ADJUSTING SUPPLY TO DEMAND

Timaru Herald, Volume CXXXVII, Issue 19571, 18 August 1933, Page 9

ADJUSTING SUPPLY TO DEMAND

GRAVE PROBLEM FACES WHEAT INDUSTRY FORECAST OF DECISION OF WORLD CONFERENCE British Official Wireless (Received August 17, 5.5 p.m.) RUGBY, August 16. At the World Wheat Conference, opening in London in August, it is expected that importing countries will be asked to agree not to increase wheat prices, and endeavour to encourage the consumation of wheat, and not to create any artificial barriers against wheat or engage in tariff wars; not to seek alternative uses for wheat, and to encourage consistent buying throughout. In return, exporting countries are understood to be willing to agree to a two-year programme to adjust the supply to the demand, involving a 15 per cent, reduction of crops. Forecast of Proposals. Apropos of the new Wheat Conference, “The Daily Telegraph” understands that the terms of the provisional agreement between America, Australia and Argentine include a reduction of output by 15 per cent, and adjustment of exports to an effective demand in 1933-4, the Danublan exporting countries to restrict their combined exports to 54,000,000 bushels in 1933-4, and 50,000,000 bushels in 1934-5.