Board Chairman Reviews Apple Market Prospects

Press, Volume XCVIII, Issue 29051, 13 November 1959, Page 8

Board Chairman Reviews Apple Market Prospects

“The Press" Special Service

BLENHEIM, November 12. Although New Zealand had a record crop of 3.9 million cases of apples last season, a substantial loss of about £500,000 will be shown by the New Zealand Apple and Pear Board, the chairman of the board (Mr J. H. Parker) told delegates to the annual conference of the New Zealand Fruitgrowers’ Federation in Blenheim.

Mr Parker said that although last season was undoubtedly the most difficult the board had experienced since it began operations in 1948, next year’s prospects appeared to be better. “For this year’s trading all losses were incurred on export sales. Sales in New Zealand will cover costs and.in the end may show a very small profit,” he said. “After charging interest on the funds invested in capital assets the gross loss will be in the order of £570,000 and the nett loss approximately £500,000.” “Most growers are well aware of the causes of the losses on overseas Bales but I should like to summarise the main points,” he said. “The main contributing factor was the heavy crop in 1958 throughout the European continent. The crop was approximately

100 million cases above average, which meant that the general market price level for apples was low and prices were further depressed by a heavy carryover of stocks in cool store. These stocks were marketed right into our season,” said Mr Parker. With heavy competing cargoes from South Africa, Australia and the Argentine, the market was constantly over-supplied and apples could be moved only at extremely low prices. “Other factors contributing to last season’s poor returns were the exceptionally heavy supply of competing fruit (oranges and bananas) and the diversion of purchasing power to hire purchase outlets. “Happily, next year’s prospects appear to be better. The 1959 European crop should be much lighter. Present estimates show a reduction of over 100 nfillion cases compared with last year. The West German crop is expected to be only approximately 40 per. cent, of the 1958 figure. At the same time advice has been received that the French market will be open for the sale of apples,” he said. “In Europe crops are increasing steadily and there exists a high percentage of young trees. For instance, Italy has enough under-five-year trees to double her present crop. West Germany has planted widely and crops are qoming up heavily in Southern Hemisphere countries South Africa and the Argentine in particular. The main market for all these countries is in Europe where, at the same time, domestic crops are rising," said Mr Parker. “At the same tinje all this has been happening, the New Zealand crop has also grown—estimates show an average increase of approximately 200,000 cases a year. In 1954 the board received a record 3 million cases and in 1959 received just short of the 4 million case mark. If this rate of increase continues we must be prepared to handle a crop of 5 million cases by 1964,” Mr Parker said.