TOBACCO LEAF

Dominion, Volume 33, Issue 188, 6 May 1940, Page 7

TOBACCO LEAF

Prices Recommended For 1939-40 Crop CONTRACTS WITH GROWERS The introduction of regulations providing that the average prices paid by all manufacturers for the- 193'.)-l<) tobacco crop are on the basis of 1/104 a lb. for Hue-cured leaf and 1/7A a lb. for air-dried leaf has been recommended to the Government by the Tobacco Board. The Minister of Industries and Commerce. Mr. Sullivan, said on Saturday that these average prices were the same as those which were arranged by lite Government for the previous season. Mr. Sullivan said that last year’s prices were operated by arrangement with manufacturers and without actually being fixed by regulations. Certain difficulties arose on this account, however. during the season, and in order to avoid these the board considered it advisable that In respect of tiie 1939-40 crop the prices should definitely be fixed by regulations,

“This recommendation is receiving the consideration of the Government at present,” said Mr. Sullivan. “In connexion with the average price, the board also was of opinion that any differences between the preliminary cash paymentsand the final payments,should be paid to each grower on a Hat poundage basis, 'rhe board has Jixetl the date by which payments for the 1939-10 crop are to be completed aS not later than October 20, 1040. Purchases From Growers. "One cause of difficulty in the industry in the past has been that all leaf has not been purchased in the district in which it is grown. The grower like-j to witness the sale of this leaf and to be present when the value is appraised and the price determined. Diltieulties which have arisen in this connexion should be obviated during the purchase of lite present crop, because arrangements have been made by one of the major manufacturing companies to purchase till leaf in the Motueka district this season instead of as in the past Inlying at the place of manufacture. This "ill mean that almost the whole crop will, from now on, be purchased in Hie district where it is grown, and this should be a cause of satisfaction to the growers." At. a previous meeting of tiie board a sub-committee had been set up to go

into the question of, and submit a report upon, the possibilities of expanding the production of New Zealand leaf, said the Minister. The report of this sub-committee was considered at the recent board meeting, and as a result of the discussion certain recommendations were made and these had since been submitted to the Government for consideration. The board was of opinion that if the recommendations were adopted, I he opportunity would be provided for an expansion in the production of leaf to the extent of 25 per cent, in tiie first year. At this point, tiie Minister emphasized the necessity in view of the present, situation for growers to make the maximum use of their land by producing as much leaf as possible. The .Minister added that, the board had decided to inquire from manufacturers whether they were prepared to issue contracts for a period of three years, with provision for the contract quantity to be varied by mutual arrangement, bet ween them and their growers in respect of Hie second and third years. It was the practice of growers and manufacturers to enter into yearly contracts for (he growing and (he sale and purchase of leaf. The board considered that throe-yearly contracts would bring greater stability into Hie industry and would give a greater measure of security to the grower.