RETAILER'S VIEW

Evening Post, Volume CXXX, Issue 93, 16 October 1940, Page 11

RETAILER'S VIEW

FRUIT AND VEGETABLES

CONSUMER TO PUBLIC

THE GAP BETWEEN

Various factors affecting the prices of fruit and vegetables in Wellington were discussed yesterday afternoon by a retailer. He admitted frankly that there were times when there was a fairly considerable disparity between the returns the grower receives for his produce and the price the consumer is asked to pay, and said that in his opinion it should be possible to reduce the gap with benefit to the grower, retailer, and consumer.

His first point was that which is usually made in any discussion on this subject, and that is that prices were governed by the law of supply and demand. But if that were the position, he was asked, how did he account for the fact that when market prices were very low retail prices, although being reduced, were not brought down even more to bear a truer relationship with the drop in market values. In answer to this question he explained that there were times when zrnarket prices for some lines -were so high that the retailer, in order to cater for the wants of his customers, had to buy and make little or no profit on them, or even sell at a loss. That, he said, actually happened, and he quoted as examples the rise that had taken place in the last few days in the wholesale prices of cabbage, cauliflower, and rhubarb. Then, when market prices dropped, he continued, the retailer endeavoured within reason to recoup some of the loss he had sustained when prices were exorbitant. . LEEKS TOPICAL. Leeks naturally drifted into the discussion, having been so much in the public eye. Up until recently, he said, there had been an abundance of leeks on the market, and because reasonably warm weather was being experienced then there had been no great demand for them, leeks being a cooler weather vegetable. Accordingly, the market prices had been on the low side. Cauliflowers had also been more plentiful at that time. But since then cooler weather had been experienced and at the same time the first crop of cauliflower was almost finished. In addition, there was the fact that supplies of new season's vegetables were a little later in coming forward. All these were factors contributing to a hardening of prices, and wholesale prices for leeks at the beginning of this week were higher—up to 8s 6d a case. Prices-for cabbages had also risen. About a month ago the best1 price being obtained for cabbages on the Wellington market was 3s a case and good ones could be bought for 2s a case. The reason for this was that there were a lot of cauliflowers available and Savoy cabbages could still be bought. Immediately the Savoy I cabbages went off and there was a diminution in the available supplies of cauliflowers, not only did cauliflower prices rise, but also the price of cabbages. On Monday wholesale prices of cabbage ranged from 6s to 10s a case and yesterday from 4s 6d to 7s a case of not more than 24 cabbages. CAMP REQUIREMENTS. Another factor having a bearing on the rise of prices was the requirements of the troops in the military camps. A Chinese, said the retailer, had the contract for the supply of vegetables to Trentham Camp, and yesterday his bidding for green vegetables and also for rhubarb had had an effect on prices realised. Rhubarb prices had ranged from 2s 6d to 3s for a heap of three bundles. If, when the heap was broken up six bundles were obtained from it and it was sold at the retail price ruling lately of 6d a bunch there was no profit for the retailer. It might be said that the bunches could be made smaller, but the public would not buy smaller bunches for the same price that had been asked for larger bunches only a few days before. These, he said, were some of the difficulties facing the retailer, and which also affected the public. Neither a big rise nor a big drop in market prices was any good to the retailer. If only the market could be stabilised things would be all right. But many vegetables were perishable, and when perishable goods of this nature were being handled it was no use having fixed prices. If they were fixed on the basis of a reduced supply at the beginning of one week, by the end of that week there might be a glut of those lines, and the earlier prices would be completely out of tune. It was necessary to sell by auction, and when goods were sold by auction prices were governed by supply and demand, and the auctioneer under the law must sell to the highest bidder. Other difficulties confronting the retailer, he said, included the packing of goods, some growers being fair in this respect and others rather unfair, and there was also the question of wastage through goods being bad or going bad. In this connection he referred to lettuce costing 12s 6d for a case of 48 and which, he said, he was selling at 3d to 4d each. At these prices, he said, it could readily be calculated that if he happened to strike a bad pack the profit he was making, small in any event, would vanish. STATE CONTROL OF FRUIT. The retailer was not disposed to discuss to any extent Government control of fruit, but he said that in his opinion the quality this year was not up to the standard of past years. He also referred to the citrus price tables issued to retailers by the Internal Marketing Division for computing maxi- i mum prices per dozen, and said that i retailers now made these maximum i prices their fixed prices. Another result of these tables was that there was no longer competition in citrus fruit! prices among retailers, and if the mat- j ter were taken further they really j offered a premium to inefficiency, with] the public paying the premium. I The retailers, he said, would have no objection to an inquiry being made into the ramifications of the fruit and vegetable business from beginning to end; in fact, they would welcome it. As things were the retailer and the grower ran risks for small returns. The number of fruit and vegetable retailers in Wellington, he declared, made competition so keen that there was no fear of their making exorbi-' tant- profits. At the same time the number of venders had another result —wastage occurred. There were more than enough straight-out fruit and vegetable retailers now without . other shops also selling fruit andvege- ; tables as side lines. Al lthis tended to re- '. duce the volume of the fruiterer's turnover and increase wastage, both . of which had a bearing on higher . prices.

Another suggestion the retailer offered before he concluded was that vegetable growers should be registered and that reasonable grading regulations should be introduced, in the same way that fruit was subject to grading regulations.