MARKETING DEPARTMENT REPORT AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 30th SEPTEMBER, 1948

Appendix to the Journals of the House of Representatives, 1949 Session I, H-30

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1949 NEW ZEALAND

MARKETING DEPARTMENT REPORT AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 30th SEPTEMBER, 1948

Presented to Both Houses of the General Assembly Pursuant to the Provisions of ■the Marketing Act, 1936

Sir, — Marketing Department. I have the honour to present herewith, pursuant to the provisions of the Marketing Act, 1936, the annual report of the operations and statement of accounts of the Marketing Department for the year ended 30th September, 1948. I have, &c., L. C. Webb, Director of Marketing. The Hon. the Minister of Marketing. INTRODUCTORY In the past it has been customary to relate the annual report strictly to the year covered by the accounts appended. However, certain fundamental changes have taken place in marketing organization, and it is considered that these should be described fully, even though some of the adjustments took place after the end of the finanical year. This preliminary section will outline these events, and the rest of the report, other than that relating to town milk, will refer strictly to the financial year ended 30th September, 1948. The section on town-milk operations has been continued on the basis of the production season and is for the year ended 31st August, 1948. This keeps it in line with past reports. Since the last annual report the Department has been reorganized. The Dairy Products Marketing Commission set up by statute in July, 1947, decided to carry out its activities with its own staff, a large part of which was taken over from the Export Division of the Marketing Department. This left the Export Division reduced in function and in staff. Up to this time the Marketing Department had existed in name only since each of its three Divisions —Internal Marketing, Export Marketing, and -Milk Marketing—had its own statutory powers, dealt directly with the Minister of Marketing, and in effect was a separate organization. Opportunity was now taken to bring the Divisions under unified management. The separate Divisions have been abolished by the Marketing Amendment Act, 1948, and their functions transferred to a single Marketing Department. ' The change has made possible certain important economies. In the case of staffing .and records, the units of the former Internal Marketing Division were able to take over the extra work without expansion. The bringing-in of the Milk Division made an increase in the accounting unit necessary since the milk accounting work was in arrears.

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An additional benefit of amalgamation is tliat it has enabled milk work to be decentralized. The general case for decentralization of administrative responsibility has been stated in recent reports of the Public Service Commission. In the administration of the National Town Milk Scheme this general case is reinforced by the need to maintain close contact with local interests. The intention is that ultimately the milk scheme will be largely managed by local authorities, and a necessary first step towards this devolution of authority is to decentralize milk activities. By itself the Milk Division was not large enough to take this step, but the amalgamation makes it possible for the Marketing Department to transfer part of the responsibility for the milk scheme to each of its branches at Auckland, Hastings, Gisborne, Nelsoii, Christchurch, and Dunedin. An interesting advantage which has also accrued from the change is in the sphere of higher administration. With the close relationship between the operations of the Marketing Department and the Stabilization Commission it was found possible and advantageous to vest the two positions of Director of Marketing and Director of Stabilization in the one person, with an Assistant Director of Marketing to conduct the normal day-to-day activities of marketing. The relationship of the Department to producer organizations is also developing along the lines of increasing the producer participation in marketing responsibility. In regard to dairy-produce, the Dairy Products Marketing Commission, already referred to, has taken over the duties in respect of butter and cheese. This body is a producerGovernment organization. In the same way the day-to-day functions relating to the export of meat and payments to producers have been taken over by the New Zealand Meat Producers' Board, while the policy functions continue to be carried out by the Department and the Minister. In the pip-fruit industry the Apple and Pear Marketing Act, 1948, created the independent New Zealand Apple and Pear Marketing Board, which is composed of grower representatives and Government nominees, and is responsible for the marketing of all apples and pears in New Zealand. BOBBY CALF POOL OPERATIONS The bobby-calf industry is now an integral part of the economy of the dairy industry, having reached a highly-developed state and covering the dairy-farming areas of the whole Dominion. With the establishment of Dairy Products Marketing Commission bobby-calf-pool operations are the only marketing function of the dairy industry still outside the control of the Commission. While the pool system of bobby-calf marketing was intended to assist the dairy-farmer dispose of his calves in an efficient and economic manner, it is also of considerable value to the freezing industry. The Department has encouraged more pools to be formed during the year, and the last large dairying area —that of Otago —was brought within the scope of the regulations by the formation of three pool areas. Further redefinition of existing pool areas was also carried out, particularly in the Waikato districts, and it is anticipated that this will be of considerable assistance in the recognition of the boundaries between the various pools. The opportunity is also taken when boundary redefinitions are carried out to include any adjacent dairying areas which have come into production since the pools were originally gazetted.During the year amendments to the regulations were introduced, providing for adjustments in the veil-prices and for the control of the sale of calves in saleyards., The new veil-prices payable by the New Zealand Co-operative Rennet Co. for the next two years was increased to Is. per veil for all veils in excess of the local requirements (500,000), which are taken at a lower rate of s|d. per veil. The bobby-calf industry also agreed, during the year, to a grant of £5OO being made from the industry accounts to the Rennet

