Fruit production causing marketing problems?

Press, 13 May 1987, Page 55

Fruit production causing marketing problems?

PA Nelson Doubling pipfruit production within five years would create considerable processing and marketing difficulties for the Apple and Pear Marketing Board, its chairman, Mr John Williams, has said. Production in 1987 was estimated at 16 million cartons and was expected to double by 1992. Pressure would go on the Board to develop markets appropriate for

that quantity of fruit, Mr Williams said. “We are achieving premium prices because we are gaining access to boutique markets yielding high returns for our unique varieties.” But doubling the production in the next five years could cause stress because boutique markets had only a limited capacity, he said. “Six or seven years ago the then board general

manager, Mr Jim Bremner, said growers should realise that when they planted a tree they would incur a cost of $l7 for facilities that had to be provided by the industry,” Mr Williams said. Until now production had been gradual and the board was not stretched to provide facilities. At present, growers pay 50 cents a carton for new or increased production. Any changes to the charges would be made by growers at the annual conference, he said. “The board’s responsibility is to provide information so that it clearly sets out the costs, requirements and alternative ways of coping with the problem.” A greater distance than competitors to market, higher internal inflation, and higher production costs than competitors meant growers needed to produce premium varieties to cover their breakeven costs, he said. “We believe we can cope with a doubling of production, but anything above that is of concern to us.” Much of the new plantings were in Hawke’s Bay and Canterbury, while plantings in Nelson had dropped behind in recent years, Mr Williams said.