CITRUS FRUITS

Evening Star, Issue 21828, 18 September 1934, Page 7

CITRUS FRUITS

EMBARGO ON AUSTRALIAN ORANGES OUMEDIN PRICES REASONABLE CHAMBER OF COMMERCE DISCUSSES SITUATION The position in regard to Australian citrus fruits was discussed at last night’s meeting of the Chamber of Commerce after Mr H. A. Newall had made a statement concerning the conditions of the trade, particularly with reference to the difficulties being encountered by the retailers. Mr Newall pointed out that, although a certain number of cases had been allowed into New Zealand during August and September, no further provision had been made. The President (Mr C. B. Barrowclough) said the chamber had been pressing hard to get the embargo lifted, in view of the extreme value of citrus fruits to the community, and they had been promised that the matter would he given immediate attention. However, the position was still totally inadequate to meet the requirements of the community. The statement had been made that retailers were exploiting the public by charging high prices, hut the whole position was that there was a scarcity and prices could not he limited. MR NEWALL’S REMARKS, “ A good deal has been published in the Press throughout the South Island concerning the prices, condition, and means of distribution of South Australian oranges from the Murray Citrus Growers Co-operation Association. I should like to give a brief outline of the whole position as I see it. said Mr Newall. “The majority of the people are under the impression that the embargo on Australian citrus fruit has been lifted, but this is not so. The New Zealand Government has allowed the South Australian growers to ship restricted quantities to New Zealand ports, this State being the only State free from the Mediterranean fruit fly. “ Several Dunedin merchants cabled South Australian agents _ for various quantities to be shipped via Melbourne per the Waitaki, but were advised by cable that the whole of the shipments were in the hands of tho Murray citrus growers, and permission could not granted to anyone than through this association. The speaker wired Mr Forbes, who intimated that the arrangements for shipments were in the hands of the South' Australian Government.

“ This, I feel, is not a very serious position when we remember, that during the last number of years prior to the embargo, the Murray citrus growers were the only growers in South Australia to ship on consignment to the New Zealand markets. Furthermore, prior to permission being granted to South Australian shipments, this association left no stone unturned both in the Commonwealth and in the dominion in bringing about better trade conditions between the two sister countries. In view of these facts, I feel that the South Australian Government has given the preference shipping to growers, and not commission agents of Adelaide. The prices fixed in Dunedin by the South Australian representative (Mr Mueller) was 16s to 235, according to contents in the case, and, considering that the market price for fruit is always governed by supply and demand, I feel wo must all agree that this price was a very fair one. “The Government' fruit inspector’s certificate for condition shows that he inspected at the ship’s side twenty-six different growers lines of navels, the waste showing a maximum of 10 per cent., the average being approximately 3 per cent. “ At Invercargill one line of twentyone cases showed a loss in bad fruit of 40 per cent., but one line cannot be taken as a sample of the whole shipment, Consideration must be given to the fact that retailers have to hold three weeks’ requirements on hand before the next shipment arrives, and during that time the fruit deteriorates somewhat, and consequently the waste cuts down the profit. Inspection of prices marked in the retail fruit shops compare very favourably with that of the wholesale prices paid, and can anyone find any excess charges, or profiteering when Bfor Is, 6 for Is, 5 for Is, and 4 for Is are to be obtained in any of the leading shops for fruit costing 16s to 23s for counts 80 to 250? “ Publicity has been given to the fact that profiteering has been going on in Wellington, Christchurch, Dunedin, and Invercargill. The office of the Australian Trade Commissioner in New Zealand made a sweeping statement when he attacked the retail fruit trade in Wellington ‘by stating that he had been staggered at the prices marked in the shop windows; oranges can be bought in Australia at almost a tenth of the price paid here; from comparative prices, you will see that, according to his statement, oranges can be bought in the retail shops in Australia for 3s per bushel and onethird case, or 2s 3d a bushel case. Never in my wildest dreams could I imagine this to be a fact. Latest cable quotations from South Australia (Adelaide) for bushel and one-third cases is 12s 6d f.0.b., of 17s a case. Dunedin buyers take all risk of quality and condition. “ We cannot compare ruling Sydney peaces with that of South Australia. Firstly, supplies cannot be procured from New South Wales owing to the embargo. Secondly, navel oranges in the Murray district compare favourably with any others grown in the world, while Valencias from Sydney are much poorer in quality. Domestic troubles arose in Christchurch, owing to the fact that a large portion of the shipment was bought by a speculator, not in the retail trade, who bought in and then held same for a reserve price up to 33s per case. The retailers in many cases were left wailing and had to nav this fabulous price. “ The first shipment to Invercargill was quite inadequate to meet, the demand. and one agent submitted his quota to auction and gained a much higher price than that asked by other merchants: thus throuble arose in the Southern city. At Dunedin all supplies were absorbed very quickly at the fixed prices, and a bare market awaits the next shipment. “If we are asked to accent the statement of profiteering in Invercargill by the remarks made by Mr Tapley, together with iiis quick somersault, well, it is rather lukewarm. The total lifting of the embargo, the root of the whole trouble, lias to some degree been lost sight of, and, instead of condemning the supply, would it not be far more fruitful if nil interested bodies were to bring as much pressure as possible on the Government to have this embargo removed? Then, what is now. in a sense, a monopoly to a State will have to take its place in competition with supplies

