the CAPB, a prohibition on the selling or processing of undergrade peaches was established in 1967. Any 

 consignment containing more than 15 percent of undergrade fruit was ruled to be entirely undergrade. In 1968, 5 

 percent of the cling peach deliveries to canners were undergrade, 1 1 percent were second grade, and 84 percent were 

 canning grade. 



Prior to the advent of the CAPB and its enforcement of grading regulations, the quality of peaches 

 purchased by canners tended to be below the standards in the United States and Australia. This was especially true 

 in years of short crops, when canners in some instances completely disregarded or abused grading in their attempts 

 to obtain more fruit. 



Grower prices 



The Canning Apricot-Peach Board annually establishes minimum grower prices by grade for apricots and 

 cling peaches delivered to canners. These prices are applicable to all canners except the cooperative in the case of 

 cling peach deliveries. A legal ruling established that the cooperative was not compelled to pay the minimum prices 

 in effect for cling peaches in 1968 since the firm does not buy from its shareholders. 



The minimum prices, which have tended to approximate grower returns, are fixed at the farm level, 

 excluding transport allowances. 



Minimum prices 



Fruit 



1966 1 



1967 1 



1968 1 



1969 1 





Dol. per 



Dol. per 



Dol. per 



Dol. per 



Cling peaches: 



short ton 



short ton 



short ton 



short ton 



Canning grade . . . 



77 



84 



70 



70 



Second grade .... 



28 



35 



28 



28 



Apricots (Royals): 











Grade I 



59 



76 



76 



78 



Grade II 



59 



56 



56 



56 



Grade III 



28 



28 



28 



28 



Apricots (Bulidas): 











Grade I 



42 



45 



53 



59 



Grade II 



22 



22 



28 



28 



Season beginning Nov. 1 of the preceding year. 



The sharp drop in prices for clings in 1968 reflected a number of factors, including large unsold stocks from 

 the previous year's pack held by canners, canners' losses resulting from devaluation of the British pound, and 

 mounting competition in overseas markets. Grower prices averaged only $59 per ton in 1968, compared with $76 a 

 year earlier and about $72 in 1960-64. Apricot prices averaged $60 in both 1967 and 1968, down $11 from the 

 1960-64 average. Prices to growers for freestone peaches averaged $34 per ton in 1967 and $31 in 1968. 



Grower prices for canning pears are negotiated annually between canners and the Deciduous Fruit Board. 

 Payments to producers for Grade I Bon Chretien pears, which make up the bulk of deliveries to canners, averaged 

 $60 per ton in 1968 (preliminary), compared with $80 a year earlier and between $80-90 per ton in the late 1950's. 



Labor source and cost 



South Africa has an abundant supply of low-cost labor. However, relatively low productivity and the 

 tendency for this labor to migrate to the cities for nonfarm work results in some employment difficulties for farmers 

 during peak work periods. During the harvest season, the labor supply originates from two principal sources: local 

 colored persons of mixed origin; and the Bantu, who are descendents of various African tribes. Many of the Bantu 

 are brought into the producing area under 3-6 month contracts from the Transkei region near East London. In some 

 areas convict labor is used, under rehabilitation programs, to supplement the labor supply. 



