POTATO MEN FACE BIG LOSSES

Gisborne Herald, Volume LXXIV, Issue 22511, 15 December 1947, Page 4

POTATO MEN FACE BIG LOSSES

NO OUTLET FOR GISBORNE CROP

GROWERS HOLD STATE RESPONSIBLE

Faced with the probable wastage of 1500 tons of potatoes yet to be dug, and already having suffered an estimated loss of £IO,OOO in the past two weeks because no markets were available to absorb their produce, members of the Gisborne Potato Growers’ Association on Saturday night elected their president, Mr, E. J. Stewart, and treasurer, Mr. K. R. S. Orarer, to wait upon the Prime Minister, Mr. P. Fraser, the Minister of Marketing, Mr. E. L. Cullen, and the chairman of the Aid-to-Britain national council, Mr. F. P. Walsh, seeking immediate relief.

Presided over by Mr. Stewart, the meeting was fully representative. Called upon for estimates of crops yet to be dug, the members present quoted figures ranging from 10 tons to 500, and the aggregate totalled 1250 tons. It was conservatively estimated that there were at least another 250 tons awaiting digging in the district.

The Gisborne delegation left yesterday for Wellington and arrangements were set in train to fix a meeting with Messrs. Fraser, Cullen and Walsh for today or tomorrow. A decision to the following effect was reached unanimously, the text of it being telegraphed urgently to the Prime Minister:—

"Potato growing interests in the Gisborne district urgently request the Government to immediately consider the advisability of assisting potato growers by:— “1. Regulating the supplies to buying districts* "2. Purchasing surplus potatoes that are now available and arranging for dehydration and cool storage, otherwise the potatoes, approximately 1500 tons now available, will be wasted to the ruination of potato growers in the Gisborne district. Long Range Effects “The effects of a serious loss to growers this season can only result in “(a), A more or less serious shortage later in the season caused by potatoes normally dug in JanuaryFebruary being dug in DecemberJanuary; "(b) Growers being so discouraged as to considerably decrease their areas planted with a possibility of a serious shortage throughout all the next season. “Growers respectfully suggest that the Government face their responsibility to the growers. We claim we are entitled to ask the Government for protection as the Government clearly indicated in their letters to our association and through the press that all the potatoes we could produce would be required, and that the growers were urged to plant with confidence.” Mr. Stewart opened the meeting by reading correspondence that had passed between the association and the marketing department. An extract from one letter received from Mr. Cullen in late August states: “It is therefore, most desirable, and I understand that this matter has already been emphasised to Gisborne potato growers by the Internal Marketing Division, that every possible effort should be made by growers of early potatoes to produce for delivery during October and November, particularly, and also during December the largest quantity they can in order that any possible shortage of old potatoes may be met, to some extent, by supplies from the new early crop.” Two days later a letter was received from the produce officer of the Internal Marketing Division, Mr. R. G. C. Ffitch, saying he was pleased to learn of the plantings for October-November digging. However, he thought the 1000-ton estimate for December fairly heavy because of the usual difficulties of marketing after December 15. Minister’s Assurance Taken Two weeks ago. Mr. Stewart said, the association had learned of the potato glut and he telephoned Mr. Cullen making certain suggestions. He said he was given a sympathetic hearing, Mr. Cullen was again told that Gisborne growers had planted on his assurance that their potatoes would be required to the end of December. Following that conversation this telegram was received from Mr. Cullen on December 8: “I have gone very carefully into the position regarding the supplies of new potatoes, but feel that to place any restriction order on supplies from other districts as suggested by you would appear to be unfair to such districts. I understand the merchants are endeavouring to arrange a conference to discuss your proposal and see if any scheme mutually acceptable to all parties can be arranged.” “In Wellington today the stocks are more than sufficient to meet the demand,” said Mr. Stewart. “The marketing department has asked us to throw our produce on the Wellington market, but that would be suicidal to the growers. The Government should face up to its pledges. They are still asking us to plant and grow more potatoes!” The chairman said that the association’s suggestions to Mr. Cullen relating to regulation of snpulies would enable Gisborne to clear 500 tons for the protection of growers. The association had done all in Us power to alleviate the position and the executive asked for an expression of opinion from the meeting as to the course of action to be adopted. Mr. T. A. N. Corson congratulated the association executive on its aggressive action to protect the interests of the potato growers. Tire Government had a responsibility to the growers and Mr. Corson was sure something could be done. Recently returned to Gisborne after a meeting of merchants at which the potato glut was the principle topic, he said the merchants indicated something might be done in the matter of regulation of supplies. Then it was found that, although Gisborne stopped digging. other districts were still consigning to the markets to the detriment of Gisborne, which lost the sale of from 300 to 500 tons of potatoes. The growers of the district had lost £IO,OOO in two weeks. With the continued appeals being broadcast for further plantings of potatoes, it would anpear that there was a serious lack of co-ordination in some of the Government departments. Proper Control Needed “If there is a proper control of deliveries this disastrous state of affairs in the Gisborne district can be overcome,” continued Mr. Corson. “The surplus could also be taken off the markets and dehydrated or coolstored. This position has been investigated and is sound. It is now up to the Government to do something to take the glut off the market.” Mr. R. N. Shaw: This time last year the merchants were working hard to

