VEGETABLE GROWERS

Press, Volume LXXIX, Issue 24112, 23 November 1943, Page 4

VEGETABLE GROWERS

CONTRACT SYSTEM CRITICISED

That the contract system of marketing vegetables will not overcome gluts or shortages, and will be detrimental to both growers and consumers, was the opinion expressed by the vice-pre-sident of the Canterbury Commercial Growers’ Association (Mr G. A. Knowles) in an address to the Canterbury Consumers’ League last evening. Outlining the protracted negotiations on the subject of vegetable marketing between the Government and representatives of the growers. Mr Knowles said that many growers favoured the maximum-minimum plan, but that the Government had rejected it as unworkable.

If the contract system proceeds, said the speaker, there will be injurious effects. If the price is fixed too low, production will either decline or go to other lines; if fixed too high, growers will tend to over-produce. Since it la impossible to “pin-point” costs, either one or the other of these results must occur. Another defect of the system is that it brings with it a multitude of controls, limitations, and restrictions.

According to the "maximum-mini-mum” plan, growers are subject to a maximum price, but are subsidised if nrices should fall below a minimum. In his oninion. said Mr Knowles, this plan lacks the weaknesses of the contract system and is the better scheme.