Price of Bananas And State’s Big Profit

Manawatu Times, Volume 68, Issue 223, 20 September 1943, Page 8

Price of Bananas And State’s Big Profit

Once again the spotlight has been switched on. to that delectable island fruit, once so cheap and prolific in Auckland, the banana, states the Auck- ! land Star. With comment on the cost \ of living figuring largely in candidate ’s ,' speeches, it is only natural that atten- i' tion has been directed to the prices and 11 handling of fruit, and it -would have ' ‘ been surprising if there had been no I, reference to bananas. Fqr some years traders, consumers’' cragnisations and the Press have been attempting to discover exactly where the profit goes in the banana business, which is handled by the Internal Mar- I keting Division. Imports come from j Samoa, Fiji, Tonga and Earotonga. There the growers receive from 9s to 11s a case f.o.b. after paying labour, cartage and charges for cases and marking. It is understood the growers have no option but to purchase New Zealand-made cases, which range in price from 2s to 3s each. This does not apply to Fiji. Freight to New Zealand amounts to approximately 4s Gd, so that the bananas are landed at Auckland at about 13s Gd to 15s Gd a case. They are sold by the Internal Marketing Division to the merchants at 29s Gd to 30s ; a case. There is thus a margin of | about 14s to 16s between the landed cost and the fixed market price. It is much the same story in regard to Australian oranges. These cost the Government 21s a case f.o.b. and the average price to the retailer is not les3 than 45s a case. Although the Department’s operations constitute public business, it is impossible for the public to ascertain details of costs, profits and expenses in regard to bananas from the Internal Marketing Division’s annual report. This is usually issued long after the operations reviewed. In the latest report, that for the year ended March 31, 1942, the apple and pear section is | dealt with by three separate accounts, [but there is no mention anywhere of bananas. -Apparently the Government is not satisfied even with the rate of profit.it already secures. A case is on record in which the Government, although it made a handsome profit on a shipment of bananas, .insisted on an allowance •from the shippers because of the bad condition of some of the fruit. instances are also reported where the , Government has withheld shipments in order to keep up the price. Before State control bananas were sold on consignment according to supply v and demand, and for long periods they t were traded in Auckland at as low as 10s Gd a case. In the off-season, of , course, prices rose, but they were rarely, ,and then for only short periods, at the , level of current rates. The average .retail price throughout the year was about 5d a pound compared with 7d to-day and Sd some time ago.