FRUIT GROWERS PERTURBED

Bay of Plenty Beacon, Volume 7, Issue 1, 24 August 1943, Page 3

FRUIT GROWERS PERTURBED

PRESIDENT'S STATEMENT PRICE INCREASE NECESSARY There has just ended the Annual (Dominion Conference of the New Zealand Fruitgrowers' Federation. Delegates were present from all the fruitgrowing areas of New Zealand. The subject of outstanding importance to which the. conference gave most of its lime, was the position which has arisen in the Apple and Pear Growing Industry, said Mr T. C. Brash. Prior to the outbreak of war an annual export of a million and a quarter cases had been Iniilt up and was tending to increase. These were returning remunerative prices. On the outbreak of Avar the orclvardists were advised that they must forego their share of refrigerated space on ocean-go-ing steamers by reason of Empire War demands. Faced as they Avere with ruin, the growers appealed, to the Government for protection. They justifiably expected that in view of the fact that all other exporting industries were allowed tc continue their export, the position of fruitgrowers avouUl haA r e every consideration. Original Price Loav After prolonged negotiations, the Government agreed to pay ;">/- per case for standardised fruit. It was never claimed by the Government nor admitted by growers that this price was related to the co;t of production. In 193!) a price of .V- represented 2/6 per cast; to the growers for the production of fruit, the other 2/6

being spent on cases, packing materials and grading and packing costs. The following year an adA r ancc of 5d per case for current increased costs was given, again Avithout any relation to actual product ion costs. Finally, for the 1943 harvesting period a subsidy was paid bringing the price to an average of (> - per case and packing charges have risen in the meantime to 3/- leaving 3/per case for producing the fruit. During the. whole of this period the costs of production * were steadily advancing and actual average cost of producing and packing the fruit is to-day not less Hum (> /'od. per ease. Government's Action It should he mentioned that in the first year of the Government purchase it was able to export approximately (1)00,000 cases which realised good prices, enabling the Government to make a on its marketing of the complete apple and pear crop for that season. That was the end of export as far as ordinary marketing is concerned. The following year the Government lost approximately £120,000 on its apple and pear marketing. For 191.2 season the loss was approximately £130' 000. Figures of the 1943 season's operations arc not yet available. The result of these years of growing apples and pear.s below the actual cost of production has been disastrous both nationally and for the general run el growers. Since 1939 some 200,000 fruit trees have been destroyed and the orchards Avhich remain are. showing distinct signs of neglect. Growers are becoming disheartened and many have left their orchards in d-espair, Increased Market Demand To-day the. position en the market

lias entirely changed. In 19-10, 1941 and 1942 there was a .surplus of these fruits on the market, but the demand has grown so substantially that already apples and pears are being rationed on to the market. The position will be infinitely worse during' 19-1-1 and unless! a change takes place providing ['or the payment of the actual average production costs,, the industry, except for a Favoured lew, is doomed. The conference placed on record its extreme disappointment that its .request for the average cost of production has been ignored. It submits that the apple and pear industry is now in a position to claim that every case that can be produced is needed. It has again submitted its claim for an average price, of (J. as being the cost of production. Cost of Production Wanted Representatives waited on the Don. the Minister of Marketing and members of the Stabilisation Committee and submitted this claim. Further, the industry offered and has again renewed the offer to submit its figures of cost to the Price i Tribunal and -abide by its finding. Urgency is claimed for an early' settlement as expenditure on the production of the 19-14 crop began in June 194.:> and until the price is settled growers are entirely in the dark as to the position. Even if granted, (>/~*'2tl per case, the net return for growing fruit after taking case and packing charges into account, is only '.i'lHd per bushel or approximately a penny per pound. The increase which growers arc asking is TVad per case equal to onefifth of a penny per pound.