ISLAND FRUIT TRADE

Dominion, Volume 29, Issue 207, 29 May 1936, Page 8

ISLAND FRUIT TRADE

Retailers Advocate Fixed Prices PARLIAMENTARY INQUIRY Emphasis on the necessity for improv .ng the quality of the nroducts from the Cook Islands was laid witnesses in evidence given yesterday before the Parliamentary Committee now inquiring into the Rarotongan fruit trade. An emphatic denial ,o a suggestion that the industry was controlled by a “ring” was given by importers’ representatives. The members of the committee are Messrs. W. J. Jordan (chairman), J. Hodgens, S. G. Holland, K. J. Holyoake, C. L. Hunter, C. R. Petrie, J.‘ Robertson, C. A. Wilkinson and the Hon. D. G. Sullivan, Minister of Industries and Commerce. Mr. A. G. Osborne, representing the Auckland retail fruiterers, said that they would welcome fixation of prices and Government control, because the old order had failed miserably. They had fixed prices in New Zealand loday, but retailers would have more confidence in prices fixed by the Government than by those who were doing it now. Every auctioneer had his instructions as to the minimum price for the day. The unsatisfactory condition of the Island fruit on arrival was one of the root difficulties. Jamaican oranges of the same variety came many times as far, yet landed in perfect condition. The bulk of shipments were sold to retailers in their original condition within a few days of arrival. The merchants naturally retained the best-conditioned oranges, because they might have to be held. Retailers passed on their dead losses to the consumer.

If the fruit was improved in quality and landed in better condition, the grower would’ benefit, Mr. Osborne said. The difference between the price received by the grower and the price charged by the wholesale merchants in New Zealand seemed to him to be too great, but he was unable to say why the difference existed. If oranges could be bought in the Dominion at 1/- to 1/6 a dozen, consumption would increase. It should be possible for the Government to fix not only the wholesale price but also the retail price. Heavy Losses. Mr. H. A. Newall, Dunedin, representing the South Island Retail Fruiterers’ Federation, said that their chief aim was to provide the public with the best possible quality fruit at a reasonable price. Insofar as the Government’s aims were compatible with that principle, they could assure the Government and the growers that any measures to improve the islan dtrade would receive their support. The Rarotongan fruit industry had for many years suffered heavy losses, and to-day the planters were faced with the fact that it was a non-payable proposition Until the produce could be landed in all parts of New Zealand in firstclass condition, losses and troubles would continue. Island fruit could not compare with citrus fruits which came to the Dominion from other countries. Mr. R. Menzies, representing the Wellington retailers, said that the time was coming when retailers would refuse to handle Cook Islands fruit at all unless it were repacked in New Zealand and graded for sale. Sometimes ten cases out of thirty had to be thrown away at the first picking over, he said. Deterioration of even the picked-over fruit was so rapid that fruit apparently sound when placed on the shelves in the morning had to he thrown out at night. Much of the trouble was due to disease. If a line of repacked Rarotongan oranges was held for a fortnight by a retailer, he could count on a loss of 15 per cent. Mr. Menzies agreed that a reasonable price to the public would be 1/- a dozen for small oranges and 1/6 for large ones. No Future for Industry, Unless

Mr. J. Stanton, representing the Auckland Fruit Importers’ Association, denied that there was a “ring” or monopoly in tho industry, and said it was incorrect to assert that huge profits were being made. Anyone who wanted to send fruit from the islands to New Zealand could do so to the extent that space was available in the shin. The traders themselves were anxious" that the natives should get more for their fruit. There was no future, however, for the Cook Islands fruit while it continued to arrive in its present condition. There should be a more rigid inspection of the fruit and in addition _a citrus expert should be sent to the territory to report on possible methods of improving the plantations. Mr. Harvey Turner, managing director of Turners and Growers Ltd., Auckland, said that allegations that a “ring” or combine controlled the fruit business in the Cook Islands and the distribution in New Zealand were untrue and absurd. Control by the Government, or by any other body, of the sale of fruit from the Cook Islands to New Zealand would not increase the amount of money received by the natives, nor would it improve the quality of the fruit landing in the Dominion. What was needed was: (1) A rigid inspection at Rarotonga and the complete elimination from shipments of inferior grade fruit; (2) a reduction in the number of packing sheds to not more than three, each to be under complete control of ah efficient European inspector ; (3) definite instructions to growers as to how fruit should be picked and handled before arriving at the packing shed and complete rejection of any fruit showing evidence of rough handling before arriving at the packing shells; and ( I) the appointment of a citrus expert as adviser or director of agriculture. An Official’s Opinion. Mr. W. T. Goodwin, Director of Agriculture at Rarotonga, recommended tho appointment of additional inspectors and the erection of a cool store on the island. He did not think any grower, white >r brown, was morally capable of packing his own fruit; the temptation to put in oranges which were perhaps unsuitable for shipment was irresistible. He thought the natives could be trained as inspectors. Mr. Turner, in replying to a question, said that if the Australian oranges were admitted free of duty there would be no market for the oranges from the Cook Islands. The latter were of an inferior quality. “We have not heard yet where the money goes to.” said Mr. Petrie. "The public are paying 25/ a case, and everybody in the trade is losing money.” Mr. .1. B. Grove, managing director <»f W. IL Grove and Sons Ltd., Auckland, said that his firm had been established for over 40 years in Rarotonga as trailers and fruit shippers. It bad sunk a very large amount of capital in the island and was continuing to assist and finance tho natives to plant bananas and tomatoes. “Although we have bandied our own fruit in New Zealand,” he said, “we were unable to average 5 per cent, net profit, and some years we made substantial losses, anil considering the risky nature of the business we feel that the return gives very little encouragement." He was not aware of any restrictions operating in the trade which denied the native grower,- freedom of the New Zealand market. Mr. A. J. Pople. president of the Auckland Fruit Importers' Association, said that the fact that 11 considerable percentage of Rarotongan oranges had to be rejected was due to faults in the at the island end. The committee adjourned until this morning.