CHEAPER FERTILISERS.

Taranaki Daily News, 18 August 1926, Page 11

CHEAPER FERTILISERS.

REDUCTION IN FREIGHTS. action by the government. 40 PER CENT. CONCESSION MADE, CO OPERATION OF MERCHANTS. By Telegraph-—Press Association. Wellington, Last Night. In the House of Representatives this afternoon the Prime Minister made the following statement on the subject of toeapeniug fertilisers to the farmers:— "The Government is convinced of the great possibilities existing for increased 'production of primary products in the Dominion by the further development of our farming methods. One of the most important factors in bringing about increased production lies in the great extension of the general use of phosphatic fertilisers, particularly in the form of the top-dressing of pastures. The instructional services given by departmental officers afford the farmers a means of obtaining advice and information on all phases of farm practice and much of the time of these officers is already occupied in the giving of advice in connection with the use of fertilisers, thus assisting towards obtaining the best results from the expenditure involved in their purchase, • The price which the farmer has to pav for his fertilisers paturally has a •Ueided bearing upon the extent to wliicn he will make use of them, and a good deal of unrest has existed regarding this question of selling prices, the farmers having considered that as regards fertilisers, and particularly those derived from Nauru and Ocean Islands, the ..rices charged to them were too. high. With a view to doing its share towards reducin'” the cost to the farmers, the question of the existing railway rates for the carriage of fertilisers has been examined by the Government, and a decision arrived at that these rates shad be materially reduced. Before bringing about this reduction, however, it is deemed desirable to confer with the vartout interests concerned in the manufacture. handling and sale of fertilisers with a view to obtaining a practical form of co-operation by further reductions on their part. RESULTS OF CONFERENCES. "Two conferences have been held at which representatives of the manufacturers, distributors, freezing companies and harbour boards were present, together with the 'Ministers and departmental officers. At these conferences the matter was discussed in its various aspects and following them there has been considerable correspondence with the interests concerned, including the shipping companies engaged in the coastal trade. Some result has been attained and each section of the trade has been able to express its views. Hence the position is clearer now than heretofore, and it is hoped in due course that further improvements which will be of benefit to the producers will come about. “As regards railway concession It Is anticipated that the cheaper rate at which the farmer will be able to secure fertilisers will result in a much increased use of them and a markedly greater output of primary produce for carriage on the railways, thus going a long way towards offsetting the reduced rates. “The manufacture and sale of superphosphates is now one of the most important factors in the fertiliser trade, and the manufacturers have agreed to supplement their reductions in prices made just recently by a further reduction of Is fid per ton. This present reduction of Is 6d per ton would no doubt have been greater but for the fact that the price of the raw materials for superphosphates manufacture was recently Increased by 4s per ton. This increase in the price of raw materials was unavoidable as regards rock phosphate, consequent upon the prolonged bad weather conditions at Nauru and Ocean Islands having prevented normal shipments and created a shortage which had to be Supplied at a higher cost from outside sources by the Phosphate Commission, which spread the increase over all supplies, thus establishing an assured stability. There has also been an increase in the price of sulphur. The freezing companies have agreed to reduce their prices pro rata to those of the manufacturers, a fact which is specially appreciated in view of their present position.

REDUCTIONS IN WHARF CHARGES. “The Wellington Harbour Board has made a induction of Is per ton in Its wharfage rates for material landed direct into railway trucks and the Auckland* Harbour Board has made a small reduction in its wharfage rates on sulphur, which is an essential in the manufacture of superphosphates. The Dunedin Harbour Board, it may be mentioned, made a considerable reduction last year. As regards the coastal shipping companies, they already have reduced the rate for fertilisers and Intimate that they are unable to do more. The distributors and manufacturers of mixed manures definitely expressed the opinion that they could make no reductions as regards their share of intermediate costs, but as regards any material for incorporation into mixed manures obtained at reduced prices from manufacturers, the reduction will be passed on to the consumers together with any saving effected by the reduced railway rates upon it. • "In "considering this aspect of the general question it must be borne In mind that the distributors' margins throughout the Dominion have recently been reduced, the reduction varying on a pro rata basis according to the arrangement previously existing. As the distribution, whether handling mixed manures, superphosphates or other fertilisers, has to carry the risk of bad debts, he needs a margin to cover this risk and it is proposed later to have further discussions with those concerned. The whole question of fettiliser prices to the farmers and its bearing upon the necessity for an increased output of primary products is one of national importance, whieh can well be discussed in good spirit from that standpoint.

"The reduction in railway rates, which will apply to al! fertilisers, will be one of 40 per cent, lor truck loads and 25 per cent, for lesser quantities over one ton, and it will come into force as from August 30. The cost of thia reduction will be borne in proportions of one-third by the Railway Department and twothirds by the Department of Agriculture. It may be added that the manufacturers and. other interest* concerned have given an assurance that all monetary benefits accruing from this reduction la

railway rates will be passed on to the producers. “In conclusion,” said Mr. Coates, “1 desire to express my thanks to those representatives of the various interests concerned who visited Wellington for the purpose of these discussions, and my appreciation of their frankness in furnishing information and their desire to co-operate with the Government jn tljls very important waiter.*