Loss expected on apples

Press, 19 February 1983, Page 3

Loss expected on apples

PA Wellington The Apple and Pear Board expects to make a loss this year because of a “monster” European crop, according to the general manager. Mr Jim Grimwood. The board last year made a record $l7 million trading profit. Mr Grimwood said that European apple prices were now low because of the big European crop. “The 1982 crop in Europe was the highest ever. 52 per cent higher than the 1981 crop," he said. “Since our main trading area is in Europe, that is likely to have a significant effect on the board's total realisations." About two-thirds of' total apple exports were sold in Europe. In the largest single market for New Zealand apples. West Germany, prices for typical varieties were now only a third of the price a year ago. In the United Kingdom, prices were about two-thirds of the 1982 prices, Mr Grimwood said. The board expected an over-all trading deficit this year. Mr Grimwood said he preferred to call it a deficit rather than a loss because the board was not a straightforward commercial organisation. A small deficit by the board did not necessarily mean that the apple growers from whom the board bought the fruit would make a loss. Prices in the United States were about 30 per cent down, but the crop was no bigger and the board expected a reasonable profit there. It could also make a profit in South-East Asia, where the strengthening of the Singapore dollar was improving returns. The board would probably make a loss on fresh fruit sales in New Zealand, and only break even on its apple juice sales. This was because of the effects of the price freeze. Mr Grimwood said.