EMPHATIC DENIAL OF HIGH PROFITS IN VEGETABLES: GRADING WANTED

Gisborne Herald, Volume LXXVI, Issue 22947, 16 May 1949, Page 4

EMPHATIC DENIAL OF HIGH PROFITS IN VEGETABLES: GRADING WANTED

AN emphatic denial of the high-profit allegations levelled at retailers by commercial gardeners in Gisborne at a recent meeting arose at a specially-called gathering of retailers on Saturday evening. The retailers made some counter-suggestions to growers.

“We wish to point out that at no time has there been a wide divergence between the retail price and that paid to the growers,” reads an official statement issued by the Gisborne Fruit Re tailers’ Association.

“All growers should be very much aware of the fact that the retailer has a heavy expense in wages, rentals and wastage, while growers have only to market their goods and their job is finished. From the stage the retailer buys the goods he has to grade them, trim them and then possibly loses a percentage of the whole because they just did not sell. “In reply to growers’ comments concerning charges on cauliflowers, the growers know that in one day, in this particular line, the market fluctuates from 30s to 10s per sack and it- is possible that the cauliflowers costing Is 9d each could have been sold at a very low percentage of profit, and possibly at a loss if it came out of a sack costing 30s. This statement can be verified from market quotations locally and further afield. Prices Paid for Carrots “The growers state that at present they are getting Id per lb for carrots,” the statement continues. "This is not the price paid by the retailers. It is the price paid to growers less commission and handling charges. “The average price paid by retailers for first-grade carrots is lid per lb and these are sold at 3d per lb. Bundle carrots are bought at 2s 6d a dozen and sold at 4s per dozen. These prices certainly do not allow any retailer the alleged profit of 6d per lb for carrots. “Instead of receiving 400 to 600 per cent, profit as stated by one grower, the retailer does not even receive the 66 2-3 per cent, as stated by another as the allowable profit on vegetables. The correct position is that the average profit made on vegetables is from 25 to

30 per cent, on a firm market

“It was stated that a growers’ delegate had attended their Dominion council conference where a marketing scheme had been discussed,” the report continues. “Their delegate stated that their trouble was not due to overproduction, but rather to bad distribution, and retail fruiterers in Gisborne feel sure that bad distribution plus a very bad standard of grading is the real cause of their complaints. “We suggest that all growers would be well advised to properly pack and grade their produce and to label it with their registered number and grade if they wish to retain a good demand for their produce. More Attention Required

“Retailers have paid top prices for very inferior produce, but today they want to know the grade and the grower of the goods before they buy. Any retailer will pay a top price for a top quality article and the same applies to the general public who, in turn, buys that article from the retailer.

“Our association not only suggests, but would like to ’see this enforced. All know that the practice of ‘topping-up’ or showing a better article on top of a container, is one which has caused all retailers considerable loss. If growers would only grade properly this practice would not be necessary. “The Gisborne association feels that growers would be well advised to pay particular attention to the foregoing as an effective remedy to their problems rather than to pursue the suggestion of opening a co-operative, store “The fruit retailers render the public a 100 per cent, service for 12 months of the year in times of plenty and scarcity and we consider that the public should have the benefit of a continuous supply even when local growers cannot Supply and we have to go further afield often at great inconvenience to ourselves. We consider it our duty to the public to give' them the best available at all times.”