Growers
p. 22 · Read in the full issue
Buyers Versus
New Phase of Old War in Cook Is.
From Our Own Correspondent.
RARATONGA, February 2.
THERE is a report that it is proposed to arrange for the sale of the Cook Island fruit by direct contract in a man ner perhaps similar to that which obtains in the case of the Samoan fruit.
This would be a good thing for grow ers. At present, local sale is the general rule, and consignments are the exception.
The principal buyers here, in calculat ing the price to be paid to the growers, subtract from the sum offered from New
Zealand, 1/- per case for supercargos; this includes carting to the wharf at a price which varies from 1d to 6d, but it may be taken that in no case is the supercargo’s remuneration for acting as sub-agent less than 6d a case. The prin cipal buyers take 6d themselves for their commission and charge the New Zealand buyer 2/6 for cost of case, for a case that costs them exactly 1/10.
It is therefore obvious that there is a sum of not less than 1/8 per case under paid locally to the grower on their ac counts.
In addition to this, the broker or buyer in New Zealand requires his profit, which, judging by costs on consignments, runs approximately to 1/6 per case. So that, assuming that the buyers in New Zealand are willing to pay the same price on the contract scheme, as they do at present, there would be sum of .about 3/- per case more, available for payment to the grow ers, less such costs as are entailed by the administering of the scheme by the De partment.
Seeing that the average price has been hitherto about 2/- to 2/6 per case, this means practically doubling the growers’ receipts. The proposal does, not by any means meet with the approval of the local buyers.
For several years past the fruit regula tions have entailed increased expense for the growers, for they have received no compensating returns. Should this scheme come into effect, it would be a balancing of benefits somewhat overdue.
Last year, in order that there should be no price competition for local purchase, the principal buyers had an ordinance passed putting a tax of £2 on each supercargo’s licence and £1 on each principal buyer. The restrictions that went with the supercargo’s licence deliv ered them over, body and soul, to the buyers.
The adoption of the aforesaid scheme will mean the loss of the licences to the Administration, but, looking to the in creased purchasing power of the growers, the Customs returns should more than compensate for this small loss.