APPLES AND PEARS

Evening Post, Volume CXXIII, Issue 100, 29 April 1937, Page 15

APPLES AND PEARS

ORDERLY MARKETING

NEED FOR STANDARDS

In. its inquiries into the apple and pear industry, the Committee finds lhat the high' and strict standards of grading and packing established lor apples and pears intended for export resulted at times, in a considerable percentage of 'a grower's crop failing to comply with these requirements. Such rejected-fruit," which is termed "export rejects,"' is commonly placed on the local markets to the 'detriment of better .-quality fruit offered' for sale at the same time, This .practice also justifies to "a Very large extent the complaints- of the fruit retail trade which are >to . effect that. the retailer is expected to pay good prices for the fruit he requires whereas most of the good quality fruit is exported and the New Zeaalnd trade has to. be satisfied with the rejects. ".While this represents a somewhat exaggerated view of the position, there.is sufficient truth in the contention- to-:warrant the retailer's expression "of dissatisfaction. ■ The Committee'states that under past,' conditions there was' little or no margin left to meet the costs of production whatever they might'be. With the increased costs of material and. labour likely to, occur in the future; this margin may, "perhaps, disappear altogether and the grower' be left in a'serious plight, unless some, .means -of _ alleviation of his position is "found possible. : In the opinion of the Committee, the existing state of affairs within the in- . tlustry is not due to over-production, too much low-grade fruit may be, and no doubt is, placed on the market to the detriment of better quality fruit, but the unsatisfactory financial position of the grower is almost entirely flue to the fact that tod small a proportion of the money paid by the people of New Zealand for fruit goes to the producer. In. other words, the disparity between the wholesale and retail prices of this class of fruit is too great, and most of the loading is done by the retail fruiterer. * ' LOW-GRADE FRUIT. ~ Practically every, witness who came before, the Committee, representing all sections of the.jndustry, namely, grow-, ers and the wholesale and retail trade, strongly advocated the introduction of compulsory'standard grading and packing regulations in respect of apples and pears, and that all fruit below the minimum standards adopted be prohibited from sale altogether except to by-product works. The Committee has fully considered this position, and is satisfied that the sale of low-grade fruit has had a very detrimental' effect on fru;ri prices generally, and that the practice of selling ■'it,'.while in. many instances representing;, a direct loss to the grower, has not to any marked degree had the saving "grace of ensuring cheap fruit to the public. In the' circumstances, the Committee strongly recommends the adoption r of standard grading,.and packing in. respect to apples and pears',:and further recommends, and in this is. supported by,the vast majority of the witnesses appearing on behalf of the fruit and vegetable retail trade, that such standardisation be carried right through to the purchasing public. The lack of a sound system of organised marketing is, in the opinion of the-Committee, one of the principal contributing factors to the present unsatisfactory -position of the apple and pear industry;;. It is understood that many attempts .have' been made by groups^'of growers in the past to improve., the position'of the industry by forming^ themselves into co-operative fruit-grading, packing, and marketing societies much along the-lines, which, after many failure's, have eventually become . successful in many parts of the U.S.A-. and Canada. Unfortunately, failure has been, the common. experience of such; .societies in New Zealand. '";>';' •'".'.. COMPULSORY CONTROL. ' The difficulties experienced, in local marketing'•'organisations have to do with voluntary co-operation. Consequently, .if! anything is attempted in the way of local marketing organisation in the interests of the:apple and pear industry, and it is considered essential that something in that connection should be done, it is the opinion of the Committee it must be on the lines of compulsory control. In other countries it has been found that the; keynote of all successful mar-keting-schemes has been organisation. Such organisation is/designed: (a) :To eliminate from' the [markets all lowgradVv fruit.. • This calls for a system of strict "grading and standardisation and packing of marketed fruit and the prohibition of the sale of below-grade

