HIGHER PRICES

Gisborne Herald, Volume LXVI, Issue 20080, 28 October 1939, Page 8

HIGHER PRICES

OVERSEAS FERTILISERS - MARKED RISE IN RATES COST TO FARMERS UP Higher prices for imported fertilisers probably will have to be paid this, year, because of the war and the new freight rates. It is anticipated in Auckland that basic slag will cost about 50 per cent more than in 1933, and that a 35 per cent increase will be imposed on African phosphates. Farmers, therefore, will be faced with higher production costs, which may mean the decreased use of fertilisers, at least for the time being, and difficulty in maintaining and increasing production. Instead of paying £5 17s a ton for basic slag, as they did far the most part last year, farmers will have t: pay about £B. Situation in Last War It was pointed out in Auckland by a representative of the industry that a similar situation arose in the previous war. The price rose from £4 10s in 1914 to £7 10s in 1915, to £8 10s the following year, and soon after the war ended it soared to £l4. The position in 1939 was made worse, he said, with the 25 per cent exchange rate above sterling, which accentuated rises in oversea quotations. There was also the depreciation of sterling in relation to Belgian rency, since Belgium was the chief source of supply of basic slag for IsoZealand, as well as increased shipping freights to about £2 a tor., and war risk insurance of £4 for every £lO9 of value, which added 6s 3d a ton to the price. Negotiations With Shippers Negotiations with London shippers for more favourable terms were now nearly complete, he continued, and similar efforts had been made concerning supplies of phosphates and guano. Freight charges on phosphates from Tunis. North Africa, may be almost doubled, and war risk insurance will be about £3 a £IOO. Existing freight offers meant that farmers would have to pay about £5 5s to £5 15s a ton, as against £4 5s in’ 1938. although the position might improve if freight conditions permitted. In 1915 North African phosphates brought £7 a ton, and advanced to £l4 ‘in 1920. Limited Sulphur Stocks Freight would be the determining element in raising the price of Seychelles guano by 10s to 12s a ton, with quotations generally ranging from £5, to £5 ss, this man said. Last season : the importation of basic slag aggre-! gated 32,000 tons, and African phos- j phates slightly less. Higher freight j rates might have to be paid fqr ship j ments of Nauru rock phosphate, because the British Government had commandeered many ships engaged in j the trade, and new charters might I mean extra costs. j

New Zealand fertiliser works were well stocked with reserves of rock phosphates, lie concluded, but there were limited stocks of sulphur for the making of superphosphate. Most of the sulphur came from Texas, and it was difficult to find ships to bring it across the Pacific. Since 'the war beran in September, two shipments intended [or this country had been diverted.