LEMON MARKETING

Gisborne Herald, Volume LXVI, Issue 20119, 13 December 1939, Page 7

LEMON MARKETING

INCREASE IN PRICE RATE TO THE GROWERS POSSIBLE SHILLING RISE Agreement on questions relating to the price to be paid by the Government for the lemon cror) was reached at a series of conferences between members of the Citrus Advisory Committee an'd the Minister of Marketing, the Hon. W. Nash, last week. No information on this point has reached the Poverty Bay Fruitgrowers’ Association yet. but the Auckland representative on the committee, Mr. J. A. Lantbden, of Kumeu, has announced that it is proposed to pay 7s a packed bushel case, and this may be increased to 7s 6d if certain marketing savings could be effected. Costs of Production Mr. Lambden said a question which had long been a source of controversy had -been settled by agreement on a figure representing the costs of production. Previously the growers and the Marketing Department had compromised on 6s Cd a packed bushel case as representing this amount, but, as a result of recent investigations, it had been increased to 7s fid. The Minister had agreed to purchase the lemons produced in the season commencing on January 1 at an average of 7s a case, and he had promised to increase it by 6d a case if this amount could be saved by the Marketing Department in the handling of the fruit. All were hopeful that this could be done. Thus, it had been agreed to pay a price equal to the costs of production if the extra fid a case could be secured. New Grading System “It is also hoped to make some savings as a result of a new grading system,” Mr. Lambden continued. “Instead of maintaining three grades, there will now be two. Extra fancy and fancy lemons are to be combined as a fancy grade, while the second, or commercial grade, will comprise household fruit.”

It was proposed to adjust the average payment according to seasonal variations, Mr. Lambden stated. If the price were increased to 7s fid, growers would be in an improved position, as the costs they incurred in production wbuld at least be met. If marketing brought in a higher return than this figure, the excess would be transferred to a reserve account fob the lemon industry. With a price of 7s fid growers might be expected to do reasonably well in a normal season.