BREAKING STRAIN

Poverty Bay Herald, Volume LX, Issue 18179, 29 August 1933, Page 4

BREAKING STRAIN

COST OF FRUIT EXPORTS N.Z. INDUSTRY ENDANGERED OCEAN FREIGHT HANDICAP • f That the fruit export industry of New Zealand is facing a crisis, and that unless the costs of export can be reduced materially a large number of exporters will go out of the business, was the collective opinion of a majority of the delegates at the annual provincial conference of the Hawke's Bay Fruitgrowers’ Federation at Hastings on Saturday, at which the Poverty Bay association was represented by Mr. J. C. Hardy. The Poverty Bay delegate mentioned to-day, in. a discussion of the business of the conference, that most of the delegates agreed that the prices obtained by New Zealand fruit during the present exporting season, in tie United Kingdom, had been as good ■ as could be expected, but that the costs loaded on the industry were such that only a small proportion of the selling price came back to the growers. “It is the exchange that is saving the situation to-day for the fruitgrowers of New Zealand,” stated Mr. Hardy. “In the case of Poverty Bay growers, our fruit has to realise about 9s 6d per case on the London market before the costs of export are covered', and if it were not for the exchange bonus, there would be nothing for tne grower. In assessing the costs of export, we take the consolidated charges of the Export Board, now ranging up to 6$ per case, and add the costs incurred from the time the fruit is placed on the packing tables in the individual growers* sheds until it is cased and passed in for grading. These latter costs bring the total to over 9s per case, and that does not allow even for the labor of picking the fruit from the trees, much less for interest on the investment in land and tree stocks.

“Every effort has been made to reduce individual items in the consolidated charges levied by the Fruit Export Board,” continued Mr. Hardy “but though we may secure a reduction of Id per case here, and per case there, the industry will enjoy no real relief until the cost of ocean freight is reduced substantially. At present the ocean freight is 4s per case, whether to the United Kingdom, to Canada, or to South America. Formerly it was 3s 6d per case, but the exchange rate alteration led to its advance to 4s. “At the national conference, to be held shortly, this matter is bound to be one of the principal topics, if no announcement is made in the meantime in regard to the outcome of negotiations which have been proceeding between the representatives of the Fruit Board and the shipping companies interested in the New Zealand trade. “The position in New Zealand is similar to that affecting the Australian growers,” added the Poverty Bay delegate. “Australian fnilt men have come to the conclusion that the export business is not worth while, unless they, can secure a wider distribution of their! products/ a greater degree of stability j of markets, and a substantial reduction in costs of export, particularly in the matter of ocean freights. The position in New Zealand is perhaps less acute than in Australia, but toe same arguments apply to the industry here.”