FRUIT INDUSTRY

Evening Post, Volume CXVIII, Issue 56, 4 September 1934, Page 5

FRUIT INDUSTRY

FEDERATION'S WORK

THE CITRUS EMBARGO

"Business conditions have been difficult," reports the New Zealand Fruit Growers' Federation, "and whilst it is claimed that in the United Kingdom

trade is improving,, the position of primary producers in this Dominion has grown steadily worse. The federation is a primary producing organisation, and suffers accordingly.

"The intense nationalistic spirit which has spread throughout the world, bringing with it the ringfencing of every country by tariffs and quantitative restrictions, has brought about an apparent over-supply of all the foodstuffs in which primary producers are interested. That it is only apparent can be proved by examining the consumption figures relating to these necessities of life.

"Nevertheless, the fruit growers, along with other fanners, are differing severely under these conditions. Your directors are fully alive to the need of doing everything possible in these trying times to assist growers, and while seeking to safeguard the organisation itself have given the utmost assistance possible." The federation also reports that the business it has handled has shown a satisfactory increase. FINANCE. The federation's accounts disclose what is regarded as a satisfactory position. The .past year has been one of many difficulties. The net profit, after allowing for reserves, is £2300, as against approximately the same as last year. This position has been maintained only by careful attention to all phases of the iteration's activities, and the loyal support of growers. Sundry debts have inei-TOscd from £36,000 to £48,000 — an increase which it is stated is less formidable than might reasonably have been expected under the circumstances. One contributing factor has no doubt been tho position as relating to South American credits, which have been frozen for a considerable period. This applies to the two seasons 1932 and 1933. Further, tho position is affected by the lower advances made under the guarantee during the past season. This has left less for current expenses of packing, etc., and a consequent higher indebtedness for materials supplied. Sundry creditors stand at £7000, as compared with £6000 at the same period last' year. A feature of the year's accounts is the increased revenue from the Dominion mjirk department, which is rapidly becoming an asset to the industry and the federation. Other assets have been written down in line with present-day values. The strain on the federation's resources has been particularly heavy. This is more easily understood when it is pointed out that in most instances where accommodation was sought only 50 per cent, of advances was retained against supplies averaging about Is 5d per case. The accumulated funds of■ the federation are proving of the greatest value in giving accommodation to growers, and the policy of building up a reasonable margin each year, and at the same time maintaining competitive prices, lias proved the right one. EXCHANGE BENEFIT. "The action of tho Government in fixing the exchange rate at 25 per cent, has practically saved tho industry from bankruptcy," continues the report. "Tho net return received by the grower for tho fruit after all packing costs, transport and selling charges have been paid is in all conscience small enough, but it is duo to the exchange rate that he gets anything at all for his export fruit. The actual increase in cost of production by reason of this exchange on any materials imported has been infinitesimal. "The statement by the Reserve Bank that there was no likelihood of a reduction in the exchange rate in the near future will have given general satI isfaction." The Dominion mark scheme goes steadily forward, the report records. It was recognised at the commencement that the universal adoption of a standard quality for fruit on the local market would be a slow development, and this had certainly proved to be the case; but the position is encouraging. The quantity handled is growing, orchardists are becoming more ready to pack to standard, and the insistent propaganda carried out is having an effect on retailers and consumers. AUSTRALIAN EMBARGO. During the year the Australian authorities lifted the embargo in so far as fruit from areas not affected by fireblight in New Zealand is concerned; such fruit is now allowed entry into Australia. Negotiations aris under way whereby further lifting of the embargo is probable, and this should bo of benefit to the exporters of the Dominion, states the federation, provided always that any alteration in tho embargo does not mean that the local markets will be flooded with Australian citrus fruits. Messrs. J. Dicker (Nelson), W. J. Roger (Auckland), and T. W. Sisson (Canterbury), retiring directors, oiler themselves for re-election.