WHEAT POSITION

Hokitika Guardian, 21 March 1922, Page 3

WHEAT POSITION

HUGE SUPPLIES ON HAND

OPINIONS OF -WELLINGTON CORN AIERCHANT.

WELLINGTON, March 17

Some interesting facts and figures with regard to the present wheat position in New Zealand were given by a well-known Wellington com merchant in the c-ourse of an interview with a “Times” reporter yesterday afternoon.

“A BUMMER HARVEST.V “Of course, w© have bad a bump" wheat harvest this year,” be said, “and one would expect that an abundance of wheat would be readily available now for milling and other purposes; hut for some reason or another it seems to he slow in coming forward. It may ho that there have been difficulties and delays in regard to threshing the wheat, or that the Railway Department has been unable to supply sufficient transport to move the big crop quickly enough; and again, some delay necessarily results from the fact that, before it can he sold! elsewhere, the wheat has to he submitted to the Government experts to see whether it is up to the standard of best milling wheat for export. The fixed price for fast season’s flour was £2l a ton, and the price of wheat was proportionate, with the natural result that, as the new season approached, stocks in "Wellington and other parts were allowed to ruli low, and the demand at the beginning of the new season was correspondingly heavy. This, no doubt, accounts in part for the wheat not being so quickly available as the millers and the poultrymen desire. “Our total crop this season is about ten million bushels, and our local requirements for milling purposes total six to six and a half millions—call it six millions; leaving a. surplus of four million bushels for fowl food, etc.” HOW 7 MUCH TO BE EXPORTER? “The Government is going to export a great deal of the surplus?” was asked. “A T es.” was the reply. “The Government lias a. contract with A. S. Pateison and Co. to export a million bushels; and. it may export more—perhaps two million bushels. Tt would hardly export the whole of the surplus because that would leave us in the same position as last year, with a shortage. Besides the loss on exporting the fonr million bushels would be too great. The Government has guaranteed 5s Gd to the grower for best milling wheat; and to find a market for the wheat a-t Home it lias to export at a loss. Tt could not compete, otherwise, with the lower prices ruling in the Old Country. But. to recoup itself for the loss on the exported wheat, it is charging Gs 3d to the miller; and it >s ■ estimated tha this difference of 9d per I ushel between the- price paid to the former and that paid by the miller, spit ad over the six million bushels milled here, will make good the loss on export. The milers, of course, don’t like this extra, charge, hut they can’t help themsdlves. The Government his got control of the whole crop, and they have to pay. Tt makes it verv awkward for some of the companies which have had to put in additional milling machinery in view of the large crop expected this year. The Governnien’ lias fixed tli© price of the new season’s flour at £lB a ton, so the millers can’t raise the price any higher in order or reimbuse themselves. In fact, they are very much- afraid lest sany of their number plipulfl fiijicl him-

self overstocked and reduce the price of flour below £lB with a view to clearing part of bis stock; for the, Wheat} Controller has stated that he would look upon that as an indication that there was a) margin! jto' pfe-T 1 tween the price) of wheat and the price of flour, and he would raise the price of wheat to the millers and so absorb the margin.” OPPOSED TO GOVERNMENT. CONTROL. Our informant expressed himself as very much opposed to Government control of produce and prices; and thought that similar opinions were becoming very general throughout the country. , “There was no doubt,” he s “good reason for it during the war; but the war came to an end years ago, and Government interference of this kind with trade ,and industry, should have cornet to an "end, at any rate, within ai year of the close of. the war. It is much better- that the} fixing, price* should be left to free competition That will effectually prevent profiteering. Even during the war business men said that they did better with the products the prices of which wore fixed than with the others. They made better profits on them; and, : the prices were fixed and there was no competition, they could just go straight ahead and need not worryprospects for cheap fowl WHEAT. Asked as to the prospects for fowl wheat, he stated that-it had been sellin,, lately in Wellington at 6s to 6s a "bushel; but it had already keen quoted f.o.b. Lyttelton, at 4s 6d _ - bushel, which would make the price here (sacks in), about 5s 7d. It was likelv .therefore, that fowl wheat would before long he a good deal cheaper in Wellington, especially as there had been big crop's, not only in the South Island, hut also in the M airarapa and Marten districts, whence there was usually very little surplus available.