Reasons For High Price Of Fish Explained

Press, Volume CVI, Issue 31087, 16 June 1966, Page 10

Reasons For High Price Of Fish Explained

The fishing industry would progress faster if Government departments would “keep off its back” more, the managing director of P. Feron and Son, Ltd. (Mr M. L. Newman), told a luncheon meeting of the Canter-bury-Westland branch of the New Zealand Society of Accountants yesterday. “As Winston Churchill said, ‘Give us the tools and we will do the job,’ ” Mr Newman said. The Government was theoretically keen to help the fish-

ing industry, but the “dead hand” of departmental regulations kept impeding progress, he said. Everyone thought that the price of fish was too high, and this was a situation he had found in many different parts of the world, Mr Newman said. In the old days the fishermen went out in a row-

ing boat and caught fish within a mile or two of the coast, bringing it back and selling it for sufficient to give them a living and no more. The fishermen were the poor people. Over the years the fishing grounds had become depleted, and bigger, more expensive boats had to go f urther afield, all this requiring more and more capital investment, causing a rising cost structure in the industry. Nor was sufficient credit given to the men who caught the fish: the job was arduous and hazardous. Men could often get better money ashore, so they would only fish if it paid them. Nor were the retailers and wholesalers making huge profits.

The price of fish was partly a result of the supply and demand situation. The supply was unreliable because of weather, the luck of the catch and other factors, and this

meant a higher cost structure, for facilities had to be kept ready to handle the maximum supply. Another factor was the unpleasantness of the industry. The smell of fish permeated workers—if you sat next to one in a hot theatre you would notice the smell of fish—and people therefore wanted “smell money,” which again affected-the cost structure of the industry. Then there was the perishable nature of the product—if a shop overstocked, the fishmonger had to throw fish out. Further, the modern consumer wanted more and more preparation to the fish before he bought it. The industry in Canterbury was producing for the market in New Zealand and Australia. The bottom price was consequently the price packers were willing to pay for fish which they would pack for export to Australia. Mr Newman remarked that one often heard persons say they wished to buy fish that had not “gone through the freezers.” In fact, the fish was chilled, not frozen, because freezing could change the fish. On the other hand for every 10 degrees Fahrenheit that fish was reduced in temperature the bacterial activity was halved; hence the aim was to chill the fish to the lowest possible temperature—short of freezing—as soon as possible after it had been caught. This resulted in far better quality. Speaking of the 12-mile fishing zone, Mr Newman said that around New Zealand this would enclose most of the good fishing grounds under 100 fathoms. So many countries had introduced such a limit that New Zealand could probably also do so safely. The Japanese had threatened to take the matter to international arbitration, but in the last few months Japan herself had instituted a similar 12-mile fishing limit.