Central Pacific

Fruit

"Control" By N.Z. Government Leads to Chaos in Banana Trade

FROM appearances, the New Zealand Government is finding that its plan to “control” the banana trade of the Cook Islands and Fiji is not quite the success it anticipated. Growers in those groups, both European and native, have become in the main dissatisfied with the system of purchase in the Is lands and marketing in the Dominion.

The present position in the Cook Is lands arose over the price decided upon by New Zealand when it took over con trol of the trade on April 1. As a pro test against the amount of 3/6 per case offered, a large percentage of white and native growers refused to cut their banana crops, with the result that when the “Matua” arrived in Auckland in mid-April she carried only 725) cases from the Cooks instead of the usual 2,500. The deficiency was made good by Samoa and Tonga—lo,2oo cases being shipped from Apia and 1,000 from Nu kualofa and Vavau.

To explain their action in leaving sev eral thousand cases of bananas to rot on the plantations, the Rarotongans declared that the Government’s price of 3/6 did not make it worth while to cut and pack fruit when it costs them about 4/- to place it on board the steamer.

Th,ey added that the local traders for merly gave them 4/6 to 5/- a case, which provided a reasonable margin. Pe titions to this effect were sent to the Savaae Government in N.Z., and to the Opposition.

However, when the Cook Islanders were informed officially that bananas could, and would eagerly, be supplied by Samoa and Tonga, they decided to snip, “under protest”, all available fruit by the May “Matua”, while their pleas were under consideration by the New Zealand authorities.

If the Government does not raise the price and the Rarotongans refuse to co-operate, it is almost certain that the C.I. growers will lose their quota and that the same will be parcelled out among Samoa, Fiji, and Tonga.

Fiji Banana Trade

On the pretext that the price paid by the New Zealand public for Fiji bananas was too high, the Labour Gov ernment at the end of March announc ed that it would take over the purchase and marketing, buying the fruit, f.0.b., Suva, at an amount to be fixed by it self and the Fiji authorities. Though Islands growers could not see that it would mean any increase in the price paid to them, they contented them selves with the thought that a lower consumer price would mean an increas ed demand.

The results of the first shipment made in April, however, brought a howl of anguish from Fiji growers, who claimed that they had been “double-crossed”.

They complained that, though the “con trol” plan, as they understood it. was to provide cheaper fruit for the man in the street, actually nothing of the kind hap pened. The prices realised should have brought a profit of about 4/ a case, but it appears that the N.Z. Government pocketed that profit, the people receiv ing ho concession. Normally, the money would have gone back to Fiji shippers.

The buying price for bananas agreed upon between N.Z. and Fiji is a good bargain for the former and leaves a nar row margin of profit for shippers, espe

dally those in outlying areas, with con sequent higher transport costs. At pre sent, a fairly high price is being joaid to native growers, this being at the direction of the Government, which con siders that last year shippers made ex cess profits and that some of this ex cess should be handed back to the Fijians.

Retailers Up In Arms

Not only the Islands banana growers, but also the retailers in New Zealand are dissatisfied with the present con dition of the Central Pacific fruit trade.

There apparently nave been wide vari ations in the wholesale prices, for the retailers have protested to the Govern ment that instead of banana prices be coming stabilised as a result of the “control” system, the methods of dis posal employed have caused wholesale rates to fluctuate by from Ud to 5d per lb., causihg loss'es and confusion on the retail market.

After th,e disposal of the April “Matua’s” shipment, the secretary of the ’N.Z. European Retail Fruiterers’ Asso ciation, Mr, H. G. Staley, sent the following telegram to the Prime Minis ter, Mr. Savage:—“Chaos rules in Auck land banana trade. ‘Matua’ shipment of Fiji bananas arrived in good condition, yet were sold by auction, prices being from 10/ to 30/. Retailers are bewilder ed as the situation is worse than ever.

Has ‘control’ really started? If so, what is the explanation?”

The reply of the Prime Minister was that he had referred the matter to the Minister of Marketing (Hon. W. Nash), who was investigating the position.

Fiji Citrus Growers Dis

Satisfied

Dissatisfaction also prevails in Fiji re garding the shipment of citrus fruit, principally oranges.

Without giving any reason the N.Z.

Government demanded that all oranges be consigned to the Internal Marketing Board, but refused to buy the fruit f.o.b.

It also declined to allow citrus growers to ship to their old selling agents, as in the past, or to obtain an Advance locally against the fruit when shipped.

Unless satisfactory arrangements can be made, Fiji fruit merchants hold that the citrus trade will just cease, with heavy loss, both to natives and some Eu ropeans. It was expected that about 4.000 cases would go forward by the May “Matua”, but under the conditions grow ers refused to ship in quantity and only a few odd cases of citrus were carried Mr. C. K. McGregor, who has been manager of the Bank of New South Wales at Levuka for some time, has been transferred to New Zealand.