FRUIT EXPORT

Sun (Auckland), Volume III, Issue 690, 15 June 1929, Page 12

FRUIT EXPORT

RETURNS TO GROWERS THIS SEASON’S PROSPECTS "At the moment there Is every indication that the average retu n on apples sent overseas this season will compare mo e than favourably with that for the 192728 crop,” stated Mr. F. L. Howell, branch manager for the New Zealand F» uitgrowers’ Federation, to a SUN man this morning. The average gross return on the j 1927-28 crop was approximately 12s a j case. Although the whole of the Auckland export crop has been shipped, said Mr. Howell, it was impossible to estimate just what the return would be, as approximately 55,000 cases out of a total of about 81,000 cases had not yet reached the market. Advices received to date, however, indicated that prices were slightly above last year’s levels, and there was every prospect of the aggregate returns working out at a more favourable average. One factor in the favour of the New Zealand shipper this season was the j shortage reported in the Australian crop. To what extent Auckland will benefit as a result of the fruit export industry it is hard to estimate at the moment. Although the Government guarantee provides for a gross return of 11s a case, and indications point to the market price averaging over 12s a case through the season, there is a big element of uncertainty in assessing the actual return to the producer, or the indirect benefit which will accrue to the community generally. To start with, very little of the Government guarantee of 11s a case finds its way into the pockets of the orchardist. Expenses account for a big part of that amount. Commission, handling and other brokers’ charges on the market end are reckoned to average approximately is 6d a case; freight charges incurred while the fruit is in transit to the overseas market, storage and handling in the cooling chambers prior to shipment. and insurance, etc., are estimated at approximately 4s Gd to 5s a case; costs of picking, grading, packing, and average railage to cool stores, are reckoned to work out at approximately 2s 9d a case. Thus, it can be seen that the fruitgrower has a margin of approximately 2 s on the Government guarantee to cover planting, cultivating, rent, interest, and other charges incidental to the running of an orchard. There is, of course, the surplus of fruit which does not come up to graders’ requirements which can be quitted on the local market. Estimating an average return on last year’s average of 12s a case gross it can be reckoned that at least £24,300 will be distributed among Auckland shippers to meet expenses incurred in the orchard. According to Mr. Howell, however, indications are that the aggregate pay-out will be slightly in advance of that amount this season, if present prices hold.