PRICE OF SAMOAN BANANAS

Dominion, Volume 30, Issue 114, 8 February 1937, Page 10

PRICE OF SAMOAN BANANAS

State to Control Distribution

EXPERIMENTAL SCHEME FOR ONE YEAR

An alteration in the method of disposal of Samoan bananas is to be made by the Government on the recommendations of the committee that has been investigating the marketing of fruit and vegetables in New Zealand. In an official statement issued on Saturday, it was pointed out that for some years past bananas from Western Samoa had been sold under yearly contract.

“While this method of disposal has been successful in retrieving the substantial losses made during the early years of the Government’s operations, and has undoubtedly resulted in a highclass product being placed on the New Zealand market, the contract system has from time to time been subject to adverse criticism, which has centred mainly round the peak prices normally obtainable during the summer months, when bananas are in great demand,” it was stated. “The Government feels that it should be possible to distribute bananas throughout the country at prices which, while not avoiding altogether the fluctuations which appear to be inseparable from the trade, will eliminate the extreme variations that have occurred during the past years. “With this object in view, the Government has decided that for the future it will control the distribution of Samoan bananas. All recognised wholesale fruit merchants will be able to obtain on consignment their requirements of these bananas so long as they are able to handle them to the satisfaction of the Government. Prices will be fixed by the Government for each shipment, the object being to obtain throughout the year an average price that will just cover the landed cost of the fruit, plus a. small reserve to meet contingencies. To achieve this objective it is anticipated that, in order to meet the lessened ability of the market to pay, winter prices will probably have to be below cost, and that in summer prices must rise somewhat to enable the Government to recoup its temporary losses. It is an essential feature of the scheme that wholesalers will be required to supply the fruit to retailers at prices fixed by the Government, which prices will bo designed to allow the wholesaler a reasonable return for his labour. “It is recognised by the Government that a scheme such as this requires for its success expert knowledge, and arrangements have therefore been made for it to be operated by Messrs. Turners and Growers, Limited, of Auckland, acting as agents for, and under the general supervision of, the Minister of External Affairs. Messrs. Turners and Growers, Limited, have for many years been handling bananas as 'wholesalers throughout New Zealand, and possess the knowledge and experience essential for the satisfactory working of the present scheme. It is the intention of Mr. Harvey Turner to visit the main centres almost immediately for the purpose of meeting both wholesale and retail fruiterers and explaining to them the full details of the proposals.

“The current contracts for the sale of Samoan bananas terminate in February, and the Government desires that the new scheme, which is to be regarded as an experiment for one year, should be brought into operation in March.”