THE WHEAT MARKET.

Taranaki Daily News, 16 March 1921, Page 2

THE WHEAT MARKET.

STATEMENT BY MINISTER (Governiment Memo.) Wellington, March 14. A lengthy statement in regard to the fixation of prices for wheat for this season was made by the Hon. W. Nosworthy (Minister for Agriculture) in the House of Representatives this afternoon. The statement stressed tho importance of New Zealand growing suflcient wheat to make It independent of outside markets, which were always liable to be cut off by skipping troubles. The statement proceeded: In February, 1920, the Government Statistician had estimated that there was under crop only 140,000 acres of wheat, whereas if we are to be independent of outside supplies we must crop approximately from 250,000 acres to 275,000 acres; that is assuming the yield to be normal. With a knowledge of the seriousness of the position that faced New Zealand I offered, on behalf of the Government, it minimum guarantee of 7s 3d, 7s 6d, ‘and 7s 9d per bushel, f.0.b., southern ports for good milling wheat for the season 1920-21, with six increments in price of %d per month from May 1, and further that market rates in excess of the minimum would be paid if the value of wheat rose when we had actually to take over the harvested crop. during last s’ear the price of wheat rose steadily in the world’s markets till May, when wheat was worth approximately 18s per bushel, f.0.b., New York, allowing for tie depreciation in the exchange. From May until , October there was a steady fall In the price of wheat, and in the months of October and December there were sensational drops, and the decline still continues. For instance, in October Australian wheat was quoted in London at J2ls per quarter, whereas to-day’s price is 72s . per quarter.

As a result of the guarantee of the Government the area under wheat rose from 140,000 acres to 210,000 acres. The wheat control office figures slow that last year the average yield was 35 bushels per acre. If this yield could be relied upon, the total crop this year would amount to 7,350,000 bushels. It would be unsafe, however, to anticipate that this year we shall get the same phenomenal yield as occurred Inst year. From all reports coming to hand at present it is clear that the yield per acre this year will be big The average of the last ten years bad been approximately 29 bushels per acre. Assuming the average this year to be 30 bushels per acre, the total yield will be between 6 million and 6% million bushels. If nothing untoward occurs to upset the estimates in regard to this harvest New Zealand could, if necessary, get through this year on its domestic production of wheat. In fixing the prices for New Zealand I adopted the submitted price of 8s per bushel, f.0.b., Australia, as the basis of calculations for tl’is year's crop. To import wheat from Australia to New Zealand costs approximately lOd per bushel. This would make wheat cost, ex ship’s slings at. Auckland, 8s lOd. The equivalent price in the South Island of wheat selling for 8s lOd in Auckland is approximately Bs, and this is the price I have recommended the Government to fix for our best grade wheat, with the proportionate reductions agreed upon for varieties less in quality. I claim, therefore, that the prices of New Zealand wheat fixed by the Government fulfil both in the letter and in the spirit the terms of our guarantee, ami in addition the Government has guaranteed a minimum price for next year of 5s 6d, 5s 9d, and 6s 3d, with the same monthly increments.