NEW ZEALAND APPLES

Dominion, Volume 8, Issue 2416, 23 March 1915, Page 7

NEW ZEALAND APPLES

SOUTH AMERICAN MARKET CONDITIONS AND PROSPECTS Mr. G. L. Taoon, the Special Commissioner sent to the Argentine to inquire into the market prospects for New Zealand fruit in South America, sends the following report, dated Buenos Aires, January 8:— The conditions here are excellent for consignments of New Zealand apples. Shipment in New Zealand to Buenos ,Aires- should not ho made until about the middle of March, so as.to arrive here towards the middle of April; and should - follow fortnightly by each steamer during our 6eason, say to end of June; after that fruit from North America- begins to arrive. This market is glutted with locally-grown apples during March and early in April, which although of poor quality ami known to* the snade as "cara suoia" ("dirty or nasty face") aro sold very cheaply and keep prices at a low level. Only the very best apples are required for this trade. A high standard as set.by the United States grower, who (supplies this market during most of the year ; and unless the New Zealand /grower can approach this highly uniform excellence he cannot hope to cater for tlie business successfully; Tasmanian apples are out of fashion in Buenos. Aires because the quality and'packing havto deteriorated.-.I am everywhere mformed.that Tasmanian shippers became careless, and so gave those of New Zea- , land an opportunity to , secure .the business.': " ' Mew Zealand's First Shipment. Our first shipments appear to have given much satisfaction': but very serious complaints are made in connection with the apples sent from New Zealand to Buenos Aires last season; so much 80, that I found the leading importers resolved to pass by our fruit this year and. to give Tasmanian another trial. Our growers are accused by these merchants of becoming careless, similarly ,to the Tasmanians, and the latter had promised to exercise more care this seaeon, and to ship only such apples as this market favour. A buyer well known ,in New Zealand was obliged to make hdavy allowances amounting to 3s. 6d. per case to at least one large merchant of Buenos Aires, who purchased, on contract, the reason being bad grading and packing and general inferiority of the apples on arrival. In fact, considerable losses appear to have been 'made by most of those on this side concerned with our shipments last season; and I have found it no easy nor pleasant task to induce 6ome of these wholesale merchants to give New Zealand apples another trial. I have only | been able to do so by assuring them * that their grievances would be repre- " sented to my Government and that the ' causes would be eliminated so far as ~ possible in, future. Besides being carelessly classified and packed, I am informed that a considerable proportion of the fruit was baldly russet-ted, especially tile sturmers, and that this is a serious fault here.

