Onion Export “Risky”

Press, Volume CVIII, Issue 31661, 23 April 1968, Page 9

Onion Export “Risky”

The export of onions from New Zealand is a risky business, says an Auckland firm, Turners and Growers, Ltd. “Shipping space cannot be safely booked without definite orders and orders cannot be safely confirmed without a definite assurance of shipping space for export at a time to suit the overseas buyer,” says the firm’s bulletin. “At the same time the exporter must have a definite assurance from growers of sufficient supplies of first-class

onions, suitable for export either ungraded or packed.” The firm has graded and packed more than 1000 tons of produce for export this season. The balance was packed by the growers. “The export of onions is extremely difficult because the demand varies tremendously from year to year. There seems to be an idea in some circles that the New Zealand export trade in onions could be blown up to a large volume.

“It could be disastrous to New Zealand onion growers if production was greatly increased. Today, a surplus is being grown and when export markets are available grow ers receive good prices for the remainder of their stocks, which they carry for the purpose of supplying the local market through the rest of the year until the new early crops are available in November and December.

“Those of us experienced in the trade know that the consumption of onions in New Zealand is approximately 10 per cent of the consumption of potatoes. “It is not easy to organise the export of onions. We have found by experience that some New Zealand firms not regularly engaged in the onion business book shipping space ahead of the season and if business develops they are able to claim space, while firms such as ours dare not take the risk of'losing their good name with the shipping companies by booking space before they are confident of the sale of onions. “Sometimes our most difficult business is to arrange the buying price with growers, many of whom, when they find that export appears to be certain, raise their ideas regarding price. A few fail to deliver all or part of the quantity they promised for export. “Under these circumstances we try to spread our buying with as many growers as pos-

sible, which makes it safer for us and gives growers an opportunity of participating in the export as well as enjoying better prices for the rest of their crop if the local market improves (as it usually does) as a result of the drawoff for export. “There are many circumstances in connection with the world market for onions which affects supplies to Japan, with resulting loss of demand for New Zealand onions. For instance, if there is a large carry-over in the United States, or if the price is cheap in Egypt or South America, the effect can be felt in New Zealand. Two years ago, Japan did not require New Zealand onions and none were exported there from New Zealand. This year’s exports will be the largest ever made,” says the bulletin.

“It would be very dangerous for New Zealand growers substantially to increase the production of onions in anticipation of a large additional export trade. If Japan did not buy from Australia or New Zealand, it could mean h heavy over-supply in the Aus-tralia-New Zealand area, and very great wastage, resulting in severe losses to the onion growers.”