MAIZE MARKET

Bay of Plenty Beacon, Volume 4, Issue 174, 31 October 1941, Page 5

MAIZE MARKET

POSITION CLARIFIED

VISIT OF MARKETING OFFICIALS

CRIBS WILL BE CLEARED

Mr Ruiklick stated that there had been some doubts in the minds oJ •".■maize growers on account of the ■ maize crop not being absorbed into the market immediately. It was fully realised from the very start that a natural result of raising a 12 months supply of maize, for Dominion requirements would be that t it would take 12 months to sell the crop which in turn meant carrying portion of the crop in cribs and now all that producers require is an . assurance from the Government that that growers will be compensated for storage and shrinkage and that the maize will be cleared from, thf cribs in time to accommodate the new season's crop. Market Assured It was made clear by the Marketing Department's officers that it was • confidently anticipated that the whole of the past year's crop would go into consumption through normal channels during the year ending 30th June next, but that should any surplus still remain in farmer's hands at the end of that period, the Government would implement their undertaking to take over any unmarketed balance at the price fixed. In order to enable farmers'to cover costs of holding their maize in crib until such time as the market !s able to absorb it, the basic price •of 6s 3d per bushel for December delivery, will be increased by an •additional Id per bushel during January and February and a further Id per bushel for delivery March •onwards. Sales up' to Average Maize sales were reported as be. ing well up to the average in most districts and it is anticipated that .sales from the Eastern Bay of Plenty area will show a substantial improvement as supplies from districts in closer vicinity of consuming centres become exhausted. Mr Honey field said that he felt that growers could rely on the wholehearted co-operation of the Internal Marketing Division in smoothing out any difficulties that may arise from time to time, and appealed to maize growers to exercise •patience in the marketing of their maize and said that when growers were in urgent need of finance the Government guarantee of price should enable them to< obtain ready assistance from their merchants or ibankers where necessary. Same Area Wanted With regard to coming season's -crop, the Internal Marketing Division officers said that the Government guarantee of prices for next season already announced w r ould operate in the same manner, and they ■were of the opinion that in order to ensure a yield sufficient to meet "New Zealand requirements, an area equal to that grown last year should lie planted this season. A matter of considerable importance mentioned was in connection with sacks used by growers for mar-. Tieting their maize, and it was reported that some growers were offering maize in superphosphate sacks. These are quite unsuitable for the purpose and it was emphasised that all maize should be packed in good sound second-hand Hour •or size grain sacks, conUiio(o • not more tllan 2001 bs. Better in Cribs It was further explained that the reason for the sales being slower in the Whakatane district was due to' the fact that merchants were not j storing the maize, but buying "hand: to mouth." They justified this by claiming that at this time of the i year the product was better in the' cribs and not so liable to loss by. mould and w T eevil. Thus it followed that Tauranga and Gisborne hud the | advantage of proximity to the con-,' sumer and sold at a penny less by! reason of cheaper freights. I Surplus Needed ! 'Regarding the surplus of 27,000 sacks which estimates of production ! and consumption indicated would result, Mr Honey/iold claimed that this would be necessary, as it would be foolish to sell right out. There Avould be no imports next year as,

necessary in past seasons.

Reply to Criticism

Not Satisfactory

Clear Before May

Mr R. Ruddick, Chairman of the Eastern Bay of Plenty Primary Production Council, said on Wednesday that the position in connection with the past year's maize crop had been considerably clarified as a result of a visit to Tauranga and Whakatane of Messrs A. H. Honeyfield and R. G. C. Ffitch, Officers of the Internal MarketingDivision, who had discussed the miatter fully with growers and merchants concerned and had assured girowers that cribs would be cleared when the new season's crop was ready for plucking.

Mr Flitch rose to reply to criticism Avhich had been made regarding the Government having imported maize from South Africa. The importation had been made to supplement last year's short supply and had been done at the requjest of the Central Primary Production Councils The Council had urged for an importation of 2000 tons, but the Government had obtained only 1000 tons in view of shipping difficulties and high prices.

The grain had arrived late, however, shipping difficulties again being responsible ,and had reached New Zealand in May. There had been no intention to clash with this j-ear's New Zealand crop.

Adding toi this statement Mr Honeyfield explained that old maize had been needed for crushing and at that time the local crops'*would have been unsuitable.

In reply to a question it was stated that there were now no stocks of imported maize in the Dominion and no need to import. All that was necessary now was to use marketing Intelligence and keep the quality right.

