‘Grim Outlook For Apples'

Press, Volume CVI, Issue 31111, 14 July 1966, Page 1

‘Grim Outlook For Apples '

(New Zealand Press Association) “ WELLINGTON July 12. “The financial picture this year for exports of apples and pears is pretty grim,” the general manager of the Apple and Pear Board (Mr D. L. Waller) said today.

He said that, in spite of a record production, New Zealand export sales had faced a very difficult year, in what was rapidly becoming an oversupplied market.

This year South Africa had placed an additional 1,500,000 bushels of apples on the British market and this, added to the effects of the strike, had made conditions extremely difficult The seamen’s strike had a three-fold effect on prices—the Government and press had combined to keep prices down; cargoes had to be landed at the first port instead of being spread over a number of ports; and discharge was rapid because of port conditions so all the fruit arrived on the market at one time, causing a glut. Mr Waller said that freight increases meant much more to the fruit industry a producer than they did to any other primary producers. On f.o.b. values, the Apple Board must add between 51 and 59 per cent to the cost to represent overseas freight charges. In the ease of meat, however, 9 per cent was added for beef, 18 per cent for lamb and 29 per cent for mutton. Dairy produce only required an addition of from 7 to 11 per cent.

The 7} per cent increase jn freight rates would cost the fruit industry about £150,000 more a year and the cost to each individual grower would be £2OO a year, Mr Waller said.

To cover freight charges, cool storage, packaging, etc., the board had to recover 30s a case, without taking into consideration the cost of the fruit content. In the European

market this year, the price a case was already 6s down on last year. There was no immediate prospect of passing any further increased charges on to the market and the new charges would only add to the burden, Mr Waller said. Production this year was a record in New Zealand with 5,400,000 bushels or about 740,000 more than last year. By 1972 the board expected to handle about 7,000,000 bushels, under existing conditions.

Unfortunately, most of the other apple exporting countries were also stepping up their production and could supply the European markets at a cheaper price. REVENUE DOWN

So far this year, with 1,750,000 bushels accounted for on the European market, revenue was already £700,000 down on the previous year. Additional costs were still to be recovered from the market worth about £130,000. This left about 800,000 bushels still to be accounted for, while some 400,000 bushels had been sold by for-

ward order to various Pacific countries. Of the year’s production of 5,400,000 bushels, 2,900,000 were for export, 600,000 for canning and 1,900,000 for the local market, Mr Waller said.