PRICE OF WHEAT.

Sun (Christchurch), Volume III, Issue 896, 23 December 1916, Page 15

PRICE OF WHEAT.

RESULT OF CONFERENCE. -•PROBABLE FIGURE ,5/- PER BUSHEL. SURPLUS IN AUSTRALIA. [Special to The Gun.l WELLINGTON, December 22. The report of the Board of Trade upon the subject of wheat, flour and bread prices is not yet available for publication, but there are indications that it wiil be fairly drastic in iis recommendations to the Government. The impression has got abroad that the Government is going to pay farmers 0/3 per bushel for their wheal. This was the price mentioned by the wheat-growers who attended the recent conference in Chrislchurch, but, as a matter of fact, there is no likelihood at all of

the Government's paying farmers so. high a price. The conference was held in order that the Minister of Agriculture and the members of the Board of Trade might discuss the position with the wheat-growers, and the resolutions adopted by the delegates present had no binding force.

Since the wheat-growers' conference, the members of the Board have met the millers and bakers in conference at Christchurch, and they have made a general survey of the conditions affecting the prices of wheal, flour and bread. They have heard the views of the three parties, and they are ready now to make a report covering the whole, field.

The board, it is safe to say, will have in mind the interests of a certain party not represented at the conference —that is the consumers. The recommendations made to the Government are expected to include (he fixing of prices for wheat, flour and bread for the period of the war, and one season afterwards. There are indications that the price to be paid (he farmers by. the Government for their wheat will not exceed 5/- per bushel. The evidence placed before the Board showed that !/- a bushel was regarded by the farmers as a profitable price in normal times, and the extra shilling is expected to cover any increased costs due to the war. The payment of a higher price than 5/- is made, unlikely by the reports from Australia-, where there is going to be a huge exportable surplus of Wheat for; the new season, at a time When the Imperial Government is still engaged in' moving last year's surplus, acquired 1 for consumption in the United Kingdom. If estimates arc realised, Australia will have 125,000,000 bushels of wheat for export when the present season's crop is threshed. If the farmer is paid 5/-iper bushel for his wheat, the price of flour will probably be fixed at; Eft, per ton. Then the price of bread, according to the information placed before the Board, could be fixed at 7d for the -Jib loaf over the counter, or Bkl delivered. The cost of delivery is stated by the bakers to amount to about Hd per loaf, and it is likely that most people would continue to take the loaves at their doors, even if the additional charge were defined in the manner indicated; but the fixing of a lower price for bread sold over the counter Would assist the poorer section of the community without involving the baker in loss.