FOODSTUFFS

New Zealand Times, Volume XLVI, Issue 10613, 11 June 1920, Page 6

FOODSTUFFS

PRESENT OUTLOOK EVIDENCE OF A DROP INPRICES. A MORE HOPEFUL OUTLOOK. “AVhat is tho general outlook as regards the grocery business?” was a question put by a “Times” reporter yesterday to the head of a large retail firm.

“It is difficult to say,” ho replied. “Prices are high in most lines and tho grocery trade being one that handles practically nothing but foodstuffs, prices are governed by the demand in other parts of the world. It must be taken into consideration that while New Zealand has been well off as regards essential lines, other countries have been starving for foodstuffs, and this, in a very largo measure, has been responsible for the high values that havo been ruling, and arc still in evidence. With tho exception of sugar, jams, and tinned fruits, supplies are coming forward fairly well, and each mouth an improvement is noticeable.

“Tho lack of shipping facilities still forms a big hurdle, and the labour question is another that has a great bearing -on prices. The grocer is a man who has to bo prepared for a quick trade. It is absurd for persons to suppose that grocers made abnormal profits. The market valuei of bread and butter'lines—and a grocer’s trade consists of these lines —are known, and the tribunal that governs the prices watches tho grocer to a far greater extent than is the case in other trades, on that account. SUGAR SUPPLIES. “There is a, shortage of sugar, and in my opinion the position is due more to lack of shipping than anvthing else. At the same time the shortage does not amount to a famine, and supplies are coming forward, but not in sufficient quantities to meet the demand. Jam and pie fruits cannot be obtained in as large quantities as the demand warrants, and this ia due to tho fact that tho ’ manufacturers are unable to get their orders for sugar fulfilled. Recent advice from America states that an advance in tinned fruits may bo expected on account of the largo orders that are being received by tlio canners from other countries, and until this world food shortage is caught up with, it is not reasonable to expect that prices will drop to an appreciable extent. A small, factory in Marlborough had .made arrangements to place 5000 cases of tinned fruit upon the market. The fruit aifd sugar as well as the materials for packing had been secured, and all that was required was a small die for cutting tho tins. This had to ho procured from Australia, but it took so long for the order to be executed that the fruit had to be made into pulp and used for jam-making. That, hoirevcr, is only one illustration of how trade is hampered. AVAX VESTAS.

“There arc fair stocks of wooden matches, but wax vestas are very short of supply. There are only two factories in New Zealand that manufacture this class of goods, and the output is totally inadequate to meet the demand. As a consequence supplies have been obtained from Australia, hut nothing like* what is English, Belgian, and Italian matches have long been off the market, and from inquiries that have been made there appears to he little prospect of importations from these countries for some time to come. “THE BUFFER.”

'‘The grocer is the buffer between the State and the public,” stated a leading grocer. “Being the he tailor of foodstuffs he has to stand most of the bar,] knocks that are going about at the present time. Do people realise, he asked, “that the grocer sells many ‘bread and butter’ lines that do not return him interest on his capital? If a grocer charges one penny more for an article than his nbxt-door neighbour, the fact is at once reported to the Prices Control Tribunal, and an explanation at once demanded, and if not considered satisfactory a prosecution follows. The goods ' the grocer sells have a greater effect on the cost of living than any other class of business,' therefore the prices ho charges are taken more motico of. It is a trade where less profits are made than most others unless the owner of a business is prepared to do most of. the work himself, by which means ho is able to effect sayings which otherwise would not he effected. POOR SELLING LINES.

“Recently a tradesman was fined a large amount for selling an hrticlo for which there is only a very moderate demand, and when a grocer is denied the obtaining of a return for goods that he kept on the corner of a top shelf because there is little call for the article it makes him think, f for ho certainly is not receiving a fair return for the every-day essentials ho is selling. ESSENTI AI; COMMODITIES.

'"lt hns been the practice of the grocer <fco retail essential commodities such ns flour and sugar at practically cost price, but he is beginning to realise that in order to bring all goods into line, and provide the upon his capital outlay,, he has perforce to raise the price of essentials to meet the existing conditions. It is not tho grocer’s dosiro to do so, but he is compelled so to aot hy tho restrictions that are being placed on tho trade. INDIVIDUALS BUYING WHOLESALE.

“If tho public only know tho amount of groceries purchased from the wholesale houses for private consumption the amount would no doubt astonish them. Take sugar as an instance. I have wade it my business to carefully watch this particular article since a shortage has been in evidence, and my investigations prove that private persons are obtaining hags of- sugar wholesale while tho grocer is only able to supply his customers with a pound or two at a time. Tins is not only my own experience, but tho experience pf other fellowtradosmon. I have seen persons carrying hags of sugar through the streets, and in one case a private person was supplied with three bags. No grocer is hoarding sugar, but there are a largo number of householders who aro doing so. CONTROL OP SUGAR. “In order that the sugar supplies might bo efficiently controlled my association offered to supply a capable man to advise the Control Board and investigate the distribution. ’ Tho suggestion was considered a good one, and it was proposed to add a retailer and a .to lie esmauttga for this

specific purpose, but there the matter ended. GOVERNMENT METHODS. “I am not in favour of tho methods adopted by tlio Government. They are usually unbusinesslike, and the overhead expenses top great. There is one thing for which it deserves credit for, however, and that is tho controlling of. the price of jam. Tho Government has prohibited the export of jam except under special conditions, and for a good reason. It is through the Government that preserve manufacturers are able to obtain sugar at a reasonable price, and if they were permitted to export jam to Australia where sugar ia much dearer, the manufacturer would reap large profits at the expense of tho New Zealand community. Of course the manufacturer can only get his share of sugar, and this ia not enough for him to manufacture sufficient jam to meet tho demand. When the Government was told that there was a shortage of sugar the reply was that- prior to tho war 1200 Hons per ueek were sufficient for the Dominion’s icquirements, and 1300 tons were being manufactured at the Colonial Sugar Company’s works at Auckland, and that boarding must bo taking place. The Government now realise that snob is not tbo case as far as merchants and letailors are concerned, arid that tho shortage is duo to an increased demand. FUTURE “PROSPECTS.

“A short time ago Lord Inchcapo said that there was every x>r-o,spcct of a shipping war taking place, and that the companies that ho was connected with worn preparing to meat it.i A big drop in freights, he said, was certain. When that comes aboult the price of commodities must fall considerably, and already they are coming down. Tea has dropped Is per lb due to the rupee falling in value as a moans of exchange, and there is a tendency for prices to. fall generally. The. trade is well aware of this, and buying; in consequence is being restricted to a large extent. COST OF LABOUR. “The grocer -employs adult labour, and the high rate of wages is haying a direct bearing l on the cost of living. Two years ago , tho employees were granted an award by the Arbitration Court, and since, then there have been three alterations to it. Further demands! aro now being made, but as the subject is sub judice it is not policy to comment on the conditions at the present time.”