FRUIT EXPORTS

Dominion, Volume 25, Issue 99, 21 January 1932, Page 10

FRUIT EXPORTS

Use of Central Fund ABOUT £BOOO EXPECTED The central fund to which fruit exporters will contribute this year is expected to total about £BOOO at the end of the export season. The renewal of the Government’s guarantee upon exports has been made conditional upon fruit growers contributing to this fund at the rate of one penny halfpenny for each case bf fruit exported, and the money will be applied to meeting all claims arising out of market and transportation losses. The terms upon which the fruit guarantee should be renewed for the coming export season were agreed upon by the Government and representatives of the Fruit Export Control Board, and the establishment of a central fund Is a new feature in the financial arrangements of fruit growers supplying overseas markets. This fund is entirely separate from the Government guarantee, and will have nothing to do with moneys that might be paid out by the Government to ensure a standard price for fruit sold abroad.

In renewing last year’s arrangements, the Government has guaranteed 11/a case for extra fancy and fancy grades of the more important varieties, and 7/a case for extra fancy and fancy grades of the less important varieties and good grades of all varieties. This means that if an exporter does not secure the guaranteed price on the overseas market, the Government will make up the difference to him, although if he secures pore than the guaranteed price he will receive nothing from the Government fund.

It is recognised by the board that the value of the guarantee is that it helps in the arrangement of finance for shipments, and it is pointed out that the guarantee now provides little direct benefit in a cash return to the exporter. In 1929 the Government had to pay out only ,0017 d per case under the guarantee —an almost negligible sum—and in 1930 the pay-out was .88d per case, which, on an export total of 1,331,853 cases, amounted to £4875.