AUSTRALIAN APPLES

Nelson Evening Mail, Volume LXX, 21 September 1936, Page 7

AUSTRALIAN APPLES

WHAT IS THE OUTLOOK ? THE HOME MARKET PRODUCTION FEATURES NO. 4 Of interest to New Zealand orchardists is a series of articles on the Australian apple industry contributed by Mr Geoffrey Brown, president of the Victorian Fruit Marketing Association, and Mr Herbert W. Soothill, general manager, Producers Markets Cooperative Ltd., and honorary secretary. The Apple Sales Board, Perth, W.A.

Our examination of the production and export conditions of the Australian apple industry will have made it clear that in at least one respect the home, market problem differs from that in several other Australian primary producing industries which export a portion of their commodities. Many other industries have sought to export such a proportion of total production as to permit of maintaining a home consumption price in excess of world’s parity. With the apple industry, the restricted outlet abroad has prevented the adoption of a similar policy, even had the industry been willing to adopt such a course, which is improbable. Whilst it is difficult to generalise, in view of difference of varieties and of the conditions in various States, it can safely be said that on the average local market return has been below export returns over the last few years—this despite the greatly reduced export parity. This, of course, is a somewhat natural result of the restriction of quantities exported, especially in combination both with restricted home consumption, arising from difficult economic conditions, and a tendency towards expanding production. We have already seen that average production over recent years exceeds 10,000,000 cases per annum, and that somewhat less than 5,000,000 cases of this total are exported. With an Australian population of over 6,000,000 people, home consumption in the vicinity of a little over 5,000,000 cases per annum does not seem exceptional, although it compares quite favourably with that in many other parts of the world. It is, hovewer, not possible to arrive at the actual consumption, except as the difference between production and export figui-es necessarily includes a proportion of wastage, and in face of the prices of today it is known that wastage on the orchards constitutes a very much higher percentage than formerly, growers finding it frequently unprofitable to pack for sale a proportion of the crop. This position in itself is quite serious enough, but an examination of statistics of plantings reveals the rather disturbing fact that areas planted and not yet in bearing represent over 20 per cent, of the areas now bearing. Even if the new areas bear only as vigorously as the average of the older trees, it is only logical to anticipate ah increase of at least 2,000,000 bushels, i.e., from, say, over 10,000,000 to over 12,000,000 per annum for marketing either here or abroad. Since it has been demonstrated that significant expansion of overseas outlets cannot be anticipated, a much greater problem than that already experienced is obviously bound to arise in the near future unless further remedies are applied. Actually, the expansion of production will prob- , ably exceed this expectation. Not only are the newer areas likely, by virtue of their age, to bear more vigorously than the average of older plantings, but most of them are planted to much more prolific varieties than those established years ago; additionally, there are substantial areas of trees which at the moment are not bearing because they are the subject of grafting from unsuitable varieties to more popular types, but which within a short period'will return to create an increase in total yield. It is unfortunate that earlier surveys of this position were not made widely known, and that the facts outlined above are even to-day not generally recognised even by the apple growers themselves. It is obvious that if a better attempt had been made to relate increased plantings to probable expansion of outlets, much of the difficulty of the present position' could have been avoided. It is, however, very surprising indeed to find that even to-day in some parts of Australia apple planting is still proceeding fairly vigorously. To some extent, of course, this arises because of consideration of State interests as distinct from those of the industry viewed as. an all-Australian industry. In relation to the various States, by far the greatest measure of production is centred in Tasmania, which grows approximately half of the total Australian production. Next in order of production comes Victoria, with New South Wales, Western Australia and South Australia producing somewhat similar totals on average during the last few years; Queensland is only a small producer. Naturally, the heaviest quantities are exported from Tasmania, with Victoria and Western Australia averaging approximately equal totals, followed by South Australia, with smaller lots from Queensland.

Considerations of density of population in the various States have obviously a very big bearing upon the question of the proportions for export and local consumption. For instance, Western Australia having only a very limited population and no practical opportunity, under present conditions, of marketing any proportion of her crop in the Eastern States, is likely to require a bigger proportion of export relatively to her production than that of other States. Although South Australia’s cropping is irregular, the bulk of the unexported quantity grown in that State is absorbed for local consumption within the State itself; much the same can be said of the State of Victoria, although Victoria receives some fruit from neighbouring States, particularly Tasmania, and markets some quantities in New South Wales. Although New South Wales exports a proportion of her production, her consumption is very substantial in relation to production within her own borders, and consequently she imports a much greater quantity than she sends abroad. Queensland is a small exporter of some early-maturing varieties, but in the main is a consumer of apples produced in other States. The Tasmanian local market is, of course, negligible, and Tasmania has always looked to the neighbouring Eastern

“Through Wind and Rain”

—Browning

Through the cold and wet of winter, Baxter’s Lung Preserver will stand by and protect you from all manner of coughs, colds, sore throats and other bronchial ailments. “Baxter’s” is a wonderfully soothing, warming remedy. “Baxter's” affords prompt relief, allays inflammation and cuts and clears away phlegm. Has great tonic value also. 1/C, 2/6, 4/6 chemists and stores.

