FLOUR AND BREAD.

Hokitika Guardian, 29 July 1926, Page 3

FLOUR AND BREAD.

FUr-THER INCREASES LIKELY,

HIGH RATES RULING IN AUSTRALIA.

CHRISTCHURCH, July 23

During the past three weeks there have been increases in the price of flour amounting in all to £2 a ton. The first was one of £l, and this was followed by an increase in the price of bread of kl on tho 2ib loaf. Since then two increases of 10s each have been made in the price of Hour, the second being made on Monday last. So far, there has been no further rise in the price of bread. A leading baker, who was interviewed yesterday, stated that as far as he knew, there would bo no further increase for the present. An increase would not be made until it had been decided upon hy a meeting of the Master Bakers’ Association, and he had not received any notice that a meeting was to he held. He would not be surprised, however, if there were further rises in the price of flourami bread before tho next season’s harvest was ready. The position was that there was no great quantity of Hour held in New Zealand and further importations would have to be made. This imported flour was likely to cost a good deal more than the present price of £2O a ton. 14c would not ho surprised if Hour went to £2l 10s a ton at least.

From inquiries made in other quarters it was learned that this estimate was, if anything, on the conservative side. Tho position is that the price of flour is on the rise in Australia, and it is stated that New South Wales has over-sold and may not have sufficient flour to meet her own requirements until the new harvest is ready. In fact. New South Wales has been making purchases from other Australian States and it is known that Australian merchants have been inquiring with a view to obtaining supplies from the United States. Until a low weeks ago Australian flour could he landed in the Dominion at a comparatively cheap rate. It was this cheap Australian flour that prevented Now Zealand millers from increasing their price above £lB atom During the last two nr three weeks, however, the price of Australian flour has risen about £2 a ton and the price of New Zealand Hour lias gone up in sympathy. Apart from the increase in the price it is doubtful whether New Zealand will ho able to buy further supplies from the Commonwealth, or at least in anything like the required quantity. Tn that ease the Dominion will have to turn to Canada or the United States for Hour to keep going until tho now season’s harvest is ready, a matter of another seven months. Tt is not. quite certain what American flour would cost to land in the Dominion, but it would probably be over £22 a ton duty paid.

The position that has arisen this year emphasises the necessity for New Zealand producing sufficient wheat to meet her own requirements. Dependence on outside supplies means that, whenever there is a shortage in Australia tlie Dominion will more than likely bare “to pav through tlie nose” for imported wheat or flour. Besides, it is economically unsound to send money out of the country for a commodity that can quite easily be produced’ here. Tho short harvest this year was due to the bad weather experienced at sowing time. This year tbo weather has been unusually favourable for sowing operations and it is certain that there will be a big increase in the acrcpge under wheat. It is doubtful, however, whether, with tins increase, there will be sufficient produced next year to meet all requirements. To cover tl-ose 8,039,000 bushels of wheat are needed. This year the quantity produced will not- exceed '5.009.000 bushels. Reports from the country arc to the effect that the increases in the acreage under wheat tins year as compared with last venr vary from. 20 to 59 per cent according to trie districts. However, an average Increase of 59 per cent would not be suificient to make up the deficiency of 3,090.000 bushels. It would need to be nearer 75 per cent and this is assuming that the average yield will he as o-ood next year ns it wns this, when it was about 31 bushels to_ the acre. This is a high average and it is quite possible that such a good figure will not be attained next harvest.