Onion authority planned

Press, 10 September 1985, Page 10

Onion authority planned

The establishment of a New Zealand Onion Authority to help improve the profitability and organisation of onion exports has been proposed by growers in the South Auckland area.

The last six onion seasons have seen great variations in the price and market demands for export onions, said the chief executive of the New Zealand Vegetable Growers’ Federation, Mr R. H. F. Nicholson, in a letter to all growers.

Of the six seasons, only two had been profitable, and three had been poor, he said.

“The future under present circumstances looks bleak unless changes are made,” said Mr Nicholson.

The proposed authority

would be based on that operating successfully in the kiwifruit industry. The authority would have several purposes. These included promoting the export of onions, encouraging the sale of onions locally and overseas, assisting in the general development of the onion industry, and requiring minimum standards of quality, sizing and packaging of onions for export. It would also issue export licences to approved exporters, and report on trends and prospects in overseas markets, as well as on the costs and prices likely to affect the economic stability of the onion industry. It is intended the proposed authority should have licensed exporters, said Mr Nicholson.

This would not necessarily mean that the number of licence holders would be limited, but the holders would have to meet minimum standards, said Mr Nicholson.

“These proposals affect all onion growers, not just those packing for export,” he said. “The domestic market is significantly affected by the state of our export trade. For this reason, all onion growers must be aware of the proposals, and a significant majority must support them if they are to be effective.”

The cost of the proposed onion authority would probably fall on the grower, although it was intended that exporters would be required to contribute to these costs, said Mr Nicholson.

Draft regulations propose a levy on all onions sold on” either the domestic or ex- v port market. The date of the ' levy has not been finalised, but would only be a small percentage of the sale price, said Mr Nicholson. “

The current proposal is either 0.5 per cent of 1 per ' cent, he said. Canterbury growers will be able to discuss the proposals and ask questions at a meeting organised by the' Canterbury Growers’ Society, Ltd, for next Thursday.

The meeting will be held at the Federated Farmers building at 8 Armagh Court, 78 Armagh Street, at 7.45 p.m.' All onion growers will be asked to vote on the proposal soon.