Growers can take a leaf from SA book

By Glenys Christian

Over the gate

Before fruit marketing was deregulated in South Africa 18 months ago around 40 per cent of orchardists were in favour of the move.

But its popularity has since grown, says the chairman of the country's Deciduous Fruit Producers Trust, Peter Dall, with about 80 per cent now reporting they are "by and large happy."

Mr Dall, himself an orchardist and consultant, was here last month giving growers a first-hand view on the change from single-desk to multiple exporters.

He said the fears of New Zealand producers facing the same change were eactly the same as those of their South African counterparts before deregulation; that supermarkets would walk all over smaller marketers and rival exporters would "cut our throats."

But none of that had happened, he said. Instead, after a brief shakedown and the odd bankruptcy, exporters were consolidating their strength.

So what will it take to convince New Zealand growers to move the same way?

Deregulation supporters gleefully report the findings of a telephone survey late last year where 182 Hawkes Bay growers were asked three questions - did they believe single-desk exporter ENZA's cost structure allowed growers a commercially viable return, would ENZA be more efficient if it had to compete for the export crop, and should growers have a choice of exporters?

Weighting answers by fruit production, 59 per cent said the return was not viable, only 29 per cent thought ENZA efficiency would not improve, and on the all-important third question, 43 per cent wanted choice.

So how likely is it that 80 per cent of our orchardists would see deregulation as a change for the better?
There is much convincing to be done.

Yes, growers are now more critical of ENZA with some taking aim at glitches with its new computerised payment system.

But the chairman of Pipfruit Growers of New Zealand, Richard Easton, says they must see this as a separate issue from throwing away the basic principle of single-desk selling.

Many orchardists, despite an excellent growing season, fear a drop in promised returns because the weather has been equally kind in other pipfruit producing countries.

Others are worried about the time it is taking the Apple and Pear Board to make progress towards corporatisation.

"The vast majority are happy that the industry needs to reform and that is on the fast track," Mr Easton said.

Deregulation supporters do not believe such rapid progress is being made, and Mr Dall says the corporatisation issue should be cleared up speedily.

However, growers still have to be assured that if over 70 per cent voluntarily continue to sell their fruit through the corporatised former single seller, as has happened in South Africa, none of its marketing power will be lost.

Only when they are certain having a choice will be for their benefit alone will they give the free market a fair go.

* Glenys Christian can be contacted on email at glenysfarm@xtra.co.nz