POSSIBLE FUTURE MARKET

Timaru Herald, Volume CXLII, Issue 20465, 9 July 1936, Page 13

POSSIBLE FUTURE MARKET

DOMINION OATS FOR HOMELAND INQUIRY IN TIMARU I For some time past English merchants have been inquiring as to the possibility of securing good New Zealand white oats to replace the Chilean trade, but while as yet business has not been done, the possible future outlet is considered to be worthy of cultivation. A Umaru firm has reecived a letter from a London operator, as follows: “The more we consider the matter of New Zealand oats, the more unfortunate we think It is that New Zealand no longer sends us the remarkably fine oats that came from there regularly years ago. When it is realised that the duty on foreign oats is 3/- a cwt., and that no other colony produces fine oats, there seems a remarkable opportunity awaiting your farmers In this direction." In a further letter the firm states that under present conditions the prices indicated In New Zealand (3/1 a bushel f.o.bs.L) were too high for the English market, but at any time they might get a bad crop at Home, and in such circumstances fine oats would essentially make a very high price. In recent years Canadian oats had not been very satisfactory and Chilean oats, of which England at one time sold considerable quantities, were now subject to 3/- per cwt., duty. The horse traffic in London was falling every year and the consumption of oats was correspondingly decreasing. At the same time the use of oats for feeding stock, and more particularly for human food, had increased considerably. “The duty on oats into the United Kingdom is 9/- a quarter, and If in consequence of this, New Zealand cannot grow and send oats and obtain a remunerative figure, we shall be very surprised." Prices Not Attractive In reply the Timaru firm explained that New Zealand still grew the good Oarton oats it used to, but not In such large quantities. If, however, New Zealand farmers could be sure of a payable price from England, they would, no doubt, grow more. In recent years prices In England had not been at aU attractive to New Zealand growers. A representative of "The Timaru Herald” was told yesterday that although this season there was a shortage of bright heavy oats, the fact that a duty had been placed on foreign oats might make the United Kingdom a good outlet for quality Gartons in years when there was a surplus.