THE STONE FRUIT GROWING INDUSTRY OF OTAGO.

Otago Daily Times, Issue 18856, 8 May 1923, Page 4

THE STONE FRUIT GROWING INDUSTRY OF OTAGO.

TO THE EDITOB. ' Sin,—- If the correspondence ' appearing in your issues relative to ri| tho fruitgrowing industry of Otago is going to be productive of practical ?esulta leading to an improved system of distribution, it is well that the matter should be approached from all points of view. Admittedly, the present system of marketing is defective and, as far as tho grower is concerned, insufficiently remunerative. Whereas market prices receded to an alarming exent during the- current season, all incidental charges in connection therewith remained fixed There is a tendency amongst growers to suspect the existence of a “ring” amongst retail fruiterers while the system of "tied shops” is freely hinted at. ‘ While such may be, it is an impossibility to acquire positive proof of it, and on the part of the “trade” such charges are strongly repudiated.. The co-operative institution was brought into being many years ago as a genuine attempt, on the part of the producers, to remove a great number of the then, as now. existing disabilities, but as no co-operative fruit concern can prove, satisfactory unless it includes practically all the growers,' its lack of success was a foregone conclusion as scon as a largo defection of its members took place. In recording this, lam not unmindful of tho fact that the system of distribution as instituted by the society, has many advantages, and proved of great benefit to tho “free” grower who was quick to recognise and appreciate the position at its true value. There is one aspect c.f the question, however, upon -which growers do not always care to reflect—a very touchy matter by tho way—and one which, in my. opinion is “of primary importance as a prelude to any organisation which may be instituted to place the industry on a commercially profitable i basis. New Zealand has experienced a. record season for the quantity of fruit produced This was due to a great extent to a strongly prevalent idea that quantity pays. This is a very insidious idea, but one which is to a certain extent justified. There is a. limit, however, to tho quantities which factories and local markets can absorb, and a general practice of the idea can only result in “boomerang” results. Large grade, good quality fruit can be produced, as may be evidenced by a visit to any orchard of local repute. Inferior, immature, low grade, and diseased fruit has, however, been conspicuously in evidence and still is, as a visit to any fruit establishment in Dunedin or any other centre can prove. Such stuff is produced and marketed by 'the' fruitgrowers themselves, and so long as they, continue to do so, in defiance of all the accepted principles of fruitgrowing arid against the emphatic recommendation of the Department of Agriculture, which is doing very much to foster the industry, no amount of organisation entailing great expense will be productive of beneficial results. If the producer would only carry out the systematic rejection of all inferior fruit by a thorough process of thinning in its proper season, they would find that many of their difficulties would disappear and that efficient soiling organisation would become practicable—but not until then.

I put forward this aspect of tho situation as it appeals to me, knowing perfectly well that I am touching upon the susceptibilities of a large number of my fellow producers. It is imperative, however, that the standard of production be raised to a higher level. Otherwise the present disorganisation of the industry will continue and be aggravatedProducers must ever remember that the law of supply and demand always operates and must never, in anticipation of higher prices, relax the resolution to oliminatf. interior grades. The situation is critical and a recurring season will be disastrous to the industry. Otago especially cannot view with indifference the extinction of an industry of such importance, involving ns it would financial complications of far-reaching, consequences.— I am, etc.,

R. Glendinning. Teviot Gardens, Tfoxburgh.

Sie,—l am in cordial agreement with many of the points raised by “Grower,” and 1 note that you have deemed the matter of sufficient importance to devote portion of your leading apace to it. The whole crux of the question' undoubtedly Hqs in faulty distribution.. This can only be overcome by a combination of the parties interested. We find, that the growers are in no sense united throughout Otago. Wo have a Co-operativo Fruitgrowers’ Association in Otago, for instance. It is composed of the majority of growers in Teviot and Central Otago districts. It' been, in existence for some five years, and the question is, Have its operations been such as to increase or decrease its membership during that period? Are these members still desirous of continuing their membership and have they boon satisfied with the management under combined effort in preference to playing a. lone hand? The test is, Has the new organisation benefited the growers concerned? I am , given to understand that the prime object of the organisation was to secure to those interested a reasonable return which would sufficiently recompensate them for their labour and maintain their dependents in comfort. It was never intended to be a dividend-paying concern. I take it to he fundamental that the co-operative management should be fully conversant .with the cost of producing and marketing a case of fruit in order to base the selling charges a margin above that In order to accomplish that, the ' manage ment would have to avoid possible gluts and that requires it must have the direction of supplies to markets. This implies that the manager is in active connection with nil the markets in the dominion. Further, it implies that the shareholder must be loyal and obey orders from the manage ment as to the destination of his consignments. I note that Mr Waigth, manager of the Co-operative Association, concurs with “Grower” as to the abnormal crops of all fruits throughout the dominion. Right here I Imagine is the explanation which “Grower” seeks. Possibly the management has been misinformed as to the conditions of'other markets. On the other hand, the growers may not have kept faith with the management, and may have directed their fruit as they fancied. As I am in daily connection with growers, I have conversed with many on various phases of the industry, and have particularly hod my < attention pointed to the returns secured by growers, and I can only say that they are deserving of every sympathy. What has impressed mo most is the severity of the overhead charges. One grower produced a return of one small consignment sold at Is 6d per case. The gross return was 25s 9d, and the freight, commission, etc., amounted to 13s—over 50 per cent, in expenses. I have seen scores of cases of magnificent dessert fruit, well graded and beautifully packed, despatched' from here, and the growers have definitely assured mo that their gross returns varied from Is fid to 2s fid per case. Now, this is a serious matter. Growers cannot discharge their Obligations to tradesmen under these conditions. I have seen two returns from different agents in Invercargill on corresponding days, one netting from Is Id to Is 7d, and the other 2s 6d to 4s fid. This speaks for itself, and one lias only to visit some of the auction rooms of our province, and he will come • away with food for thought, basing, cartage, and railway freight alone cost the grower Is 9d before he gets anything for his labour. I cannot see any valid reason why an auctioneer should accept a bid of Is fid for marketable fruit when it means a dead loss to all concerned. To my mind the auctioneers are the greatest sinners.

I have it on the best authority that the retailers—perhaps not all—have a definite programme for the restriction of bidding. I should say that, in the interests of commercial morality, it would be a wise move to identify them and boycott them until they adopted other methods of trade. We legislate- against ' sweated industries, but here are our primary producers, the backbone of our country, being systematically forced from their holdings. I have been told that growers in some <Bisea have already adopted other moans of livelihood..-—I am, etc., ICoN-GEOWEE. Roxburgh, May 7.