HIGHER PRICES EXPECTED

Southland Times, Issue 23953, 20 October 1939, Page 8

HIGHER PRICES EXPECTED

Fertilizers From Overseas

HEAVIER COSTS FOR FARMERS SIMILAR SITUATION IN LAST WAR (Special to The Times) AUCKLAND, October 17., Higher prices for imported fertilizers probably will have to be paid this year, because of the war and the new freight rates. It is expected in Auckland that basic slag will cost about 50 per cent more than in 1938, and that a 35 per cent, increase will be imposed on African phosphates. Farmers will, therefore, be faced with higher production costs, which may mean the decreased use of fertilizers, at least for the time being, and difficulty in maintaining and increasing production.

Instead of paying £5/17/- a ton for basic slag, as they did for the most part last year, farmers will have to pay about £B. It was pointed out by a representative of the industry that a similar situation arose in the previous war. The price rose from £4/10/- in 1914 to £7/10/- in 1915, to £B/10/- the following year, and soon after the war ended it soared to £l4.

The position in 1939 was made worse, he said, with the 25 per cent, exchange rate above sterling, which accentuated rises in overseas quotations. There was also the depreciation of sterling in relation to Belgian currency, since Belgium was the chief source of supply of basic slag for New Zealand, as well as increased shipping freights to about £2 a ton, and war risk insurance of £4 for every £lOO of value, which added 6/3 a ton to the price. NEGOTIATIONS WITH SHIPPERS Negotiations with London shippers for more favourable terms were now nearly complete, he continued, and similar efforts had been made concerning supplies of phosphates and guano. Freight charges on phosphates from Tunis, North Africa, may be almost doubled, and war risk insurance will be about £3 a £lOO. Existing freight offers meant that farmers would have to pay about £5/5/to £5/15/- a ton, as against £4/5/- in 1938, although the position might improve if freight conditions permitted. In 1915 North African phosphates brought £7 a ton, and advanced to £l4 in 1920. LIMITED SULPHUR STOCKS Freight would be the determining element in raising the price of Seychelles guano by 10/- to 12/- a ton, with quotations generally ranging from £5 to £5/5/-, this man said. Last season the importation of basic slag aggregated 32,000 tons, and African phosphates slightly less. Higher freight rates might have to be paid for shipments of Nauru rock phosphate, because the British Government had commandeered many ships engaged in the trade, and new charters might mean extra costs. I

New Zealand fertilizer works were well stocked with reserves of rock phosphates, he concluded, but there were limited stocks of sulphur for the making of superphosphate. Most of the sulphur came from Texas, and it was difficult to find ships to bring it across the Pacific. Since the war began in September, two shipments intended for this country had been diverted.