Pea growers upset by Watties margin

Press, 17 July 1980, Page 2

Pea growers upset by Watties margin

Prices paid by processing companies to pea growers will be raised by 10 per cent for the new season, but the growers say they need 22 per cent to cover costs and remain viable. The Vegetable and Produce Growers’ Federation has taken the issue , to the public, local growers taking their case to the news media. A spokesman for Watties Industries, one of the two major . processors, said yesterday that the company would make no comment at present. The growers say they will refuse to enter contracts with the processing companies if they do not get better prices for their crops, which are used in the canning, freezing and export industries.

“There is' no way that ’rowers can get by on a 10 aer cent increase when both he consumers and farm rrice indexes are showing 20 rer cent inflation,” said the chairman of the federation’s rrocess division (Mr E, F. dill). Processors appeared to be raving no problem passing in increased costs, he said. “Consumers price index ’igures show that the retail rrice the housewife pays for rozen peas has increased by 15 per cent over the last hree years, but the grower ras received only 24 per :ent in the North Island and !1 per cent in the South Isand,” said Mr Hill. The chairman of the Canterbury Growers’ Society Mr M. C. Lilley) said that he growers had received a 5 )er cent increase in prices ast season. There were nore than 100 growers in

had one or two paddocks in peas during the season. He estimated that on an average farm of 140 hectares, about eight hectares would be sown in peas. It is believed that the companies’ main argument against raising the prices paid to farmers is that they must keep prices for export peas down to complete on the international market.

In the year ended June, 1978, New Zealand exported just under seven million kilograms of frozen peas, most of them to Japan and Australia. These earned New Zealand $3.2 million f.o.b. Mr Lilley said the processors were in danger of losing farmers with the skill needed to grow the crops. Farmers could revert to spring wheat or other forms of pea such as seed peas or feed peas.