FRUIT CROP

Otago Daily Times, Issue 23952, 30 October 1939, Page 8

FRUIT CROP

PROBLEM OF MARKETING GROWERS DISSATISFIED OBJECTIONS TO GOVERNMENT’S PROPOSALS The proposals of the Minister of Marketing (Mr W„ Nash) for the handling of the coming season’s crop of apples and pears found small favour in the eyes of a meeting of Central Otago fruitgrowers at Roxburgh on Saturday afternoon. The Minister’s suggestion that the Government should purchase 1,009,000 cases for export, out of a total estimated crop of 3,000,000 cases, at the price of 6s 9d per case, f.0.b., and leave the remainder to be absorbed on the local market without any guaranteed price, was roundly criticised as unreasonable and uneconomic, and a resolution rejecting the offer was carried unanimously. Counter-proposals providing for the marketing by growers themselves of the surplus of 2,000,000 cases and the withdrawal of all inferior grades from the market were embodied in a second resolution, which also met with unanimous support. Offer Rejected The first resolution was as follows; — That this representative meeting of Otago pip fruitgrowers, while realising the urgent need of the industry of Government assistance, regrets that it cannot accept the offer recently made by Mr Nash on behalf of the Government for the partial purchase of the 1940 pip fruit crop, with control of local market sales, without any guarantee of the return to growers. The counter-proposals were included in the following resolution:— That the growers be permitted to market their own fruit for the local markets, and that the Government be asked through the Department of Agriculture to allow only extra fancy, fancy, and commercial A grades to be marketed, so as to relieve the markets during the war period, the Government to take over 1,000,000 cases for export at 6s 9d at the' assembly points, with the right of marketing any surplus not exported or handled through the schools.

Mr F. G. Duncan, a member of the Fruit Control Board, was elected to the chair, and explained that the meeting had been called at the urgent request of the Control Board and the Fruitgrowers’ Federation for the purpose of getting an expression of opinion from growers on the Minister’s proposals for the marketing of the crop for the coming season. He did not think it was fair to growers to be asked to give what would be almost a snap decision on so important a matter, but it was unavoidable. It was urgent that all growers should have been given an opportunity of discussing the Minister’s offer before Tuesday, and it was hoped that the meeting would give a definite expression of opinion at once.

Mr Duncan outlined the Minister’s proposals, which included an increase in the personnel of the Control Board by the appointment of a representative of each of three organisations—the Fruitgrowers’ Federation, the Department of Agriculture and the Marketing Department—with a special committee of four to keep in constant touch with the operative details of the proposed marketing plan. The Minister also suggested that the Government should take over control of the Control Board’s London organisation. The principal point, however, was the proposal that the Government should take over one million cases of fruit for export at 6s 9d f.0.b., and that the remainder of the crop, estimated at 2,000,000 cases, should be disposed of on the local market by the Marketing Department, without any Government guarantee or subsidy whatever. Government’s Suggestions The figure of 6s 9d, Mr Duncan said, seemed to have been arrived at by taking the present guarantee value of 6s at the assembly point and adding to it the Dominion average for local freights and wharfages, which amounted to approximately 9d. The price suggested seemed to be based on the present export minimum guarantee. Discussing his proposals, the Minister had stated that the Control Board or the growers would be responsible for the safety of the fruit and the storage of it until it was placed on an overseas vessel or otherwise disposed of. He also stated that the Government would use its best endeavours to export the whole of this fruit and secure shipping space for extra quantities, which would also be purchased on similar terms. The prospect, however, of being able to export 1,000,000 cases or even portion of that quantity was most doubtful at present. Therefore, if the Government was unable to export all or portion of the purchased 1,000,000 cases, it would then endeavour to dispose of the unexported portion within the Dominion through channels that would not compete with the ordinary markets—for instance, distributing the fruit to schools, etc. Should there be no export, however, Mr Duncan said, and should these noncommercial distributing channels not be sufficient to absorb the surplus fruit, the Government would reserve the right to place the remainder on the open market, taking, of cipurEe, all due precautions against flooding the market. Presenting this proposal for the industry’s consideration, the Minister said that even under present emergency conditions he would not be averse from taking full control of the apple and pear crop provided he was assured that the industry was wholeheartedly behind him. He had refrained from doing so, however, because Canterbury, Wairarapa.' and Auckland had expressed their opposition to Government control, With such a large portion of the industry against Government control, he felt that the proposition was unworkable.

Decision Urgently Required

Mr Duncan concluded by saying that the decision to be made was of the greatest importance; it meant their bread and butter. What they had to decide was whether they were willing that the Government should take over the fruit industry, market all fruit as best it could, and hand the proceeds to the growers without any guarantee or fixed return. Personally, he thought it was impossible for them even to consider handing everything over to the Marketing Department and accepting ruling prices without any reference to costs of production. If they agreed to the Minister’s proposals it would simply mean that the Government would decide everything connected with the industry. The Minister had said that if 800 of the 2000 fruitgrowers in the Dominion refused his offer he would wash his hands of the whole business and let the Fruit Board carry on as it had done before. The position was a very difficult one, and He personally thought that some form of restriction of output would be the best way to cope with the problem of the local market. Either they must persuade the Government to buy up about 1.000,000 cases at. say. 5s in the orchard, and destroy them,, or they would have to reduce the number of orchards in the country bv eliminating all uneconomic units. Either way it would cost the Government money, but it would at least save the industry. Mr R. S. Kinnaird said that the Control Board and the federation had been constantly endeavouring to get the Government to come to grips with the problem of the local market. Previously they had had a guarantee, but it was withdrawn last year. Fortunately, a buoyant market made its absence felt less seriously than might have been expected, but they were now faced with the prospect of about

