FRUIT INDUSTRY

Dominion, Volume 35, Issue 287, 2 September 1942, Page 8

FRUIT INDUSTRY

Demand For Higher Price PRODUCTION COSTS

“Following the annual fruitgrowers’ conference in Wellington last month, a deputation, led by the New Zealand Fruitgrowers’ Federation, approached the Acting-Prime Minister, Mr. Sullivan, to open negotiations for the fixation of a price for the coming season’s fruit crop,” states the “Orchardist.” •‘The deputation was well received and was left with the impression that the first step had been taken toward securing a better price for 1943. -. “The president, Mr. T. C. Brash, told Mr-Sullivan of the difficulties the fruit industry was facing after experiencing three years under the present purchase arrangement. He gave the Government full credit for the manner in which it had come to the assistance of the industry at the outbreak of war when it was found that the usual export shipping space was no longer available. “Mr. Brash pointed out- that the fruitgrowers, were the only section ot . primary producers carrying, on with a price below the cost of production. He stressed that neither the Government nor the growers at the time realized that they should have been treated exactly the same as other sections of the primary industry. This had arisen through the panic following the outbreak of war, when the industry had agreed to accept price recognized by the Government as below the actual cost of production. As recently as March last this had been acknowledged by the Minister of Marketing, Mr. Barclay. “On the present price the industry was a declining one, and. the position was becoming increasingly difficult on account of various problems now affecting production. These were shortage of labour and materials and the increasing cost of these. The result was a reduced yield of marketable fruit. “Mr. Brash informed the Minister of the resolution unanimously adopted by the Dominion conference asking that the Government review the whole basis of payment and give to the growers a return based on actual production costs. “Mr. L. B. Robinson drew attention to the fact that industries really subsidiary to fruitgrowing, such as boxmakers, chemical manufacturers and processing factories, had been declared essential and were in a position, and, in fact, compelled to pay higher wages. Each of -these was dependent'on the product of the fruitgrowing industry, ‘and he contended that it was unfair that the fruitgrower should be required. to carry on on a lower return. The grower should be placed in the same position as others in the labour market. ~ , “In reply Mr. Sullivan said he recognized that fruit was essential in New Zealand and in other countries. He was pleased the industry had given credit to the Government for the assistance already given. The greatest problem appeared to be finance,'.which was brought into the question largely on account of the limited, market for existing supply through loss of overseas markets. He indicated that there was a possibility of extending markets in tlie future. • “The Minister stressed that he held to the view that no section of the country should suffer an undue hardship as compared with other sections, owing to war conditions. He afforded the deputation a most sympathetic hearing and promised that he would confer with the Prime Minister and the Minister ot Marketing and place; "the representations before them. ./. . “In seeking a higher price for next year’s crop the -industry is not asking anything unreasonable,’.’ continues; the “Orchardist.” “On the contrary the figure asked for (6/7J a ease) is based on the absolute minimum cost of production, ami is calculated to cover only bare necessities. Only now is the fact coming home to the grower that for the past three years he has been operating at a loss, and in some instances this 'realization . has come too late to save the orchard. Hence a number of men have been compelled to walk off their holdings. This tendency for losses to pile up will become increasingly noticeable as time goes on unless something is done to cheek it. The industry is in such a position that strong 'action is required to save it. . . “From a national point of view this action is urgent, -because production is falling, and if the tendency is.not arrested and reversed by Government assistance, New Zealand will shortly be faced with an actual shortage of fruit. Pears are in short supply already. The apple surplus last year was substantially lower than in the previous year, the glut period lasting only a few months, and the surplus was only 20 per cent, of the total crop. Unless something is done the position will steadily deteriorate till there is an actual shortage. Even, in the coming season the shortage might manifest itself because of the expanded market for fruit due to military requirements.”