FRUIT MARKETING

Nelson Evening Mail, Volume 77, 23 October 1942, Page 6

FRUIT MARKETING

improvement claimed ARTICLE BY I.MX). OFFICER Since il came into existence in i 937, Ihe Internal Marketing Divi:ion has almost continuously faced i ban-age of criticism, writes an Officer of the Marketing Department in he “Standard.” This criticism in the main comes 'mm two sources. First, from those n teres ted ip the preservation of the >ld order at all costs; and. secondly, rom a section of the public who genuinely remain unconvinced that lie establishment of the Internal Marketing Division has brought any definite improvement in the handing of foodstuffs in New Zealand. We cannot expect to win over the -Titics in the first class, because their criticism is founded on prejudice and they are not interested in facts; but this article may assist the second class of critics in proving that the Internal Marketing Division has achieved considerable improvement in the marketing of an extremely important foodstuff, namely, apples and pears. In the first place, the Internal Marketing Division has assumed full responsibility for the marketing of all the apples and pears because, if this guarantee had not been given to the fruitgrowers, their industry would have been destroyed by war conditions. Facfcd with the complete elimination of their export market, the growers would have had to place on the market twice the normal amount of fruit consumed in the Dominion in pre-war years, and in ordinary circumstances this would have meant economic ruin within a very short time. The Government therefore has arranged through the Division that the industry shall be protected, and a price paid to the grower irrespective of market returns which will prevent the economic collapse of the industry. Most people are aware that the purchase price arranged was an average one of 5s 3d per case, but it must be remembered that this price is net to the grower upon delivery of the fruit to receiving depotsFrom this point the Division has to face all the additional costs of transport and handling to the main consuming areas, the cost of cool storage and repacking, together with accountancy, selling and overhead charges. These additional costs increase the original price of 5s 3d t.o approximately 8s 2d by the time the fruit is ready for sale to the retailer in the towns. As already stated, the elimination of the export market to the grower? means that approximately twice a? much fruit had to be placed on the market as in normal times. The Internal Marketing Division has in no way attempted to artificially restrict this quantity, and has gone ahead and placed it all on the market so that it could be enjoyed by the public irrespective of the price return. SUPPLY INCREASED For instance, in pre-war years the normal supply to the local markel was from one million to one and ahalf million cases only. For the past three years the Internal Marketing Division has placed the following quantity on the local market:

Remembering that the total cost to the Division is approximately 8s 2d per case, the following schedule of monthly sales and price returns shows that during the peak of the season when an abundance of fruit is available to the public fresh from the trees, the public have had that fruit and at an extremely low price.

1,821,000 6/5* •Average to date. Insofar as ensuring the public a supply of apples and pears outside the normal season, the Division has done all within its power. It has completely filled every cubic foot of cool store space made available to it. Under war conditions, dairy produce and meat have a prior claim on cool storage, and therefore the quantity ol fruit, stored by the Division is strictly limited, and it is impossible to maintain the same supply to the public as when the fruit is being harvested in the orchards. As far as the supply of out-of-sea-son fruit is concerned, the policy of the Division can be briefly summarised as follows: (1) To maintain an even flow of fruit on to the market for the maximum period so long as this policy does not invoke unnecessary wastage by overholding in store. (2) To stabilise maximum wholesale prices at a level representing fair value to the public for out-of-season fruit, and the entire elimination of any auction selling. COST JS ON THE PUBLIC It must be remembered that the total cost of purchasing and marketing this fruit must finally be met by the public in the dual capacity of taxpayer and consumer. In the flush of the season when fruit is available in the best condition lor consumption, the Division, by its policy of low prices, encourages the maximum consumption. For the remainder of the year, this fruit is clearly out of season, and to that extent is a luxury. It is only fair that consumers who wish to continue enjoying this fruit, which is extremely limited in quantity, should pay a fair and reasonable price and to that extent relieve the burden of the taxpayer. In collaboration with the Internal Marketing Division is asked to bear bunal is taking steps to fix maximum retail prices for the remainder of the season, and a Price Order will be issued shortly. The sincere critic of the Internal Marketing Division os asked to bear this in mind: Under private enterprise an over-abundance of fruit would be a disaster because the price returns would be uneconomic and there would be no profit. Out of season, when the fruit is scarce, the limited supplies were auctioned, and the sky was the limit- With the Internal Marketing Division in control, the public are given the full benefit of an abundance of fruit during the season, and in the oIT-season prices are stabilised at fair and reasonable levels.

1940 1941 1942 ... 2, 111,000 cases

11)42. No. of cases Sold. Monthly Gross Wholesale Price. January 25,000 13/1 February 73,000 11/5 March 266,000 6/44 April . 315,000 4/104 May 384,000 4/114 June 336,000 5/8? July .... 212,000 6/104 August 210,000 9/44