Reducing Production Costs in Citrus Orchards

New Zealand Journal of Agriculture, Volume 81, Issue 1, 15 July 1950, Page 13

Reducing Production Costs in Citrus Orchards

By

P. EVERETT,

Orchard Instructor,

Department of Agriculture, Auckland.

DURING and since the Second World War the cost of producing essential commodities in New Zealand has risen more or less steadily. To counteract such increases and yet maintain production the general trend has been for producers to increase the selling prices of their goods if possible. This spiral of ascending prices must reach its peak some day, and that day may not be far distant. When that time arrives the citrusfruit grower, like all other producers, will be faced with the problem of how best to reduce production costs so that the margin between the cost of growing fruit and placing it on the market and the price that can be secured for that fruit will remain in favour of the grower. WHOLESALE prices for New Zealand grapefruit and Meyer lemons have declined markedly from those of a few years ago, and should this position continue efforts must be made to effect an early reduction in costs 'of production. Though the collective efforts of the industry may assist in this direction, the principal reductions likely to be achieved will be in the individual orchard and packing shed. The cost of producing citrus fruits in New Zealand is influenced by a great variety of factors, including soil type, variety, strain, amount and type of cultivation, manurial programme, shelter, aspect, and marketing arrangements, but that which exerts probably a greater influence on production costs than any of those mentioned is orchard management. Following are some of the many factors that should be examined as possible means whereby production costs might be reduced or. alternatively, buyers induced to pay higher prices for the fruit they require.

More efficient management. Increased production. Increased percentage of high-grade fruit. More attractive presentation of fruit. Reduced cost of preparing fruit for market. Improved marketing methods. Efficiency of Management The factors included in orchard management are generally known to fruit growers, but the need and scope or greater management efficiency possibly is not fully appreciated. To reduce production costs to a minimum it is essential that the citrus-fruit grower be fully efficient and have an intimate knowledge of the requirements of citrus trees, especially in such items as fertilisers, organic matter, and lime; he must know how these materials are best applied and worked into the soil and the number of applications and quantities needed each year. The rooting habits and irrigation requirements of the trees and soil conditions necessary for the production of maximum crops of highquality fruit at a minimum cost are among the many other aspects of which comprehensive knowledge is necessary. Another subject with which every citrus orchardist requires to be intimately acquainted is disease and pest control. This necessitates rapid identification and familiarity with the best of known control measures which are consistent with economy; in the case of many kinds of insect pests it also involves knowledge of their life cycles under local conditions. In the main, this knowledge is available to all citrusfruit growers who care to seek it earnestly. Some years of practical orchard experience coupled with keen observation will provide many of the answers to the questions involved, but this is not sufficient to keep up with presentday knowledge. A constant perusal of modern literature dealing with the problems involved, attendance at lectures and demonstrations concerning citrus culture, and submission of questions to the district Orchard Instructor of the

Department : of Agriculture are also necessary to acquire the ever-changing knowledge essential for . good orchard management. The efficient grower anticipates nearly all orchard operations and makes suitable and early arrangements for the supply of materials and labour. To do this he must make reasonably accurate estimates of the fruit to be picked each month and the dates when sprays or cultivations will be required. Any departure from more-or-less standard practices in orchard management to test new ideas should be limited to a relatively few trees. There should be one or two replications of the experimental treatment, and suitable check trees should be selected for comparison. The keeping of accurate crop records and the noting of regular observations are also essential in any 1 experiment. Tests conducted in this way for sufficiently long to give a reliable indication of results are to be encouraged. Orchard tests on a large scale, if conducted by an individual orchardist, in most cases indicate . inefficient orchard management, as the risks taken and expenses involved are needlessly great. Such tests usually are abandoned before results are con-

