"GARDENING FOR EXPORT”

Press, Volume XCIX, Issue 29227, 10 June 1960, Page 23

"GARDENING FOR EXPORT”

Prospects Of N.Z. Food Industry

Discussing the possibilities for •mort of frozen and canned vegetibies, the Bank of New South jfties in its quarterly “Review” ays that the logical market is where climatic diffijulties tend to prevent the gtfievement of a high degree of rifciency. Moreover, high prices jad lack of retail promotion have kfpt consumption per head of fteaen vegetables quite low in rotation to general Australian liy--1b( standards. g New Zealand produce is not permanently excluded by tariff mwl other barriers, the shipment of frozen vegetables would seem ta offer one means of limiting the growing gap in New Zealand's balance of trade with Australia, the banks says. Sven if New Zealand fails to obtain access to the Australian market, good prospects exist for trade development in the Northern Hemisphere because New Zealand produce reaches maturity in the European off-season. As one of the principal costs of marketing frozen vegetables lies in the provision and operation of cold storage, the ability of New Zealand to supply frozen produce when local supplies are scarce may well prove more than sufficient to offset the high costs of shipment. Sales to continental markets may also prove practicable in the future. While it is unlikely that the market gardens will ever become a major contributor to New Zealand’s overseas earnings, it seems certain that trade in their produce can develop considerably in the next few years, and increase the useful return already received. Peak Exports In 1957

Exports reached a peak in 1957. Increased output in the past two seasons has necessarily been absorbed in the local market following a drop of more than 75 per cent in Australian purchases of frozen vegetables over this period. Although sales to the United Kingdom are growing, they are not yet sufficient to offset this loss, which arose mainly from an adverse adjustment in Australian tariffs.

Expansion of vegetables processing is dependent very largely on maintaining and developing export markets for in the local market consumption per head of frozen foods is already very high. New Zealand has several advantages, however, in production for export. Climatic conditions are stable and are generally ideal for the production of the principal crops. The concentration of growing within a small area close to the factories not only reduces transport costs, but also facilitates the use of complex mechanical harvesting equipment. As a result of these and other factors New Zealand is already a very low cost producer, and further economies may be achieved with fuller use of available capacity.