2,500,000 cases being put on the local market. The position would be untenable, and they must devise some means of facing it. The Minister had decided upon a plan, and now wanted the views of growers. Whatever the meeting decided, he asked them to remember that some sort of guarantee such as that offered by the Minister was necessary as a security for the federation’s overdraft at the bank, and he reminded them tha" if the prospect of a State guarantee disappeared the federation would immediately be placed in the position of having to liquidate a very substantial overdraft. In answer to a question, Mr Kinnaird said that the Minister’s offer did not actually provide for a guarantee of 6s 9d as all receipts from export or from the local market would be pooled, and after distribution might be very much lower than the figure mentioned. For instance, if the local market collapsed under pressure of a glut the average per ca‘se would be very much below 6s 9d. Objections to Offer Mr D. J. Taylor emphasised the fact that the Minister expected the Control Board or the grower to take full responsibility for export fruit until it was shipped. If, as was very likely, the Government could not get s * u PP ll ?g space the fruit might have to be held for months. In that case, cool storage and other charges would all have to be borne by the grower, and when they were paid the actual price received would be nowhere near 6s 9d. Moreover. the Government would be concerned entirely with the disposal of its own million cases. If there was no export, all that fruit would come back on to the local market and make things worse than ever. They should ask the Government to give an undertaking that whatever hanpened to the million cases of export fruit, they would not be allowed to affect the local market. Mr Duncan said shipping would be a great problem, and he understood that it had already been announced that no space would be available for Australian fruit. Counter-Proposals Mr C. Hainsworth said that the Government’s offer amounted to an undertaking to take over 3,000,000 cases at 2s‘ a case, plus any realisations that might be made on the local market for the surplus 2,000,000 cases. They could hardly expect the local market to add more than 25., so that they could look forward to a guarantee of about 4s a case, which, as they all knew, was unfair, unreasonable and uneconomic. All thev could do was to refuse the Minister’s offer and push their counter-pro-posals as hard as they could. He suggested that the Government should be asked to take over two-thirds of the total crop at 6s 9d a case and market the fruit to the best advantage on the Iqcal market. This two-thirds could then be increased by the amount of export, if any. . . Mr Hainsworth, at the request of the chair, moved this as a motion. Mr J. H. Waigth said the problem was a difficult one. but it was all political and therefore almost Impossible to deal with. It was just another example of the Government’s determination to socialise production. The position would be relieved if the Government would take over its million cases and leave growers to cope with the other two million in their own way. He was convinced that .the growers could market their fruit more efficiently. and that they should be left to demonstrate it. Mr G. Taylor said that growers had no option but to refuse the Minister’s proposals flatly. He had no faith in the Marketing Board, and would rather scrap his orchard than be left to the tender mercies of the department. At this stage Mr Waight moved the resolution rejecting the Minister’s proposals, which was carried, and Mr Hainsworth’s motion was out before the meeting. An amendment “ that the meeting should ask the- Government to take full control of the whole of the pip fruit crop at a price above the cost of production.” lapsed, for .want of a--seconder. 'b. -;v ; Local Marketing. Mr Hinton said that sacrifices were being demanded of everyone these days, and as far es he could see their only course was to sacrifice all. the lower grades of fruit and withhold them from the market. By that means they could save the local market, and they, would be helping themselves instead of asking the Government to do it. They did not need the Government, and they should do everything possible to keep the Government out of their business. It had no money to pay them anyhow, so why should they waste time asking for it. Mr Hinton then moved as an amendment to Mr Hainsworth’s motion, that growers be allowed to market their own fruit on the local market and be nermitted to confine sales to only three grades in order to build the market up and that the Government be asked to take over the 1,000,000 cases for export as suggested by Mr Nash. The amendment was carried unariimously. AN INADEQUATE PRICE MEETINGS IN AUCKLAND DISTRICT fPER United Press Association; AUCKLAND, Oct. 29. The Government’s proposal .to purchase 1,000,000 cases of fruit for export in the coming season at 6s 9d, f.0.b., was discussed at meetings of fruitgrowers on Saturday night. The price offered was criticised as insufficient to meet the costs of production, and resolutions were passed suggesting that it should be on a more satisfactory basis. Recommendations that the Government should purchase 1,500,000 cases of fruit for export and that the price agreed upon should not be less than 6s 6d per standard bushel case were passed by a meeting representing the growers of the Henderson and Gratia districts. This figure is equivalent to approximately 7s Bd, f.o.b. OPINION IN HAWKE’S BAY MARKETING OF PIP FRUIT (Per United Press Association; HASTINGS, Oct. 29. Dissatisfaction with the offer made by the Government for the purchase of 1,000,000 cases of fruit at 6s 9d, f.0.b., was expressed at a mass meeting of Hawke’s Bay orchardists at Hastings last night. Support was given to the Nelson growers in urging that pip fruits be marketed by the Government and the Fruit Advisory Committee. The general tone of the meeting revealed a high degree of unity among the growers, there being only one dissentient. to the following resolution:“That this combined meeting of Hawke’s Bay fruitgrowers urges the Government in co-operation with the Fruit Advisory Committee to take over the marketing of apples and pears as promised by the Minister of Marketing earlier in the year, and that having' given careful and anxious consideration to the question of the assistance to be given to pip fruitgrowers for the coming season it stresses the necessity for making payment at the inspection points covering the actual cost of production of all fruit.” An amendment was added urging that the present Fruit Board be increased in personnel by two representatives of the Fruitgrowers’ Federation, two from the Internal Marketing Department and one from the Department of Agriculture, making a total of 11 members.