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Co. in order to assist in meeting a portion of the costs of powdered rennet manufacturing machinery. The disposal of calves in saleyards was brought within the scope of the regulations during the year, following negotiations with the industry. The effect of this amendment was immediate, and the difficulties that were apparent in this direction have now been satisfactorily adjusted. The individual pool returns for the year ended Ist January, 1948, show that collections in pooled areas totalled 939,937 calves, this being an increase of 63,621 on the previous year's collections, and of this total 880,864 were passed as fit for export. The number of calves rejected at works was 59,073, or 6-2 per cent. While the figure for rejects may appear rather high, it is really a big improvement on the previous year's operations, when 7-9 per cent, were rejected. A contributing factor has probably been the allowance for good-condition lighter calves to be passed as suitable for export, but it is generally agreed that the calves are being sent forward by producers in better condition. The prices obtained for calves showed a very marked increase on those of past years and was the result of exceptionally high skin-values. As a result of the rising skin market a* levy of 6s. per skin was imposed by the Stabilization Commission. Notwithstanding this levy, the payout per head was a record, and the amount paid to producers totalled £1,232,488, being an average of 265. 2d. per calf, or an increase over the previous year of 10s. 7d. per head. The cartage-costs have continued to rise, and the total amount paid by the various pool authorities was £85,700, or an average of Is. lid. per calf. The average' cartage-cost per head the previous year was Is. The motor-transport services given to pool authorities in some areas have been far from satisfactory and are causing considerable dissatisfaction. This is particularly apparent at the beginning and close of the main collection season, when the supply of calves is irregular. Often pool committees have not been advised that carriers have decided not to make further trips. The question of standardized accounts for all pools was again discussed with the Calf Pools' Central Executive, and while some progress was made there is still divergence of opinion among the groups in the industry. The principal difficulty appears to be the position where some pools sell through agent organizations which do not distribute all proceeds, but hold various amounts in the form of reserves. Naturally, if there is any appreciable fall in prices they wish to be in a position to use these reserves to meet competition. The administration of the calf-skin subsidy to tanners and the collection of the calfskin levy as imposed by the Stabilization Commission has now been incorporated with the work of this section. This has had the effect of centralizing all calf-pool administration. The year has been a record one as far as monetary returns are concerned, and it has also marked the close of the development stage of the pooling system. If the acceptance by the dairy industry of this form of marketing can be taken as a guide to its soundness, then it is an unqualified success. While it is evident that prices have passed the peak, some steps may still be needed to ensure that sufficient calves for herd replacements are retained and not sacrificed as bobby calves, which appears to have been the case during this season. EGG SECTION In November, 1947, wholesale egg-prices increased by 2|d. per dozen in the North Island and a Id. per dozen in the South Island. This was followed by a further -|d. per dozen increase for the North Island in December due to the increase in the price of standard mash. The egg-floor subsidy remains at 4d. per dozen. The subsidy, however, was increased for a short period by 3d. per dozen from the 28th June to the 28th August in the Auckland district, and in the rest of the North Island from the 9th August to the 4th September. This increase was granted in view of the hold-up in wheat-supplies from the Mountpark," with the result that alternative and dearer poultry-feed had to be obtained.

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With the exception of the Auckland district, the quantity of eggs passing through official egg floors continues to increase. In spite of this increase, however, the public demand for eggs has not been fully met. The consumer demand, of course, has been accentuated by the general increase in population. The view has been expressed in some quarters that a solution to the difficulties of meeting demand can be overcome by a free price system. Such a system would undoubtedly provide certain classes with all the eggs they require, but if it is desirable to maintain an equitable distribution for all at a price within the reach of the lower-income groups, then the present egg-floor system is unavoidable. The lack of regular and suitable supplies of poultry feed has undoubtedly had a very serious effect upon production, but present indications point to an improvement in the supplies of wheat and if this comes about the difference between supply and demand can quickly be overtaken. The following figures compare the intake of eggs through approved egg floors during this period with the total for the previous year : * Dozens Ist October, 1947, to 30th September, 1948 .. .. 11,186,815 Ist October, 1946, to 30th September, 1947 .. .. 11,119,683 Increase .. .. 67.132 Distribution Retail distribution in all marketing areas has been continued on the basis of either butter registrations or past deliveries. All priorities for children under five, nursing and expectant mothers, invalids, and hospitals have been fully met. Eggs transferred to Wellington from other floors for the period ended 30th September, 1948, and comparing with 1947, are as follows :

Eggs Transferred to Wellington

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Twelve Months Ended 30th September, From 1947-48. 1946-47. Dozens Dozens Auckland 5,820 66,030 Hamilton 16,254 20,160 Tauranga 46,360 52,710 Gisborne 111,058 71,087 Hawkes Bay 118,334 144,385 New Plymouth 155,850 135,120 Wanganui 66,595 101,198 Manawatu 62,409 73,241 Masterton 119,243 159,707 Blenheim 107,582 82,114 Nelson 18,930 7,650 Christchurch .. 165,188 193,640 Ashburton .. 30,240 13,200 Timaru 127,226 62,363 Dunedin 57,370 40,230 Invercargill 8,760 1,217,219 1,222,835

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Chilling The Department hopes to increase the chilling of eggs in order to even out supply between Winter and Summer. Cool storage facilities are still inadequate but as many -eggs as possible are being placed into cool store during the " flush " production period "to supplement winter supplies. A schedule of the quantities chilled during the past two years and an estimated objective for next year are as follows :

Chilled Eggs

This year's chilled egg programme, assisted by small quantities of chilled eggs purchased from Australia, has enabled a greater distribution to be made this year than hitherto. Imports To maintain egg-pulp supplies to the baking trade and to release the maximum quantity of eggs in shell for consumer use, the policy of importing egg-pulp from Australia still continues. The quantities imported in previous years and the year under review are as follows : Quantity of Egg-pulp Imported Dozens Equiralent. 1942-43 .. .. .. 2,722,020 1943-44 .. .. .. 2,286,732 1944-45 .. .. .. 2,662,107 1945-46 .. .. .. 1,709,670 1946-47 .. .. .. 3,085,920 1947-48 .. .. .. 3,352,440 1948-49 .. .. .. 4,200,000 (estimated). General A special • committee has been set up to recommend what steps Can be taken to improve the quality of New Zealand manufactured pulp. It is desirable that a quality standard should be established. It is also intended to establish a quality standard for shell eggs so that egg-consumption can be encouraged when production overtakes demand. At- the time of this report the post-war Egg Marketing Committee's report is receiving ■consideration. The Committee has recommended, inter alia, that, having reviewed the systems of egg marketing in New Zealand both during the pre-war period and currently, some form of control and organization in egg marketing should be continued in the interests of the producer and consumer. The Committee also visualizes the retention of the present system of egg floors to make an equitable Dominion-wide- distribution. in times of shortages and to provide avenues for the economic handling of surpluses.

