SALE OF ORANGES

New Zealand Herald, Volume LXXVI, Issue 23490, 30 October 1939, Page 11

SALE OF ORANGES

THE PROFIT MARGIN OPINIONS OF RETAILERS NO GREAT EFFECT LIKELY The margin of profit on oranges sold 111 Auckland was less than the maximum fixed by the Government, said a loading retailer 011 Saturday, commenting 011 the maximum profit margin of 40 per cent 011 the wholesale price of citrus fruits announced by the Minister of Marketing, tho Hon. W. Nash. "If the price was a minimum, as well as a maximum," lie said, "it would be much better for fruit retailers, as it would eliminato price-cutting by firms which are at present selling oranges at unreasonable rates in order to attract customers to their shops." Tho control of prices, in his opinion, was aimed more particularly at the retailing of lemons, which, he said, held a peculiar position in the fruit trade. When lemons were scarce and dear, the gross profits of the retailor were less than 'lO per cent above the wholesale price. When they were plentiful, however, they did not command a great sale, as most people had their own supplies. In general, only two or three lemons were bought at a time, and, when they were of good quality, they were worth the price charged, even if it was slightly above tho margin allowed by tho Government. Another factor to bo considered was that the whole period had to bo taken into account by tho retailer. The retailer had to make up for losses 011 certain lines and at bad periods of the year, and, most people were quite willing to pay the price asked for lemons when they were plentiful.

The new regulations, lie concluded, would not have much effect on the retailor. Oranges, which were the principal citrus fruit sold, would still bo available at the same prices, although, instead of being sold by the shiling's worth, as at present, the price would bo per dozen.

HAWKE'S BAY STAND

government control TAKE OVER MARKETING MINIMUM LOCAL GUARANTEE [by telegraph—owx correspondent] HASTINGS. Sunday The inadequacy of the Government's offer to purchase 1,000,000 cases of export quality fruit at 6s 6d a case, f.0.b., was emphasised at a meeting of llawke's Bay fruitgrowers. It was held such a price would not give the growers a sufficient return. It was decided to urge the Government to take over the marketing of apples and pears as promised by the Minister earlier in the year, and also to urge the necessity of making payment at the inspection point covering the actual cost of production of all fruit. The meeting also supported the principle of a special board with a preponderance of industry representatives to decide general policy. A further resolution was passed asking for a minimum local market guarantee.