packing of South African fruit and this has been reflected in the increased favour which has been shown to it on the United Kingdom market in recent years. 47. Until recently Turkish sultanas from the Smyrna district have been graded entirely by hand. In the big stations enormous heaps of sultanas of all kinds and descriptions lie about, and any particular sample can be produced by proper selection from the different heaps. The supplies are so large, and the selection of the different crops so carefully made by hand that the regularity of Smyrna grades is entirely relied upon by the trade. Packing was until quite recently done mainly by the feet of the workers. Articles appeared in the Press of the United Kingdom during 1925 regarding the circumstances in which this packing was carried out. It was stated that the conditions in the past had been very insanitary and unhygienic. Since the publication of these articles, we understand that there has been more supervision of the industry by the Turkish Government. 48. In Spain packing warehouses exist in the various centres. All fruit for export from the Malaga raisin district must be submitted to the Junta Provincial de Defensa Contra la Falsification. de la Pasa Moscatel before being exported. Each box must contain a printed lable giving the grading and the corresponding marks. Fruit is graded and packed entirely by hand, involving a very great deal of labour. It is, however, done very well indeedfar better than would be possible by any other method. 49. In the United States the bulk of the Californian crop is controlled by the "Sun Maid Raisin Growers." This organisation packs, grades, and sells the fruit. Grading and packing are carried out entirely by machinery. After the fruit has been packed in the cases it is fumigated before export. The grading of Californian dried fruit is very carefully carried out to ensure regularity of the different grades. The lowest grade fruit is not sold under the " Sun Maid " brand; it is disposed of to individual packers. The "Sun Maid" varieties are graded under 1, 2, 3 and 4 Crowns. IX. Transport to United Kingdom. 50. The ocean freight and the length of the voyage from the different centres of dried fruit production to United Kingdom are as follows: X.-Organisation. 51. In Australia there are private and co-operative packing sheds which confine themselves strictly to packing and processing. The Australian Dried Fruit Association exercises a general supervision in the interest of the growers. This body until recently included the growers of about 90 per cent. of the total output. Membership is voluntary, and no direct trading is undertaken. During the last two years the State Governments of Victoria and South Australia have established statutory Dried Fruit Boards to fix the quantity of fruit which may be sold on the Commonwealth market and the export quota. 52. Export is permitted only under Government licence granted on the advice of the Commonwealth Dried Fruit Export Control Board, which was instituted by Act of the Commonwealth Parliament late in 1924. The Board consists of seven members, four representatives elected by the growers, two members of commercial experience appointed by the Government in consultation with the growers, and one Government representative. It has wide powers enabling it to make conditions under which licences may be granted. This gives it, in effect, power to arrange shipments, to control the quality, quantity, and direction of supplies exported during any period, and to regulate the prices at which importers may offer the fruit for sale. Up to date few of these powers have been exercised in the United Kingdom, the usual trade channels having been interfered with as little as possible. As the Australian supplies do not, in any case, constitute a predominant part of the dried fruit imported into the United Kingdom, the system of regulation of price in operation consists merely of maintaining for Australian fruit a definite relationship with world parity. 53. South African growers and packers are in many cases organised in local co-operative societies, but there is no central controlling body such as is the case with fresh fruit, nor are the growers and packers specially represented in London. 54. There is no dominant organisation of growers in Greece, partly no doubt because the Government, aware of the great national importance of the currant industry, already provides many of the advantages usually derived from organisation. The numerous voluntary co-operative societies (of growers) are registered by the Government, and receive official recognition. They enjoy certain privileges not granted to individuals; they are granted rebates in taxes, particularly on commodities required for their vineyards or for their own use; and they also obtain loans at a specially favourable rate-even below Bank Rate. About 40 per cent. of the growers of the Peloponnesus are said to belong to these societies, and about 65 per cent. in Vostizza, the centre of the richest currant producing district. Many of the co-operative societies in each district are amalgamated into unions which enjoy all the privileges of the constituent societies. In certain cases these unions effect shipments of fruit to the United Kingdom for account of their members in an attempt to eliminate the merchant exporter. It is understood, however, that they are finding difficulty in securing customers for orders, partly owing to the method of organisation of the dried fruit. trade of the United Kingdom. The Greek Government does not, however, confine itself to granting these various privileges. To cope with the problem of over-production it buys large quantities of fruit to be used in Greece for industrial purposes. During 1924 a special organisation was established under Government auspices to dispose of the surplus production and to enforce measures to improve cultivation and curing of fruit. Under the Greek Retention Law a tax of 35 per cent. (known as the Land Tax) is imposed on exports permitted under the law. The tax is so applied that when yields exceed the world requirements the full 35 per cent. is retained in kind. In years of smaller crops the tax may be paid wholly or partly in cash, but every year the tax is paid on a total of 35 per cent. either in fruit or in money. 