ONION TRADING

Hawke's Bay Herald-Tribune, Issue 71, 10 April 1937, Page 7

ONION TRADING

-PreiB ABsociation.)

Actual G^vnfcr5, Profits Not Restricted GRADING, ESSENTIAL

(By Telegraphr

WELLINGTON, LaSt * Night. ! A stateinfent CoVering' the new tegu-l iations governing the sale of onions was made by Mr. 'Cockayne, DirectorGeneral of ' the Dopattment -of Agriculture. He' said that, although at present: therO waS' litt'le movement on the bnlon market -apart from day to day saies to meet the cufrent ;consuniption,' there was was 'no need for growers ' to; assume that this position is abnormal and that the taarket will remaitt in its present quiescent state. "Every year at this time the complaint is heard that onions -aTe unsaleable, ;and the inception of the new regulations cannot be held responsible- for the present state of the market. -There appears to be a -definite misconcep - tion, ' ' said Mr. Cockayne, "particularly in the minds of Christchurch merchants who trade in onions, that the xegailations limit their operations to a margin of 7$ per cent. profit. . , "I wi?h to make it. perfectly clear that, where a merchant i3 selling- on a commission basis on bqhalf of a grower, he is limited to 7i per cent. commission, but where ' he purchases onions and. thereby acquires ownership' he is at: perfect liberty to trade in these onions (as hitheito withont any r'estriction as to profit. Glarification of this point should; . set at resl4the fears of growers that the1 so-called xestriction of the merchanfs'' profits is hampering the -sale of onions to-day." Mr. Cockayne said the growers were breaking the regulations by consigning to outsiae markets ungraded onions. "It must be clearly understood," he .. said, "that only graded onions are allowed to be sent to outslde . markets for sale. No grower is allowed to send for sale outside the scheduled distriet in which his onions are grown glny ungraded or under-grade onions without first receiving a permit from the Department of Agriculture to do so. "The inception of the new regulations called for the co-operation of growers and merchants with the department in regulating the industry, which in the-past has been subject to violent' market fluctuations, causing heavy losses to both growers and merchants. ' When the onion advisory councils ara set up the regulations would be care-: fully gone into, and if necessary re-i commendations would be made to the1 Goverament to smooth out a fiy minosr points and advise in respec't to grading,[ future prices, etc. ' , j Mr. Cockayne was satisfied that, de-| spite the assertion to the Contrary, thej growers would realise in time that the operation. of fixed prices was definitely in their interests and that it would re-' sult in stabilising their business at sat-' isfactory prices. j