FRUIT INDUSTRY

Evening Post, Volume CVI, Issue 152, 26 December 1923, Page 10

FRUIT INDUSTRY

BETTER EXPORT PROSPECTS

TRADE WITH SOUTH AMERICA.

Reviewing the prospects ahead of the fruit industry, Mr. J. A. Campbell (Director of the Horticulture Division of the Department of Agriculture) states that fruit production in New Zealand has reached a stage which is beyond the capacity of the local market to consume, with the result that considerable quantities have to be exported. The fruit crop last season was a fairly heavy one, generally speaking, but owing to unfavourable climatic conditions the percentage of loss through black spot was greater, than growers appreciated, resulting in a fair amount of loss. Unfortunately, the Dominion was not yet in a position to utilise _ to any. great extent the lowgrade fruits, a percentage of which were invariably always "produced. Some .advance in this direction was made last season in the manufacture of cider, some 15,000 to 20,000 gallons of which was manufactured in the Nelson district during the season.

Fruit was exported both to the United Kingdom and to South America, but the cost of production and marketing, considered in conjunction with the reduced spending power of oversea fruit consumers, resulted in the returns to the grower being far from satisfactory. As far as cost of production and marketing was concerned, there was ~a downward tendency. This together with other indications, suggested greater possibilities for the coming season.

The South American trade, which had always been looked upon as having satisfactory possibilities from a fruitgrowers' point of view, was going to be carried on on a consignment basis. F.o.b. sales, which was the basis applying when a satisfactory trade was being built up some years ago, had unfortunately to be terminated owing to the scarcity of shipping caused by the war, and, although a percentage of the fruit consigned to South America returned a satisfactory price to the grower, the major portion consigned to that market, no more than paid expenses. The prospects for the coming season were much more satisfactory, a contract having been entered into for 50,000 cases on a c.i.f. basis at quite reasonable prices, and it was confidently anticipated by those connected with the business that this was but the forerunner of a satisfactory trade being established with that country.

The apple crop for the present season, although somewhat lighter than that of the previous year, was to date in a generally clean condition, and on this account the .percentage of low grade fruit would be much less, and the exportable surplus be equal to, if not greater, than that available previously. The export to the United Kingdom last year was approximately 102,490 cases, and that to South America 40,970 cases. The Gov-, ernment guarantee for the present sea- 1 son extends to 250,000 cases, and tentative bookings have already been made for 172,000 of these, of which 50,000 will go to South America as a straight-out sale. .

Dr. C. J. BeaUes (Director-General of Agriculture)- states that- during the past year shipments of fruit to the Argentine had a setback, owing to the market being over-loaded, with the result that returns, were :a good-deal below what'had' been hoped for."■' This year a special export. committee was set up, which has done excellent work, and seems to .possess the confidence of the fruitgrowers. This committee is taking steps to regulate South American shipments, so that the overloading of the market will be avoided. A c.i:f. sale has already been made, and the South American market should be a satisfactory one this year. ' .