FRUIT PRICES

Waikato Times, Volume 127, Issue 21303, 23 December 1940, Page 3

FRUIT PRICES

EARLY PACKING BONUS PROBABLE ALLOCATION GROWERS FACE HARDSHIP (By Telegraph.—Press Association) NELSON, Saturday Faced with a purchase price which would not cover the cost of production, and with prospects of a much smaller crop than last season, the apple and pear growers of New Zealand would have to reduce their standard of living, said Mr H. E. Stephens, chairman of the New Zealand Fruit Advisory Board, in an interview, when reviewing the negotiations with the Minister of Marketing, the Hon. W. Nash, which had resulted in an overall increase of s£d a case in the Government purchase price for the crop, plus a bonus on fruit packed early in the season. Mr Stephens said the original offer of 5s 3d was not acceptable, as production costs showed a rise of 5.3 d a case. Some growers wanted the full cost of production, which would have meant a rise of nearly Is. However, growers generally were prepared to carry on if they could get an extra 6d a case to cover increased costs, with a shade over. The Board was authorised to negotiate with Mr Nash on a basis that a proposal be put forward which would make it worth an addition of 3d to the grower. In view of the fact that there was little prospect of export in the coming season, it was suggested that the offer of 5s 3d should apply to the local market pack. SDread of Bonus “ The Minister agreed to 5s 3d applying to local the pack, and also to reduce the inspection levy by £d,” said Mr Stephens. “ The result of those decisions was that growers will received s£d above last year’s figure. In addition, the Minister agreed to give a premium on fruit packed up to January 18. The average bonus will be gs a case for fruit received to that date, and the allocation of the bonus has been left to the Fruit Board.” The bonus would start off at about 5s a case in the earliest part of the season, making the pice 10s 3d, and would be reduced to 6d a case by January 18. However, the actual allocation would not take place until after January 18. Lower Living Standard Mr Stephens pointed out that growers were facing a season of smaller crops. As a result they would be up against a stiff proposition in keeping going. “ Growers will he getting enough to cover the cost of production,” he said, “ but they recognise that with the scarcity of shipping they will have to make sacrifices. “ The average grower will get through, but he will have to reduce his standard of living and will not have an equal standard compared with public works employees. “ The approaching season,” he concluded, “ be an off season for production. Growers’ estimates of the crop for the Dominion were for a reduction of about 400,000 cases on last year’s figure of 2,800,000. Nelson estimates were for a reduction of about 15 per cent on last year’s 970,000, but Mr Stephens felt that ine result would be lower than the estimate. The pear crop would be larger but apples considerably smaller.