Vegetable Growers “Afraid Of Exploitation By Processors”

Press, Volume XCIX, Issue 29220, 2 June 1960, Page 23

Vegetable Growers “Afraid Of Exploitation By Processors”

(New Zealand Press Association

WELLINGTON, June 1. Allegations that the merging of vegetable processing companies might result in the exploitation of growers were made at the annual conference of the process division of the Vegetable and Produce Growers’ Federation in Wellington. Mr H. O. Wilson (Pukekohe) said processing companies were merging into a powerful organisation and would try to obtain produce aa cheaply a» possible. "If they could get it from us for nothing they would endeavour' to do just that.” ’ ' ,

He asked whether consideration could be given to growers negotiating with processing companies at a national level. Growers had made the mistake of letting processing companies tell them they were getting a fair return for each acre. They should "work back” from the price the consumer paid for produce and ensure fair returns for the retailer, distributor, processor and_ grower. ■ ptnrSritftonly by uniforamy of thought from our organisation that we can stand up to them." Mr W. C. Milk (Nelson) said growers, to make effective representations, would have to collect facts and determine production costs. They could get assistance from the Agriculture Department If the processing companies continued to “play one district against another," it might be necessary to suggest that the Trade Practices and Prices Commission investigate distribution costs of produce and other matters.

The chairman (Mr D. H. Butcher, of Christchurch) said the advisability of establishing an over-all .price for produce had been discussed and it was decided that prices must be negotiated between the various growers and the processing companies. He said he believed growers could negotiate with the companies. but that it might be necessary to obtain the federation’s help as the companies got bigger.