1 hold areas on account of "black marketing” and I don’t think outside buyers have forgotten that. Mr. Stuart McGuinness, chairman of the agricultural section of Federated Farmers, said it appeared that the growers had a case and offered the assistance of the federation in any attempts to rectify the position. Mr. J. McMillan said he understood that the latest estimates showed that the total Dominion plantings were 6000 acres short of the target set and if that were the case a shortage was likely later in the season. Gisborne potatoes were planted in July and unless dug by mid-January the growers “might just as well plough them in." Something should be done urgently. He estimated that it cost £5 per ton to put potatoes on the railway in Gisborne (others considered the cost more like £7) and the freight to Wellington amounted to £2 10s per ton. Unless Gisborne growers were able to get their potatoes out of the ground and on to the market on the higher schedules there was little profit for them in growing. Direct Action Wanted “The point you want to make is that our potatoes will not keep longer than mid-January after which we are liable to get rain,” said Mr. McMillan. “What we want is direct action,” said Mr, Jack Allen. “We are not getting much sympathy from Mr. Cullen and the marketing department. Go to the top of the tree straight away.” Mr. E. K. F. Cameron: There will be fewer grown next year. •Mr. G. W. Armstrong doubted if a transport order would assist the situation. It w’ould antagonise growers in other areas, who also had large crops to market. The demand was probably not quite normal because of the fact that there was a patch of potatoes in practically every back garden this year. The demand on the markets had fallen away, he considered, largely on account of that fact. Mr. Corson’s suggestion of the re-opening of dehydration plants was a good one, he continued. The need for action was urgent as the sands were running out. Mr. Corson said the merchants were concerned to see a surplus at the moment and the prospect of a shortage later. It had happened before and the situation had been overcome by the application of transport orders and the regulation of supplies. There was a huge consumption of potatoes In New Zealand and it was the merchants’ considered opinion that there was no need for the price to come down. He said that the whole position should be placed before the Prime Minister, who should be shown the letters received from Mr. Cullen, and the marketing department. Mr. Armstrong said that other growers had equal rights and they, too, would be worried about surplus potatoes. Guarantees in Other Districts Mr. J. G. Bray said the other districts ivere “butchering” their potatoes to get them out at the higher price. Their seasons had been favourable. Manawatu growers were on a guaranteed price for January and February digging. That was a standing arrangement with the Government. Gisborne had no guarantee. Mr. Armstrong: Why should that apply to one district and not to another. Mr. Bray: We are on a ceiling because there is no guarantee offered for early potatoes. Mr. Corson explained that the guaranteed prices were available for growers In the Manawatu-Rangatiki areas and the South Island. The order of digging usually was Gisborne, Hawke’s Bay, Manawatu-Rangitiki and then South Island. Supplies had to be regulated two years ago and it had been done quite successfully. Delay was dangerous. “I feel that I can speak for the merchants in Gisborne by saying that they would be prepared to handle all the potatoes for nothing to help the growers out of this difficulty,” said Mr. Corson. The decisions already outlined were then made. In conclusion, Mr. Crarer appealed to the growers to give their continued assistance to the association. A strong association could do much to protect the growers’ interests and individual members could give that assistance by paying their fees promptly, buying the association tags and “pushing behind all you can”.