Big loss on apples

Press, Volume CXIV, Issue 33625, 29 August 1974, Page 1

Big loss on apples

The Apple and Pear Marketing Board was heading for the biggest trading loss in the 26 years of its existence, the chairman (Mr K. W. Kiddle) told the Fruitgrowers’ Federation conference in Christchurch yesterday. Mr Kiddle said that the estimated loss for the year was $4,150,000. The trading year would end on November 30. but the Government had already assured the board that overdraft facilities would be available to cope with the deficit.

“If there had been no revaluation of the New Zealand dollar the loss figure would have been reduced by $1,269,000,” Mr Kiddle said. “If the cost of fuel had not

risen, it would have been; further reduced by $1,328,000,1 “Even ■ within these two] major changes of revaluation and freight we have sold forward just over Im cartons at a profit.” In the United KingdomEurope sector, where the board sold 2,608,000 cartons at an over-all loss of $1.52 a carton, the last 394,000 cartons were sold at a loss of about 88c a carton. Mr Kiddle predicted coritinuing strong competition from South Africa, Australia, and Argentina. “There is only one course open to us — to produce a quality product of; the consumer’s preference,” he said. The changing production pattern in New Zealand was the country’s main advantage. “But we still received in 1974 just on 225,000 bushels of apples in varieties that are not wanted for export,”- he said.

Although the growth of markets outside Europe was very satisfactory, it was clear that Britain and the Continent would continue to take increasing quantities. The preferred sizes of] apples had also to be considered in exporting, so that ideally the larger sizes went to North America and the Far East, and the medium sizes to Europe. Mr Kiddle said the recent change in the industry of the development and expansion of co-operative packing houses had been dramatic. Production from such packing houses had increased ! from 300,000 cartons in 1971 ito 2,920,000 in 1975. Packing houses could bring many advantages to the industry. They allowed growers to concentrate on quality, even grading, improved presentation, better packaging, spread of varieties, control of costs, and producing special export lines.