THE PRICE OF WHEAT AND THE PROFITS.

Waikato Times, Volume XXX, Issue 2452, 29 March 1888, Page 2

THE PRICE OF WHEAT AND THE PROFITS.

Tub subjoin"! which appeared in yesterday'. .lerai-.i, uives the explanation of the miller's profits Stu, —I notice in your paper several letters by millers and others, re the relative price of wheat and Hour in Auckland. Now, as ail old Australian, I trust you will allow me to air my opinion on this matter, as I have had a good many years' experience in the grain trade in South Australia and Victoria. Tilths first instance I was much amused at Mr .firth's letter, in which he states that the miller would be satisfied with a profit of 8 per cent. Now. this is ho.v I would calculate the profits made by the millers of Auckland at present quoted prices. I will di'al with it in parcels, as that is how the millers usually do, that is, in one ton lots. In Australia it in calculated that it takes 50 bushels of wheat to make a ton of flour, or 40!bs of flour to the bushel of wheat, with about 12lbs bran and slbs pollard, tho other 31bs being allowed waste, which does not amount to that. Now the first cost of 50 bushels of wheat at os Id per bushel is £7 14s 2d, and the quoted prices charged by the millers is, one ton of flour, £11 ss; say, GOOIbs bran, 30 bushels at lid, £L 2s (id ; 12 bushels pollard at Is, 12s ;or a total of £12 IDs lid—or, say, we quoto flour at £10 per ton, £11 1-1" (id, taking the first co>t £7 1.4s 2d from this amount leaves tho miller the handsome profit of £4 0s 4d on each 50 bushels of wheat purchased, or a fraction over Is 7d per bushel, that is quoting flour at £10 per ton, or with Hour at £1.1 ss, a fraction over 2s Id per bushel. I do not know what is the charge for grinding f- bushel of wheat in Auckland, but in Australia it is !ld per bushel for parcels of 50 bushels and upwards, under that amount Is. Now, supini.se each fanner paid for grinding what wheat lie required for his own use, ho would save on that quantity of wheat the difference between !ld and 2< Id per bushel. But why do the farmers sell any wheat to tho millers who rob them thus? Their remedy is simple. Let thein form cooperative associations in each wheat-grow-ing district, and erect their own mills, and divide the whole of the profits among themselves. If through any cause this plan cannot be carried out, let each individual farmer have tho whole of his grain ground instead of selling it to the millers, and any surplus ho may have for sale in either flour, bran, or sharps he could sell at a considerable reduction on present prices, and scill pocket at least 20 to 30 per cent, more for his crop, as well as benefiting the consumers, who would be only too glad to deal with him direct. Although the price of farm produce is very low at present, fanning will pay still if the fanner will only protect himself against tho sharks who prey upon him in the shape of millers and retail traders, each of which makes at present more profit out of his labour than he does himself. —I am, &c., SKTTLKR. Swanson, March 2(J.

The following letter appeared in a late issue of the O.un mi Mail, and is also interesting to the people nf t,lie AVaikato at the present moment, as scivinpr an idea of the baker's profits Sir, —"To this bread question I should like to make a f«w remarks, with your permission. »Siv bushels of wheat yicdd of tine fl >ur, 2Ro'.bs ; 2So!bs. of flour make of white bread, -JOOlbs; S bushels of wheat average of H-.ur, -1021 bs ; -10 bushels of wheat will (,'ive of Hour, 20001 bs ; 1 sack of flour (20011)-) "'ill give in 41b loaves, 72. The above estimates are from three different authorities on the yield of flour from wheat, and two authorities on the yield of bread from Hour. Now, Sir, 40 bushels of wheat at 2s yd per bushel (£'s (is Sd) will (jive 20001b3. of flour, or 720 loaves at (id (£1«S). If I have omitted the gristing I have alao omitted the sharps and bran, which will be about equal. There is nothing for the above question but co-opera-tion."— Head Ob' FAJirr.v or Eirjit.