PRICE OF WHEAT.

Otago Daily Times, Issue 19474, 8 May 1925, Page 8

PRICE OF WHEAT.

GROWERS AND MILLERS CONFER.

NEW AGREEMENT REACHED. TERMS NOT DL3CLOSED. (Peb United Press Association.) . ASHBURTON, May 7. A conference was held to-day between representatives of the wheat-growers of Canterbury and North Otago and the millers to discuss the proposal made by the millers to the dominion executive of the New Zealand Fanners’ Union that under the protection of an embargo on flour tho millers would guarantee fixed prices to the growers. Air John Brown (president of the Mid-Canterbury executive of the union) was voted to the chair. liio meeting confirmed the action of the deputation at the recent meeting with the Minister of Agriculture in \\ ellington. Air Corson (president of the Alillers Association) .-aid the Government should ho requested to set up a board with legal status so that its actions would be binding. There were black sheep in every fold, and there would bo some who would not waul to break away. The board should comprise lopreseutatives of the wheatgrowers, the flourmillers, the grain merchants, the poultry. farmers, and the Government. Asked if the embargo would bo reimposed Mr Corson replied that it would not bo reimposed this year, but be did not know what would happen in future years. In reply to Air Uarr (Alethven), Air Corson said they were aiming at the stabilising of wheat and bread. He thought the defining of the price should be the function of the board. A motion by Mr Mulholland on the lines of Air Corson’s suggestion was carried unanimously. It was proposed that, should any agreement with tho millers be reached, the period should bo three years, but an ametfidnieut was moved that it be five years. Only five voted for tho amendment, and the motion was carried practically unanimously. Speaking on tho question of price, Mr Collins, of tho Department of Commerce, detailed tho attitude of the Minister. As Wheat Controller he came into close contact with tho wheatgrowers, and many had expressed satisfaction with tho position ns it stood, and were prepared to accept whatever prices for wheal the market could pay. That was to say, they were fully satisfied with the present protection afforded through the tariff, and wanted to be allowed to take the risk of prices without a guarantee either from the millers or from the Government. The farmers realised, no doubt, that the protection so far as wheat was concerned was both adequate and encouraging. On to-day’s Australian prices wheat of good milling quality could not bo sold at a profit within New Zealand under about 8s 6d a bushel, sacks in. In regard to flour, however, tho position was not so safe, in that low f.o.b. quotations wore frequently received, enabling flour to bo sold ex store at from £l9 to £l9 10s per ton in the North Island, or equal to approximately £lB and £lB 10s in the south. However, os long as flour could be obtained from local millers at or above the parity at which flour could bo imported, it was safe to assume from past experience that preference would be given to the domestic flour because of tho facility with which it could be supplied and in the precise quantities required by bakers and other largo consumers. The delegates should exorcise tho greatest moderation in approaching the Government for further assistance. ‘T hope they will be prepared to rely upon the tariff in tho immediate future,” said Mr Collins, ‘‘and approach tho Government for assistance if and when assistance is proved to ho necessary, and /only then.” As the Alinistor has emphasised, tho growers had shown their good and goodwill by producing sufficient wheat for national needs. Air Aleck moved that the millers consider that the present wheat prices bo tho minimum for the period already agreed to. Mr Forrester (Oamaru) seconded the motion. At a later stage Mr Corson said tho millers had discussed th o prices, and they had come to the conclusion that the highest they could give was 6s. Even at this figure they were running a grave financial risk. Air Ireland andorsed these statements. It. was a business proposition in which they were asked to guarantee a price for throe years. For the first year it was all right, but after that the miller would be faced with a big loss. If there came a surplus of, say, 4,000,000 bushels, which could not bo carried over, it would have to be Exported, perhaps. They were trying to give safety in wheat-growing. The Chairman asked if the meeting could prove that this was not a fair price over costs what about it? Air Ireland replied that the millers had fixed on tho price on the assumption that farmers could grow tho wheat. Mr Sheat; Well, you aro asking an impossibility. Mr Ireland said that if tho Government would take any surplus lie would recommend the millers to guarantee the present prices over three years. The millers wero malting every endeavour to help the farmer. In reply to Air Mulholland, Air Ireland said that if tho growers took charge of the surplus it would ho a different proposition altogether, and ho was not prepared to give a price offhand it/ that event. The Chairman said the Minister hod said the growers would have to try to - grow 8,500,000 bushels. The whole thing hinged on production costs. Mr Collins said that 8,500,000 bushels all told would cover the dominion’s full requirements. Mr Lill: What would happen if tho millers wore asked to give 8s 6d for Australian wheat? ' Mr Corson: That is simply answered. The mills would close down. At this stage 'the millers retired to consider the position. Mr R. Talbot (Timaru) said that South Canterbury .thought 6s 6d, f.0.b., was a fair proposition. If 7s wore asked the Government would not consider tho matter. lie moved that the minimum be 6s 6d, f.o.b. Mr Sinclair (Wnimato) agreed with this. Mr Lcadley moved as an amendment that . prices asked for bn Tuscan 6s 6d, Hunters 6s Bd, and Velvet or Pearl 6s lOd on trucks at country stations. The Chairman: Are you going to accept the 6s offered you to-day? Voices; We have no intention of doin"that. The amendment was carried by 15 votes to 13. In view of the narrow margin it was decided to delete the amendment, and the motion was carried. The millers then returned, and were informed of (ho motion being carried. On the question of surplus being raised, Air Corson said the millers would not worry about dealing with a surplus. Regarding the prices asked, ho said bran and pollard wero very high, and they could not undertake to supply flour if those prices ruled. They could be placed before the millers’ annual meeting next month. If the farmers could convince the Government of higher cost of production and enter into a scheme ,at the prices asked the millers would stand by it. If the Government was willing to give even 10s tho millers would give it. A committee of four was appointed to discuss the matter with tho millers,' and the conference adjourned. On resinning the discussion was taken in committee. Later th e Chairman informed the nress that an agreement satisfactory to all parries had been reached, but no details would bo available until they had been ratified by the Minister. '

POLICY OF SELF-RELIANCE. There does not appear to be much divergence of opinion between producers and public on the question of a self-reliant policy for Now Zealand in respect to wheat-growing (says the Evening Post). Tho only question—and it is tho most irn portant—is at what price. The policy is unexceptionable, its cost is the difficulty. This year tho dominion is seriously short of wheat grown in tho country, necessitating heavy importing, and £1,300,000 has been paid to Australia already to make up the shortage. More money yet will go out of the dominion for the same purpose. The exchange on so large a transaction will amount to a substantial sum in itself, and this, too, could have been saved had Now Zealand been wholly self-reliant for its wheat supplies, Last year 170,000 acres wero sown in wheat. yielding 5.000.000 bushels. or 3.0C0.C00 short of requirements. Importing thus became imperative. It is hoped that as tho outcome of the conference above referred to and encouragement, given to wheat growers by the Government at least 270,000 acres will be put down in wheat, in New Zealand this year, which at, an average of 30 bushels in the aero should give (he country a sufficiency for usual requirements, providing there is no serious climatic handicap to tho harvest. While at Christchurch this week tho