THE FRUIT TRADE

Evening Post, Volume CVII, Issue 20, 24 January 1924, Page 6

THE FRUIT TRADE

GUARANTEED EXPORTERS

A NEW SCHEME FOR NELSON

LOCAL MARKET SHOULD

EXPAND.

What's wrong with the fruit industry? On the one hand are the growers, who aver that they would be glad of a sure average of Id per pound on the trees; on the other is the local consumer, who has come to regard fruit as a luxury rather than as an indispensable food. Th e orchard industry of New Zealand is in the hands of 7100 registered growers, and there are some 30,000 acres in fruit trees, of which 21,000 ■ acres are in apples. North Auckland, Hawkes Bay, parts of the Wairarapa, Nelson, and Central Otago are all important fruit-growing areas, and the industry, generally speaking, is conducted upon modern lines. But on all hands one Hears from growers that the game is not worth the, candle. Unfortunately, the trouble with the fruit 'industry in New Zealand appears to be that.fruit has become to be regarded-by the public as a whole as a luxury rather than a staple. article in. the daily dietry scale. - It is the opinion of those in close touch. With the-industry that New Zealand itself could absorb practically all the 'fruit grown, the surplus' available for export being negligible. But the local market is not giving such support. The impression in the,minds of some connected with the 'industry is that New Zealanders are not a fruit-eating people. Why? The only answer that "The Post" could elicit was because the retail price of fruit is too high to ensure its general comsumption as a daily food. The result of this unsatisfactory state of, affairs is a huge and ever-increasing quantity of fruit for export.

That the local market is not absorbing sufficient fruit grown in the country in the interests of both public health and what should be a most important primary industry of tße Domin--ion is correct; that the New Zealanders as a, people are not fruit-eaters is erroneous—if it means that .they do not feel the need of eating fruit and do not like it. But it is within the bounds of probability that they consume much less than they ought because they have been weaned of it by high prices. INCREASED EXPORTS. Turning to the export aspect of the question, it'is understood that the 1924 shipments will exceed 250,000 cases of apples, cases each containing approximately 401b of fruit. On 250,000 cases exported the Government will guarantee a net return to shippers' of Id .per pound, and this liability will include all packing and marketing expenses deemed reasonable and necessary by the Department of Agriculture, plus |d per ca^e. The effect of this arrangement is that the country, as a whole, is made liable for a return to orchardists, or exporters, of Id' per pound; and if the fruit realises less than that, then the balance will come- out of the public pocket. That this liability is no mere matter of form may' be understood when it is explained that for. 1922 there was a deficiency of £12,000 on the fruit export trade which I the country made good. The accounts for 1923 are not yet complete; but, considering the low returns^ on the sales of ,New Zealand fruit overseas ' (due to j a variety of causes, some preventable), | they are believed to amount to fully [ another £12,000,- or say, a loss of £24,----000 in two years to be made good by ! the people of New (Zealand in aid of the j fruit industry. It is a heavy price. And yet the fruit: grower (also a contributor to the deficiency) says he has made a dead loss on the business, and inquiries made with care in authoritative quarters go to show that he has not exaggerated. 'This year, 1924, the guarantee or liability will be considerably over £41,000, because the quantity estimated to be exported will be 100,000 cases more than last year. The deficiency may'not, if th^e overseas markets are propitious, be as much as the' £12,000 loss incurred on the 1922 export. Besides, there is already effected a sale of at least 50,000 cases of fruit to' South American importers, and sold at a price that is to yield a fair return to grow- ' ers. The prospects of the coming export season are encouraging for the following reasons: South American good prices for at least 50,000 cases and as many more as the Government may permit to j be exported tp that market; reduced Tasmanian exports; increased consumption in Great' Britain attributable to influx of visitors during the great Imperial Exhibition. "DISASTROUS" TRADING. If, as is asserted by thos.e in close touch with the New Zealand fruit industry, the export trade last year was disastrous, the local trade, they say, was even worse. This was due (growers assert) to the flooding of the local market with low-grade fruit, which "pulled down" the prices _of superior fruit. Returns were described as "ruinous" in many instances. In fact, there were no returns, but actual claims upon growers, fruit being sold" at as low as 2s, or even less, a case, that cost' Is for the case itself, and Is for freight and wharfage to get it to Wellington: A scheme has now been devised in Nelson to operate this season; and it is said that GO per cent, of the growers have subscribed to it. They will send their fruit to market described as "Fancy" and "Commercial A", and "Commercial B." This fruit will not be sold under the hammer, but_ by private treaty. The prices will be fixed week by week, beginning Ist February next: "For example, the following niay be the prices for the week for cases of apples, 361b to 401b 'of fruit, free on board at Nelson : — Fancy. Ai B s. d. s. d. s. d. s. d. s. d. s. d. Jonathans 7080 6 6 7 0 5 0 56 Stnrmers 7080 6 6 7 0 50 56 Ueliciuus 90 96 76 86 60 66 Munro ..;. H 0 6 4 6

This fruit will be inspected by the Government officers and stamped,' if in accordance with the grade. So stamped the buyer swill know exactly what he is buying. The above typical prices are more likely to interest retailers. To the prices will have to be added freight, wharfage handling, commission, and other charges incurred between Nelson or other port of shipment, and final delivery of the fruit.

So far as could he, learnpd by "The Post" on inquiry, fruit shipped at Nelson at, ,say, 6s 6d per cage would cost another Is 6d before it left the agent or broker, say, 8s or 2£d per pound for an average of 381b of fruit. It has then to be carted to final destination at from 9d to Is per case, the ultimate cost delivered being 2|d per pound for "A grade" dessert or "fancy", cooking fruit —the case being reckoned as discount. This scheme is to be applicable to Nelson growers. It will not affect fruit coming from other,areas. ' "SOMETHING WRONG." It was admitted by those intimately connected with the industry who were interviewed on' the subject of the disparity between whut tha producer reeeivas wi.d wimt jUi.e ceußiunttf pays, that

there was "something altogether wrong" —as it was expresed—in the cost of distribution. This was no good to the producer, and no good to the consumer. .Not enough fruit was being eaten to suit the one; and fruit cost far too much to suit the other. At the same time, the conditions of the retail fruit business were peculiar. - In Wellington there were far too many fruit shops'. They all endeavoured to make a "do of it," and to start called for very little capital. That attracted a->larger number 01. people than probably in any other business. It was virtually a readymoney trade, and with £25 worth of fruit a shop could be opened. There was, however, the great factor of rent. Good stands might justify some of the rents paid; but this was not general. 4'l depended in the fruit business on a quick turnover. Some assistance to growers in the way of widening their outlet for fruit was expected in the fruit barrows; but the extraordinarily high prices secured by the City Council for these stands only increased the price charged for the fruit; at any rate, these fees had the reverse of increasing or facilitating consumption, because prices of barrow-fruit were brought almost in line with prices for shop-fruit. If the turnover was not heavy in the shops they would have difficulty in meeting their rents in many cases in the city itself. The retailing of fruit in general, by reason of the rents, was most costly, putting the fruit at such a price as to restrict consumption and, therefore, to force the producer into the export trade. ■ Yet the fact remained that Id per pound for fruit would pay the grower (with an orchard in-good-heart and producing a good variety) over the whole season, covering all charges up to the point of picking. Nor does it matter much to him where he obtains that return, overseas or at home in New Zealand. ■