THE FRUIT INDUSTRY

Otago Witness, Issue 3352, 12 June 1918, Page 6

THE FRUIT INDUSTRY

WORKING OF THE CO-OPERATIVE SYSTEM. REPORT BY THE MANAGER. An extremely interesting report on the working of the co-operat.vo society -that has been established in connection with fruitgrowing in Ot#go was read by the manager (Mr E. O. .Reilly) at tho annual meeting of shareholders at Alexandra on Thursday. The report not only covered the operations of the society since its inception some little time ago, but also discussed in an instructive manner a number of questions relating to the fruit industry generally.. It reads as follows :*—" For some months past I had tho advantage of consulting an executive local committee, from whom I received most valuable advice and assistance. I am quite convinced, if the association is to succeed and extend its operations, it is essential that there should be an executivo committee appointed, to whom I can refer and discuss with the many urgent matters which require immediate consideration. Therefore I would strongly advise the directors favourably and seriously to consider the advisability of appointing two of their members to act in that capacity. I fully recognise that during tho busy season shareholders have had an anxious time, principally due to the fact that they did not receive advice as to the l-uling prices of fruit sold, and also to tho unfortunate and serious delay in receiving their remittances. Tho management, while admitting many faults, cannot accept any responsibility for tho delay in forwarding account sales and remittances Tho averaging and pooling system adopted by yourselves, and given effect to by your directors, was the cause of all the trouble. This system _ is not only unworkable and costly, but it is acting as a premium to the unscrupulous packer at the cost of the grower who exercises all care in tho marketing of his fruit. A_ pooling system, to give satisfaction and do justice to all, will have to be on entirely different lines; a' system which will compel the careless grower and packer to improve his methods, and give each grower the benefit of all markets. To do this it is absolutely necessary that the distribution of the friut should be under the control of the Dunedin management, as, without this controlling power, it is not possible to do justice to our consignors. In passing, I am pleased to be able to report that during the past season there was never an absolute glut of sound fruit at any centre under our control. To avoid this in future we must seriously consider the establishment of cen-trally-situated packing sheds, with proper accommodation for classifying and grading each district's output, and the pulping of all surplus fruits to enable us to tido

over any period of gluts which are likely to take place in iho flush of the season. Personally, I om concerned about the distribution of fresh fruits. We want the public to recognise that when the fruit is available this is their opportunity to secure the fruits for preserving purposes, thus providing an abundance of really choice fruit for the table at all times. I recognise that the fruiterer has a legitimate occupation but I also recognise that he docs not give the wide system of distribution that we are aiming at. Therefore, I contend that we want to initiate a system of booking by post, and in doinrr so we must bo prepared to supply our customers and the consuming public with fruits as they are represented, and base our prices as low as possible to enable us successfully to develop this trade. To enablo U 3 to do this, I think we should adopt a standard size case. All cases used by our shareholders should be of uniform size, either cases, half cases, or bushel cases; each case holding approximately lClb, 201 b, or 401 b; the Fruit being eold at per case. If the fruit is honestly packed there will be a very slight variation in regard to weights. This means overcoming the expensive and tedious method of ncighmg and checking weights, and thus reducing labour and the cost of production. At the present time we have no prospect of shipping outside of New Zealand, and it therefore behoves us to see that we get as wide a distribution as possible for the fruit we are now producing. It has been proved conclusively that we can send gtone fruits as far north as Napier provided the fruit is packed for the journey in small and wellventilated cases. It must be most gratifying to sharehoders to know that the volume 01 business done by the association outside our shareholders has exceeded my most sanguine expectations, which, 1 claim, clearly proves that wo retain the confidence of the outside public and the business community, our turnover for the .Lrst six months of our existence reaching the respectable sum of £46,521 lis Id. At the present time throughout the whole of Otago Central wo have a portion of our population partly, if not wholly dependent on the fruit industry for their livelihood. When it is considered that in Otago Central we have some 4130 acres devoted to the culture of stone and pip fruits; some 2230 acres of mixed fruits coming into bearing, and some 880 acres of apples, 70 acres of pears, 400 acres of apricots. 300 acres of peaches, 120 acres of nectarines, 75 acres of plums, 50 acres of cherries, and five acres of quinces actually in bearing, you can understand the labour entailed in the cultivation and marketing of the fruit from this substantial acreage. Most orchard ists cultivate all varieties of fruit, and with the best results. In some of the districts semi-tropical fruits have been grown successfully, while it is generally admitted that tomatoes grown in the Otago Central districts are, in many instances, equal in flavour to the hothouse tomatoes grown in other districts. With such a district to support our association, the association should, by carrying out a progressive policy on sound business lines, prove of assistance to our fruitgrowers and the consuming public. Therefore it is imperative that we should have the best system of distribution possible. Though our system of distribution last season was certainly an improvement on that hithrrto in vogue, we look forward for further improvements, and with this end in view, we must, in mv opinion, have at least two or three packing sheds in the fruit-growing districts under capable management, so that the general public desirous of procuring fruits from Otago Central either in quarter-cases, half-cases, or case lots can, by applying to the head office have their requirements sent forward from the packing sheds direct. This will enable the consumer to receive his fruit by the quickest possible route, and with less possibility of it being damaged in transit!

