AUSTRALIAN FRUIT

Nelson Evening Mail, Volume LXIV, 20 January 1931, Page 9

AUSTRALIAN FRUIT

HEAVY OVER-PRODUCTION

Ihe position of tlie Australian canned Iruit industry presents many problems. , .„ ls , ac!n ‘ ltte d on all sides that costs will have to come down. Stocks on hand m the Commonwealth are about sufficient to supply a normal year’s demand, canneries are in an awkward position. To handle the produce liom the orchards they are obliged to mi? 01 j la . r S e . quantities of canned fruits, .this fruit, it is claimed, is sold at a Joss, t roprietary canneries, on the other hand, being in a position to purchase •only the supplies of fresh fruit for which they expect a local demand, are under no obligation to purchase fruit, excepting in. instances in ■which a few contracts are uncxpircd. hruit not required nn/y have to be sold on any market and at whatever price it will command. Over-supplied markets are likely to result, and this leaves any advantage in reducing stocks open to doubt. With large supplies of fresh fruit thrown on a glutted market, competitors for the trade would be placed in a better position than a factory agreeing to purchase at a fixed price of £5 a ton. The co-operative canneries arc dependent for their continuance upon export markets in Great Britain, Canada and New Zealand, and the. reduced price paid for the fruit this season should bo the. means of increasing sales of canned fruits overseas. Stocks held in London are becoming more, costly each week, on account of interest, storage, and other charges.