WHEAT GROWERS CONFER AGAIN.

Star (Christchurch), Issue 18349, 29 December 1927, Page 12

WHEAT GROWERS CONFER AGAIN.

SYSTEM OF POOLING NEEDED, THEY ARGUE,

Necessity for the establishment of a poojing scheme for the marketing of wheat was affirmed unanimously by a representative meeting of Canterbury and North Otago wheat growers, held in Ashburton yesterday. The motion approving of a pool followed on a recommendation of the Wheat Committee set up at the former conference. Th© committee reported upon-its efforts to stabilise the wheat market, to the conference, which was attended by about 150 farmers. . It was pointed out that time would not permit of a wheat pool .being brought into operation to -deal with the coming season’s harvest, but the scheme would be ready for the 1928-29 harvest. In the meantime, a committee will advise farmers regarding the marketing of the incoming harvest.

On the motion of Mr J. D. Hall, president of the North Canterbury branch of the Farmers’ Union, the following decision was reached:—“That Agricultural and Pastoral Associations and branches of the Farmers’ Union be asked to convene meetings in their districts to explain the working of a wheat pool and to* ascertain the number of growers willing to support the scheme.'’ •

The conference appointed the following provincial committee to arrange for marketing the coming harvest and to report upon details for the institution o'f a wheat pool:—North Canterbury: Messrs J. D. Hall (Hororata) and W. -W. Mulholland (Darfield); Mid-Can terbtiry: Messrs John Brown

(Lowcliffe) and James (Methven); South Canterbury: Messrs P. R. Talbot and W. A. Sinclair; North Otago: Messrs R. B. Meek and G. A. Ruddenklau. Messrs W. Machin (Christchurch) and G. W. Leadley (Ashburton) declined nomination.

A motion by Mr D. Jones, M.P., that stock and station agents in the districts affected be' requested to appoint a committee to meet the growers’ committee to consider proposals for the incoming harvest, was carried almost unanimously.

Besides Mr Jones, other members of Parliament present were Messrs T. D. Burnett (Temuka) and J. Bitehener (Waitaki). The conference was held in the Masonic Hall, Ashburton, and the deliberations occupied about four hours, after which a of the Provisional Committee, of which Mr Mulholland was appointed chairman pro tem, was held. The president of the Mid Canterbury branch of the Farmers’ Union (Mr IT. C. B. Withell) presided at .the conference.

There would be little trouble in financing the pool, it was stated. A levy of £2 on each grower was mentioned. When a grower complained that such a charge would bear Upon small growers harder than upon big, Mr J. D. Hall, a member of the Wheat Committee, stated that the pool would benefit the small man the most.

The Wheat Committee which was elected twelve months ago automatically ended its existence with the holding of the conference, in spite of a counter proposal from Mr J. O. Coop (Little River). The new committee will confer with representatives of stock and station agents. Four proposals, from which the conference selected the pooling scheme as ultimately the most favourable, were before the me'eting, as follow:—(1) A wheat pool. (2) a pledge from growers not to sell below an agreement price, (3) an arrangement with stock and station agents by which farmers could hold their wheat in store if necessary, and (4) a request to the Railway Department to erect wheat stores at country sidings. In support of the fourth suggestion it was stated that stores would ease the pressure on rolling stock just after harvest, and would mean a uniform business for the Department for most of the year. t COMMITTEE’S REPORT. Tn presenting the Wheat Committee s report, the chairman of the cojnmittee, Mr W. Machin, who convened the conference, stated that the report would be divided into three sections—the work of the committee, suggestions for the future, and the question whether the committee should continue to function. At the end of the .report, he would ask for five minutes for discussion in committee on a subject too intimate for publicity. The committee had been faced last year with the prospect of a very large crop in New Zealand. It was impressed with the menace of Australian flour, and it was a just argument that Australian flour would be dumped into the country. The committee urged the institution of dumping duties, and, though the Government responded, it was found that the move would not meet the position. The Government did not respond to the request for an embargo on Australian wheat and flour. The committee's next move was for an adequate duty, and the Prime Minister, after attending large meetings in Canterbury, promised a further £1 on the £3 duty on flour. It was soon realised, continued Mr Machin, that the duty would not protect the grower, and, if the price went up, it would adversely affect the man in the street. /

“GROWERS’ MAGNA CHARTA.” The speaker stated that he had in his possession a Government confidential document which gave the basis of an entire agreemet imong the Wheat Committee, the Government and members of Cabinet and others. The agreement was the growers’ Magna Charta and gave a fair price for f.o.b. South Island ports. The Government had informed the committee in October that a sliding scale would be instituted, with flour at £ls 15s. 'The committee had come away from the Wellington conference almost entirely satisfied. The only matter which * was left more Or less to chance was the conversion price of wheat into flour. This was a matter for conference with the millers, but the majority of • the latter, according to a letter from Distributors, Ltd., were unwilling to discuss the matter. A less uncompromising attitude, however, had been adopted more secentljr by Distributors, who agreed

