FRUIT MARKETING

Otago Daily Times, Issue 23954, 1 November 1939, Page 8

FRUIT MARKETING

POSSIBLE DIFFICULTIES NO EXPORTS TO EUROPE OFFER BY GOVERNMENT MINISTER SURVEYS SITUATION I (Per United Press Association; WELLINGTON. Oct. SiUnder the war situation New Zealand was faced with the possibility of having no European market for the export of apples and pears, and the United Kingdom Government had notified the Dominion that it did not desire to buy any fruit, said the Minister ol Finance and Marketing (Mr W. Nash) when discussing the negotiations lor the sale of the fruit crop, in,a national radio broadcast this evening. The estimated production of apples and pears in the current season was 3.403.000 cases, the Minister said. Last year up to 1,500,000 cases had been sold overseas, including about 600,000 cases in the United Kingdom and some in Europe, the Far East and South America. This market was now in a very dangerous and delicate position and the Dominion might not be able to send any away. On the local market the quantity sold was about 1.250.000 cases. Fruitgrowers had built up the industry which iproduced up to 3.500.000 cases, and there was no certainty of a market for some 1.250.000 to 1,500,000 cases. Mr Nash said that, because of the ’ war situation, all shipping and storage space must be used to the full in taking food requirements to the United Kingdom, and the United Kingdom Government had said that it must give preference to butter, cheese and meat and other primary products. It had not been possible to make any arrangements for space for fruit. The Government had been in touch with the shipping companies, the United Kingdom Government and other Governments, but the Dominion might not be able to send any fruit •away, or only a much smaller quantity than it usually sent. Negotiations With Industry The negotiations which have taken place between the Government and the fruit industry over the last year or two were outlined by the Minister. The Government desired to extend to those working in the primary industries the system of guaranteed prices, under which for goods produced for marketing it would pay the producer , a price that would give him a reasonable return for his work and cover his costs. “Last year I told the Fruit Export Control Board and the Fruitgrowers’ Federation that the methods used in the past to give assistance to the fruit industry on the local market could not be continued,” Mr Nash said. “ I said that the Government would be prepared to extend the guaranteed price system if requested to by the board and the federation. They asked . that the Government undertake the responsibility for marketing both export and local apples and pears.” The Minister said that a committee under the chairmanship ol Mr W. Lee Martin, the *then Acting Minister of Marketing, and including representa- . lives of the industry and others, had taken evidence from representatives of ■ all those concerned in .the industry. One thing was Clear, and that was that there was no unanimity on marketing policy in Industry. In Nelson and Hawke’s Bay there was a large majority in favour of the Government taking over the marketing of fruit. In other parts of the Dominion that was not the case, despite the recommendation by the Export Control Board and the Fruitgrowers’ Federation. If the industry was not substantially in favour of the Government assisting in this way, the Government would have to consider whether it would - accept the responsibilit y of marke ting all the apples and pears, Mr Nash continued. That was the position before the war situation developed, and that situation put a totally different complexion on it now. There would be more fruit than could normally be marketed locally at anything like a price that would cover costs. Minister’s Suggestion 1 He had had several discussions with the board and federation, Mr Nash said, and he had suggested that the whole of the marketing procedure for apples and pears should be delegated by the Government to the board. The board would be responsible for marketing all the fruit during the coming season, and the Government would enter into a contract to purchase 1.000,000 cases at 6s 9d a case, f.o.b, ship. The Government would take the risk of getting them awav from the Dominion, and, L they were not exported. it would have to find something to do with them. If the Government could not find space on ships, the Minister said, it would do all it could to avoid the quantity bought going on the local market and so destroying the market for the balance. The Government might make some arrangement to distribute fruit among the schools or find other ways in which the fruit could easily be used without affecting the local marketing. The Government, however, would not agree to waste the fruit, and he had made it clear that it was unlikely that the Government at any time would agree to destroy the fruit. The Government would undertake to try and get space lor some fruit and buy every case it could find space for to send overseas at 6s 9d. f.o.b„ The board would thus have from £340.000 to £350.000 to start off with That day. Mr Nash said, he had had a long discussion with representatives of the industry, and they had said the Government’s offer was not acceptable They asked the Government to take over the whole of the fruit crop at a guaranteed price, based on the costs ol production. The fruit industry he said, should think what it would mean if there were no co-operation by the Government. The industry might reasonably ask the Government if it was willing to co-operate, and the Government was. Lack of Unanimity Mr Nash outlined the representations made from various fruitgrowing localities. Otago wanted a Government guarantee to take all the fruit for export at 6s 9d a case at the assembly point, and leave the Otago people to market the rest. Canterbury suggested that the Government should buy 1,500,000 cases at 7s 6d a case. That was more than had been paid. Mr Nash said he had told a deputation that the Government could not dp that. Wellington wanted a local market for itself, and the Government to buy 1,500,C00 cases at 6s 6d a case at the assembly point. A tick - land and North Auckland had made a similar request. “The representatives left after a happy and lengthy discussion to examine the position, and I hope it will be possible to come to some arrangement that will give a reasonable return to the grower and avoid waste.” Mr Nash said. “The problem is that we will have from 3,250,000 to 3,500,000 cases with a market for 2,500,000 at the outside. The producer is entitled to payment for his work and fruit is splendid food, so the Government will endeavour to help the industry. lam hoping that the representatives ol the Industry will be able to think the problem out and that we will be able to come to a reasonable arrangement and something that the fruitgrower will consider reasonable under the circumstances.”