Call for better co-ordination in marketing of squash

Press, 7 October 1988, Page 20

Call for better co-ordination in marketing of squash

Better co-ordination was needed in the squash industry, according to Mr David Lilley, a member of the Squash Council.

He said New Zealand growers and exporters had supplied too much too soon to the Japanese market last season. An influx of buttercup squash into Japan, the only major buyer, had depressed prices.

The oversupply came in spite of a large amount of squash being destroyed near Gisborne by Cyclone Bola.

Prices dropped to about 19c a kilogram for growers, then picked up to 25c then 30 to 35c before finishing at 42c a kg. Some sales were reported at 60c a kg but these were an isolated instance, said Mr Lilley. If the prices had not been so badly depressed at the beginning of the export season, all prices might have been better.

Steps to bring squash under the New Zealand

Horticulture Export Authority would hopefully bring greater control to the industry, Mr Lilley said.

Although North Island plantings might be a little lower this year, exporters were looking at boosting South Island production from 7660 tonnes to 16,100 tonnes, he said. The Japanese had shown a preference, for South Island squash. The harsher climate produced a drier and different tasting plant. Mr Lilley did not expect prices for the coming season to get much beyond 30 to 35c a kg, although one exporter was already offering a minimum pool price after grading of 30c a kg and a minimum final payment contract of 40c a kg after grading. The Squash Council was still in the process of being formed but it hoped it could influence both growers and exporters this season.

“We are asking growers

to be responsible and to keep production at a manageable level. We are asking exporters to notify us when they are going to ship squash. It is not in their interests to send too much. “It worries me that exporters here say they want to increase their tonnage,” said Mr Lilley. Japan imports most of its squash from Mexico and New Zealand. Mexican squash is usually shipped to Japan during New Zealand’s winter and supplies wane in November. The first of New Zealand’s squash is usually sent in December. At the beginning of this year, 250 tonnes of New Zealand squash arrived in Japan on January 11, 1663 tonnes arrived on January 28 with another 5208 tonnes the next day. On February 4, 1041 tonnes arrived, 1426 tonnes arrived on February 7, 4987 tonnes on February 11, with another 5426 tonnes by the end of the month. Exports then slowed with

just 6320.2 tonnes arriving in March, 11,359.8 in April, and 2631.8 in May.

Once fully under-way, The Squash Council which comprises growers and exporters representatives, would have the power to limit the number of exporters. There are 32 exporters who are members of the New Zealand Buttercup Squash Exporters Association. The formation of the council lead to rumours that this number would be slashed to just seven.

Mr Lilley said the rumour had started because seven exporters had been used as an example in a discussion document. Although he admitted the number of exporters would have to be reduced, no number had yet been decided.

“A lot will depend on their performance this season,” he said. Although smaller exporters might feel threatened by planned reduction in the number of

exporters, Mr Lilley did not see why they should be the first to go. “There is nothing wrong with the small guys. If someone has got some get up and go and a bit of initiative, I don’t see why they shouldn’t be given a chance.” The council will also attempt to improve the quality of exports by bringing more .accountability into the'industry. All growers, packers and exporters would be given a number which must be placed on produce which they handled. If a complaint of poor quality squash was made in Japan, the history of the produce could be traced and steps taken to improve future shipments. “If it is not up to quality, we will be able to take away their export licence,” said Mr Lilley.

Present members of the Squash Council were interim members only. Formal elections for the council will be held later.