HIGHER COSTS

Otago Daily Times, Issue 25306, 17 August 1943, Page 2

HIGHER COSTS

THE FRUIT INDUSTRY CASE FOR INCREASED PRICES The annual Dominion conference of the New Zealand Fruitgrowers’ Federation has just ended. Delegates were present from all the fruitgrowing areas I of New Zealand. I The subject of outstanding lmportI ance to which the conference gave I most of its time, was the peption which i has arisen in the apple and pear grow- | ing industry, said the president, Mr T. ; c Brash. Prior to the outbreak of I war an annual export of 1,250,000 cases had been built up and was tending to j increase. These were returning remunerative prices. . ' On the outbreak of war the orchardi ists were advised that they must forgo their share of refrigerated space on ocean-going steamers by reason of empire war demands. Faced as they were with ruin, the growers appealed to the Government for protection. They iustjfiablv expected that, in view or the fact tha+ all other exporting industries were allowed to continue their export, the position of fruitgrowers I would have every consideration. Original Price Low ; After prolonged negotiations, th« Govi ernment agreed to pay 5s per case lor standardised fruit. It was never claimed bv the Government nor admitted py growers that this price was related to the cost of production. In 1939 a price of 5s represented 2s 6d per case to toe ! growers for the production of fruit, the | other 2s 6d being spent on cases, packing materials and grading -and Packing costs. The following year an advance of 5a per case for current increased costs was given, again without any relation to actual pro- ! duction costs. Finally, for the 1943 harvesting period a subsidy was paid bringing the price to an average of _6s per. case, and packing charges have risen in toe meantime to 3s, leaving 3s per'case fo - producing the fruit. During the whole of this period the costs of production were steadily advancing and the actual average cost of producing packing the fruit is to-day not less than 6s 7£d P lt should be mentioned that in the first year of its purchase the Government was able to export approximately 6 00,0 M cases, which realised good prices, enabling it to make a small profit on its marketing of the complete apple and P ear for that season. That was the end of exnort as far as ordinary marketing is concerned. The following year the:Gov- ! ernment lost approximately £420,000 on its apple and pear marketing. For the 1942 season the loss was approximately £130,000. Figures of the 1943 operation ' are not yet available. \ „ i The result of these years of growing ; apples and pears below the actual cost L of production has been disastrous, both nationally and for the general run of • growers. Since 1939 some 200,000 fruit i trees have been destroyed, and toe . orchards which remain are showing dis- ■ tinct signs of neglect. Growers are be coming disheartened, and many have left their orchards in despair. i increased Market Demand ! To-day the position on the market has ; entirely changed. In 194 0. 1941. and 194 there was a surplus of these fruits on the market, but the demand has grown so substantially that already apples and i pears are being rationed on J to toe . market. The position will be infinitely i worse during 1944, and unless a change [ takes Place providing the payment r of the- actual average production costs. ; the industry, except for a favoured few, I The conference placed on record its [ extreme disappointment that its reques ■ for the average cost of production has I been ignored. It submits that the apple t and pear industry is now lit a position . to claim that every case that can be produced is needed. It has again submitted its claim for an average price l of 6s 7Jd as being the cost of produc- ! waited on the Minister of Marketing, Mr J. G. Barclay, and ' members of the Stabilisation Commission : and submitted this claim. Further, the '■ industry offered and has again renewed • the offer to submit its figures of cost t to the Price Tribunal and Rnrfinff Urgency is claimed tor an eauy i settlement, as expenditure on the production rf the 1944 crop began in June and S until the price is settled growers are • entirely in the dark as to the position. ; vvnn if granted, 6s 7id per case, the net return for growing fruit after taking t case and packing charges into account. , ic nnlv 3= 7Sd per bushel, or approxi mately a penny per pound. Th e Increase which growers are asking Is 7jd per cas equal to one-fifth of a penny per pound.