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— 1946-47. 1947-48. Estimated, . 1948-49. Dozens Dozens Dozens Auckland 108,220 90,095 50,000 Wanganui 27,510 51,180 50,000 Wellington 32,990 15,900 Christehurch 36,270 19,170 25,000 204,990 176,345 125,000

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PRODUCE SECTION Potatoes The 1947 main crop was just sufficient to meet requirements till the end of 'November, by which time new potatoes were available in quantities sufficient to meet all demands. The yield of new potatoes in all districts, was heavy particularly in the main producing areas of Pukekohe, Hawkes Bay, and Gisborne. Prices fell well below ceiling during the latter half of December and in January, during which months growers placed heavy quantities on the market, particularly at Gisborne. In this district the quality of the potatoes suffered from transport difficulties and from a particularly hot summer. It seems clear that the Poverty Bay district should concentrate on getting their potatoes marketed not later than the end of November. Hawkes Bay crops were also very heavy, and in February it was necessary, in order to conserve supplies and avoid wastage, to issue a transportation restriction order, the effect of which was to hold back for a month the marketing of potatoes from, the Manawatu-Rangitikei area, where there was better prospect of the potatoes keeping,, so that a prompt market could be found for those from Hawkes Bay. This transportation order was removed in March, and the marketing of the Manawatu-Rangitikei crop proceeded. It was then found that as a result of the delayed digging, potato-moth, which was particularly prevalent last season owing to weather conditions, had developed in a portion of the crop. It was necessary for the Department to compensate those contract growers who incurred losses due to the operations of the Transportation Restriction Order for both moth damage and for February potatoes sold at the lower prices ruling in March. Committees representing the Department of Agriculture, representatives of growers and merchants, the official Grader, and Marketing Department were set up to assess the Government's liabilities under the contracts. These Committees functioned satisfactorily. To allow time for the clearance of the heavy North Island crop in all districts restrictions were placed on shipments of South Island potatoes to the North Island up to the end of May, permission being granted for the shipment of seed potatoes. Transport from the South to the North Island proved to be very much easier this year than for the past few years. As soon as the South Island restrictions were removed potatoes went forward to all North Island ports in quantities, sufficient to keep the markets fully supplied. South Island yields, like those in the North Island, were exceptionally heavy this year, and although the total area planted in potatoes for the 1947-48 season was only approximately 19,300 acres, as against an estimated 21,000 necessary to ensure sufficient supplies in an average season, it has been obvious during the past few months that there is likely to be a very substantial surplus at the end of the season. Every possible export outlet has been explored, but without success, and the possibilities of dehydration for human consumption, stock-food use, and starch-manufacture have also been examined.. Such uses have been proved to be uneconomic and would only result in substantially increasing the loss which would eventually be incurred. It is unfortunate that the heavy crop this year coincides with a surplus of potatoes in almost all producing countries. During the past few months substantial exports of potatoes have been made from United States, Great Britain, Holland,' Italy, and Australia. These countries have advantages over New Zealand through their proximity to potential markets, with consequently lower freight rates and less risk of deterioration. At the date of this report a decision has been reached by the Government, in response to urgent representations by growers, to take over all contract grown f.a.q. potatoes still in growers' hands at 31st October, instead of at the original contract date, 30th November, and arrangements to carry out that decision are now being made. It has also been announced that the present contract system will be continued to cover next year's production, but that it is expected that for future seasons growers and merchants will devise a marketing scheme which will replace the present system under which heavv liabilities are undertaken bv the Government.

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Onions Last year's crop was sufficient to meet consumers' requirements till the new crop became available in December in the North Island and in January in the South Island. The new crop, as in the case of potatoes, was an exceptionally good one, and it was apparent from the beginning of the season that there would be a surplus over New Zealand's requirements. Export markets were found in Canada during February, March, and April, and some 1,350 tons were exported. More could have been sold to Canada had additional freight space been available. Reports from Canada were that, except for one shipment which was a long time •on the way, the various shipments arrived in good condition. Canadian buyers indicated that they would be glad to consider importation again in future years. As an experiment a small shipment of 100 tons was sent by the Department on consignment to its branch in London, the onions being carried in ordinary stowage. The shipping company concerned gave careful attention to storage and ventilation. The result was that, despite the fairly long voyage to London, the onions arrived in very good condition and realized the maximum prices allowed under price orders ruling there. This shipment carried a subsidy of approximately £3 per ton by the Government, but was worth while as an experiment. It showed that, provided New Zealand onions .are harvested in sound, dry condition, there is a possible export market in Great Britain, and perhaps also in other European countries provided a reasonable f.o.b. price can be -quoted. As New Zealand was able to export only some 1,350 tons to Canada and 100 tons to Great Britain there is still the prospect of a surplus before the end of the season. As the season advances the keeping-life of the onions shortens and it is not possible to export them to any destination where a lengthy voyage is entailed. Some business is still being done with the Pacific Islands, but that has been adversely affected by the -alteration in the rate of exchange. Efforts are being made to stimulate consumption .and to cheapen retail prices to ensure that wastage is minimised. The contract system for onions was introduced as a war measure to help to ensure sufficient supplies for military requirements in the Pacific. It has therefore been decided not to continue contracts for the production year 1949, and the system will end with the maturity of contracts at the 30th November this year. The Onion Advisory Committee estimates that there will be ample onions planted to meet New Zealand's requirements next year. Barley No importations have been possible from Australia during the year owing to the very high prices at which the Australian Barley Board has been able to export their surplus to Europe. The bulk of this surplus was sold at prices ranging from 18s. 6d. to 21s. 6d. per bushel f.0.b.5.i., Australian ports. These figures are beyond what can be paid by New Zealand for barley for stock-feed purposes. The indications are that Australia will again have a very good crop this coming season, and with the substantially lower world prices now ruling it may be possible to import from Australia next year. Maize The area sown in maize for commercial production during the current year was about 6,300 acres, and the crops came on well until the disastrous May floods in Poverty Bay. Extensive damage was done to large areas, and it was estimated that the production would be reduced by approximately 25 per cent to 30 per cent. In addition, much maize was discoloured by flood-water. The harvesting of this maize became a matter of urgency and, as harvesting costs were increased by the silt left by flood-waters, the Government agreed to a harvesting subsidy. A committee was set up in Gisborne to supervise this work. The administration was carried out by the Department of Maori Affairs, most