Mr H. C. McCrcady stated he was far from convinced of what lie had been told, and claimed that

many producers were losing 25 per cent of their crops through weather and rats. He asked who would foot the bill, claiming that the increment in price offered was not sufficient to cover losses. The Farmers' Union liad jjlaced the position before the Minister last May and received a reply indicating that its claim was regarded only as. another "saueal from the cockles."

The l&st statement was contested by Mr Honeyfield, who said the Government had never "shied off its promise." The promise had not been to buy as soon as the crops were harvested, bvft as the demand grew. Any surplus would be purchased not later than June. No Crib Material

Mr McCready claimed that the farmers were asked to> stand the loss of money lying idle and interest on overdrafts accruing. There, had been the promise of iron and material for cribs which have not been forthcoming. "The Government put a 'confidence trick' across us." be said, adding that a great deal of wheat had been imported. The situation had not been handled as it should have been, and it was unfair to offer an increment of one penny oer bushel when the producers would be losing easily 3d.

Mr Honeyfield pointed out that if a farmer did not have a crib suitable he could hardly ask the Department to provide one. He added that the offer of material had been made in good faith, but it had not been possible to obtain it.

Further replying to Mir McCready Mr Honeyfield said that he realised something like four times as much Whakatane maize had been sold at this time last year, but maize did wot sell at this time of the year and unlike 1940, merchants were not storing, but leaving the product where it should be —in the cribs.

' The growers would be pleased to learn that the Government assured the clearing of cribs, said Mr W. A. McCracken, who added that it was, however, essential that these be cleared before the end of May and not June as stated. Many local growers, he added, plucked the new season's crops early and would want cribs. Mr McCracken continued that the Department estimate of production was conservative and required reviewing, and also new markets should be sought. He agreed that it suited the merchant to buy hand to mouth and no doubt the linns would do their best to absorb the maize prior to the commencement of the new season. The position must be watched carefully, lie contended.

Use For Pigs Mir Honcyficld stated that Avlieat was needed as poultry farmers would not use maize except for chicks, at the present time of the year. However, a market might open after tl/e ilush of the milk season, as the United Kingdom wanted 11,000 tons of baconcrs and copra was not going to be imported. Thus there would be a sale to farmers in the new year, although the market was slow now. Copra had a large demand in Australia and the States and Avas high priced. Although many farmers liked copra for pigs as it was easy to feed maize was just as good. Maize was available and came first. Mr Ffitch, in reply to a question, staled that the stocks in the Tauranga area were nearly absorbed with the exception of Native crops. These, however, according to Judge Harvey, were safe in cribs and would be held to the convenience of the Department. Judge Harvey had ; stated that the Maoris had increased their production as a Avar effort and ■ had no sympathy Avith the efforts Lo stampede the market. In reply to a question Mr Sisam said that local sales used to oe ; made to poultry farmers but there were none this year. Mr E. Thompson (Opotiki) did • not agree Avith Mr Honeyfield that ■ a market Avould open for feeding maize to baconcrs, although he agreed that it AA'as economic to feed maize to small pigs at 6s 3d a bushel. Mr W. A. Gault (Opotiki) also felt it Avas better to feed maize to pigs, but this market had slumped oAving to the recent lack of demand for pigs. Farmers had not j r ct, folioAving the reversal of the position, hail the opportunity to stock up with more pigs. He agreed that it could not be expected to sell all the maize crop at once. Quoting Mr M. J. Scott, of the Department of Agriculture. Mr Ffitch said it Avas not economic in the Bay to purchase copra for pigs and sell maize, although this Avas done. Farmers May Sell This Avas agreed by Mr Thompson, who, hoAACA r er, remarked that farmers had been circularised to, cease feeding maize and barley to pigs, bu/t to use only milk, and thus only half as manj r pigs had been kept in comparison AA'ith ordinary conditions. This had aggravated the maize position. That the change to cheese production and inability of farmers to obtain Avhey had also caused many farmers to cease rearing pigs, was remarked by Mr McCready, and had a bad effect on the maize market. Mr McCready continued that he knew oi many instances Avhere maize had been sold at 9s (id and as high os 12s fid a bushel, and receiAed the reply that there Avas no fixed price for less th;i,n 10 sack lols and thus ■iinail quantities in some places i'oiiUi rightly reach 9s (3d a bushel io pay for exira handling. Such. had been investigated and found in order. lie Avas further replied to that farmers ce.uld sel 1 to anyone so long as-the fixed price was observed for over 10 bag lots. Alr Roddick in closing the meeting remarked thai; growers hat! j *Y)iud where they steed and the as-x-u'-ances given should be to the:r. '•nlisraclory. The crops would. .be .absorbed and all could again plant ; ••'niiistr acreage Avith confidence.