THE FRUIT-GROWING INDUSTRY.

Otago Daily Times, Issue 21430, 3 September 1931, Page 8

THE FRUIT-GROWING INDUSTRY.

At a time when the prices of the products of the Dominion are generally depressed, it is comforting to reflect that at least one department of the export trade of the Dominion has more than held its own during the past year. It may seem, on the face of it, remarkable that the fruit export industry should be immune from the economic malaise that appears to have stricken practically every other branch of primary production in the Dominion. There can be no question, however, concerning the exceptional position of the industry. Fruitgrowing was productive last year of results which provided growers with a reasonable return on the capital invested in it, and this year the results of the industry have been even more favourable. Not only have export shipments been increased but the average returns secured show a marked improvement on those of the previous season. In bis presidential address to the conference of the New Zealand Fruitgrowers Federation yesterday, Mr T. C. Brash admitted that it was difficult to understand the comparative prosperity of the fruit-growing industry when so many adverse conditions had to be encountered, but his suggestion that the absence o£ violent fluctuations from the overseas fruit markets supplied a partial explanation of the position is probably not very wide of the mark. The stability of 'these markets, the gradual expansion of them, and the Federation’s thorough supervision of shipment and distribution are factors that in combination have led to the exportation of fruit being attended by encouraging results. While the industry is establishing itself satisfactorily, it still has some long distance to go before it will be on a competitive footing. The fact, however, that the growers seem now to be not unwilling that the Government guarantee should be reduced and gradually withdrawn suggests that the development of the industry has been free from that waste which too often f attends the artificial stimulation of any form of activity. It is proposed by the Government that its guarantee should be reduced over a period of four years until in the fifth the growers themselves will bear the whole risk of transport and market losses. It is expected that at the end of four years the State guarantee will be used only for the financing of exports, the Government being indemnified against all claims in respect of such finance from a reserve fund which it is intended to build up by means of a levy of lid per case on all fruit exported. Last year, as a result of particularly heavy transport losses in respect of one vessel conveying fruit to the European markets, the Government was called upon to pay a sum of £5969 under the terms of its guarantee, but for the three preceding years the average payments were approximately £3OO, the total falling as low as £174 in 1929. It is probable, therefore, that the withdrawal of the guarantee will not result in any great saving to the Government, but inasmuch as it will mark the attainment of self-supporting status by the fruit export industry it will be of the greatest importance. When the export trade has been firmly established, growers will be able to turn their attention to the local markets in respect of which the possibilities of development are considerable. Fruit is still so high in price as to be regarded by many housekeepers as a luxury instead of, as it should be, one of the necessaries of life.