North Amerloan Fruit. The apples'and pears at present on this'' market are from North America; they, are usually really beautiful fruit, fit for any show: the apples of great colotr, are usually large; the varieties v are "Winesap," "Spitzenberg," "Jona- \ than," "Pearmain, etc. Pears also are ■ large, and arrive in perfect condition. Fruit from North America is sent in cold storage and direct to Bne'no6 Aires, .thus avoiding transhipment and handling at Monte Video. Fortunately for ua, North America ownot supply when we'are shippers, but wo must come up I'to fto standard set by,them to capture retain the South American market during their off season. Apples are retailed here not by weight, but by number—at so much per dozen; the retail price is regulated accordingly by the size as well as by the general appearance. I have Been no small apples being offered for . sale: the sizes most favoured are 2Jin. to 3in.; occasionally larger fruit is displayed up to 3Jin. The two favourite 6izes are 2sin. and 3in. Appearanoe usually oounts for more than aotual quality; a large, phowy apple will always 6ell well in Buenos Aires, if landed hard and in good condition. Some of the Ruling Prices. Prices paid for North American apples by wholesale merchants at present nin from about 15s. to 20s. per case, c.i.f. cash at Buenos Aires. Retail priceß I demanded for the same fruit at market stalls, hawkers' baskets, . and shops a' vary between about 4s. 7d. and 9s. 2d. per dozen, or, say, 4Jd. to 9d. each, according to size and quality (as these people understand quality). The North American fruit is perfectly packed, and arrives here in uniformly good condition in cases of planed wood with battens top and bottom, neatly labelled and marked at" either The "get up" is admirable and finished-looking, and the oase opens up as though its contents were tennis or cricket balls and packed ' by machinery. Tasmanian apples are being offered here at : about Bs. 6d. to'9s. c.i.f., one line of 20,000 spread ' delivery was offered yesterday at'Ss. 9d. c.i.f. cash on delivery, April-June. , Probable Price for New Zealand Apples. After going into the question, seeing the doubt of this market regarding the quality of our apples as well as that of Tasmania, I strongly advise Now Zealand shippers to consign' in preference to shipping ■ to order. The best pries obtainable for contracts would probably be about 9s. c.i.f. Monte .Video, and in event of the fruit opening up badly claims would have to ; be allowed or no future business need bo looked for from the injured party. This would be for first-grade ! fruit 'by our standard in New Zealand. Probably I could place the tvhole of the Dominion's exportable surplus of apples suitable to Buenos Ayres 1 requirements at about 9s. per ;ase c.i.f. Monte Video; a considerable quantity could certainly be sold here at least. But the buyer after his experience, is doubtful, and the price he .will pay covers some of the risk he believes to run, such as small sizes, poor appearance, etc., eto. On the other hand, if the utmost care be exercised in New Zealand as to grading and packing and in only allowing really prime hard fruit to be shipped, and ,with a big proportion of coloured varied ties—then the first two or three_ shipments will enable the agent at this end to get big prices. Moreover, the standard of relatively high prices so obtained after the first shipments would (provided that the same care and honesty were maintained by our shippers right through the season) set a standard for the prices of next season's crop. Consignments Advocated. This city has a population of about one and a half million souls, and is the distributing business centre for other places also; Buenos Ayres can be relied upon to take all the suitable apples and pears that New Zealand can send here for at least some years to come. One buyer, if he could be certain that we could supply the class'of apples he requires in good condition, would take about 12,000 pases or about 2000 cases by each fortnightly steamer 1 and pay 3£ dollars gold, equal to 14s. per case c.i.f. for them. For the above reasons I believe that New Zealand shippers will be wise to consign to one agent here, and to give him discretion- • ary power as to disposal of the fruit. But I must emphasise again that everything depends uoon the quality; care-

lessness this season will ruin /the New Zealand export trade of apples with Argentina. Only the best fruit is wanted; the grading and packing must be honest and caroful, the sizes as nearly as possible 2<}in. to 3Jin. Highly coloured apples will be mosb favourod; but others suoh as Munro's Favourite, etc., and of course Sturmers, when matured, will probably fetch good prices. Softer varieties should not be shipped as they do not stand the journey, and will always cause much trouble. Some 2Jin. would be taken, but not too many, and nothing ' below a full 2Jin. is saleable here. If it were possible to do so, these buyors would like the fruit to be carried from New Zealand in cold storage, stating that it would carry bettor so; but, as I informed them, that was probably impossible to do'. Extensive Gold Storage Available. .There are very extensive cold stores associated with and situated beneath (underground) out of the largest markets in Buenos Ayres. I have inspected these and ample space is available, if ever needed, to hold our fruit here. The price is about one farthing per case per diem for fruit, all told. The capital involved in these stores and markets is some £400,000 sterling; the management is very enterprising, and has for some time been considering the advisability of inaugurating auctions of imported fruit. Mr. J. Francis B. Neild is one of the directors of this company, representing British shareholders. If this come-off, then probably our growers, as well as those of North America, will be able, to obtain a fairer proportion of the price charged here for apples than has hitherto been possible. But nothing should be done here to antagonise the wholesaler, who belongs to a close corporation and whose strength is very great; or, at least, any change from the recognised system of doing business in this country should be made only out of long experience and an impregnable position. A false move would bring about a boycott, and probably ruin all future prospects of business. Departmental Suggestion. Any persons who contemplate testing the Argentine- market by shipping apples on consignment as suggested by Mr. Tacon are advised to consult the Director of the Orchards, Gardens, and Apiaries Division of the Department of Agriculture, Industries, and Commerce, Wellington, who is m possession of information as to agents who would act on behalf of New Zealand shippers.