asked the Minister for Agriculture if he is aware that there has been very serious dissatisfaction amongst farmers generally owing to the wide margin in price between the wheat sold by them to the millers and merchants and the price they have been obliged to pay for seed wheat; and, if so, if he will state the reasons for that wide discrepancy in prices, with particular reference as to whether the high price of seed wheat was justifiable.
Ceisteanna—Questions. Oral Answers. - Price of Seed Wheat.
I have had representations made to me regarding the difference between the grower's price for wheat and the maximum prices fixed for the sale of seed wheat. As I have pointed out in reply to such representations, there is an appreciable loss of weight to the seed assembler in the removal of weed seeds, small and broken grains, etc., from his stocks as delivered by the growers, and in the case of dried seed there is a further loss of weight in drying.
Other expenses falling on the assembler include the cost of collecting, drying and storing the seed and of despatching it, carriage paid, to its destination, the cost of carriage being included in the price.
Provision has to be made for a reasonable rate of profit, not only by the assembler but also by the local retailer, as otherwise growers would be unable to purchase seed from their local merchants on whom many growers depend for credit. Having regard to all these considerations, I am of opinion that the maximum prices fixed are not excessive.
Is the Minister aware that there are numbers of assemblers this year selling wheat at a few shillings less than the price fixed by the Minister?
That might be so.
So they consider they can operate at a fair profit?
We fix only the maximum price.