The Militant (logo) 
   Vol.64/No.49            December 25, 2000 
 
 
New Zealand fruit farmers protest low prices
(feature article)
 
BY FELICITY COGGAN AND COLIN PARKER  
WELLINGTON, New Zealand--"The survival of the pip fruit industry is at stake," Peter Young told a rally of 150 orchardists and supporters on the steps of parliament. The rally, organized by the newly formed Grower Survival Group, which represents mainly middle-sized and small growers, followed a lively tractorcade through the main street of the city here December 6. Marchers gave apples away to passersby and carried placards calling attention to the problems facing the growers.

Most anger was directed at Enza, the organization that controls pip fruit exports. Set up as the Apple and Pear Marketing Board, it was originally run by the government. Following deregulation by the National-led government before the last election, the marketing functions of the Board were set up as a joint stock company, with shares distributed to growers.

Then, earlier this year, investment companies Guinness Peat Group and FR Partners took control of Enza through a purchase of 40 percent of the shares. Growers hold the remaining 60 percent.

Peter Young, chairman of the Grower Survival Group, described to the rally the new and lower rates growers will get for the 2000 season introduced by Enza. Royal Gala returns drop from NZ$13.71 per carton in 1999 to NZ$9.65 in 2000. (NZ$1=US 40 cents). He brought his granddaughter to the protest. She held a placard saying, "Please don't let my granddad go broke or he'll have to come and live with us."

In addition, Enza recently announced significant new restrictions on the size of apples it will accept. For the Royal Gala variety, the main crop in the key Hawkes Bay growing area, for example, this means 89 percent of the new crop would be rejected.

At present growers can sell their apples for export only to Enza, except for a small number who are granted permits for independent exports by the Apple and Pear Board, as long as these do not compete with Enza's interests. About 90 percent of apples grown in New Zealand are exported.

The marchers, who came from around the country, demanded the government free up the granting of export permits to allow them to export more fruit independently of Enza. On the day of the march, however, Enza was granted a court injunction backing its right to limit such exports.

Sylvia Beavis, a grower from nearby Wairarapa who spoke at the rally, said that for most sizes of fruit, the returns don't cover the cost of production. "Which part of the word 'broke' does the minister not understand?" she asked. "We must have returns that favor growers, not corporates."

Damien O'Connor, speaking for the Labour-led government in place of the Minister of Agriculture, blamed the growers' decision to sell their shares for their plight. This drew an angry response from the crowd, with some shouting, "Why do you think we sold them--because we can't grow, because we can't sell."

Speaking to the Militant, Bernie Cacciopoli, a grower who operates two acres of orchards after being forced to cut back over the years, estimated he would need returns of about NZ$25 per carton to cover costs. About half the apple crop is used for juice, at a return of only NZ$1.60 per carton, he said. He explained pip fruit growers don't necessarily want deregulation, pointing out how the deregulation of the egg industry had led to many being forced off their farms. He estimated that if growers' demands are not met, half the orchardists could soon be forced off the land.

After the rally, many of the participants marched in an orderly fashion up to the nearby Enza head office. They expressed their anger by leaving their placards from the march in the lobby.

Felicity Coggan is a member of the National Distribution Union in Auckland. Colin Parker is a meat packer in Auckland.  
 
 
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