States, particularly New South Wales and Queensland, as her "home” market.

A FURTHER LOOK AHEAD

In face of these conditions, the industry is recognising the absolute necessity for very special efforts to cope with this phase of the problem. The general approach is that although better returns are desirable in very many instances, the major object should be rather to ensure increased consumption which will permit of absorption of a better proportion of the balance of the crop remaining in Australia. Two or three phases have suggested themselves for action in this regard. Since a proportion of the crop in excess of that of ordinary inevitable» wastage has to be discarded under present conditions, it is likely to be preferred that such proportion should be the least attractive of the fruit. Whilst it might be assumed that such will naturally be the case by virture of economic considerations, experience shows that the creation and enforcement of quality standards is actually necessary to ensure that only the better class of fruit is marketed. Growers’ organisations in the various States have been very active in representing this point of view, and regulations have been brought into force in most of the States; growers are, however, seeking that the standards be raised, and that much fuller measures of enforcement of these regulations be applied, in order that they may be rendered effective. After all, the industry has to recognise that it has a duty to itself and to the public in providing an attractive and reliable article for consumption. Not only so, but sales of inferior lines tend definitely to reduce the demand. Ih some quarters it is suggested that the elimination of inferior fruit from presentation on the Australian market will, by virtue of its total quantity, also have a beneficial effect in reducing the apparent surplus.

LOW PER CAPITA CONSUMPTION

One very obvious point for attention is that of public demand. If we assume that the average bushel case of apples contains approximately one gross, it will be apparent that the average per capita consumption for Australia approximates only about two apples per week. This is indeed surprising! It has been thought that the value of apples has been fairly well recognised for some time past from a health standpoint; apparently much more extensive appreciation of this aspect has to be developed. This low proportion of consumption is even more surprising in view of the,fact that, unlike other fruits, apples are normally used both for ordinary and for dessert purposes. Furthermore, the development of modern efficient storing methods has permitted of spreading the marketing of the crop, and throughout the whole twelve months of the year the public has apples readily available to it. Whilst no one with a knowledge of the industry will overlook the more or less inevitable spread of costs between the grower and the consumer, it is certain that low consumption cannot to-day be defended upon grounds of high retail cost. If comparisons are made with other foods on a basis of cost per pound to the housewife (for instance, meat, butter, tea, cheese, milk) it will be agreed that the average cost of apples is decidedly below that of the average cost of the household larder. At the same time, it is not to be expected that the public are likely to recognise aspects of this character either from the standpoint of the grower or from their own point of view, unless special steps are taken to bring these features under notice. It is from this point of view that the industy must take at least some steps to seek a remedy for a part of its problems, by an attempt to ensure the cooperation of the Australian housewife. Other remedies are constantly being sought, and disposal of a proportion of the crop in the form of various byproducts has been and is being attempted. There is more recognition of the value of ordinary apple juice as a beverage. Some small proportion of production is absorbed in the manufacture of cider, and it is indeed surprising that the Australian consumption of this delightful beverage has been so comparatively insignificant up to date; this may be due to the fact that it is not generally featured by licensed bouses, althougn non-alcoholic ciders are also available. Various other methods of treatment and of preservation are a subject either of some small activity or of experiment—drying and canning being two of the avenues concerned. A survey of these various extra outlets does not, however, give any cause for optimism in regard to disposal of any significant proportion of the crop except through direct consumption. It may seem anomalous, but it is undoubtedly true that the organisation of the industry in respect of local marketing is by no means as complete as that in respect of export. The main reason for this state of affairs is probably the substantial difficulty of watching the local market position, especially from such angles as that of inspection of the fruit, in view of the tremendous number and variety of channels through which the fruit passes on its way to so very many eventual points of consumption in shops and so forth throughout the whole of the Commonwealth.* In respect of export, the fact that the quantities to be shipped are necessarily concentrated eventually through a limited number of ports, and thus can be and are made the subject of Commonwealth inspection, has done a very great deal to facilitate the organisation of the export side of the industry. At the some time, a very big body of growers’ opinion has come to recognise the tremendous importance of the more effective organisation ' of the local market aspects, and their views in these directions have received a very substantial measure of support from sections of the wholesale trade which have shown a willingness to cooperate in appreciation of the seriousness of the problem. So much for the Australian marketing difficulties. (To be continued)