APPLES AND PEARS Controlled Or Free Market?

Press, Volume CIII, Issue 30487, 8 July 1964, Page 9

APPLES AND PEARS Controlled Or Free Market?

Although the control of apple and pear marketing in New Zealand has resulted in an improved economic position and more stable conditions for growers, arguments continue as to whether the consumer may have suffered or whether freer conditions are desirable, says the A.N.Z. Bank quarterly survey.

has grown slightly, is only 391 b compared with an aver age of 551 b in the war years “This high figure was causec in part by the scarcity of im ported fruit, and does ' nbt seem likely to recur in normal commercial conditions. “A 1961 official committee of inquiry supported the ‘overwhelming weight of grower opinion against any major changes in the present marketing system’. “The committee also considered that a return to free marketing would not be in the best interests of retailers or consumers, or in the public interest,” the bank says.

“The board pays the grower such a price for each particular variety and grade of apple and pear that average prices for the season equal, as closely as possible, the cost of production figure declared by the Minister of Agriculture. “The grower thus receives a guaranteed price to cover ’ production costs, similar to the former system for the dairy industry. “If costs of production rise substantially, or export markets or prices fall away to : a major degree, a large deficit could accrue and it may be impractical for the scheme to operate. “The board, whose objective is to recover from local and overseas markets the purchase price of the fruit, plus other costs, has been successful in disposing of all crops since its inception (except in 1951 because of the waterfront strike). “Applet and pears are among the products affected by the European Economic Community’s protectionist policies. “There is concern as to possible effects on New Zealand’s export markets, although it should be remembered that in spite of recent growth in the proportion, the Industry is still only 45 per cent ex-port-based—in contrast to the other main primary industries —for example, the butter and cheese industry is more than 70 per cent export-based.

Consumption “Per head consumption of apples in New Zealand in recent years, even though it