Falklands crisis may raise apple price

Press, 13 April 1982, Page 4

Falklands crisis may raise apple price

PA Wellington The European Economic Community ban on imports from Argentina, imposed be-cause-of the Falklands crisis, should boost prices for New Zealand apples.

The ban would remove a big competitor from the important European market and could have a very bullish effect on prices, said the Apple and Pear Board general manager. Mr Jim Bremner. "We often tend to do well out of other people's disasters. That is the way it goes in the fruit trade." he said in Wellington yesterday.

The 10 members of the E.E.C. have imposed a ban on imports from Argentina and reports from Brussels say the ban could take effect as earlv as Wednesday.

Mr Bremner said Argentina was a big competitor in Europe. New Zealand's most important export market for apples. "We understand the Argen-

tinians were planning to send about ’three million cartons of apples to the E.E.C. this year, only'slightly less than bur 3.2 million cartons," he said. Often relatively small changes in the.volumes coming on .to the market could cause significant -changes in returns. The effect on New Zealand apple prices would depend on how soon the ban was imposed and how long it continued, said Mr Bremner. The selling season for New Zealand began last week in Europe and will end in late July. If the ban did take effect as early as this week the timing would be perfect, he said. Prices for New Zealand apples are buoyant at present. and the, board was predicting a good season even before the ban. Prices for Cox's apples in Britain are now a very high $3O a carton.

Argentina's main exports are of Granny Smiths and Red Delicious, which are also the main New Zealand export varieties.

The ban could also boost demand for New Zealand wool, according to the Wool Board. But the deputy managing director of the’ board. Mr Noel Thomas, said it would depend on how much of the Argentine clip had already been exported this season, and on the quantity of wool comparable with New Zealand's coarser cross-' bred clip. Most of Argentina's wool is the finer type. A Meat Board spokesman said a ban was unlikely to have a big effect on New Zealand beef sales overseas. Argentina is a major exporter of beef, but there is a surplus of beef in the E.E.C. and prices were unlikely to be significantly higher than in North America, which takes most of New Zealand's beef exports.