MARKETING OF VEGETABLES

Southland Times, Issue 24592, 14 November 1941, Page 4

MARKETING OF VEGETABLES

COOPERATIVE PLAN I SUGGESTED EVIDENCE BEFORE PRICE TRIBUNAL (P.A.) WELLINGTON, November 13. A scheme of co-operative marketing as a means of overcoming the present difficulties was submitted today to the Price Tribunal, which continued its investigation into vegetable prices, by Mr A. P. O’Shea,. Dominion secretary of the Farmers’ Union. “If the cooperative principle of marketing were adopted there is no doubt that effective and economical marketing could be achieved,” he claimed. The need for registration and the proper organization of growers was stressed during the morning’s evidence and retailers of Christchurch expressed their astonishment at the prices charged for vegetables in Wellington. One witness estimated that tbe Wellington prices were from 25 to 200 per cent, higher than in Christchurch. MERCHANT’S COMMISSION Mr B. V. Cooksley, president of the Market Gardeners’ Federation, said there was a loose impression abroad that a merchant’s commission in Internal Marketing Department produce was 7 J per cent. He had been advised, however, that the position was more involved, than that. On lemons bringing up to 10/- a case the commission was 10 per cent. When they brought more than 10/- the commission was 10 per cent, on the first 10/- and 5 percent. thereafter. The commission on overseas fruit and produce was 10 percent., but there were no receiving or delivery charges paid on these items. Mr Cooksley said the position with regard to insect pests was becoming progressively worse, and he considered there should be closer co-operation between scientist and grower. Market gardeners, he said, had been asking for regulations for 10 years. Registration had been approved by the Department of Agriculture, but the bill had been treated as a political issue. His Honour, Mr Justice Hunter remarked that the federation had about 600 members out of 6000 growers and asked if those who did not belong to j the organization might object to the bin. I Mr Cooksley: That is possible. I A representative of the Internal Mar- | keting Department said the department had always supported the request of the association for the bill. [ MEDIUM PRICES PREFERRED j Mr M. Rousham, of Christchurch, president of the New Zealand Federation of Retailers, asked if it suited retailers to have high prices, replied that the retailers preferred medium prices. Conditions for retailers had been much worse than usual. As an instance of this he said one of the biggest Christchurch retailers had had to close down. The high price position appeared to be mainly confined to Wellington, said Mr A. Bennett, secretary of the Wellington Fruit and Vegetable Retailers’ Association. His opinion was that the Wellington shortage was the direct result of the loss in the past three years of half the Hutt market garden land for State housing. W. Wah, secretary of the Chinese Fruiterers’ Association, who was associated with Mr Bennett, said control would not solve the problem, nor would an inquiry into who was making a profit. The solution was to find a means of bringing sufficient supplies to the markets to meet the demand, which the producers could not satisfy, j If there was control who was to decide ] who of 1000 persons wanting a lettuce | was to have one of, say, 300 available, j RATIONING DIFFICULT The chairman: It might come to rationing? The witness said it would be difficult to ration vegetables. Control had raised fruit prices. If vegetables were controlled they would have to bear- administrative costs.

The chairman: What is your opinion of a maximum profit margin? The witness: It would be a good idea if all retailers were honest. The chairman: Aren’t they all?—You have me there.

The inquiry will proceed on Monday, when evidence will be given on behalf of the wholesalers, the Internal Marketing Department and the Housing Department.