APPLE EXPORT

Evening Post, Volume CXIII, Issue 9, 12 January 1932, Page 12

APPLE EXPORT

CONTINENTAL TRADE

A GLOOMY OUTLOOK

(From "The Post's" Representative.) LONDON, 7th December. From reports recently received in this country it is evident that orchardists in the Dominion do not fully appreciate the seriousness of the financial situation in Europe. Nor have they grasped the fact that, although the marketing of their produce in Continental markets last season was unsatisfactory, it was a great good fortune that it was not much worse. Mr. J. L. Brown (fiondon representative of the New Zealand Fruit Control Board) is finding it impossible to make arrangements with the Continent for next season's output. In Sweden, Denmark, Finland, Lettland, Austria, and Hungary the; Governments have placed an embargo on the buying of foreign currency for making payments for fresh fruit. In Germany the import of fresh fruit is under licence. Last season 85 per cent, of the previous year's imports were permitted. This has been reduced by 25 per cent, recently, and at any moment-a complete embargo on the entry of fruit might be proclaimed. There is also the- chance of an embai#D being placed, on the purchase of foreign currency at the time of shipment. •__ '"Nothing has so interested the New Zealand fruitgrowers as the. Continental 'markets,",.said''Mr. Brown, in an ,interview this morning. "For some years this market- was,supplied by small forward sales, which were indeed very satisfactory in themselves. These, however, were of selected varieties, sizes, and grades, and the contrasts were such as to hinder us from marketing1 considerable : quantities. Last season, therefore, wa broke away from these isolated sales, and adopted a scheme which promised at least a distribution over the whole.of the Continent from Marseilles to Budapest. This scheme was the more acceptable because it gave us the opportunity to keep off the English markets our'large sizes which had proved almost unsaleable there.' LAST SEASON'S DIFFICULTIES. "In the- early, part of our season we were instructed that we would not have more than. 300,000 casea for the Continent, and our plans were made accordingly. The reception and returns for our first two,shipments and for some 6000 transhipped'from London. was very good indeed, and quite equal to our original sales returns. As these: shipments were not selected, but consisted of all varieties and grades, we had every reason to congratulate ourselves. Unfortunately, our next shipments were unavoidably delayed, and we had over; three weeks when we '■ had- no fruit- to sell just when prices were at their best.. When the Somerset did,arrive, on.'loth .June, the full tide of strawberries and peaches filled the Continental markets. To increase.' our difficulties, six ships■' arrived in a period of ten days with 300,000 cases. Many of the varieties,.. especially the Jonathans, _were in a. very Vasty condition. Immediately afterwards, the serious" ■ financial crisis arose in- Germany, and business was at a standstill for some time. The result, of course,' was disastrous, and naturally a good deal. of criticism has been expressed in New Zealand. ... ' "I doubt if it is realised in New Zealand just-how seriously the whole scheme was affected by these various obstacles," said Mr. Brown. "The 300,000 cases arriving together would break any market. The wasty fruit destroyed the confidence of the buyer, but the financial crisis did more than anything to reduce prices. Fruit sold in the open markets,independent of the scheme fared just, as. badty,-. and in most cases for a lower;; price. 1 have tmanaged; to secure spme average prices of Australian - large'Szesßoia'-iih-Ldndoni at "the same time.TvT.he -average-.for two- steamers being 23iin\.8s,,.3iji_7s gross,, or =6s 6d arid 5s 7d net.." 'respectively, . our own Stunners, 150'sj'-finding, it difficult -to "make $3 gross.";;.'...* : i;.. ; -:.,-f'V,'.- . .' ■- f M-vv. ■-■:. :i FROSPECTS: FOR 1932. : ;, The prospects f0r^.1932, according to Sir. Brown, are 'very^disturbing- - ;' - ■ "The financial position .on., the Continent," he said, "is such as to prohibit the forward buying "of" past years: -Some" eotm--tries are refusing'>to;. allow "credits for fresh fruit. TTiave-been "in touch -with the largest houses in Germany, and all assure' mecthat, much v as; they would like-to deal with us, it;ia'impossibfe: at,present, and unless some improvement takes place be' fore our sea'soii opens; we are faced .with a; serious- problem.?^,.-.. . ' - - , . ■ . Mr. Brown pointed out that the removal "from \Eiigland of the ' large size apples last; season had a beneficial effect upon the liondqn, prices.. This fact may be ■ deduced" from a . comparison of average prices for the last dozen shipments in the years'l93o and-1931 respectively. 1930.- --•■..■:•■■■• ; 1931:- ---. 9/3. . -..-■ 10/6% 9/9 ... 10/1- - 9/6 9/11% : ' 8/10 / ~ 9/11% "-'.' s/8 »..•■-• io/ioy 2 S/3. - ~ - '■'. 10/7% - . ' 7/10 ..- 8/9% Vm ■-'■»■ " 9/Us - . 7/5 '; "'.. "• 9/S .. : 7/4 ..... 10/0% 8/- .. 9/7% ' ' : 6/10- r .'.■ •■ 9/2%" "Shouldthe economic depression continue for some time," said Mr.' Brown in conclusion. 'I anticipate a demand for smaller sizes on the'C'bntinent in the future. Our apples have attained a wonderful reputation all over Europe, and in normal conditions we would have nothing to fear." * '