Record payout for apple, pear growers

Press, 27 November 1987, Page 17

Record payout for apple, pear growers

PA Wellington The Apple and Pear Board will reward growers with a record payout of $8.37 a carton after ending 1986-87 with its strongest balance sheet. The board’s 1500 suppliers will receive $7 million more in payouts than they did in 1986. On Wednesday, the board will distribute the balance of the supplementary payment of 52c, and the seasonal surplus of 16c will be paid soon after. With its stabilisation fund at $45.2 million the board will go into next season with $2.43 a carton protection, the chairman, John Williams, told the annual meeting. Showing a new willingess to front-up publicly, the board presented accounts, for the year to October 2, to grower representatives at the annual meeting for the first time. Gross sales rose 5.9 per cent to $398 million. Mr Williams said that provided the board’s marketing structure was not weakened by legislative changes it was confident it would continue to secure premium market returns. Board members were unable to enlighten growers at the meeting on the prospects of the Government scrapping the domestic fruit-selling monopoly the board enjoys. An announcement on the industry’s deregulation is expected in December after the Cabi-

net studies a report being prepared by advisers from the Trade and Industry Department. In reply to a question, •Mr Williams said that next year the board would have to borrow $2OO million on the open market to fund crop purchases and run the board’s operations. In the last year interest on operational borrowings averaged 15 per cent. Analysis of the board’s sales dollar shows the biggest expense was grower payments, at 35.4 c. Then came distribution costs (29.5 c processing and other costs (15.4 c operations and marketing (10.3 c finance and administration (3.7 c cartons (3.6 c and retained earnings (2.1 c Gross sales of exported fresh fruit rose 9.9 per cent to $3OO million and revenue from local sales was up 5.4 per cent to $39 million. Processed foods revenue increased 10.6 per cent to $59 million. Mr Williams declined to say how much profit the board made on local sales because it was “commercially sensitive.” “Traditionally, though, we haven’t made enormous profits on the local market,” he said. The average carton payout rose 3.6 per cent to $25.33. Non-distributable reserves jumped 13.8 per cent to $59.3 million and the price stabilisation fund rose 5.9 per cent to $45 million. The board’s fixed assets grew 16 per cent to $88.3 million.