to a conference. It was in regard to this that the present conference had been called. ANNUAL FALL IN PRICES. The large offering of wheat straight, after harvest each year was the cause of the annual sagging of prices, as millers were offered more wheat than they wanted at that particular time. There, had been the spectacle last year of prices falling-gradually from 5s 9d to 5s a bushel. During the comman.deer growers-were given an increase of three-farthings a bushel per month for interest and storage charges. It was hoped that the ring fence which the Government had placed round wheat would be sufficient if reinstituted. The committee had failed in moving for this, but the speaker was not pessimistic. He put . forward the following suggestions for the future:— (1) A marketing scjjeme for the pooling of wheat. • (2) A pledge from growers td adhere to a common price. (3) Enlist help of large stock and station agents so that farmers could hold their wheat if necessary. " ONE-SELLER. ONE PRICE. Dealing with the first suggestion. Mr Machin said that the marketing scheme, which made farmers as one seller with one price, was a success in Canada and Australia. The trouble would be to get unanimity among growers, but this scheme was probably the most business-like. The second suggestion required a pledge from growers, but the speaker did not think that, considering the elastic organisation, it would be dependable. Some farmers would give way to the temptation to sell when they saw the market falling. The third suggestion appeared to be a very practicable one, as the stock and station agents who controlled a great deal of the wheat, seemed generally agreeable to help those of their clients who wished to hold over their-wheat. WHAT OF A SURPLUS? . *' The agreement with the Government,” concluded Mr Machin, “ will be valuable only when New Zealand has not enough wheat. Something will have’ to be done when there is a surplus, for the effect will be to bring the price down to world parity. By imposition of duties the Government had lifted wheat-growers high above the parity of any country in the world. “ There is no need to ‘ get the wind up’ about the 1,790.000 bushels of wheat which the Government calculates will be carried over till next harvest. This amount will easily be absorbed in the four month's before the new season’s stuff is on the market.”

Urged to elaborate upon the marketing scheme, Mr Machin said that there were alternate courses —an elastic or a rigid system. It might be better to have an elastic scheme for the coming season. For this system a committee would decide the weekly parity for wheat, and farmers 1 would have to pledge themselves to be loyal to the committee.

REPORT ADOPTED. Mr J. D. Hall, president of the North Canterbury executive of the Farmers’ Union, and a member of the Wheat Committee, said that farmers bad had from the Government as much assistance as they deserved, and should notexpect any more. They should help themselves. After urging that action be taken to establish a pool, Mr Hall moved the adoption of the report. The motion was seconded by Mr J. O. Coop, and was carried unanimously. “We should look at the matter from the point of view of benefit for the grower, rather than from that of blackguarding the millers,” urged Mr C. P. Agar, a member of the Wheat Committee as representative of commercial interests. SYSTEM IN CANADA. Mr Hall said that the Canadian pool had raised the price of wheat in that dominion by Is a bushel. In Alberta farmers had signed a five-years’ agreement, and had renewed such. Cooperative marketing was the life of America, and hurt no one but speculators. There were about 6000 growers in the province represented at the conference, and it was suggested that the levy be £2 for each grower. High praise for the work of the Wheat Committee was expressed by Messrs J. Brown (Lowcliffe) and A. W. Barnett (Morven, Waimate), and a vote ©f thanks to the committee was carried. , Mr H. G. Parrish (Oxford) moved that a committee be formed as a Wheat Pool Board,, and that wheatgrowers in Canterbury and North Otago be canvassed for support. M.P.’S SPEAK. *‘We are just bordering on harvest time,” said Mr D. Jones, M.P., “and we should resolve on a scheme which can be put into operation almost straight away. The first consideration is to carry the wheat-growers with you. I recommend that a committee be set up consisting of men elected from the wheat growers in the separate districts of North, Mid, and South Canterbury, and North Otago. This committee can co-operate with representatives of the stock and station agents, thresh out details of a marketing scheme for the harvest after next, and in the meantime instruct farmers as to prices for the coming harvest. T recommend this on behalf also of Mr T. D. Burnett, M.P., and Mr J. Bitchener, M.P., who. along with me, have been in constant touch with the negotiations.”

Mr Burnett agreed with Mr Jones. He said that, knowing the pS3‘chology of the wheat growers, they would have to be led steadily along the path towards co-operative marketing. Mr Bitehener said that the suggestion would be a sound steppingstone. The market was glutted after harvest, not by the .small grower, but by the big man who could well hold his wheat. The speaker paid a high compliment to the work of the Wheat Committee.

Election of a provisional committee that afternoon was advocated by Mr G. W. Leadley (Ashburton), who traced the steps, taken for the formation and financing of the original Wheat Board.

“I have to thank Mr Machin and his committee upon saving me a considerable amount on my wheat crop,” stated Mr C. A. Fvfe (Lauriston). “Also, the Meat Board, saved me money on my lamb. The 2d a bushel is neither here nor there, so let us get down to business right now.”

Mr J. Carr (Methven) urged that the pooling scheme should be for a period of five years.

A motion-by Mr Hall that the conference believed that the establishment of a co-operative marketing organisation was essential in the interests of wheat-growers, was carried unanimously- .