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of the work being done by Maoris. By this means large quantities were saved which, would otherwise have been lost. This maize, now that it has been dried out in the cribs r is being used in the manufacture of poultry mash, analyses having shown that it is quite suitable for this purpose. The total crop this year is not likely to exceed 50,000 sacks, a decrease of approximately 25,000 sacks on that of last year. The Government subsidy of Is. 6d. per bushel is being paid to growers of last season's -crop, plus an additional 6d. which has been granted to cover increased costs of fertilizers and other materials, due to the removal of subsidies last year, making a total subsidy on the crop just harvested of 2s. per bushel. For the next season's crop a subsidy of' 3s. per bushel has been approved, and it is hoped that this will result in an increase in area, although flood conditions in Poverty Bay have somewhat hampered sowing. The Department of Maori Affairs is still the largest maize-producer in New Zealand and has done good work over a large area stretching from Hawkes Bay to the Poverty Bay and Bay of Plenty districts, and up to Kaitaia in North Auckland. Their assistance in maize-production over the past two or three years has been very valuable. Hops After two years of poor crops this year's yield was back to normal, and the total crop harvested was approximately 3,050 bales, an increase of about 600 bales on thatof last year and 1,200 bales on that of 1946. Ample hops were available from this year's crop to meet the brewers' requirements and to provide hops for retail sale in grocers' shops for householders' requirements. A small quantity was also available for export to Great Britain. The price for the current year's production has remained at the same figure as that approved by the Price Tribunal last year —namely, 3s. per pound.—and with the increased yield is considered a reasonably satisfactory one to the growers. The Hop Research Council, which was set up last year, has been working satisfactorily, and it is hoped that the result of the investigations and trials carried out by the Council will, in time, be helpful to hop-growers. Raspberries The 1948 Nelson crop, at 250 tons, was better than that of previous seasons. A substantial increase was shown in the quantity sold through retail channels in buckets, and it is probable that increasing quantities will be sold in this way in future. One of the difficulties facing the Nelson growers is that of transport, and investigations are being made by the Nelson Raspberry Marketing Committee into the possibility of air transport from Nelson to North Island centres. With the increased crop, jam-manufacturers received an increased allocation, but this is still far short of their requirements. With the increased areas which have been planted during the past few years there should be some increase in production provided the weather is favourable. Fertilizers Importation of sulphate of ammonia, sulphate of potash, and muriate of potash have been continued by the Department during the past year. All these fertilizers are in short supply overseas, and sulphate of ammonia is still subject to allocation by the International Emergency Food Council. The allocation to New Zealand does not meet requirements, and importations have to be rationed. Muriate of potash and sulphate of potash are also in short supply. Sulphate of potash has been available only for tobacco-fertilizer requirements. The importations during the past year were # approximately 2,000 tons sulphate of ammonia, 3,000 tons muriate of potash, and 500 tons of potash. The shortage of these fertilizers is likely to continue for another year or two.

