WHEAT AND FLOUR.

Sun (Christchurch), Volume V, Issue 1276, 15 March 1918, Page 9

WHEAT AND FLOUR.

RESULT OF CONFERENCE. STATEMENT BY MINISTER. A detailed statement as to the negotiations with representatives of the millers by the Government and Board of Trade in connection with flour prices was made by the Hon. W. I). S. Mac Donald yesterday. He stated that Cabinet had continued the prices agreed on at the conference which were : Flour £ls 10/- a ton, pollard £7 10/-, and bran £5 10/-. Millers had asked for a speedy settlement of the position for at present they had made contracts for 000,000 bushels of wheat on the. basis of 5/lli per bushel. They j stated that they could not continue to purchase wheat if the question of milling prices was delayed. They asked for an increase of £1 2/0 on a ton of flour made up as follows; — £ s. a. Inei'easod cost of wheat .. .. 010 0 Increase in manufacturing, costs, railage, storage, etc 0 12 6 Total .. £1 2 G Mr Mac Donald added that he was satisfied that at the price stated the millers would not make undue profits. He was also assured by the Board of Trade than an increase in the price of bread in most towns would not be justified. In connection with wheat, the Dominion scheme of handling was working out satisfactorily. Farmers generally had expressed their satisfaction with the working of the scheme. The last consignment of the Australian purchase which had now arrived, was reported to be of the highest standard. In fact it was said to be the best milling wheat which had come to New Zealand, it would be distributed proportionally amongst millers, and used in connection with the local grain, which was of somewhat varying quality, and would no doubt improve the flour considerably. There would be an advance in the price of wheat for next season, and a differentiation in price for the various varieties. What this advance would be, he was not at present at liberty to state. THE WHEAT TROUBLES. Whilst at the Ashburton Agricultural and Pastoral Association’s show yesterday, the Hon. W. D. S. MacDonald, made a few remarks concerning the wheat position to the

committee. He stated that on the average yield of 28i bushels of wheat in Canterbury this season’s prices would be satisfactory, but this season’s average was only 22 bushels in many districts. The Government recognised the patriotism of the farmers in growing wheat, but the growers had had a bad time. He would place their position before the Prime Minister on his return to Wellington. There were many phases of the position which

would have to be considered. Mr J. Cow, on behalf of the farmers, said that they would do their best, but they could not grow at a loss. They only wanted fair play. Messrs Nosworthy, M.P., and W. J. Dickie, M.P., also spoke on the willingness of the fanners to cooperate.

THE FLOUR POSITION. A MUTUAL COMPROMISE. It is very apparent that in the negotiations with the Government and the millers’ representatives, both sides had to yield somewhat from their original stand. In all, the total increases from last year on the products affected are but the prices have been worked out on the average output of the three articles. From the millers’ viewpoint, the safest product to saddle the main increase on -was flour, for the consumption of bran and pollard is affected considerably by the price. It remains to be seen therefore how millers will come out of the transaction if the increases on bran and pollard result in a lessened consumption. In one respect the conference possibly did not go far enough. It might, with advantage, have fixed a quality standard for bran and pollard. The figures announced by the Minister on the increase in the cost of flour production, however, appear to be incorrect, and also, it is gathered, do not altogether coincide with statements made by the millers. For instance wheat last season, according to variety, ranged from 5/7 to 5/9, but in the quantities used of each in a ton of flour, the average cost would be 5/7 i. This season wheat costs the millers 5/IH—4d a bushel more than last season. Taking 48 bushels to the ton of flour (this being the quantity stated by millers at the conference) the increase in the cost of wheat this season would be Ifi/-, not 10/- as stated by the Minister. On top of this, experts claim that there is 2 per cent, more moisture in the grain this season, so that there is later a loss of C/- per ton. FLOUR PRICE DETAILS. The announcement regarding the price of flour does not quite cover the position. The correct figures, it is understood from private sources, are:—' 2001b bags, £ls 10/- per ton. 1001b bags, £lO 5/- per ton. i 501b bags, £IG 10/- per ton.

The price stated for bran, £5 10/per. ton, refers to shipping only, the local article selling at £5 15/-. It may be that later prices will be announced for by-products in connection with second handling, the present scale referring only to transactions from the miller to the merchant. It is certain that there will be hostile criticism from poultrymen, etc., over the increases in bran and pollard. Possibly, however, the matter could be somewhat remedied by a control of retail prices, as last season these soared to an extremely high level. In fact, pollard, which cost £(5 15/- a ton wholesale, was ( lately being charged to North Island , consumers at £l3 a ton. Here, to- . gether with bran, it was competed for at auction at enhanced values.