INCREASED COSTS

Hawke's Bay Herald-Tribune, Volume 81, Issue 57, 30 November 1937, Page 6

INCREASED COSTS

Port of London Dock Charges MAY BE PASSED ON A hint that though prices might rise in the United Kingdom it was quite possible that the brokers, who so far have shouldered the increases in doek costs during the past 12 month, may be compelled to pass this and other increased cofcts . on to the growers, was given fruitgrowers last evening by Mr A. L. Burke, representative of J. and H. Good.wins, Ltd., when speaking in Hastings. • . There was always the possibility of over-supply on the market, he said, but generallv speaking he had antieipqted a rise in price for fruit on the Homo markets. The major problem was that "of distribution, and this was an extremely complicated and difficult problem, but he fel't that it was worthwhile endeavouring to solve it. "It must be remembered however," he said, "that increased costs eome with increased prices. Some 12 months ago there was an increase in the Port of London's dock charge. This was borne by the brokers, but since then there have been further rises, and the time may come -v liere these will have to be passed back to the growers.' ' ; Mr Burke said that the brokers naturally did all they could to resist these increases, but as regards tlie doek charges, for example, though the increases had amounted to about 13£ per cent. in the 12 months, personal experience of the firm had shown that its expenses had increased even greater, so that the Board of Trade was not asking more than it was justly entitled to. Mr Burke said that it might be possible to help growers to some extent by developing the trade with Brazil. During the past two or three years so- e 25,000 cases of Delieious apples had been exported to that country. "We are a little bit hopeful that now the Delieious are available in greater quantities, that we can place a bigger order there," he said. "As a matter of fact, I am awaiting replies to cables sent regarding this matter. The position is rather difficult, however, in that though vonr Delieious holds its own, in fact has aetually gained in popularity, its cost is higher than the fruit which it competes against from Chili. "The difference is about 25 per cent.", he added. "Still, New Zealand fruit lias the advantage in its appearance, its actual quality and the standard pack. I am hopeful that your position at least will be maintained, and possibl.v that there will be increased quantities sold on this particular market. "Then there are one or two other slightly comforting things on the horizo'n," he continued. "Last year we were suecessful in plaeing a shipment to France, the first for a number of years. It-is possible that this jnight be repeatod in even greater quantities this year. Further, there is hope that Germany might open her doors ■tliis year and provide another avenue and outlet. "They are just small thingsj" said Mr Burke, "but at least they eonstitute something that is eneouraging and hopeful, r well as being of some comfort when one is delving into the uneertainties o+' the future."