THE FRUIT TRADE.

Otago Daily Times, Issue 19981, 24 December 1926, Page 9

THE FRUIT TRADE.

ECONOMIC COMMITTEE’S REPORT.

IMPORTERS’ CRITICISM.

MEMORANDUM TO PRIME MINISTERS.

(From Oub Own Correspondent.)

LONDON, November 3

The National Federation of Fruit and Potato Traders’ Association has been considering the third report of the Imperial Economic Committee. It has found that some of the recommendations '‘are either impracticable, or indesirable, in the national interest.” Having arrivecj at this conclusion the federation has addressed a memorandum to the Prime Ministers assembled for the Imperial Conference and to the Secretaries of State.

“We protest against the assumption throughtout, the report,” it says, “that fru't imports from foreign countries are undesirable.” In 1924- the total fruit imports were of the value of £48,300,000. and of tills, fruit to the vaiue of £3,500,000 was re-exported, “Surely it is a great tribute to the enterprise of its traders that this country can secure to the shipping and carrying trades this large percentage of a crime article of food much of which is highly perishable. For not only is fruit brought into the ports and stored, but part is re-shipped, principally in British bottoms, to foreign ports, notably from Hull.” The federation points out that the large increase in Empire trade has been built up by private enterpr'se, and by the very men that the report criticises unjustly. The business of the importation of fruit has been built up by strenuous work on the part of British merchants, brokers, and private salesmen, and at very great expense. UNFORESEEN RISKS. “Great Britain produces, unfortunately, only a small percentage of dessert apples, and with the great increase in consumption, and the variableness of the English crop, it would oe very detrimental to the health of the nation if ample supplies of fruit wore not available to the masses at reasonable cost. As we have already pointed out, a not unimportant portion of the business is a re-export one; if certain varieties of apples which are produced m the U.S.A. (but not in Canada) were not obtainable here, our customers would secure thorn direct. In recent years a large proportion of the imports from the U.b.A. have consisted of varieties that are either not grown, or grown only in very small quantities, in Canada. Even Canada herself imports apples from the United states of America.” It is further pointed out that even when all risks of deterioration in transit have been eliminated, there are still factors, which cannot be foreseen, to be taken into account, such as climatic conditions during period of growth, climatic conditions on arrival in this country, industrial troubles, reduction of spending power, food scares, and bad debts amongst producers and shippers. “A few only of these risks can be covered by insurance. We would point out that in recent years deterioration insurance on fruit in transit in cold storage steamers was obtainable only at prohibitive rates in consequence of heavy claims, With reference to paragraph 80 (page 31) we, consider the fruit trade should not have to rely upon insurance to make it profitable; it should be sufficient if ordinary sea perils and machinery breakdowns are covered by insurance. j ANALYSIS OF CHARGES, j “The above troubles, as a careful consideration will prove, have a serious effect on the cost of marketing. It has been found in practice that most of the shippers and producers overseas require financing. For example, all freights on Australian and New Zealand apples have to be prepaid, which means that large credits have to be arranged by the trade in this country Boxes and packing costs, also inland freights and charges, have to be covered, and an advance made on account of the fruit, oven to co-operative producers’ organisations. In analysing charges, the committee does not appear to have made any allowance for the risks already mentioned, which are in addition to the ordinary trade risks. i “It has apparently been overlooked that a highly trained staff has to be retained by brokers and private salesmen all the year round, because at certain periods of the year there is a total cessation of certain fruits from one country or another, and other sources of supply have to be found. This means additional risks, more correspondents, and more repreentatives in other fields, with consequent costs, in order to provide constant supplies. W© would urge upon the Governments concerned the necessity for avoiding any action which would handicap legitimate enterprise, or discourage sound and reliable business men from using their best endeavours to extend the production, distribution and consumption of fresh fruit and vegetables." APPLES FROM THE UNITED STATES. The subject of apples from the United States is next considered. “This business,” the Federation points out, “has taken half a century to build up, and we do not for a moment agree with the statement made by the committee that the U.S.A. merely sends to this country her ‘surplus’ or ‘overspill.’ The American market has so grown in recent years tnat the importers in this country have to compete with the home and other export demand in the U.S.A to secure supplies of the apples that consumers demand here The U.S.A. apples are wanted in this country for Home consumijption and the re-export trade, and British traders have to compete with merchants from the Continent, South America, and the Far East. If and when the dominions can send to this country, at the corresponding period, a sufficient quantity of similar apples, they may take the place of imports from the U.S.A. There are certain apples in great demand in this country which the U.S.A. sends, particularly Newtowns, York Imperials, and Albemarle Pippins, which come from the dominions only in negligible quantities. If the supplies from the U.S.A. are stopped before a corresponding quantity is available from the dominions, an increased cost to the consumer would inevitably result. On the other hand, if supplies are more than requirements, prices will fall, as it is obvious that the fruit trade is goverened by the law of supply and demand. “Copies of the report have been sent abroad. The absence of a full explanation of many of the statements will give shippers a bad impression of firms who have helped to build up the business, and fostered it for years, and who. it is submitted, have always conducted their business honourably. We strongly resept the assumption that the trade does not desire to see an increase in Empire production. We fully recognise the standpoint of the Empire producer, but this federation is also compelled to consider the subject from the broad aspect of providing the nation with regular and plentiful supplies of fresh fruit and vegetables. REDUCTION OF EMPLOYMENT “We think there should have been some representatives on the committee which is directly connected with the distribution of fruit in this country, and which is, therefore, in continual contact with both pioducers and consumers. “In conclusion, wo desire to-emphasise that any reduction of imports will result in less cargo being available for British shies (all fruit supplies from Canada, Australia New Zealand, and South Africa and at least 90 per cent from the U.S.A. are carried in ships flying the British flags, and approximately 75 per cent, of those are British companies) apd less traffic for the railway companies and auxiliary services, thus causing a considerable diminution in the demand for labour at the docks, markets, and retail establishments, etc., with a consequent increase in the number of unemployed. It will also affect the health of the masses by increasing the cost, and so eliminating fruit from their diet.”