MARKETING OF FRUIT.

Auckland Star, Volume LXI, Issue 210, 5 September 1930, Page 5

MARKETING OF FRUIT.

LOSSES IN BANANA TRADE.

EVIDENCE FROM AUCKLAND.

CONFIDENTIAL FIGURES,

(By Telegraph.—Own Correspondent.)

WELLINGTON, Thursday,

Further evidence was heard to-day by the Industries and Commerce Committee of the House of Representatives, which is- inquiring into the marketing of fruit and vegetables. Mr. G. C. Munn's (United, Roskill) presided.

Mr. A. W. Donald, representing A. B. Donald, Ltd., Auckland, gave confidential figures showing that there was frequently a loss in the banana trade, and that in favourable circumstances there was only a , nominal profit. He denied most emphatically that extravagant profits had been made in the Cook Islands trade.

Greater supervision was needed of the packing and shipping of fruit, otherwise the Auckland firms could not carry on the trade. The only part of the Islands business that was properly organised was the wholesale end.

In answer to Mr. J. S. Fletcher (Independent, Grey Lynn) Mr. Donald said the merchants dealing in bananas met •on the wharf on the arrival of a shipment, and, after an examination of the fruit, fixed the maximum price, but nothing was done to prevent a merchant "from selling ;% less than that price. This course was taken in the fruit trade all over the world. Properly insulated ships would lessen the risk in the banana trade.

Mr. Savage said previous figures sup•.ilied to the committee had shown that . lie cost of landing bananas at the wharf had been 11/6 and 14/ per case, yet the bananas had been sold at 25/.

Mr. Donald pointed out that the retailers on the wharf picked out the best, and paid a good price for it, but they were fortunate if they sold 20 per cent on the wharf. The remainder of the fruit, not being so good, had to be sold at a lower price, and it was only fair to take an average of the prices realised^ for the whole of the consignment. The average cost of landing, as far as they were concerned, was about IS/ a case. Mr. J. Rea, a fruit retailer, of Papakura, said he had been in business as a retailer in Papakura for about forb years, and he was of opinion that the auctioneering system as carried on in Auckland was the best and most economic method of handling fruit and vegetables from producer to consumer. Further improvements could be brought about if a large number of the growers who simply "happened to get into the Tame" should be educated in the ideas of standardisation and growing, handling and packing their products. Mr Rea said the turnover of the Auckland City Markets probably aggrerjated from £750,000 to £1,000,000 per annum. H- did not agree that there was a "ring." iii the banana trade. It had to be remembered that the products from overseas accounted for a large proportion of that amount, and it should be possible for New Zealand-grown fruit to be placed on the market graded, packed and generally conditioned in the same way as imported goods.