FRUITGROWERS MEET.

Press, Volume LXVIII, Issue 20623, 12 August 1932, Page 16

FRUITGROWERS MEET.

ANNUAL PROVINCIAL CONFERENCE.

FEDERATION'S WORK REVIEWED

The provincial conference of the Canterbury fruitgrowers, held prior to the sixteenth annual conference of the New Zealand Fruitgrowers' Federation, Ltd., to be held in Wellington next month, was opened in the Chamber of Commerce last night, and will be continued to-day. " The Canterbury director on the Federation's Board, Mr F. W. Sisson, presided over a full attendance of delegates, while also present was Mr T. C. Brash, president of the Board of Directors. The Annual Report. "The 12 months just closed record a period of difficulties unprecedented in the history of the world," states the directors' report. "New Zealand, though small and isolated, has suffered in common with every other country in the crash of prices, and in particular the prices of raw materials. It is probably safe to say that New Zealand has suffered more than most parts of the world, due to her almost entire dependence on the export of primary produce. Fruitgrowers, in common with all other primary producers, arc realising less than the cost of production for their produce; in fact, on the local markets, much lias been sold at prices which barely pay packing, transport, and marketing charges. Unemployment on a scale hitherto unknown has brought distress and want in its train. The Government, fighting against very heavy odds, has been faced with the problem of finding relief work for over 50,000 mciu That dissatisfaction should be expressed is but natural, in view of the magnitude of the task. Perhaps the only grain of comfort arising out of the situation is the fact that never before has there been evidenced such a desire on the part of the great majority to assist those who are in dire straits. Further, all over the world thinking men are turning their attention to the overhaul of a financial and economic system whieh has allowed present conditions to arise. As far as Vcw Zealand is concerned nothing hut a substantial rise in the wholesale price of primary products can rei'tify the position. Under these conditions the federation has carried on its trading for the past twelve months. That difficulties have arisen is but natural. The directors have, however, kept in close touch with the management in seeking solutions of the mally problems and feel a measure of satisfaction in the bal-ance-sheet.

Abandoning of Gold Standard. "There were many an::ious moments when Britain, on Scpetember Hist, 1931. was compelled to abandon the gold standard, of which she has always been the principal advocate and support. Fortunately for your federation the bulk of the season ? s spraying materials had already been landed, and as far as packing supplies are concerned these have nearly all come from Empire sources. The federation must, of necessity, accept considerable risk in placing overseas orders for packing materials many months before the goods are actually required. The variation in the crop presents a problem not only for the individual grower, but also for your federation. Growers, in the main, gave every assistance, but it was noticeable that during the past, season many had underestimated their requirements and some difficulties aroso in securing supplies for prompt delivery to carry these growers through. Overseas Exchange. ."The regulations instituted by the Government placing restrictions on overseas exchange as from January Ist, 1932, undoubtedly penalised " primary producers. The very existence of the regulations is proof positive of a fear on the part of the Government and banking institutions that, freed of regulations, exchange would have advanced. Your directors joined with other primary producer organisations in numerous protests and deputations in this connexion. The regulations were lifted on June 30th, but at the time of writing no movement has taken place in the exchange market. It must, of coarse, be borne in mind that during the term for which the restrictions applied the Government floated a £5,000,000 loan in London to further reduce the value of overseas exchange.''

Balance-Sheet Figures.

The balance-sheet showed a net profit for the year of £3192 2s 7d, after allowing £2500 for reserves. The gross profit transferred from trading was £14,831 5s 2d and the income brought the total to £21,850 15s. The assets stood at £39.926 3s 2d.

"The turnover in trading almost reached the figure for the previous 12 months," says the statement of the financial position. "The assets of the federation are reasonably liquid, and no capital is involved in frozen assets or properties which are falling in value. The position at the bank for the last three balance periods was as follows: De'cember 31st, 1929, £37,255 14s 5d (overdraft); June 30th, 1931 (18-month-]y period), £8650 4s 3d (credit balance): June 30th, 1932, £6556 15s lid (credit balance). "Sundry debtors for the same three years, after allowing for reserves, weje: December 31st, 1929, £48,524 12s sd; June 30th, 1931 (18-monthlv period), £19,756 18s 4d; June 30th, 1932, £25.315 4s 10d."

President's Explanation. Mr Brash, speaking to the annual report, said that the federation was merely the amalgamation of representatives of the Fruitgrowers' Associations in New Zealand. To-day there were 43 associations in New Zealand. "When the federation was founded, the working capital was £lO4. made up of £1 shares. If the federation was wound up voluntarily to-day each £1 share held by an association member was worth about £ 300. That was a position the federation was proud of, as to-day the capital, including reserves, was nearly £30,000. The federation -was in a position to use that amount to. good advantage, for at the peak period Ibf the season it was not unusual for the federation to have £SO,OOO advanced to growers awaiting re.turn from harvest. Such advances could not be made if the federation did not have the cash behind it. The bulk of the money owing was paid in after the crop was harvested, and the growers had been loyal to the federation. "There were bad debts, of course," Mr Brash continued. "This year we have written off more in bad debts than ever before. However, as compared with other businesses that total, as compared with the capital, is a small one. The success of the federation was due, he said, to the staff, in which it had been very fortunate. The staff was three when the federation commenced and to-day it was 42 strong. "We have had a good year, and there is a net profit of £3192 after setting aside moneys for special purposes. The

-:over in quantity has been greate ban in the previous year, although the alue of it was £SOOO less in value. That also was satisfactory, as it was >roof of the growth of trading. Many Kchards were coining into bearing and ixore full bearing all the time, and the federation was trying to keep pace with that steady development. "I want to put in a plea that you support the federation men when they ask for orders. It was known that we may not always be the cheapest. 2Col yet are the directors of the federation to be stampeded into a price-cutting campaign so soon before the organisation had achieved a position of sufficient strength. One of the greatest weaknesses of co-operative efforts in New Zealand in the past has been that a cash benefit return has been expected too soon."

Referring to the representation of fruitgrowers' interests at the Ottawa Conference by Mr H. E. Napier, Mr Brash- said: "Private advice has been received from Mr Napier. He is well /satisfied with what has been done. The test will come when the common front of the Empire countries as agreed-upon is placed before the British delegation. It is thought that, the fruit discussion will be one of the first to reach a satisfactory conclusion. "Tariff and Quota Stalemate." "I do not think the final settlement is to be found in tariffs and quotas," Mr Brash added. "I think in the end there will be a stalemate in that direction. Countries are being ring-fenced, as it were, and sooner or later will come a breaking down of barriers. It is thought rather, that tariffs should merely hold the position stabfe until international agreement is possible. That should be the aim of tariffs." Criticism of the Dominion mark scheme was referred to by Mr Brash. He said that the demand for years had been for the federation to do something to help the local market. The mark scheme had been going in England for nearly se%"cn years, and was growing stronger every year, and it was reasonable that the mark scheme in New Zealand should be given a trial of two or three years at least. The federation had set aside £SOO to further the schei >c.

The annual report and balance-sheet were approved. Election of Delegates. Messrs C. E. Pope and W. E. Davidson were elected to represent the Christchureh area of the Canterbury Fruitgrowors' Association at the Dominion conference to be held in Wellington on September 7th, and Mr X. Goldsbury was elected to represent the Lobum and JJangiora areas. Consideration of Remits. The conference received over 90 remits which will come before the annual Dominion conference, and upon each either gave an instruction to delegates or left them with a free hand.