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APPLE AND PEAR SECTION Fruit Marketing Council With the removal of subsidies, both direct and indirect, the New Zealand Fruitgrowers' Federation, Ltd., concluded a new agreement with Government for the handling •of the apple and pear crop for the 1948 season. Under this agreement the Fruit Marketing Council was reconstituted, but continued to act as the Advisory Committee on apple and pear marketing. The reconstituted Council was to consist of five members nominated by the Fruitgrowers' Federation and not more than three members appointed by the Minister of Marketing. The Federation's nominees were: Messrs. M. A. Cruickshank, J. Hainsworth, L. B. Robinson, EL R. Sampson, and A. C. M. Ward, while the Minister's appointees were Messrs. A. M. W. Greig (Chairman), B. D. A. Greig, and N. G. Robertson. In addition, the meetings of the Council were attended by the following members who did not exercise a vote : Messrs. K. B. Longmore -and Wm. Benzies (of the Department), Mr. W. K. Dallas (Director of Horticulture), and Mr. A. Osborne (Fruitgrowers' Federation). Payment to Growers It was estimated that because of the withdrawal of subsidies plus growers' increased -costs the Department would have to obtain from the market approximately 4s. per case more than in 194-7 in order to give growers an average return comparable with 1947. To effect this, Government agreed to amend the schedule of monthly wholesale and retail ceilings by raising the maximum wholesale ceiling from 15s. to 225. 6d. per case and the retail maximum ceiling from 6|d. to 9d. per pound. These maximum wholesale and retail ceilings operated on a sliding scale, according to the period of the year. Under the new agreement, Government guaranteed a Dominion average minimum of Bs. 2d. per case for apples and pears accepted at assembly point, with wrapping-costs extra. Should the Dominion over-all net average market return fall below Bs. 4d. per ■case, authority was granted for the withdrawal of a sum not exceeding £20,000 from the Uneconomic Orchard Fund to raise the growers' Dominion average return to that figure. In addition, as the maximum retail price for apples was held at 9d. per pound for fruit sold between mid-September and mid-February, a subsidy of £20,000 was approved for paying appropriate premiums for fruit marketed during the out-of-season period. The raising of the ceiling-prices enabled the law of supply and demand to operate more freely than was possible in the past. This helped to determine the market value of each variety, with the result that the Department introduced a variety and grade pooling system to take the place of the cumbersome method of previous years of using market returns plus the Government subsidy for a complicated system of bonus payments and premiums to effect a measure of justice between districts, varieties, grades, and sizes. Table 3 gives details of the consolidated charge, net market returns, amount of Government subsidies, and overall average payment to growers for the seasons 1940 to 1947 (inclusive), together with an estimate for the 1948 season. Crop The crop of apples and pears handled by the Department during the current season is estimated to reach 2,920,000 cases (2,595,000 apples and 325,000 pears), of which "2,887,000 cases have been received up to 30th September. This is a record since the commencement of an organized marketing scheme in 1940, the total being 271,000 above the previous record, established in the 1941 season. Two of the season's main difficulties have been the large quantity of small sizes received from growers and the low quality of fruit in Commercial and Minimum Grades.

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Small sizes in general have been very difficult to sell, and their low market realizations have resulted in a reduction in the variety pool averages, with consequent unfairness to the growers of better sizes. Growers appeared to take full advantage of the tolerances allowed in Commercial and Minimum Grades, with the result that much of the fruit in these grades was affected, with black-spot and was altogether most unattractive to buyers. It is difficult to estimate the quantity of apples and pears which go outside thescheme but, if recent figures supplied by the Department of Agriculture are taken, the total would be approximately 750,000 cases for the 1948 season. This quantity represents over 20 per cent, of the total production of apples and pears, and is made up of" fruit distributed direct to the consumer, retailer, or factory. Details of the yearly receipts from growers are given in Table 1. Distribution The Department continued the normal selling policy and endeavoured to effect equitable distribution over town and country areas. With the resumption of full-scale export, 999,000 cases of apples and 22,000 cases of pears were shipped to the United Kingdom, leaving 1,596,000 cases of apples and 303,000 cases of pears for the domestic market.

The following table gives comparative domestic market quantities since 1940 :

Direct selling to hospitals, Armed Forces, railway refreshment-rooms, and a limited number of retailers has been continued, the total quantity sold through these avenues* being 120,000 to 30th September, compared with 121,000 for the 1946 season and 102,000for 1947. Distribution of apples to school-children, inaugurated in 1941, was discontinued this year. The Department had to endeavour to obtain an average market return approximately 4s. per case higher than in 1947 in order to give growers a return comparable with that received in 1947. The increased ceilings were not authorized until the middle of January, with the result that the season opened at 6£d. per pound retail and then on 12th January, jumped to 9d. per pound, and sales began to slacken. The problem was accentuated by theheavy crop of stone-fruits. It has been a difficult task to maintain the required increase mainly because of thelarge quantity of small-sized fruit and the low quality of Commercial and Minimum Grades, although, as will be seen in Table 3, the result achieved—namely, an estimated increase of 3s. s*76d.—is a meritorious one. Table 2 shows how fruit has been distributed over the past eight years.

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— Apples. Peara. Total. 1940 1,664,900 167,600 1,832,500 1941 2,297,000 347,800 2,644,800 1942 1,923,700 183,400 2,107,100 1943 2,025,700 235,400 2,261,100 1944 2,201,300 269,700 2,471,000 1945 1,860,100 275,800 2,135,900 1946 2,087,400 182,000 2,269,400 1947 1,333,100 207,200 1,540,300 1948 (estimated) .. 1,596,000 303,000 1,899,000

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Storage With the very large crop, cool-storage space was at a premium, especially in February, March, and April. This was mainly due to an accumulation of dairy-produce brought about by shipping delays, particularly in Auckland, where cool storage did not become available until the 10th May, and Wellington, where space was not available until 20th April. The result was that much of the fruit which was destined for longkeeping to supply the markets in the later months of the year did not get into cool store with minimum delay. Another factor which delayed the storage of fruit for the domestic market was that .available space was being utilized to hold fruit awaiting export. Export Arrangements were made between New Zealand and British Governments for the •export of 1,000,000 cases of apples to the United Kingdom, whilst, in addition, it was .arranged to ship up to 25,000 cases of pears to a London firm. All these sales were on an f.o.b. sterling basis. The prices agreed upon were 20s. 6d. per case for Cox's Orange and 12s. 6d. for other varieties of apples, and 15s. 9d. per case for the pears. The final quantities exported were 999,103 cases of apples and 21,942 cases of pears, -of which 22,083 cases were shipped from Auckland, 415,051 from Napier, and 583,911 from Wellington. Mr. J. W. Watson, of the London office of the Marketing Department, arrived in New Zealand on 18th September to report on the season's operations and to have discussions with departmental officers, the Fruit Marketing Council, and the District Fruit Advisory -Committees. Uneconomic Orchard Fund Altogether 153 growers have received assistance from this fund. Payments authorized up to 30th September, 1948, amount to £57,821 ss. 10d., made up of £11,638 13s. 9d. to assist uneconomic orchards, £45,751 18s. to compensate growers for climatic losses, .and £430 14s. Id. to cover administration expenses. The balance in the fund is £42,178 14s. 2d. Apple Dehydration The apple-processing plant at Motueka continued to operate during the period under review, and 4,923,206 lb. of raw fruit was processed, yielding 426,978 lb. of dried product, 234 tons 18 cwt. of peels and cores, 19,000 gallons of apple-pulp, and 43,700 gallons of apple-juice. In addition, experiments were carried out with the dehydration of peas, and 16,530 lb. were produced. This venture proved so successful that it is proposed to extend the operation during the coming season.

