Kiwifruit bd confident of $2-a-tray price rise

Press, 27 April 1989, Page 20

Kiwifruit bd confident of $2-a-tray price rise

PA Wellington The Kiwifruit Marketing Board says it is confident of a $2 boost in tray prices this season, directly contradicating grim forecasts by the Ministry of Agriculture. Heralding the start of its export season at Parliament, the board’s chief executive, Mr Simon Caughey, said he was confident a $2 tray improvement on last season’s prices could be achieved. This would take growers into profit for the first time in three years. “By profit I mean what is left after living and interest charges have been met,” he said. His statement contrasted with the Ministry of Agriculture’s latest situation report which warns growers not to expect prices to climb much

above last year’s levels of between $5 to $5.20 a tray. The report said that without an increase in returns many growers will face great difficulties remaining in the industry. A recent Ministey of Agriculture study also estimated that 90 per cent of growers made financial losses in 1987 and that more than half had serious debt problems. But Mr Caughey said that with highly-skilled staff in all areas of the board’s work, shipping and coolstore arrangements almost completed and firm sales negotiated in all key markets for the first wave of exports, an excellent season was ahead. He also cited progress made to restore the

season, which included $205 million raised to fund initial payments to growers and an arrangement with the Apple and Pear Board to market kiwifruit with apples overseas. To mark the start of the season, which is the first since Parliament legislated to give the board exclusive rights to market New Zealand kiwifruit on all world markets except Australia, trays of kiwifruit were handed round at Parliament. The first export picking from Nelson were given to the Prime Minister. Mr Lange, the Minister of External Relations and Trade, Mr Moore, and the Minister of Agriculture. Mr Moyle.