Kiwi-fruit may rot in U.S, cool stores

Press, Volume CX, Issue 32461, 23 November 1970, Page 2

Kiwi-fruit may rot in U.S, cool stores

(N.Z.P.A. Stag Correspondent.) WASHINGTON, November 22. The wrangle afflicting New Zealand sales of kiwi-fruit in the United States emphasises the need for greater coordination in marketing, says the senior New Zealand trade commissioner in America (Mr E. J. Sutch).

Asked today about the situation which has led to the danger of 20,000 trays of the fruit rotting in storage, Mr Sutch said he believed the future market for kiwifruit (Chinese gooseberries) was limitless, “because there is a potentially inexhaustible demand.”

But growers of kiwi-fruit must realise that their approach to marketing in the United States had to be coordinated and managed, just as the lamb people did. “If they are going to realise the sales potential that exists

here, they can’t afford to let the present unco-ordinated marketing continue. “The problem is that some ekporters send quantities on consignment to the same cities in which outright sales have already been made. This results in price cutting, to the detriment of both New Zealand and the growers. “Growers need to get together and discuss their shipping and selling. They should not send on consignment, but should sell outright for a guaranteed price. If importers want to play ducks and drakes it’s no skin off our nose,” Mr Sutch said. Growers might have to exercise some restraint over quantities marketed in America now in order to win back the confidence of .the United States fruit trade, he said.

Rapid growth Other trade observers in the United States see the problem as one that emphasises the way in which demand for the fruit outstripped the ability of the industry to develop marketing expertise. They believe the fledgling industry achieved a higher sales growth than it expected. Sales in the United States were low until 1968.

But that year, after exhibition of the fruit at a specialty foods trade fair in New York, sales soared. A promotion campaign spurred bigger demand.

Exporters worked together in setting up the promotion campaign but it appears that this has been the only area of co-operation in overseas marketing. Officials in America hope the present problem does not discourage exporters in their attempts to initiate bulk sales. They are concerned about the loss in good will brought about by some consignment selling but believe the outcome may well be a better marketing structure in New Zealand.