Grain, Seeds, Produce Call For Arrangement With Australia

Press, Volume C, Issue 29620, 16 September 1961, Page 15

Grain, Seeds, Produce Call For Arrangement With Australia

New Zealand’s guaranteed price structure for potatoes is designed to ensure a sufficient supply of potatoes for domestic consumption, and this is the main purpose of the Potato Board. The scheme is intended to prevent indiscriminate selling of potatoes by growers at prices below production costs in years of surplus production. The compensation is the grower’s own insurance, contributed to by a levy on his sales. In effect, the guaranteed price system involves budgeting for a slight surplus. With steadily improving methods of production and handling, new varieties with higher yields and disease prevention techniques, a shortage will only occur when there is a drought or some other considerable adverse condition.

The problem of disposal of surplus potatoes in favourable growing years must continue as potatoes arc almost wholly restricted to domestic consumption. In years of surplus any exports that can be made will lessen the call on the board’s funds, which are in effect the growers’, and export arrangement is worthy of positive encouragement by the board for this reason.

In the light of this year’s problems in exporting potatoes to Australia, which were to some extent a repetition of similar attempts in 1955, many merchants feel there should be an arrangement come to by the Australian and New Zealand Government on the exchange of potatoes. One merchant drew attention to the import of potatoes from Australia last year into Auckland when New Zealand raised no comparable objections and difficulties to be overcome.

Australia's quarantine requirements on farm produce are nothing new, and neither is the basic objection of producer organisations there to imports. There is a clear prohibition on imports containing earth particles and second-hand sacks. Potatoes, which must 1 -• believed to be free of all viruses, except virus “X.” are also specifically excluded unless there is special permission from the Customs Department. The officers who police these regulations have no alternative under the present system to allow New Zealand potatoes into Australia unless they comply. Attempts to ship washed potatoes this year were aimed at meeting these requirements but there was deterioration in shipment. Subsequently on the Kawatin shipment,, when particular care was taken in handling and stowage, washed and unwashed potatoes, arrived in good condition.

However, the handling and retreatment left-much to be desired and the potatoes were put dripping wet into the bags. The cost of this—nearly £NZ3 a ton —was borne by the exporter. Arrangements this year were not perfect but under the existing conditions they did at least achieve the export of more than 5000 tons —a saving to the Potato Board's reserves of approximately £70,000- and helped at the same time with the balance of payments with Australia.

While the Australian marie, t was not short of potatoes before June this year and consumer resistance in many cases kept prices from soaring too high, a general agreement between Australia and New Zealand on potatoes would do away with the protracted and generally unsuccessful representations made on the grounds of urgency It would establish a definite procedure which would apply to shipments either way once a shortage was obvious

It is not in the interests oi potato growers in New Zealand or Australia that there should be violen* fluctuations in prices or supply. Potatoes are a commodity which diminishes in consumption with a rising standard of

living and while minor fluctuations have little effect there is a marked falling off in sales when the price rises sharply.