FORWARD SALES OF FRUIT

Hokitika Guardian, 4 February 1931, Page 7

FORWARD SALES OF FRUIT

BUSINESS OFFERING. CRITICISM OF CONTROL BOARD. NELSON, January 30. Air H. E. Stephens, the Fruit Control Board representative in Great Britain tor the past three years, on invitation addressed a large gathering oi the Hills Fruitgrowers’ Union. Mr Stephens said that lie was pleased to have the opportunity of meeting growers, but was sorry that the meeting had not been called by the Control Board. He thanked the Hills Union for the opportunity given him to address the meeting. Growers should have been afforded an opportunity of listening to his report with the members of the Control Board present, so that those most interested should hear both sides of the question. In referring to the policy of the board, he said thnt there were several things they should definitely aim at, one of these being forward sales. “I have always been in favour of this scheme,’’ said Mr Stephens. At' an early meeting of the hoard he moved a resolution in favour of forward sales but had to withdraw the motion for want of n seconder, and when appointed London representative he kept the matter in view, He was in favour of direct loading to the Continent, as buyers from Germany and other foreign markets do not now go to London for supplies,

LARGE OFFER MADE. “We started two years ago by supplying 20,W0 cases to Hamburg, 17,000 being sent and 3,000 being made up out of' a consignment of fruit, and 50,000 cases could have been sent,” stated Mr Stephens. “Last year 160,000 cases were sold forward and arrived in good condition, and inquiries as to supplies for the following year were recorded.” Mr Stephens said that ho and Mr J. L. Brown had approached only two brokers for definite bids and both made offers. One broker would take 120,000 cases at 13s 6d, c.i.f., Hamburg, cash in Wellington, plus exchange. The second offer was from Sweden for A.3,0f10, cases of apples, c.i.f, Hamburg, at 11s for good grade, 12s for fancy, and 13s for extra fancy, and 17,000 cases of pears at 12s 6d and 14s per case, cash in London against documents. Other offers were also made. One English broker made an offer to buy forward, which meant at least 100,000 cases. OPINION NOT SOUGHT. Mr Stephens said that he cabled to the Control Board and received no reply, and since arriving here he had received a cable from a buyer asking for a decision. He referred to the arrangement made by the Control Board whereby Continental business was being handed over to a private firm, and stated that owing to very bad conditions of trade it was not the time to place all our fruit on a consignment basis. New Zealand fruitgrowers were about the only ones depending upon consignment, and from three years’ experience in London ho was satisfied that forward sales was the best business,

Ho was surprised that the Control Board, knowing that he was coming hack, did not think it worth while to ask for his opinion on the scheme. A report on matters affecting our trade was made fully and regularly every fortnight. On his return here he attended a board meeting and was asked certain questions. A vote of thanks and appreciation for past services was given, but no reference was made to

f.o.b. sales, nor was advice asked in connection with the Continental scheme.

RESOLUTION BY MEETING. A resolution was passed urging the Control Board to make forward sales of the coming season’s fruit at payable prices to the Continent and United Kingdom and other markets, but strongly objecting to such sales being effected if accompanied by a guarantee that would exclude consignment, A protest was also made against the importation of pears and other fruit from Australia.