BREAD AND FLOUR

Dominion, Volume 10, Issue 2957, 21 December 1916, Page 8

BREAD AND FLOUR

THE PRICE QUESTION

A POINT FOR CONSUMERS

Tho price of wheat interests the general public only introspect to its bearing upon tho price of bread. Wheat is the raw material of the daily loaf, and theoretically tho price of bread, and tho prico of flour, should bear a defined relation to tho price of grain. This relation, as a matter of fact, is disturbed by many other factors, and one of them is the cost of distribution. "The farmer and the miller for one year and three-quarters' producing and storing get only otl. out of 9d. per loaf," said a southern miller, in this connection. '"It is tho public that is to blame for the high price of bread, since if they fetched_ their bread from the baker and paid cash for it, the baker would be quite as well off at 2d. per loaf less payment." A Wellington baker to whom this point was mentioned by a reporter yesterday, said that he recognised 'the force of the miller's contention, though he did not see how the 2d. could bo saved in aotual practice. "I fancy that any baker in Wellington would he content to reduce the prico of the fourpound loaf by IJd. or even 2d. if his customers would take their bread over tho counter, and would pay cash for it," ho said. "The cost of delivery under present conditions is very high indeed. Horse-feed is expensive, drivers' wages aro lieli, and working hours are limited. Then there is a tremendous lot of overlapping on the rounds,'so that a cart has to cover a lot of waste ground, and perhaps travel several hundred yards for a single customer. But what is the remedy? Tho majority of the customers certainly would not consent to carry their bread home from tho shop. They would rather pay the extra money tor delivery. "Some people bavo suggested that the delivery system should be organised, so as to prevent overlapping. An arrangement under which tho city would be divided into areas, each area to be served by ono cart, would reduce delivery costs, it is true, but tho public would never tolerate Buch a system. They demand the right to choose their own baker, since they have their preferences in broad, just as in anything else, and it would bo impossible for one cart to carry bread from half a dozen different bakeries. Tho selection of a particular baker and the delivery of the bread may bo regarded as conveniences for which the publio is prepared to pay. I have not mentioned bad debts, hut they are a factor in the matter." '

The baker calculates tho price of liis bread on the basis of tho price of flour, which in turn is nominally dependent upon the price of wheat. Some interesting figures_ were placed before the reporter in this connection. AVheat is quoted at 6s. 6d. a bushel to-day, and flour at £15 per ton. When wheat was costing 2s. 9d. a bushel in March, 1902, and again when it was costing 3s. Bd. a bushel in March, 1913, flour was quoted at £8 10s. per ton. Obviously theso prices do not definitely control one another. THE CANTERIIURY CONFERENCE " GOVERNMENT EFFORTS' WELCOMED. v By Telegraph—Press Association. Christchurch, December 20. A conference between the Board of Trado and representatives of flour millers from different parts of New Zealand was held to-day to discuss .problems connected with the production of wheat and the manufacture of flour. The proceedings were not open to the Press. Tho following motion was unanimously adopted: "That tho efforts of the Government to encourage wheatgrowing be welcomed, and that the millers present approve of the outlines of the Board of Trade's scheme." The board's schome is, briefly, to fix< the price for wheat, flour, and bread during tho period of the war and one/ season after. The Hon. W. D. S. Mac Donald telegraphed regretting his inability to attend the conference owing to heavy pressure of business in Wellington in connection with wool. A sub-committee appointed by the millers after considerable deliberation formulated certain proposals which were not divulged to tho Press, in which a. series of prices for flour and bread were set out based upon a sliding scale of wheat prices. Mr. G. M'Donald, of tho Board of Trado, stated that as yet nothing definite at all has been done. The board would continue its investigations next day. At present it would be unwise to publish tho suggestions made by the millers' sub-committee. Tho board boned to have its report and recommendations ready about the end of the week. TOO SOON FOR CRITICISM. Some reference to the criticism levelled at the wheat-growers in respect of their demand for a fixed price of 6s. 3d. for wheat by Mr.. Isitt, M.P., and others was made by tho Minister of Commerce (the Hon. W. D. S. MacDonald) yesterday.

"It is very unfortunate," said Mr. Mao Donald that the members invited to attend the conference of wheat-grow-ers in CliristchuTch did not realise that this was a very important business, and until an offer was made to the farmers and rejected by them, I don't think there was any need to start' a campaign of criticism against the farming community. Necessarily in a very largo conference such as this was there were proportionately few speakers, and as is usual in such cases tho speakers were people personally interested, who looked purely on tho commercial side of the question. I pointed out to them vory definitely that whilst I agreed with them that it was essential that they should carry on their business on a sound financial basis, I did not consider it a fair proposition for them to try to obtain prices for their wheat on a parity with London prices in war time. I reminded them that wheatgrowers and every.other class of producers in New Zealand must recognise that they owed a duty to their country and to tho flag under which they live, and that therefore it would ho unfair for them to compare prices in New Zealand with tho prices that would be asked by neutral countries, who had no obligation to tho Flag. I felt quite sure, although this resolution was carried, asking a fairly high price for wheat, that when the Government were ablo to place definito proposals beforo the farmers, we would arrive at a decision which would be satisfactory to tho producer and tho consunmr. I distinctly told tho conference that whilb we were prepared to assist the if the wheat-growers could not submit prices that were reasonable and fair to tho consuming population, then, of course, necessity would compel tho Government of Now Zealand to look else.whora for supplies. lam still hopeful that after tho Board of Trade has investigated the cost of growing and markoting wheat, tho cost of milling, and tho costs between tho miller and tho bread consumer, we shall be able to arrive at a satisfactory solution of tho question."