Growers restore container charge

Press, 13 September 1988, Page 6

Growers restore container charge

By

SARONA ISOEFA

The dispute between produce growers and supermarket chains about container charges took a new turn yesterday — almost all growers put container charges on their goods at market. The dispute first hit the public when prices more than doubled in some produce lines as North Otago growers withdrew their produce from market floors in protest at what they claim were buyer boycotts on their products. Until recently, the average cost of the various types of container was set by an independent arbitrator. Grower and retailer then shared the cost, each paying 50 per cent.

Because it was a collective agreement, outlawed under the Commerce Act, 1986, the container-charg-ing system was ruled illegal by the Commerce Commission at the request of retailers.

An appeal to the High Court by the growers failed, but it ruled growers could individually impose a condition of sale on produce. Since that decision, most of the larger super-

markets had adopted a policy of only buying produce without conditions of sale.

As a result, growers transporting produce and trying to get back half their packaging costs were not selling any goods on the market floor.

Many North Otago growers decided it was better to withhold produce than send their goods to market where they were not being bought. The president of the Canterbury Growers Society, Mr David Burke, said growers outside Christchurch were the worst affected.

“The major costs for growers are in production, harvesting, transport, packaging and marketing. All they are trying to get back is about half the packaging cost, and in the auction system that is not always possible,” Mr Burke said.

Many local growers withdrew container charges on their goods for fear that supermarkets would not buy goods with conditions of sales.

But by yesterday morning, almost all growers had put container charges

back on to their produce. Mr Burke denied rumours that a meeting had taken place between growers.

“Legally, growers are allowed to decide individually whether they want a condition of sale on their goods, and that is what happened. “Most used the old system as a guide, but there were others who charged more or less than that charge. It was not a uniform decision.” Mr Burke said it seemed ridiculous that because growers could not make a collective agreement, they also could not meet with the supermarkets to resolve the matter.

The general manager of Countdown Foodmarkets, Mr Mike Prendergast, said there were two sides to the story. “It is not a major issue that cannot be resolved without negotiation.

The “produce supervisor and buyer for G.U.S. Wholesalers, the operators of Super Value and Dollarwise supermarkets, Mr Allan Jamieson, said G.U.S. had adopted the policy of not buying produce with container charges. , /