FRUIT MARKETING

Manawatu Standard, Volume LVII, Issue 207, 2 August 1937, Page 3

FRUIT MARKETING

GOVERNMENT AID. SITUATION REVIEWED. “During the year just completed there have been some indications of increasing confidence in the industry, due, no doubt, to the increase in the export guarantee, and the setting aside of an amount of £40,000 for the subsidising of realisations for fruit sold on the local market,” states the annual report to be presented at the New Zealand Fruit-Growers’ Federation conference. “The action taken by the Government in this connection is a recognition of increased cost placed upon the industry by reason of Government legislation for higher wages. “It remains to be seen, whether or not the basis adopted by the Government for dealing with prices of fruit on the local market will in the end permit of the distribution of any part of the £40,000. If no distribution is made, it will mean at least that on the average growers have received reasonable returns for local sales. This fact, together with the increased guarantee on export fruit, will considerably strengthen the. position of the federation.”

“As all growers are aware, the Minister of Marketing (Hon.,W. Nash), at the Dominion conference last year, gave an indication that the Government would be prepared to consider guaranteed prices similar to the dairy industry, being made available for the fruit crop of 1938,” the report remarks. “Recent statements by the Minister of Finance while in London seem to cast doubt on this intention.”

“While the final figure for the export guarantee did not give what was asked for or what was considered adequate. it did at least make for an improvement,” the report states on the subject of the Government guarantee and assistance'to the industry. “The position in connection with the £4O 000 subsidy on the local market is somewhat obscure. The indications are that these guarantees will cost the Government very little, if anything. Next season’s crop will bear the full blast of increased and everincreasing costs, and it is hoped that the arrangements finally agreed upon will adequately meet the position.” Possibility of an increase in the Government guarantee of 10s 6d a case for fruit exported is mentioned in the report. "There exists in the industry doubt as to whether 10s Gd a case is sufficient to meet all marketing and packing costs and leave sufficient to cover cost of production under present-day conditions. However, it is understood that the Government is investigating this matter further.”