elusive. There is also a distinct danger that such experiments may result in wrong conclusions and lead to further waste and bad management, increasing Production Any advice given to increase production when the trend of prices is downward and produce is slow of sale no doubt will seem foolish to many growers, but in general the greater the production per unit the lower the cost, and so the producer may well be in. a position to accept lower prices. Admittedly, there is a level at which any increase in production cannot be absorbed by the consumer, but artificial consumption levels are often created by prices being too high for the average consumer to buy his full requirements. Though sales may become slow at some artificial level, demand often may be stimulated by a lowering of prices. The production of many orchards could be raised by more adequate fertiliser applications, more judicious pruning, and improvement of soil conditions. Many holdings are too small to be economic, and in such cases additional land should be planted or •acquired. A minimum production of .2000 bushels of lemons or grapefruit from a single-handed farm is desirable; where labour is employed a greater production per unit is necessary. ;! Grading Standards , The percentage of high-grade fruit marketed from most citrus orchards could be .'increased substantially by more frequent pickings and greater care in selecting and handling the

fruit. Grapefruit and sweet oranges in particular when allowed to remain on the tree for several weeks after becoming fully sweetened usually become “puffy,” and in some cases the juice content decreases appreciably and the flavour becomes less palatable. Lemons allowed to tree ripen become suitable only for peel and juice grades. ' By increasing the number of pickings, and by the pickers selecting with the greatest possible care only fruit that is at the correct maturity, the over-all quality of the produce marketed can be raised appreciably. The elimination .of fruits regarded as being of doubtful quality would also assist. Any such improvements in the quality of citrus fruit should stimulate demand and result in higher market prices. The quality of New Zealand-grown citrus fruits offered for sale before 1939 in the main was commendably high, but the abnormal demand for such fruit during the war and subsequentlythe result of greatly restricted imports—in many instances made possible relatively high prices for very poor fruit. Those conditions have not offered an inducement to growers to maintain their former high standards of quality grading and pack- j ing, but the over-supply of New Zealand grapefruit in particular during July, August, and September of the past 2 years indicates the urgent need for a return to prewar standards. Preparing Fruit for Market Experienced growers of citrus fruits are in general agreement that under normal marketing conditions the cost of presenting fruit attractively is more than justified by the increased price

received. The buyer likes to see cases well filled with fruit of a uniform size and neatly packed. Branding, ,whether done by stencil or rubber stamp, should be neat and clear, or printed labels should be used. Some fruits of certain varieties of sweet orange and grapefruit . which . normally mature late in the season fail to develop full colour on the trees even when fully sweetened: Fully coloured fruit is preferred in the markets, so those showing any trace of green colour should be orchard stored under cool and moist conditions until they . are fully coloured. A reduction 'in the cost of preparing fruit for market usually necessitates some improvement in packing-shed technique or equipment. If the quantity of fruit to be marketed is relatively small, the possibility of having the crop graded and packed in an up-to-date. packing shed of a neighbour or local organisation should be considered. Marketing Methods Standard lemons have been marketed in New Zealand through the Marketing Department since May 1, 1939, but the success of marketing still depends largely on the quality of the product delivered to the Department.

Where citrus fruit is being disposed of principally by auction it is the responsibility of the grower to determine picking dates and to select the markets to which the fruit will be consigned. To do this intelligently and thereby secure maximum net realisations he must be familiar with market trends in previous years, know exactly the freight costs to each market, and at times sound out markets by telephone, or telegraph a few hours before dispatching a consignment. Adequate time and thought given to such questions usually is reflected in worthwhile increases in realisations. In general, it is advantageous to build up a good name with a few reliable firms and stay with them. Co-operation Essential No attempt has been made in this article to name more than a few of the factors offering scope v for improved cultural and marketing practices, but the suggestions made may lead to a fuller realisation of the, need for greater efficiency, not only in the work of the individual orchardist, but also in the co-operative efforts of the citrus-fruit industry as a whole. The active interest of all growers in the collective efforts of their industry is an essential part of good orchard management. .v .