FRUIT INDUSTRY

Hauraki Plains Gazette, Volume 52, Issue 32303, 23 August 1943, Page 6

FRUIT INDUSTRY

PRESIDENT’S STATEMENT GROWERS PERTURBED CONFERENCE AT WELLINGTON The subject of outstanding importance to which the Dominion conference of the New Zealand Fruitgrowers' Federation gave most of its time was the position which has arisen in the apple and pear-growing industry, said the president, Mr T. C. Brash. Prior to the outbreak of war, an annual export of a million and a quarter cases had been built up and was tending to increase. These were returning - remunerative prices. On the outbreak of war the orchardists were advised that they must forego their share of refrigerated space on oceangoing steamers by reason of Empire war 'demands. Faced as they were with ruin, the growers appealed to the Government for protection. They justifiably expected that in view of the fact that all other exporting industries were allowed to continue their export, the position of fruitgrowers would have mery consideration. Original Price Low After prolonged negotiations, the Government agreed to pay “»/- per case for standardised fruit. It was never claimed by the Government nor mb mitted by growers that this price was related to the cost of production. In 193!) a price of a/- represented 2/6 per case to tin 1 growers for the production of fruit, the other 2/6 being spent on cases, packing materials and grading and packing costs. The following year an advance of 5d per case Cor current increased costs was given, again without any relation to actual production costs. Finally, for the 1943 harvesting period, a suhsidy was paid bringing the price to an average of G/- per case and packing charges have risen in the meantime to 3/-. leaving 3/- per ease for producing tilt' fruit. - During the whole of this period the costs of production were steadliy advancing and actual average cost of producing and packing the fruit is to-day not less than 6/74 per case. Government Action It should be mentioned that in the first year of the Government purchase it was able to export approximately 60(1,000 cases, which realised good prices, enabling the Government to make a small profit on its marketing of the complete apples and pear crop for that season. That was the end of export as far as ordinary marketing is concerned. The following year the Government lost. approximately £420.000 on its apple and pear marketing. For 1942 season the loss was approximately £130.000. Figures of the 1943 year's operation are not yet available. The result of the.se years of growing apples and pears below the actual cost of production has been disastrous. both nationally and for the general run of growers. Since 1939 some 200,000 fruit, trees have been destroyed and the orchards which remain are showing distinct signs of neglect. Growers are becoming disheartened and many have left their orchards in despair. Increased Market Demand To-day the position on the market has entirely changed. In 1940, 1941 and 1942 there was a surplus of these fruits on the m'arket, but the demand has grown so substantially that already apples and pears are being rationed on to the market. The position will be infinitely worse during 1944. and unless a change takes place providing for the payment of the actual average production costs, the industry, except for a favoured few. is doomed. The conference placed on record its extreme disappointment that its request for the average cost of production has been ignored. It submits that the apple and pear industry is now in a position to claim that every case that can be produced is needed. It has again submitted its claim for an average price of 6/71 as being the cost of production. Cost of Production Wanted Representatives waited on the Minister of Marketing and members of the Stabilisation Commission and siibmitted this claim. Further, the industry offered and has again renewed 'the offer to submit its figures of cost to the Price Tribunal and abide by its finding. Urgency is claimed for an early settlement, as expenditure on the produel ion of the 1944 crop began in June, 1943. and until the price is settled growers are entirely in the dark as to the position. ! Even if granted, 6/71 per case, the ! net. reutrn for growing fruit after tak-

ing case and packing charges into account, is only 3/74 per bushel or approximately Id per pound. The increase which growers are asking is 74(1. per case, equal to one-fifth of a penny per pound.