LEMONS AND STATE CONTROL

Dominion, Volume 34, Issue 140, 10 March 1941, Page 6

LEMONS AND STATE CONTROL

If the information in a message from Auckland (published on Friday) represents the present position in the lemon industry, it is apparent that the Internal Marketing Division is still far from its stated objective. That objective was the reorganizing of the lemon market, under State control, in such a fashion that growers, consumers and the country as a whole would share the benefits of departmental supervision and business methods. The Division set out to achieve such a reform.in May, 1939, when, after what is described in its 1940 report as “repeated requests from representatives of the majority of lemon growers in the main producing areas,” it assumed control of the marketing of all New Zealand-grown lemons. What has been the result? The first year, no doubt, was regarded by all concerned as a period of transition in which extraordinary improvements were not to be looked for. Last year, however, when it might have been expected that growers and consumers would begin to reap the advantages of State administration, complaints of small returns—insufficient to meet high production costs — and high administrative expenses (as represented by the difference between returns to growers and retail prices) were heard. What is more, the public complained that the supply of lemons seemed little or no better, and prices little or no cheaper.

The industry is now approaching its third year under State con-trol—-yet the complaints continue. Indeed, they seem to be increasingly bitter. In the House of Representatives last December it was stated by a member of the Opposition (Mr. Broadfoot) that producers received an,amount equivalent to one penny for three lemons, whereas the consumer paid from l|d. to 2|d. for one lemon. Last week it was stated in Auckland that buyers were being charged up to 7d. for three lemons, while, on the other hand, growers were receiving 7/- a bushel of 200 lemons (grade fruit), and up to 20 per cent, of their produce was being classed as below grade and disposed of for manufacturing purposes at from -gd. to l|d. a lb. According to those who commented on the position, low returns and high production costs are causing growers to neglect their orchards, in consequence of which the industry is “dying on its feet.” It is a sorry picture, tinted with irony by the news (officially confirmed) that American lemons have been imported into Auckland by the Marketing Division. There may be some unavoidable cause of the anomaly of wartime importation of the fruit to a country which was to have its lemon-growing industry reorganized and perfected. If so the Minister of Marketing should explain the position. Incidentally, he should answer the criticism which has been made concerning the wide margin between returns and retail prices. As the position stands, the evidence suggests that the position of the lemon industry affords another instance of the failure of State control.