55. In the United States most of the Californian dried fruit growers are members of the "Sun-Maid " organisation. Each grower is bound by contract to deliver all his fruit to the Association. After delivery the fruit is pooled, and the Association has entire control of every subsequent process until the fruit is sold. 56. Turkish growers are not organised in any way. There is no direct Government control, but we understand that since the appearance of criticisms in the English Press Government inspectors have been paying more attention to the conditions under which fruit is packed. 57. In Spain there are no organisations of growers. XI. Finance. 58. Australian dried fruit growers are usually financed either directly or indirectly through the interests owning the packing sheds by merchants who act as agents for the export and sale of the produce. In 1924 the Commonwealth Parliament made provision whereby the Commonwealth Dried Fruit Export Control Board could, through the Commonwealth Bank, advance money to such growers as placed their fruit under the absolute control of the Board for sale. In 1925 the Commonwealth Bank Act (Rural Credits) was passed, and it is expected that under the provision of this Act co-operative societies will be able to make special arrangements for advances to growers. 59. In South Africa the South African Land and Agricultural Bank has been established to provide finance on reasonable terms to all primary producers. The fruit grower can, through his co-operative society, obtain finance from the bank either on a mortgage on his farm for general expenses or for marketing his crops. 60. The financing of Greek dried fruit growers is entirely undertaken by the packing houses. The Currant Bank of Vostizza, Limited, with head offices in that town, was formed by the amalgamation of 16 co-operative societies in that district for financing the crops. 61. In Turkey the financing of growers is entirely undertaken by the packing houses, who themselves export or sell to the local agents of United Kingdom importers. 62. In Spain the grower sells his crop direct to the merchants who undertake export. 63. In California, where the production and marketing are controlled by organisations, such as the "Sun-Maid " Raisin Growers, the financing is undertaken by the organisation. XII. Growers' Representative in United Kingdom. 64. The Australian Dried Fruit Control Board has a London agency representing growers, consisting of three members. The London Board, which possesses any powers which the Board in Australia may delegate to it, supervises the marketing of Australian dried fruit in the United Kingdom, and makes reports to the Control Board. At the present time there are about thirty firms acting as import agents to the Australian growers, and we are told that these importers vary greatly in their experience of the London trade. As prices for dried fruits vary by many shillings per cwt., according to buyers' views of quality, an appraiser is appointed by the London agency of the Board to value these grades. Although the fruit cannot be sold below the price which the appraiser fixes for it, we are informed that the appraisement is varied in accordance with the movements of the market. Fruit is not held off the market for higher prices, and therefore this system cannot be regarded as one of price control. 65. South African dried fruit producers have no representative watching their interests in the London market. 66. In the case of Greece and Turkey most large packers have representatives in the United Kingdom whose function it is to dispose of the fruit through brokers who sell to dealers. There is no general representative of the growers. 67. Spanish raisin growers have no direct representative in the United Kingdom market. The packers are represented only in so far as their clients in the United Kingdom keep them in touch with market conditions. The operation of the South African Land and Agricultural Bank are described in our Citrus Fruit Report, page 127. 66 68. In the case of California a special company representing the Sun-Maid Raisin Growers was formed in the United Kingdom in 1922. The organisation of the English company is in two sections-a sales and accounting branch and a general business branch. The sales branch has representatives in the various large towns, and travellers visit all parts of the country disposing of" Sun-Maid " products. Very extensive advertising is also undertaken by the London company. XIII. Regulation of Supplies. 69. The supplies shipped from California under the control of the "Sun-Maid" organisation to the United Kingdom can be, and are, regulated entirely at the will of that organisation. Such regulation is exercised mainly or wholly with a view to the state of the United States market and with little reference to United Kingdom requirements. 70. The Australian Dried Fruit Export Control Board is similarly capable of regulating supplies, but its circumstances. are exactly the opposite of those of the "Sun-Maid " interests. The United Kingdom market is the main market for Australian fruit and, therefore, regulation of supplies, if attempted at all, must be done wholly with a view to the effect on the United Kingdom market. In practice any regulation of Australian supplies can merely consist in accelerating or retarding the rate at which supplies are shipped in the light of the requirements of the United Kingdom market. 71. There is, in a sense, some Government regulation of Greek supplies in the manner we have described in paragraph 54 above. This has for its object the prevention of glutting in the world markets. So far as we are aware there is no regulation of the rate of shipment. XIV. United Kingdom Ports of Importation. 72. The following figures show the extent to which the main. ports of the United Kingdom are utilised for the importation of dried fruits. The figures relate to total quantities imported during 1924. |