MARKETING OF WHEAT

Timaru Herald, Volume CXXXVII, Issue 19567, 14 August 1933, Page 8

MARKETING OF WHEAT

NEXT SEASON’S CROP GROWERS DISCUSS THE QUESTION Thirty-five wheat growers from all parts of the Waimate district assembled in the A. and P. Society’s rooms on Saturday afternoon to hear an address by Mr Alan Grant, dealing with the past operations of the Wheat Marketing Board, and also giving details of the proposal to form a new organisation for the future control of the marketing of wheat. Mr W. Lindsay, who was voted to the chair, emphasised the necessity for wheat growers to organise for protection. especially in view of the determined efforts of the North Island merchants to abolish the present duties, which would make for a serious position which those in the wheat industry should, under existing circumstances exert every effort to avoid. Mr Grant then gave an address closely following along the lines of those previously given in South Canterbury, and stated that when the seriousness of the position in regard to this season's crop became apparent to the members of the Board, its members interviewed the Prime Minister in Wellington, and the Cabinet was assembled to discuss the position. That the ministry viewed the position with equal seriousness could be ascertained from the significant fact that within three days of the meeting, the Wheat Marketing Regulations were put into operation. At the beginning of the year the wheat yield was considerably under-estimated, as statistics proved that there were nearly 300,000 acres in wheat yielding an average of 37X0 bushels an acre, and a surplus of 2,000,000 bushels.

In working out the problem, the Board had charged millers 4/7 a bushel, which was equal to 3/4 to the farmer. Up to the present about 1,000,000 bushels had been sold for the overseas market, and regarding the sale's, the speaker could say that the Board had been most fortunate in selling on the first occasion with an advantage of a sharp rise, and that the last sale had been made just prior to a substantial drop.

On questions being invited, Mr P. McNeill said that his chief complaint at the Farmers’ Union meeting was in regard to grading, and this had been ably put by the Press, and had been discussed at other meetings. So far as red varieties of wheat were concerned, there was a decided hold-up, and the position seemed inexplicable. He had a sample weighing 621 b to the bushel with a baking score of 34, which was rejected and for which 3/- a bushel was offered. He could quote many other similar instances, as practically none of these varieties of wheat in his district had been passed as milling quality. There were a lot rf aspects they should go into if it were proposed to form a new board. Personally, he did not think the millers should be allowed into the scheme its they could not be buyers and sellers too. The farmers should concentrate on selling, and any difficulty which arose afterwards should be the funeral of the miller. Another grievance was in regard to sacks, on which farmers were called upon to lose far too much.

Mr J. Simmons said that he had made a sale of 252 bags of wheat to go to Ireland. Out of this total, the Government grader took 48 bags, and the speaker was told that the test showed 16 per cent, of moisture, and he would consequently have to lose 21b a sack on the lot. His wheat had reached Ireland all right, but he had experienced delay in receiving payment Some of the wheat sold in February had not yet been paid for. He would suggest that they throw the Wheat Board out altogether, let the speculator buy their wheat, take what was given, and say nothing. They would find themselves better off. The chairman said that the discussion was at present confined to last season's operations regarding the marketing of wheat. Mr McNeill then said that there was still further ground for complaint in his district. This was in regard to Webb’s Harvester and Goldberry wheat. These crops appeared a good sample, one district output of these varieties reaching as high as 57 bushels an acre, but the whole of the district output of these varieties was classed and sold as fowl wheat.

Mr Grant said that these certainly had been' difficulties in regard to the marketing of the strains mentioned. He would reply to Mr Simmons' attack on the Wheat Board and tell him that if there had been no organisation last year, growers would have had to accept the export parity of 2- a bushel for the crop.

Mr Simmons: Quite right. Let them take 2/-, but do not Interfere when the price goes up to 10/- a

bushel. Let supply and demand rule the market. Mr Grant replied that thousands ol farmers would have been ruined were they forced to accept 2/- a bushel for their wheat. Mr Simmons suggested that in that event the creditors of the farmer would be in the position of being unable to get blood out of a stone. Mr H. Hayman enquired if Mr Grant could give them any idea of what the final payment on last season’s crop would be. Mr Grant replied that there were many factors governing the position, but as near as could be gauged, the payment would amount to about 5d a bushel. Mr E. Stokes enquired if they could expect any payment before the final payment. Mr Grant replied in the negative and stated that about the end of January it was anticipated that the present Board's activities would cease. Next Season’s Crop. Proceeding to the proposals for the marketing of next season's crop put forward by the present Board, Mr Grant gave details of the formation ;.f a body on a company basis, details rf which appeared in last Tuesday’s "Herald” in his address at Temuka. Opinions and questions on the matter were then invited, the chairman stating that the four district representatives would shortly have to proceed to a conference in Christchurch, and would like a definite mandate from the local wheat growers. Mr Simmons: Well, I say. give these farmers their money back and get rid of the Board altogether. Mr McNeill said that he must oppose Mr Simmons, and would suggest that they should keep the money in hand for the formation of a new organisation, leaving the millers out. Mr M. Mcßae stated that the whole of the present trouble had arisen through some free growers not Joining up with "the original Wheat PooL (Hear, hear.) Mr J. C. Hay said that he thought it would be better to leave the past out of the discussion altogether and look to the future. In the past they . had been largely dependent on the

goodwill of the Government and the millers, and this position could not go on indefinitely. In reply to Mr Armstrong. Mr Grant said that all growers would in future come under one heading. There would l\ no such thing as free growers and pool growers as in the past. Mr J. Fox said that he understood that the only stable organisation in wheat selling was the original Wheat Pool, and he was given to understand , that the millers fully recognised this. In reply to Mr Simmons, Mr Grant sta,j£d - that f.o.b. charges had been adhered to by the Wheat Board last season as being the simplest method >f estimation. Mr Lindsay then said that as one of the district representatives on the Electoral Committee, he would like an expression of the opinion of the meeting to put before the forthcoming conference, and he would submit the motion proposed by Mr McNeill and seconded by Mr Hay:—"That this meeting considers it desirable to form an organisation for the marketing of wheat in the interests of growers.” The motion was carried by 30 votes to five.