CITRUS FRUIT FOR N.Z.

Press, Volume LXX, Issue 21290, 9 October 1934, Page 13

CITRUS FRUIT FOR N.Z.

GROWER REPLIES TO CRITICISM MR MUELLER DETAILS ARRANGEMENTS A reply to some of the criticism made of the distribution of South Australian citrus fruit in New Zealand was made yesterday by Mr E. Mueller, who is in charge on behalf of the growers of his state of the shipments of oranges to the markets of New Zealand. Mr Mueller, who is himself a grower on a large scale, said that the arrangements made were fair not only to the distributors of South Australian fruit, but also to the public. Many smaller wholesalers, said Mr Mueller, had criticised the system of distribution, as they did not receive any fruit to sell, but when he took over the distribution he had to devise a system that would be fair to the business people of New Zealand as well as to the growers in Australia. Therefore, he took out figures for the last five years, and supplied those firms which had been in the habit of importing and handling South Australian fruit before the embargo was brought into being. On those figures the allocations were made to the different firms on a pro rata basis. Some of the smaller firms could show no figures for the period before the embargo, but were anxious to obtain fruit under the very favourable conditions that haa been adpoted since. They regarded the standardised prices of the embargo period as an opportunity to maice money without taking any of the risks that had been borne previously by tne other importers.

Quality and Condition There had been much criticism of the last shipment, Mr Mueller said, but there was a good deal of confusion in the critics' minds between condition and quality. The condition was undoubtedly not as good as it might have been, but this was due entirely to a series of misfortunes that had beset the shipment from the time it left the orchards. There had been ram at two points on the journey from the orchard to New Zealand, and this had spoiled some of the fruit. However, he gave buyers their choice of buying the fruit at a shilling less than the usual rate as it stood, or of paying a shilling more than the usual rate for repacked fruit. In almost every case the buyers asked for repacked fruit. The fruit sent to New Zealand was the same as that sold in Australia. For both markets the oranges were packed straight from the orchard, and runs of counts were taken for both markets. It was absolutely ridiculous to say that oranges could be bought for 3d a dozen in Australia. If an Australian merchant wanted the best wrapped South Australian oranges he had to pay 7s to 12s a case.

The Barrow System Provided there was no extra cost incurred for reconditioning, the price fixed for oranges delivered in Christchurch was 16s to 235. Prices quoted by New Zealanders returning from Australia made these look high, possibly, but it should be remembered that the system of retail distribution in Australian towns was mostly the street barrow system. Barrowmen wore content to turn over a case of oranges at a profit of a shilling, and they did well at this price. It was unfair to compare the barrow system with the system of retailing in New Zealand, where barrows were not permitted, and where rents paid for shops were often comparatively high. In considering the price of oranges in New Zealand, it should be remembered that the fruit was grown at least 180 miles away from Adelaide, and there was a further freight charge to Melbourne incurred through there being no satisfactory steamer service between South Australia and New Zealand. The full costs of transport from the orchard to the store in New Zealand were: Picking, wrapping, case, wiring, labels, etc., 2s lOd; rail from orchard to Melbourne, 2s 6d; Melbourne handling charges, 3d; shipping from Melbourne to New Zealand, 2s (deck) or 3s (refrigerated); landing charges in New Zealand, including primage, and railage from Lyttelton to Christchurch, Is sd; South Australian organisation levy, 6d; and agents' charges 2s. On these prices, the grower was receiving only from 2s to 7s a bushel, and from this he must pay his growing costs for the year. Costs in Other States A great deal was made of the costs at which other states could supply oranges to New Zealand, said Mr Mueller. Costs actually varied very little, and in 1932, the year before the embargo, it was not uncommon to see fruit landed and sold in Christchurch at 6s a case when it was selling for 7s 6d in Sydney. It was a very open question how long this would have continued.

"My growers have always been organised, and have been able to obtain for their fruit the reputation in the Australian, and probably the world's markets, of being shillings a case superior to any other fruit grown," said Mr Mueller.