FRUIT MARKETS

Dominion, Volume 30, Issue 261, 31 July 1937, Page 15

FRUIT MARKETS

Increasing Confidence in Industry GOVERNMENT ASSISTANCE “During the year just completed there have been some indications of increasing confidence in the industry, due, no doubt, to the increase in the export guarantee, and the setting aside of an amount of £40,000 for the subsidising of realisations for fruit sold on the local market,” states the annual report to be presented at the New Zealand Fruit-Growers' Federation conference next week. “The action taken by the Government in this connection is a recognition of increased cost placed upon the industry by reason of Government legislation for higher wages. “It remains to be seen, whether or not the basis adopted by the Government for dealing with prices of fruit on the local market will in the end permit of the distribution of any part of the £40,000. If no distribution is made, it will mean at least that on the average growers have received reasonable returns for local sales. This fact, together with the increased guarantee on export fruit, will considerably strengthen the position of the federation.” Cost of Supplies Rising. • The report states that business handled by the federation again shows au increase in comparison with last year, In spite of the fact that the fruit in Hawke’s Bay district was practically wiped out by a frost and the business in that district suffered accordingly. Apart from the increase in the price of case timber, practically all other prices remained unchanged, and the increase shown in turnover could be accounted for in a great measure to new business. In view of the increasing costs, increased price for raw materials from overseas, and higher wages, next season’s supplies would show an increase in price over prices paid during the past few years. Guaranteed Prices. “As all growers are aware, the Minister of Marketing, Hon. W. Nash, at the Dominion conference last year, gave an indication that the Govern■ment would be prepared to consider guaranteed prices similar to the dairy industry, being made available for the fruit, crop of 1938,” the report remarks. “Recent statements by the Minister of Finance while in London seem to cast doubt on this intention.” Recalling that the Government has once again decided to relax the embargo regulations from Australia and elsewhere, and that from the beginning of December, or earlier, if necessary, to the end of April it will be possible to import oranges in any quantity from fly-free areas in Australia, and elsewhere, the report comments that the position is one that requires close watching, as any flooding of the local market with oranges materially affects the sale of local fruit. £40,000 Subsidy. “While the final figure for the export guarantee did not give what was asked for or what was considered adequate, it did nt least make for an improvement,” the report states on the subject of the Government guarantee and assistance to the industry. “The position in connection with the £40,000 subsidy on the local market is somewhat obscure. The indications are that these guarantees will cost the Government very little, if anything. Next season’s crop will bear the full blast of increased and ever-increasing costs, and it is hoped that the arrangements finally agreed upon will adequately meet the position.”