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Table 1—District Production of Apples and Pears

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Year. Auckland. Poverty Bay. Hawke's Bay. Wellington. Marlborough. Port Nelson. Mapua. Motueka. Canterbury. Timaru. Otago. Dominion. 1940 1941 .. 1942 1943 1944 1945 1946 1947 .. Estimated, 1948 Total 1940 .. 1941 1942 1943 .. 1944 .. 1945 .. 1946 1947 Estimated, 1948 Total 278,612 251,623 167,110 190,300 236,072 178,749 220,580 135,213 264,034 19,455 22', 992 40,076 23,026 41,577 18,981 32,366 24.686 42.687 701,920 525,691 770,923 422,517 865,870 585,165 745,060 245,660 838,935 31,234 33,240 34,473 31,917 23,666 20,006 25,270 13,607 24,887 71,935 78,917 70,557 67,415 74,567 84,567 65,276 77,359 120,276 Apples 211,733 294,877 183,083 307,911 238,942 254,664 312,788 214,606 304,821 420,304 473,102 243,601 389,639 336,226 296,050 476,123 370,926 5.17,807 291,903 353,420 207,072 336,793 273,862 235,426 326,950 226,842 327,701 102,671 96,961 91,614 121,935 100,466 61,081 42,263 12,996 82,118 7,039 11,179 5,688 5,840 2,602 3,495 3,127 6*034 115,593 158,783 '109,498 128,515 120,434 122,411 119,525 11,191 66,089 2,252,399 2,300,785 1,923,695 2,025,708 2,314,284 1,860,595 2,369,328 1,333,086 2,595,389 1,922,293 ( 265,846 5,701,741 238,300 710,869 2,323,425 3,523,678 2,579,969 712,105 45,004 952,039 18,975,269 - 21,398 49,324 17,052 27,766 16,309 29.826 9,430 10.827 28,073 563 4,403 2,708 3,505 3,053 4,243 1,796 3,514 4,735 69,221 153,395 90,215 106,245 155,660 151,641 76,178 106,602 187,217 932 3,483 816 2,766 2,572 1,579 2,382 810 3,348 1,448 2,202 865 761 1,027 2,075 775 1,005 1,586 Pears 12,148 26,119 9,446 15,471 13,435 15,765 13,204 16,986 18,284 12,490 29,769 9,266 15,130 11,842 11,929 20,778 26,762 24,936 19,531 43,747 16,830 33,533 30,255 30,352 32,686 33,667 36,600 11,232 9,808 14,016 9,969 9,737 10,204 4,591 1,325 8,417 1,159 1,702 1,525 1,797 1,819 1,927 73 634 17,497 23,732 20,679 18,433 23,985 15,625 20,162 5,749 11,454 167,619 347,684 183,418 235,376 269,694 275,166 182,055 207,247 325,284 210,006 28,520 1,096,374 18,688 11,744 140,858 162,902 277,201 79,299 10,636 157,316 2,193,543

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Table 2

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Distributed to 1940. 1941. 1912. Pears. 1943. 1944. • Apples. Pears. | Apples. Pears. Apples. Apples. "Pears. Apples. Pears. Civilian markets U.S.J.P.B. New Zealand Forces Schools Export Miscellaneous sales .. Total Dehydration Total crop.. 1,559,000 30 i000 587,000 77,000 159,000 5 joOO 3 j 000 2,037,000 55,000 113,000 4,000 92,000 329,000 15 j000 3^000 1,537,000 31,000 158,000 156,000 42 000 159,000 . 1,000 23,000 1,522,000 267,000 94,000 91,000 52 j 000 198,000 23,000 11,000 3 i 000 1,512,000 479,000 66,000 102,000 43,000 230,000 26,000 9,000 ijooo 2,253,000 167,000 2,301,000 347,000 1,924,000 183,000 2,026,000 235,000 2,202,000 113,000 269,000 2,253,000 167,000 2,301,000 347,000 1,924,000 183,000 2,026,000 235,000 2,315,000 269,000 Distributed to 1945. 1946. . . 1947. 1948 (Estimated). Apples. Pears. - Apples. Pears. Apples. Pears. Apples. Pears. Civilian markets U.S.J.P.B. New Zealand Forces .. Schools * .. .... Export Miscellaneous sales Total Dehydration Total crop 1,421,000 312,000 44,000 43,000 40,000 243,000 18,000 9,000 5,000 1,890,000 i7,000 43,000 282,000 137,000 168,000 3,000 ii,ooo 1,176,000 8,000 31,000 li8,000 1 190,000 1,000 ie,ooo 1,451,000 5,000 999' 000 140,000 280,000 i,ooo 22,000 22,000 1,860,000 135,000 275,000 2,369,000 182,000 1,333,000 207,000 2,595,000 325,000 1,995,000 275,000 2,369,000 182,000 1,333,000 207,000 2,595,000 325,000