"Perhaps it is promaturo to speak of the exportation of fruits until the conclusion of the war; but it is just as well that we should keep the prospects of the export trade steadily before us. There is no doubt that England offers a market for most of our choice dessert apples. Tasmania has, for many years, skipped largely to the English markets, and with varying success. I think that tho shipping companies recognise the prospects of the industry, and the need to supply space to carry our fruit to tho world market, and they will provide us with suitable steamers for this purpose. As we import large quantities of apples from Canada and America during October, Novsmber, and December, I think that we should foster a spirit of reciprocity between our respective countries. Apples arrive from Canada and America in the very best of condition, landing in New Zealand at a time when the consuming public are eajrer to purchase fresh-grown fruit. Therefore I think that this trade should be encouraged, and you will find our Canadian and American friends will be quite willing to reciprocate, and find us a suitable market for our choice dessert apples shipped in April, May, and June. This fruit should reach the American and Canadian markets in the very best of condition, and realise good values, and prove much more satisfactory for our growers than holding the apples in the cool store until November or December, when, owing to the delay in marketing, the fruits, are not as suitable for our customers as the American and Canadian' fruits marketed six .or eight weeks after picking from the trees. Therefore I think reciprocity between our respective countries would be in tho interests of the general public. " Our' neighbouring province (Canterbury) has two large cool stores, tho whole of tho available space bcin<r already secured by growers or speculators. If our shareholders are to receive the full benefits of co-opera-tion wo must bo in a position to provide similar accommodation. With a proper system of grading, classing, and marketing our fruit, a system of distribution under the control of the Dunedin management, machinery suitable for pulping all our surplus fruits above our market requirements, accommodation for eobl storing our pip fruits to relieve the market from time to time, I am perfectly satisfied that there is every prospect of a successful future for the association. There is ample scope for extension, and tho association should in a very few years become one of the most important collecting and distributing agencies in this province. Tho proper regulation and distribution of fruit at every centre must assist the grower, who should be ablo to purchase from the association all his orchard and a large portion of his household requirements on a 5 per cent, basis above cost. In conclusion, I wish to thank consignors for their loyal support and consideration, and to assure you that wo can look forward to the future with every confidence. I am pleased to say that during tho whole of tho time I have had the

hearty co-operation of every member of the staff." Mr A. Davidson (Alexandra) moved that the report be received and the manager thanked for it. "Ho said Mr Reilly had brought forward many matters, that coincided with his own opinions. Until they had central packing stations and had direct control of the fruit under the society itself, the concern would not be on a proper footing. They should bo able to supply the whole market in New Zealand, especially with stone fruit, in conformity with the cooperative association's grade. With regard to the question of a standard case, the size had recently been fixed —it was rather too small for the Otago growers perhaps—and by next season he hoped to see the association selling" all its fruit bv the case. Continuing, Mr Davidson said the Otago Central Association had a-sked him to bring forward a number of remits for the consideration of the management, and the first of these drew the attention of the manager to the fact that the members of the cooperative association could purchase all orchard requisites at a cheaper price than that quoted by the association. He also asked the management if it considered it advisable to get into communication with Mr Morrison, of Auckland, regarding his patent for returnable cases. Another matter requiring attention was the question of applying for a Government loan iinder the Fruit Preserving Act for the erection of cool stores in Dunedin. The Chairman: The committee has that matter under consideration already. Continuing, Mr Davidson said his association also desired that the question of pooling bo suspended in the. meantime, and that the members pledge themselves to send their fruit where directed by the manager under a fair system of distribution. It was desired _ that this should be given effect to until proper facilities" were available under a system of packing and grading, whereby a standard grade could be secured. Another recommendation he had to bring forward was that tho directors consider the advisability of going into the question of erecting a pulping plant, and it was also desired that all jam fruit contracts entered into should go before growers before being acoepted. The_ Otago Central Association was also of opinion that travellers should be put on to canvass all country towns for private sale in order to overcome the glut during tho stone fruit senson. Mr A.Ashworth seconded the motion. Mr Reilly, in replv to Mr Davidson, said the association was already negotiating with Mr Morrison for the sole agency of his patent case. The question of raising a Government loan for cool stores had also been before the directors for some weeks. Rognrcbng the appointment of travellers, he would have to go into more fully at a later date. Tho motion for the reception of tho report Was carried amidst applnusc.