from all States. Until negotiations have been completed and the embargo lifted, 1 trust that statements made without careful investigation will not cause the New Zealand Government to close the channel of supply to the South Island ports. GENERAL DISCUSSION. Mr Newall added that, though allocations had been made for August andSeptember, there was no further provision. The President (Mr C. B. Barrowelough) : It is clear that if any exploitation has taken place, it has not been done in this city. Mr Newall said they must not lose sight of the fact that the embargo had not been lifted. The chamber should continue to bring pressure to bear in the matter. Mr C. J. Darracott remarked that the Imports Committee had ascertained that the retail prices of oranges showed a profit of from 22} per cent, to 25 per cent, on cost, and, in view of the perishable nature of the goods, it considered that the margin was reasonable. Mr A. C. Cameron said that when the embargo was put into force it was regarded ostensibly as a retaliatory measure because of the Australian embargo on New Zealand potatoes. It had been said that the potatoes were being blocked because Of a but apparently tho Australian atuhorities were not even prepared to accept the New Zealand Government grader’s certificate that shipments were free from disease. Means of blocking the potatoes were found, and trade had become impossible. The South Island, in particular, was up against a problem so acute that the Government must try to force Australia’s hands. Before the chamber asked for the removal of the embargo it should try to find out if it was a retaliatory measure, and, if it was proved so, they should obtain specific reasons for such a state of affairs. If they were satisfied that retaliation was warranted, they should suggest that Australian citrus fruit growers should bring pressure to bear on their Government. Mr Barrowclough: We wrote to Wellington, and wore unable to get a satisfactory explanation of the position. The position is so acute that we must press for the entry of these fruits. There is no justifiable reason for holding up such vital articles of diet. At this stage the following resolution was carried:—“ In tho opinion of this chamber the retailers’ profits are reasonable, but if a free market ftere allowed and the embargo were completely removed it would tend to lower prices. The council then proceeded to discuss the measures that should be taken to secure the removal of the embargo, Mr E. E. Nicolson stating that there were growers of citrus fruits in New Zealand who had considerable influence. Mr N. Wood expressed the ' opinion that a greater supply of cheap oranges was necessary for the health of the people. . Mr L. Deans Ritchie said that negotiation was better than retaliation, which only created bitterness. Gnc member of Parliament, who happened to be a minister, represented a constituency where citrus fruits were grown, and another minister represented North Auckland, where these fruits were also_ grown. Ho did not connect these things at all—(laughter) —but the public did. He had. seen New Zealand lemons at fourteen for Is, but one would not make a drink. A member: Neither would a dozen. If the embargo was for the purpose of fostering New Zealand lemons, he added, the public was entitled to good lemons. He could not understand the suggestion that the embargo had something to do with a desire to sell New Zealand apples in America. On the motion of Mr Ritchie, who said that he took it that the Government would again be asked for specific reasons for the embargo, the following motion was carried:; —“That the council reaffirms its desire to see the embargo removed and requests the executive to take every step in its power in that direction."