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Table 3

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1940. 1941. 1942. 1943. 1944. 1945. 1946. 1947. (Estimated). s. d. s. d. s. d. s. d. s. d. s. d. s. d. s. d. s. d. Assembly •• 0 2-15 0 1-98 0 3-68 0 3-96 0 4-17 0 3-70 0 3-80 0 4-03 0 4-02 Freight and cartage .. .. 0 11-89 1 3-91 1 3-03 1 4-48 1 2-42 1 3-07 1 2-32 1 5-73 1 7*48 Wharfage .. .. .. 0 1-63 0 1-16 0 0-75' 0 1-27 0 0-63 0 0-89 0 1-25 0 1-47 0 1-90 Cool storage 0 9-80 0 7-59 0 7-90 0 8-12 0 8-10 0 7-99 0 9-12 0 11-64 0 9-95 Repacking and sorting .. .. .. 0 0-64 0 0-15 0 0-10 0 0-01 0 0-09 0 0-01 Sundries .. .. .. 0 5-05 0 3-26 0 3-75 0 2-47 0 2-35 0 2-78 0 3-09 0 4-39 0 3-28 2 6-52 2 6-54 2 7-26 2 8-40 2 5-68 2 6-52 2 7-59 3 3-26 3 2-63 £££££££££ Total .. .. 307,815 337,130 274,415 306,953 319,587 287,178 336,436 294,112 470,205 Net market return .. .. 7 7-02 4 5-43 6 4-44 7 8-57 8 9-23 8 8-54 8 10-73 10 8-64 14 2-40 Less consolidated charge .. 2 6-52 2 6-54 2 7-26 2 8-40 2 5-68 2 6-52 2 7-59 3 3-26 3 2-63 5 0-50 1 10-89 3 9-18 5 0-17 6 3-55 6 2-02 6 3-14 7 5-38 10 11-77 Plus Government subsidy, less 0 0-23 3 5-76 1 5-82 1 1-73 1 1-38 1 3-30 1 1-54 1 11-40 0 1-64 Payment to growers .. .. 5 0-27 5 4-65 5 3-00 6 1-90 7 4-93 7 5-32 f7 4-68 "j"9 4-78 11 1-41 £££££££££ Total payment to growers 607,674 742,335 544,567 672,296 957,755 839,321 1*942,599 723,863 1,624,046 Crop .. .. .. •• 2,420,018 2,648,982 2,107,113 2,261,085 2,583,978 2,258,420 2,551,383 1,540,333 2,921,000 * Export, 1940 = 587,504 cases. f Excludes orchard labour subsidy.

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HONEY SECTION The past season, according to the Agriculture Department's estimates, was a record one, with approximately 5,000 tons produced, of which the Department received 178 tons. While sugar, jams, and preserves were in short supply, honey could find an outlet in New Zealand and in food parcels, irrespective of quality. There was a financial incentive for producers to pack and sell their own product. In the past the New Zealand public has not consumed the full production, and export markets have been essential to maintain prices. The price paid by the Department was 9|d. a pound 'pro rata, according to grade, plus a bonus of 2|d. per pound. The average grading of this honey, was 91-77. Even at the present time honey is freely displayed in shops in the North Island, in practically every city and town. Much of this honey will be unsold when the new season commences. From the 3,376 cases of honey received, 62 tons were distributed to hospitals, overseas shipping, manufacturers, and the Armed Forces. Eighty tons were packed for shipment to England. Unsold stocks on the 30th September were 18 tons packed, and 20 tons bulk. The quality of honey put up and sold locally was poor, as also was the quality of some honey packed in food parcels for Britain. Export of low-grade honeys to England can only damage the good name of the New Zealand product there. Honey Seals Seals revenue collected amounted to £4,050, which was a small figure considering the size of the crop. An Interim Honey Marketing Committee has been set up, the election for the members being based on the regulations gazetted on the Bth September, 1948. These regulations provide for three producer representatives and two Government nominees. The functions of the Committee are mainly to advise the Minister of Marketing on honey marketing matters generally, and to assist and advise the Department in directing, controlling, and distributing honey received by the Department. The members of the Committee will be gazetted, but in the meantime an Interim Committee comprising one producer member from the New Zealand Honey Control Board, one from the National Beekeepers' Association, and one from the New Zealand Honey Suppliers' Association has been established. IMPORTED FRUITS SECTION Bananas The quantity of bananas imported is governed by the availability of shipping space, and, apart from the possibility of overseas vessels making occasional calls at island ports, New Zealand must rely mainly on shipments landed by the " Matua." This vessel continues to carry capacity loads, and, although the islands are not at present producing bananas that are going to waste, production will be increased as soon as some definite indication can be given regarding regular additional shipping space. From information now to hand it does not appear likely that the new steamer ordered for this trade will be completed before 1951.

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Bananas continue to be landed at Auckland, which makes speedy distribution for the South Island difficult. When an additional steamer is placed on the island run fruit will probably be landed direct at South Island ports. In the meantime advantage is taken of vessels leaving 'Auckland for South Island ports direct, providing they sail reasonably soon after the arrival of the " Matua." Investigations as to the possibility of importing bananas from Australia showed that the Commonwealth would only be interested in this market when there were surplus stocks in Australia, which does not happen often. Moreover, Australian bananas would be considerably more expensive than those from the islands.

This year's importations show an increase when compared with last year's. For comparison purposes 1947 and 1948 figures are shown below.

