WHEAT PRICES.

Timaru Herald, Volume XCVIII, 8 May 1925, Page 9

WHEAT PRICES.

Millers and Growers Confer

I ■ "• AGREEMENT reached.

By Telegraph—Pres* Association. ASHBURTON, May 7. The; question of the. future prices 'of wheat was discussed at a conference to-day between representatives of the wheat-growers of Canterbury and North ■ Otago, and the millers. The conference called to discuss a proposal made by millers to the Dominion executive of tho Farmers’ Union, that under the protection of an embargo on flour, the millers would guarantee a p - ee of probably riot less, than/6s per bushel. Mr John Brown, president of the -MidCanterbury executive of the Union, Was voted to the chair. , • The Meeting confirmed the action of a. deputation at the recent meeting With the Minister of Agriculture in [Wellington. Mr Corson, president of the Millers Association, said the Government should be requested to set up a board with a legal status, so that its actions would be binding. The Board should comprise representatives pf the wheatgrowers, flourmillers, grain merchants, poultry farmers, and the Government. Asked if the embargo ;; would he Veiniposed, Mr Corson replied that it Would riot be re-imposed this year, but he did not know what -would happen ! in future years. They were aiming at “the stabilising of prices of wheat and broad; ’ If' wheat. was worth 60s in England they would know to a penny •what it cost to put it there. thought: the. defining of prices should be the-function of a Board. . :v A motion by Mr Mulholl.and on the lines of Mr Corson’s suggestion was carried unanimously. ."i it Was proposed that should any agreement with the millers be reached, 'the period' should be thrw X ears ;, an amendment waa moved th,at it be voted for the amendment; "fend the motion was carried practically ■“TpSS' on the question of price, •Mr Collins, of the Department of Commerce, detailed the attitude of the Minister. As Wheat Controller, Tie came into close contact with ■Wheat growers, and many nad exptessea satisfaction with the position ■ ns it stood, and were prepared to accept whatever prices for wheat th*. market, could fetch. On to ' da y a Australian .prices wheat of good ■ milling quality could not be sold at a profit within New Zealand under -about 8/6 p'ef bushel, sacks in. In regard- to flour, however, the positibn. was not so safe, in that low ■ fob. quotations are frequently re--1 ceived, enabling flour to cc sold ex store at from £l9 to £l9/10/- per ton in the North Island, ° r ® c |^ al approximately £lB and £lB/10/- in tho south. However, as long as flour could be obtained from local millers or at about the parity at which flour 'could be .imported, it was safe to assume that preference would be given to domestic flour, because of the facility with which it could be suppiled in tho precise quantities reciuired by bakers and other large consumers. Delegates should exercise the greatest moderation in approaching the Government for further assistance. ' Mr Meek (North Otago) moved that lhe millers should consider the ' present wheat as the minimum for the period already agreed to. Mr Forester fOamaru) seconded this. ' ~ After luncheon, Mr Corson said the millers had discussed prices, and they had come to the conclusion that the highest they could give was 6/-. Even at this figure they were running a grave financial risk. This Was not Die imported price. The price had been looked at in the light of the average, and it was f.o.b. Mr Ireland, another miller, endorsed these statements. For the first year the guarantee was all right, . but after that the miller would be faced with a big loss if there came a surplus of, say, four million bushels, which could not be carried over. Mr Mulholland said the price offered was with the full increase of the world’s parity calculated on the miller’s basis. , v Mr Ireland said the quality of flqm- depended on its regularity; by blending they could give a regular quality. If they could get the right proportion of Hunters, Tuscan anu Pearl, they would not take a bag of Australian wheat. Every time Victor was blended the quality of flour dropped. The chairman asked if the meeting coulct prove 6/- was not a fair price over costs. Mr Ireland replied that the millers had fixed on that price on the assumption that farmers could grow it. Mr G. Sheat: Well, you are asking an impossibility. The chairman said the Minister had said the growers would have to try to grow 82 million busbelß. The speaker considered growers would not reach that figure unless they got the price. Mr Lill: What would happen if millers were asked to give fes ud toi Australian wheat? , Mr Corson: The mills would close down. . ' At this stage the millers retired to consider the position. Mr P It. Talbot (Timaru) said South Canterbury thought 6s 6d f.o.b

a fair proposition. If 7s was asked the Government would not consider the matter. Mr Sinclair (Waumate) agreed with this. The millers' offer was under the cost of production. Talk of a surplus was a bogey, but if there was a surplus the prico would drop . 6d a bushel. Farmers wanted a price sufficient to make them grow enough wheat for ail requirements. Mr Leadley moved an amendment that the prices asked for should be Tuscan 6s 6d, Hunters 6s Bd, and Velvet or Pearl 6s lOd on trucks at country stations. Ho said that gavo one penny a bushel more than present prices. Mr Meek said there was Id difference in favour of Mid-Canterbury only. The chairman: Are you going to accept the 6s offered. Voices: “No! We have no intention of doing so.” The amendment was carried by 15 to 13. In view of tho narrow margin it was decided to delete tho amendment, and the motion was carried. . The millers then returned, and were informed of the motion being carried. On the question of a surplus being raised, Mr Corson said the millers would not worry about dealing with the surplus. Regarding tho prices asked, ho s,nid bran and pollard were very high, and they could not undertake to supply flour if theose prices ruled. _ They could be placed before the millers’ annual meeting next month. If farmers could convince the Government of tho higher cost of production and enter into a scheme at the prices asked, the millers would stand by it. If the Government was willing to give even 10s tho millers would give it. A committee of four, was appointed to discuss the matter with the millers, and tho conference adjourned for a while. Tho chairman later informed the Press that an agreement satisfactory to all parties had been reached, but no details would bo available until ratified by tbe Minister.