MAIZE DISPOSAL

Bay of Plenty Beacon, Volume 5, Issue 44, 24 April 1942, Page 5

MAIZE DISPOSAL

FARMERS IN ARMS GREATER ASSURANCE DEMANDED CLEARING OF STOCKS With approximately 39,000 bags still on their hands, as the result of the special effort made last sfaason to meet the Government's appeal, maize growers in the Bay of Plenty are demanding that the Government live up to its promise to clear the cribs by the end of May. The position which has grown steadily more serious as the new season approaches in view of the absence of accommodation, has been taken up by the growers and ventilated by means of Mr W. Sullivan, M.P., and direct representations to the Minister of Marketing, Hon. J. G. Barclay.

A special conference last Wednesday between officers of the Internal Marketing Department (Messrs Fraser and Ffiteh) and representative growers at Whakatane, failed to dispel the feeling of doubt which growers throughout the Bay of Plenty have felt since the failure of the Dominion market to absorb the increased yield. The meeting was remarkable for the candid exchanges indulged in by speakers from all parts of the Rangitaiki Plains, who alleged that the main trouble had been due to departmental mismanagement and lack of vision. The importation of South African maize and other foreign cereals to compete with the locally grown maize was severely criticised and it was also pointed out that no attempt had been made to stabilise the price in order to push local salfs and popularise the use of local -grown grain.

Deterioration of Stocks

Mr W. A. McCracken who presided, said that after watching the matter drift for some months and viewing with increasing alarm the deterioration of the stored maize owing to vermin, the growers had at least decided to take the initiative. They had therefore contacted the Minister who in turn had referred them to the two officers present who were given full power to deal Avith •the position. It was hoped therefore that something definite and final would, be achieved, by Avay of the cribs cleared by the end of May as promised. In the Whakatane area (exclusive of Native grain) there Avas 20,148 bags held in crib; in Opotiki 4010 bags, and in Te Puke 1700 bags. The Whakatane Native Department had some 12,000 bags making a total of 37,848 bags in the Eastern Bay of Plenty. In the Tauranga area it Avas estimated that there Avas a further 4000.

It was estimated that even should 'a start be made at once it would take two months to shell and. clear existing supplies. Farmers had grown perturbed in view of the apparent impossibility of seeing the Government honour its jiledge. Will Honour Promise Mr R. Fraser, Acting Director of, the Internal Marketing Division, said that the Government admitted the surplus of maize at the present time, but it would be only a temporary embarrassment, because of the smaller current year's crop and the stimulating effect of judicious Advertising. When the possibilities of the sources of foreign maize being cut off became apparent, the Government had decided to make its appeal for an increased Dominion supply, and risk a possible surplusTo offset any loss to farmers the Government had also undertaken to take over any surplus for which no sale could be found. There was definitely no desire to go back on that promise Avhich would be honoured ■up to the hilt at the end of May. For those farmers who for financial reasons were desirous of quitting the crop earlier thna the date named arrangements could be made to take over their crop forthwith- How ever it was not reasonable for farmer to expect the Department to be nble to cope with any volume in this respect, but merchants would absorb a certain amount and by the end of next month the Government would take, over the surplus at the price arranged fi/5.

Mr McCrackcn said that to wait till the end of May would be fatal as the new crops would be coming to hand and he felt that many would be left in the lurch.

Straight Criticism

"I never accept the word of thfi Government for anything," declared Mr C. R. McCready, "until I get

some substantial proof of its intentions." He was sorry that the Minister of Marketing was not present in person as he would have welcomed an exchange with him on the subject. The whole system of importing wheat and grain to compete with the local grown maize was absolutely rotten. These were the thoughts in most farmers' minds, even if they did not get up and voice them. He only hoped that as a result of the meeting something better than the mess in the past would eventuate.

Mr P. Baircl said there appeared to be some hitch between the Government and the merchants, for it was now impossible to dispose of maize on the local market. If it were possible to get a guaranteed price on a guaranteed market at a guaranteed time, then.he would consider the meeting getting somewhere. He did not think the Government officers realised the deterioration of maize in the crib. In his own case lie reckoned the loss at .■me-third. This to the small farmer who as a result was paying interest on overdraft represented a heavy loss. If the maize had to be carried through another winter there would be little or nothing of it left. Farmer a Chopping Block Mr Alex McLean contended that the farmer was the chopping block between the Government and the merchants. It was fairly obvious that the acute position had arisen through Government counter importations. Mr Tom Davies said he had it on authority that some 1200 tons of weevil infected maize had been imported last winter. He had suggested that some attention should be given by the Government to the manufacture of cornflour.

Replying to comments, Mr Fraser rfaid that he agreed that the marketing of the maize was a hard proposition. It Avould not be easy tc find storage for such a quantitj' if the Government was forced to take the lot. On the ether hand there would be no deviation from the original promise. With regard to the manufacture of cornflour, this had already been tried and found to be a most expensive business as well as one of the most difficult processes imaginable. He refuted the statement that there had been any regular importation of maize. There had been none for over 12 months. There was unfortunately a delayed shipment which had been on order long before the present arrangement. The Government's safeguard still stood and would be fulfilled at the end of May.

Merchants Will Not Buy

A number of speakers claimed that the merchants were refusing to. buy a single bag and to all appearances Lt looked as if the Government would be saddled with the whole 39.000 bags. Mr Fraser said he would appeal to those farmers who could continue to store their maize to do so even after the expiry date as it wc.uld be unreasonable to expect the Government to absorb such a quantity at once.

Mr MeCready said that half the trouble lay with the distribution costs, which ranged from 6/- to 14/-. This state of affairs helped to keep the farmer where he was. The fixing of a reasonable basis of sale would gO( a long way towards stabilising the market. If the Government did not get to grips with costs there would be more in costs than in production. Mr Fraser said that the selling price should not worry the farmer providing he received his price and was satisfied.

"The position is very unsatisfactory," declared- Mr McCrackera in summing up. "By the time the 1 Ist of June comes round there will be ai rush to make arrangements to shell and 1 store. Its a pity you can''t give us something more definite that would assure us that our cribs would be cleared before the end of May as promised. We are all concerned and it is most vital to us. I can see trouble unless you get right on the job. W r e appreciate the 1 fact that you have difficulties but the sooner thfc maize is put into the channels of consumption the better."

Mr Baird said that he " too was frankly disappointed with the meeting. Not one inch of progress had been achieved.

Shelling 1 at Once

Mr T. Brassey .suggested that one solution would be to proceed with the shelling at once in preparation for the time when the Government

would be readv to take over

Mr Mahy said with his plant he could shell GOO bags per day.

Mr Baird asked if it would not be possible for the Government to commence receiving the maize at the end cf the present month, if suitable arrangements could lie made with the merchants.

Mr Eraser assured the growers that his Department would do its utmost as far as practically possible to meet the situation.

The meeting then decided to await the outcome of a further conference between Messrs Eraser and Ffitch and the local grain merchants.

HITCH WITH MERCHANTS

RECEIVING DATE: ADVANCED

Messrs Ffitch and Fraser reported at 2 p.m. to the Maize Growers' delegation, that their conference with the merchants resulted in no final agreement on the matter of storage costs. There was some discrepancy between the Government's idea and the merchants' idea of what storage costs should be, with the result that the respective propositions brought forward would be taken to the Minister of Marketing and the Merchants Federation.

Messrs flitch and Fraser promised that an answer would be given within a week and jailing a satisfactory arrangement with the merchants. the Government: would commence purchasing the maize and arranging storage, as from Ist May, 1!)42 instead of Ist June as was their previous intention. They also, made it plain that the grower was not to

be penalised