Growers May Insist On Price-Fixing

Press, Volume CVI, Issue 31080, 8 June 1966, Page 3

Growers May Insist On Price-Fixing

(New Zealand Press Association)

WELLINGTON, June 7

Take-overs and a lessening of competition among food processors eventually would make vegetable growers insist on collective pricefixing, said the chairman, Mr W. C. Wills, at the Vegetable and Produce Growers’ Federation’s annual conference today.

Mr Wills said two compan-. ies virtually controlled the vegetable processing industry. “In past years competition for produce did provide growers with some assurance of reasonable returns.” said Mr Wills. “But in recent, times organised resistance by manufacturers to growers’ claims for compensation for rapidly in-

creasing costs has ruled out completely the competitive element as a measure for seting prices. PRICES STATIC “Prices process growers receive for some vegetables have remained static for up to 12 years. Only by increasing yields and adopting improved methods of farming and handling have growers been able to keep abreast of increasing costs. “The federation is most reluctant to prejudice the development of export markets by seeking increases in the price of vegetables for processing.” he said. “Processors, however, cannot expect growers to ignore the narrowing gap between production costs and sales returns indefinitely.” PRODUCTION UP Twenty-six per cent more vegetables were grown for processing last year, says the annual report of the Vegetable and Produce Growers’ Federation. “It is most unlikely that ex-t pansion of this magnitude could be absorbed by local demand,” said Mr T. H. Warburton, chairman cf the executive committee and president of the federation.

“So it would appear that processors have had considerable success in developing and enlarging export markets for processed vegetables.” i