LEMON CONTROL

New Zealand Herald, Volume LXXVI, Issue 23471, 7 October 1939, Page 8

LEMON CONTROL

GOVERNMENT POLICY GROWERS COMPLAINING . DISCREPANCY in prices (THREAT TO CEASE PRODUCTION Complete dissatisfaction with Government control of the Dominion's lemon crop is felt by Auckland growers. They maintain that since the Internal Marketing Division replaced the former free marketing system last' May .none, of the objects leading growers to ask. for Government purchase has been achieved. On the contrary, they state that the growers, retailers and public have suffered severely from the change. Meetings to consider results of Government control have already been held in Auckland, many of the principal growers in the Avondale and Henderson districts attending one in the city yesterday. It was then strongly urged that-,unless the division offered improved prices,; growers should cut back their trees and turn their energies to market gardening or to cutflowers for tlio southern market. Losses by Producers Growers stated that present returns under Government control fell so far short of production costs that they were unable even to purchase sufficient mfmuro and spray for their trees. As , a result, even if they continued growing, their crop next season jwould bo poorer than this season. The main cause for complaint, they stated, was the discrepancy' existing between the price obtained under free marketing and that under Government control. Growers were now re-' ceiving an average of; 2d a dozen for all grades. After being graded and cured by the Internal Marketing Division, ,tho lemons were sold to the public from about Is 6d to 2s 6d a dozen, so, that about' 900 per'cent had been added on to tlio price from the time of purchase from the grower. Since the retailer was allowed only 33 1-3 per cent profit, the price was being loaded by the manner of distribution by the Government. Question of Fancy Grades In addition, tlio growers were being (given., practically no allowance for fancy and extra fancy grades, which were beirig almost completely graded out by tjie Marketing Division. The bulk of the Government's purchases were for good grade lemons, but • plenty of extra fancy and fancy grades •were' still being 6old to the public. Growers asked whether the Government was buying lemons as good and belling them as fancy. Another" gross irregularity, stated the growers, had occurred in the Government's allowance for shrinkage. Under free marketing growers never experienced more than about 17J per cent loss' in distribution. When' 8 the Government'took over control 17} per cent was fixed as a reasonable percentage for shrinkage, but now growers .were beiog asked to accept 3-t per cent. They stated that the increased losses were due entirely to faulty curing by the Internal Marketing Division and,.that it was quite unfair tG expect the" growers to pay for losses for Which' they wero in no way responsible."''' ■ ' .' • ;■ By-Product Prices' ' Yet another'point of dissatisfaction to the growers, it was stated, arose from the discrepancy between the price th<*y were receiving from thOs Government for. by-products and tho price the Government 'was being paid at the factory. Whereas the grower was getting a, lb. for peel and juice, the Government was selling at ljjd. Sintfe the Government had contracted to supply factories with 400 tons of peel and juice lemons this season, it would be making a profit of about £I6OO. which the growers contended should properly be theirs, especially since under the control, scheme they had been forced to relinquish contracts with the factories. Finally, the growers complained that the law ,of supply and demand no longer operated in their favour but benefited the Internal Marketing Division. 'Under free marketing the growers could rely upon short crops to make up for losses suffered when there -Was an excess of supplies, but now the division paid a flat' rate all the year round, taking to itself the extra profit when supplies were scarce. In addition, _ said the growers, the Government was not keeping faith with l the public. It had promised cheap lemons, but lemons were just as dear as they sver were.