THE PRICE OF FLOUR.

Timaru Herald, Volume LXXXIII, Issue 12907, 22 February 1906, Page 3

THE PRICE OF FLOUR.

A 10s DROP. Owing to the drop in Australian prices, the New Zealand Flour-millers' Association have decided on an all-round reduction of 10s per ton in the price of flour. The tariff will now be as follows:—Sacks, £9 per ton; 100's, £9 10s; 50's, £9 15s; 25's, £10; shipping price. £B. 10s per ton (f.0.b.). : The- rjiqiour to the effect that, in' consequence of this drop, theJßakers' Associa- : tioir are/ going to speedily consider the advisability of a reduction in the price of bread, is, we (Dunedin "Star") are informed, -without foundation. A year or two ago this Association decided to fix the bread price at 6d a loaf on a £9 flour tariff. Some months ago flour went up to £9 10s. but the price of bread remained the same. The bakers therefore hold that now flour has dropped 10s thev will only be working at tariff Tates if" they keep '■ bread at 6d: It is •estimated that it takes about 27s or 50s difference in flour to alter bread a half-penny, and so it is contended that a 10s fluctuation does not justify any change in bread prices. The flom-millers say that at present prices they must lose money. It is estimated that it takes about' 48 bushels of New Zealand wheat, at 3s 6d. landed in Dunedin. to make a ton of flour. The market price of offal just about pays for manufacture, so that the cost of *a ton of flour to the miller is about £8 Bs. When 2 2 per cent, to the Association and 2£ commission is added, it is clear that there is not much margin left. But the millers say that to keep their hold on the market they mast sell at the prices decided on. A representative miller supplies, some I figures in support of his explanation of the position. \ He says that, wheat is sold sacks in. In New Zealand Jsacks are extra, and their present, price is 6£d. Flour is exported from Australia on a basis of net cash; local millers pay 2£ per cent. t» the Association. Offal in Australia, fetches about 15s a ton more than it dees here. These things added together give Australia an advantage of £1 5s 2d over New Zealand to start with. Most of the New Zealand mills are in the South Island, and the freight to the North is just about as much as the freight from Australia to New Zealand. The duty that the Australian shippers have to pay is £l. which still leaves the Australian | an advantage of about 5s over the New Zealander. Besides that, a ton of flour .may be made from 44 or 45 bushels ofAustralian wheat, as against the 48 bushels that are required of the New Zealand prices. must be xegokted by those of Australia,- • • • " ' •--"*"-■ The chairman of the Master Bakers' Association of Timara gave us the same in-

formation yesterday as was given to the Dunedin " Star," viz., that as bread was not raised in price when flour went up 10s a ton, it canuot- be reduced now because ilour has come down 10s per ton.