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Wheat quotas - 1970/71



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CRESS

STATEMENT

MINISTER FOR

di AU BFi':U,16 &. PRIMARY INDU `'R(

I

WHEAT QUOTAS_- 1970/7/1

The Minister for Primary Industry, Mr. Azithony, said today

that the Australian Wheatgrowers' Federation had acted with responsibility

in a difficult situation by recommending a national wheat quota reduction

for the 1970/71 season.

But he said the Federation's decision did not alter the fact

that the industry was likely to have the biggest carryover of wheat in

its history at the beginning of the 1970/71 harvest - the harvest to

which the new quotas would apply.

Mr. Anthony was commenting on the decision yesterday by the

Federation that the basic national quota should be 288 million bushels

plus supplementary quotas for New South Wales and Queensland prime hard

and northern hard wheats totalling 20 million bushels.

He said: "The carryover at let December 1970 was estimated

a few weeks ago at a little over 400 million bushels, but new estimates

based on revised crop and sales figures show a likely carryover at that

date of about 3tl6 million bushels.

"This is almost 80 million bushels more than the carryover

at 1st December 1969.

-2-

"It is obvious that unless there is a strong and unexpected

increase in wheat sales, or unless some other factor not at present in

view comes into play, it is going to take a considerable time for stocks

to be reduced to more manageable levels.

"The world wheat supply situation is such that it would be

unrealistic to assume any significant increase in the present sales

level in the foreseeable future. It may well be difficult even to

hold the present position.

"The new quotas proposed by the Federation would not, of

course, have any effect on the carryover situation at 1st December, 1970."

Mr. Anthony said deliveries for the current season were at

present expected to total about 362 million bushels, comprising 306

million bushels of quota wheat and 56 million bushels of over-quota

wheat. Sales were optimistically estimated at 283 million bushels.

This meant that with the current harvest added to the start-of-season

carryover, total availability of wheat would be approximately 629

million bushels.

Mr. Anthony said he expected the Federation would want to meet

him to discuss the condition of its proposals that the Commonwealth

Government guarantee finance for a first advance on quota wheat.

It was likely that a meeting for this purpose would take

Governments.

implementation of the Federation's proposals rested with the State

Mr. Anthony said the responsibility for acceptance and

place in Sydney next week.

-2.-

"It is obvious that unless there is a strong and unexpected

increase in wheat sales, or unless some other factor not at present in

view comes into play, it is going to take a considerable time for stocks

to be reduced to more manageable levels.

"The world wheat supply situation is such that it would be

unrealistic to assume any significant increase in the present sales

level in the foreseeable future. It may well be difficult even to

hold the present position.

"The new quotas proposed by the Federation would not, of

course, have any effect on the carryover situation at 1st December, 1970."

Mr. i\nthony said deliveries for the current season were at

present expected to total about 362 million bushels, comprising 306

million bushels of quota wheat and 56 million bushels of over-quota

wheat. Sales were optimistically estimated at 283 million bushels.

This meant that with the current harvest added to the start-of-season

carryover, total availability of wheat would be approximately 629

million bushels.

Mr. Anthony said he expected the Federation would want to meet

him to discuss the condition of its proposals that the Commonwealth

Government guarantee finance for a first advance on quota wheat.

It was likely that a meeting for this purpose would take

Governments.

implementation of the Federation's proposals rested with the State

Mr. Anthony said the responsibility for acceptance and

place in Sydney next week.

-3--

He hoped to join in discussions on the proposals with State

Ministers for Agriculture at the earliest opportunity.

7^ YY1 ^^

8th January, 1970.