s- 9d on the wheat necessary to make a ton of flour. In Australia, if millers did not receive cash on delivery for their flour and had to book it, they charged another 7s 6d a ton. In New Zealand practically all flour was booked and the purchaser was given 2A per cent, discount provided the flour w-as paid for within about fifty days. For interest on the money for fifty days 2s 6d a ton could be allowed. In his opinion, therefore, the following had to be added to the price of Australian flour before comparing it with the price of New Zealand:—Difference between the price of Australian and New Zealand wheat at 8d a bushel, £1 12s; allowance for sacks, £1 3s 9d; extra charge for Australian fltur if booked, 7s 6d; 2| per cent, discount allowed by the New Zealand millers even if the flour is booked, 9s; interest for the fifty days allowed in New Zealand for payment, 2s 6d. This was a total of £3 14s 9d and when added to £l3 15s it made the price of Australian flour £l7 9s 9d as compared with £lB, the price of New Zealand flour. Another point that had to be remembered was that the Australian mills were generally larger than those in New Zealand and consequently their overhead charges were proportionately less.