produce. Any system of grading,. standardisation, and packing must be ; compulsory as, if only ten per cent, .of the growers will not conform, they can wreck the whole scheme; (b) to provide for orderly marketing, so that produce is always sent to the best markets and anything in the way of "glut" or "starvation" situations in any markets are avoided. This needs an efficient intelligence and statistical bureau. A GROWERS" OEGANISATION. In carrying out such a system, the growers in a certain district form themselves into a local packing association for the purposes of providing a central grading and packing shed to handle the fruit of such district. If growers already own their own grading and packing equipment there is no reason why they should not use them. A group of the various local packing associations usually appoint one or more representatives of each association to art together as a group marketing exchange. The associations and the exchance are legally consiitule.d. The duty of the exch&njte is to market its constituent assertions' fruit to the best advantage and m order to do so it keeps itself informed of market conditions and prospective supplies from, other sources and makes all. transportation and selling arrangements. DANGERS OF "WHITE-ANTING." It is obvious that under such ■ a system not only is inferior produce kept off the markets and orderly marketing made possible, but also one exchange, handling all the fruit as a single .vender, is in. a much better positon 'in relation to making business arrangements with the distributors than numerous. small growers could possibly be. It is necessary * that, once marketing on these lines is decided upon, the element of compulsory control becomes essential as, if even only ten per cent., of the growers refuse to join in the scheme, they can make independent arrangements . with brokers and thus "white-ant" the whole financial position and, by sending their fruit where they like and when -they h'ke, can •• disorganise any system of Orderly marketings Itwould be necessary in furtherance of this system of grading* packing, and marketing to legislate so that in case of need, or if at any time it was considered desirable, the Marketing Department could exercise control over the activities of the group marketing exchanges, but in the meantime, it would appear' to be sufficient that there be merely official contact between those' groups and the Director of Fruit Marketing to whom they should submit regular reports. Such a :system of marketing necessarily involves a "pooling" of all fruit according to variety and grade, and such a course would be quite workable and fair once a rigid system of standardised grading was instituted. Marketing schemes such as the above are hovv working efficiently and beneficially in the eastern and western States of the United States of America, and also in Canada. CHANNELS OF SALE. In view of the fact that in Nejv Zealand a great number of growers have their own packing and grading plants it appears to be desirable that all-fruit —or at. least that portion-for consumption in the large cities —should be gold through the orthodox channels, that is, from grower to wholesaler, and from wholesaler to -retailer.. : . That course would make it practicable for ,the. Gov-. ernment inspectors to check the gradings in the wholesale "marts' and cool stores. Further,, it.would prevent price cutting by: individual growers; and- the sale of below-grade fruit, and.thus help .to ■'maintain;'.-prices at a proper, level and. for these reasons would be in the best interests of the growers themselves. ■/,;.:.'•;..■ .. ..■.■■■■', ■•.•;.•. ..■■. iWhile the Cpmmittee..strongiy,;;commends the idea of "the ultimate grouping • of- apple and pear. growers into marketing: groups,--in a manner somewhat on the lines indicated above, it feels that to make such action at the present time compulsory might be a little premature. In the circumstances, the principal and immediate recommendations of the Committee in respect to the producers' end of the apple and pear industry is the adoption of compulsory standardisation. .The Committee desires to make, it clear that the.... matter,; .of selling standardised fruit-strictly according-to grade "cannot" end;with its sale by. the wholesaler.,. It .is, essential, in the .interests of consumers, that the retailer must also sell the fruit according to its grade.. All • apples and pears offered by him- for-sale to thepublic should therefore :be assembled or grouped by him according to their proper grade and labelled accordingly. The Committee makes specific recommendations to that effect. FINANCIAL ASPECT. The value of--standardisation as ,a means of improved marketing will largely be governed by the degree to which it is observed and practised by growers and packers and also to the extent to, which, retailers meet their obligations under such scheme. 3}6 ensure that both sections conform to the: requirements of standardisation a strict and reasonably complete system of inspection of fruit in the packinghouses, markets, fruit shops, or wherever necessary, must be introduced. This will require a substantial increase in the inspectorial staff of the Department of Agriculture' as it is that Department which will have to assume the responsibility of fruit inspection. Not only will, additional inspectorial work be necessary in connection, with standardisation,, bufc in the opinion of the Committee, much more than was possible in.the past will also be necessary under. the existing "Fair Marketing Regulations" in order to check the irregular and dishonest packing of vegetables that has been too prevalent in the past. All fees payable under the several licensing proposals contained in this report should become the property of the Marketing Department, and be earmarked for the purpose of meeting or assisting to meet the additional costs of inspection necessarily involyed through the enforcement of standardisation and grading.