MARKETING OF ONIONS

Press, Volume LXXIII, Issue 22057, 3 April 1937, Page 12

MARKETING OF ONIONS

No Trade Under New Regulations

GROWERS SEEK MAJOR AMENDMENTS Because the recent marketing regulations are said to have hampered trade to the point of total restriction, Canterbury’s onion crop is scarcely touched by merchants. Yesterday growers from all parts of the province conferred with representatives of the merchants and drafted amendments to the regulations, and these they are urging the Government to adopt. In particular, growers and merchants alike seek the lifting of the 74 per cent, restriction on merchants’ profits, and the abolition of the clause permitting growers to consign their crops. “The recent regulations governing the marketing of this year’s onion crop seems to have found very little favour with growers,” said a statement issued after yesterday’s meeting. “Growers are of the opinion’ that marketing has never been in a more hopeless condition. The regulations are regarded as having made it impossible for merchants to deal in onions as the 74 per cent, commission allowed them is insufficient to cover the cost of marketing operations.

Fixation of Grades “The grades fixed for onions are considered to be based on insufficient knowledge of the onion crop, and the regulations on the whole are roundly condemned as being irritating without being of any benefit to growers, who do not know what to do with their crops. The growers do not think there is any chance of the merchants purchasing their onions in any quantity under the present circumstances as they cannot be expected to dealin a commodity that is going to place them on the wrong side of the ledger. “The opinion of growers is that the regulations, with the exception* of one or two clauses, should be wiped and a minimum price of £5 5s a ton fixed for f.a.q. onions,” the statement concluded. After .the meeting Mr H. S. S. Kyle, M*P., sent a telegram to the Minister for Industries and Commerce (the Hon. D. G. Sullivan), who announced the regulations, stating that there was much dissatisfaction among growers, and suggesting that the existing regulations be cancelled and the proposed amendments gazetted immediately. In reply to this Mr Kyle receiveda telegram from Mr Sullivan stating that the regulations were not in his sphere and that he was referring the message to the Minister for Agriculture (the Hon. W. Lee Martin).

Restriction of Business Mr G. E. Royds, a prominent merchant, said last evening that it was quite impossible to work under the existing regulations, of which two clauses in particular restricted business. The 7 J per cent, commission allowed merchants was not sufficient to meet marketing costs, and the power granted growers to consign onions made it impossible to operate with any degree of safety or certainty. If the services of a distributor became necessary he received nothing for his work; rather, he would have to face a loss. “The merchants are not handling the onions, because it does not pay them,” said Mr D. Goode, president of the Canterbury Onion Growers’ Association. “The profit is so small that it does not pay handling costs. The growers are absolutely held up because there has been practically no buying since the fixed price was introduced. I understand there is also much consigning going on, irrespective of the price received.” Mr Goode described it as fortunate that this gear’s crop was late. If the crop had been of the normal size and if it had been ready at the usual time there must have been much deterioration through the absence of activity on the market.