WHEAT MARKET PROBLEMS

Taranaki Daily News, 3 December 1926, Page 9

WHEAT MARKET PROBLEMS

GROWERS SEEK PROTECTION COMPETITION FROM AUSTRALIA. ORGANISATION IN CANTERBURY. By Telegraph.—Press Association. Ashburton, Last Night. Between seventy and eighty representatives of branches and provincial executives of the New Zealand Fanners’ Union. A. and P. associations and wheat growers in North, Mid ami South Canterbury, met to-day to discuss problems in connection wit hthe marketing of tho new Beason’s wheat crop. The conference. which was convened by the MidCanterbury executive of the union, was presided over by the president of that body, Mr. J. Carr. The Hon. O. J. Hawken, who had been invited to attend, telegraphed that he thought it inadvisable for the Government to be represented at this stage, but he would be glad to hear the result of the conference. The Hou. W. Nosworthy advised that he could not attend owing to a prior engagement and the uncertain position in regard to the freezing industry. Mr. AV. W. Mulholland outlined the problem as it faced the growers to-day. They would probably have between 7,000,000 and 8,000,000 bushels of wheat to be disposed of this coming season, and unless they had some means of handling the surplus they were bound to see prices down below the economic value. Another aspect of the problem was the relative half of imported wheat and flour. This needed adjustment. The speaker referred to the proposed association of wheat growers. That would be concerned in the first place with obtaining information allowing members to determine the value of their wheat. Further, the association should have power to remove any surplus of wheat from the market. From the point of view of the country as well as of the wheat growers, it would be disastrous if prices fell, say to 2s 6d, as the result of the surplus. It would mean that the wheat crop the following year would fall by 50 per cent. If they were to solve the problems before them they had to make up their minds to a settled policy. Many aspects of the question were discussed by the conference, which sat from 11 a.m. to 5 p.m. AUSTRALIAN PRICES DIFFER. Mr. G. W. Leadley moved, and Mr. W. T. Lili seconded: “That considering the disparity in Australian flour quotations, viz., £l5 10s per ton, for local (Australian) consumption, as against £l2 per ton for export, this meeting, representative of the wheat growers, views with considerable apprehension the effect upon our local wheat market and the future of the wheat growing industry in New Zealand, and respectfully urges upon the Government the necessity of imposing an embargo on the importation of flour.” On the suggestion of Mr. Carpenter (Rangiora) a clause was added that the embargo be applied until the New Zea. land wheat was all sold. Mr. L. V. Talbot (Temuka) moved as an amendment that the Government be asked to increase the duty on flour by £1 a ton, failing which the Government be asked to arrange a readjustment of the duties between wheat and flour. Mr. McMillan (North Canterbury) seconded, but the amendment was lost by a substantial majority, and on a show of hands the motion was carried. Mr. Talbot then moved that a grain growers’ association be formed to obtain reliable information concerning grain statistics and values, and the motion was carried with one dissentient. Mr. R. T. McMillan (North Canterbury) moved and Mr. J. McAnulty (Methven) seconded, and it was decided: "That in the event of an embargo being refused we ask for an increase in the duty on flour by 25s a ton.” The following deputation was appointed to place matters before the Government: Messrs. G. W. Leadley, A. M. Carpenter and J. Carr, with a South Canterbury representative to be appointed later. The final motion carried was that a committee be appointed to follow up the resolution, form a wheat growers’ organ isation, to consist of one representative from each of the provincial fanners’ union districts of Canterbury and Ashburton and the South Canterbury A. and P. Association, such committee to have power to act as a wheat growers’ executive and the North Canterbury executive to be the convenor.