Good E.E.C. news on N.Z. fruit

Press, Volume CXII, Issue 33106, 22 December 1972, Page 3

Good E.E.C. news on N.Z. fruit

(From MICHAEL ROBSON, N.Z.P.A. staff correspondent) LONDON, December 21. Good news came from Brussels yesterday on New Zealand’s apple and pear trade with Britain.

The E.E.C. agreed to allow Britain total compensatory levies but they will not apply from April 1 to July 31, which is the New Zealand selling season in Britain. There have been fears that the Common Market would insist that the levies apply the year round, which would have effectively cut all Southern Hemisphere countries out of the market. Britain pressed for the levies to protect her own growers because apples and pears are among the only food items which are dearer in Britain than on the Continent. “A VICTORY” The European director for the Apple and Pear Board (Mr N. Guymer) said in London today that the agreement was basically what New Zealand had hoped for. “This seems to be a victory,” he said. “The Government and my board had

worked toward a compensatory free period for apples from the beginning of April to the end of July, and that is what has been obtained.” On occasions New Zealand had marketed Cox’s Orange apples before the end of March, and if this arose again there would be a levy, equivalent to 50c in the first year, on each carton. The only worry now was the tactics of the South African producers, whose supply on the British market tended to overspill into the New Zealand supply period. “What will the South Africans do?” he asked. “Will they hold supplies back in the hope of selling on a better market?” New Zealand will be allowed to pocket any “reasonable” profits over and above the floor prices for her dairy produce set by the E.E.C. in Brussels earlier this week, reliable Whitehall sources said today. These same sources indicated, however, that if the market weakened disas-

trously, New Zealand could also be expected to shoulder some of the “on-costs” which are included in the pricing arrangement. The price at which New Zealand sells on the British market after Britain joins the Community will be composed of three elements—the c.i.f. (costs including freight) price, on-costs, and a special levy. The c.i.f. price is set from the average prices in Britain over the last four years, and works out to £361 a ton. The on-costs have been estimated at £3O a ton, which will mean a return to New Zealand fanners ex-store of £391, compared with the present £430. LEVY ABOUT £27 As the intervention price for British butter is set at £4lB after April 1, the market is expected to settle about this level. This means that the special levy will probably be set about £27— the difference between New Zealand’s c.i.f. price plus oncosts and the market price.