Oranges With the exception of the Cook Islands, all sources of supply shipped larger quantities of oranges than for some years past, and the total imported has almost reached the pre-war figure. Australia. —The trans-Tasman shipping position has improved, but oranges from Australia continue to be transported in unsuitable cargo space, and the uncertainty of the final dates of departure from Australian ports makes it very difficult for shippers to pack oranges for any particular vessel. This uncertainty works against receiving fruit in the freshest possible condition. However, the landed condition of Australian oranges has been better than during the past few years and should continue to improve. The Department is now permitted to import, subject to certain safeguards, from the coastal areas of New South Wales, where fruit-fly may affect oranges. However' sufficient quantities to fill the shipping space available were obtained from the .fly-free irrigation areas. The adjustment on the exchange rate and lower f. o. b. prices have made it possible to reduce the cost of Australian oranges to New Zealand consumers from lid. to 9d. per pound. Supplies from Australia next year should at least be equal to this year's quantities. Jamaica. —The quantity of oranges received from Jamaica was larger than for a number of years, and although the landed condition of one shipment was poor the fruit was generally acceptable to consumers. These oranges fill the gap between the end of the Australian Valencia season and the beginning of the island season in April or May. Except for occasional short periods, imported oranges should be available all the year round as the various producing areas normally ship during the following periods : Cook Islands : April /May to August/September. Australia : June to December, while small quantities of late fruit are sometimes, available until March. . Jamaica : December to April.

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Source of Supply. Yeax Ended 30th September, 1947. Year Ended 30th September, 1948. Cases. Percentage. Cases. Percentage. Fiji 107,303 1 42-3 131,612 45-75 Tonga 49,830 19-6 44,097 15-33 Samoa 96,977 38-1 111,952 38-92 554,110 100-0 287,661 100-00

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Oranges received this year and last were as under

Grapefruit To obtain space on overseas vessels calling at Kingston, Jamaica, it is necessary to give a dead-freight guarantee. During the year the Jamaican Government was unable to fill all the space that had been booked for oranges, owing to a breakdown in condition, and shipped grapefruit instead. This mainly accounts for the larger quantities imported this year when compared with last year. Jamaican grapefruit is of excellent quality and meets a ready demand from consumers.

Importations for the past two years were as follows :

Pineapples The Department has resumed importing pineapples from Australia, and shipments are arriving in better condition than last year. Shippers are experimenting with various methods of strengthening the cases in which the fruit is packed in order to avoid bruising. Pineapples are imported from the Pacific Islands also.

The following figures show importation for years ending 30th September, 1947 and 1948 :

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Source of Supply. Year Ended 30th September, 1947. Year Ended 30th September, 1948. Cases. Percentage. Ceases. Percentage. Australia .. . Cook Islands Fiji Jamaica 237,422 50,005 45 14,740 78-6 16-5 4-9 345,072 35,612 - 1,791 48,321 80-1 8-3 0-4 11-2 302,212 1 100-0 430,796 100-0

Source of Supply. Year Ended 30th September, 1947. Year Ended 30th September, 1948. Cases. Percentage. Cases. Percentage. Australia Cook Islands Samoa Jamaica Fiji 9,988 2,722 '710 74-4 20-3 5-3 450 1,223 763 24,740 112 1-6 4-5 2-8 90-7 0-4 . 13,420 100-0 27,288 100-0

' Source of Supply. Year Ended 30th September, 1947. Year Ended 30th September, 1948. Cases. Percentage. Cases. Percentage. Australia Tonga Fiji Cook Islands 6,118 I 2,067 6,821 40-8 13-8 45-4 6,871 3,597 7,009 808 37-6 19-7 38-3 4-4 15,006 100-0 18,285 100-0

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Lemons The lemon season in New Zealand covers the period Ist April in one year to the 31st March of the next year. The departmental report covers the period Ist October in one year to the 30th September in the next. The figures set out below therefore cover half of one season and half of the next. Packing-plants at Kerikeri, Auckland, and Tauranga were again operated during the period under review, whilst in Tauranga a picking team is provided for growers who are unable to recruit the necessary labour for this purpose. *

The total lemon sales for this year and for the same period last year were :

Tlie following is a summary of marketable grades received by each, packing houses, for the period under review

£ s. d. Total preferred .. .. 68,572§ 35,403 14 1 Total commercial .. .. 34,483§ 15,020 110 103,056 £50,423 15 11 Total Receipts (Including Rejects), All Grades for Each Shed Cases. Tauranga .. .. .. .. .. 84,180§ Auckland .. .. .. .. .. 27,890f Kerikeri .. .. .. .. .. 10,023 Grisborne .. .. .. .. .. 4,906f 126,999| By-products Receipt figures as under£ s. d. First peel lemons : 16336f cases at ss. 6d. case .. 4,492 10 9 Second peel lemons : 156§ cases at 4s. case .. 31 5 6 Juice lemons : 5505f cases at 2s. case .. .. 550 11 0 jProcessed 129|- tons peel; 9,641 gallons juice.

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Source of Supply. Year Ended 30th September, 1947. Year Ended 30th September, 1948. Three-quarter-bushel Cases. Percentage. Three-quarter-bushel Cases. Percentage. New Zealand Cook Islands Australia 60,557 462 22,004 72-9 0-6 26-5 74,338 1,397 10,453 86-3 1-6 12-1 83,023 100-0 86,188 100-0

Auckland. 1 Tauranga. Kerikeri. Gisborne. Preferred. Commercial. Preferred. Commercial. Preferred. Commercial. Preferred. Commercial. 12,994f 57-60% 9,563| 42-40% 47,867-f 70-57% 1 19,958f 29-43% 5,266| 63-00% 37-00% 2,4431 56-67% 1,868 43-33%

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The Tauranga packing-house was destroyed by fire in October, 1946. During the period under review a new packing-house was erected. This is equipped with the latest American machinery for treating lemons and has a cool store and better handling facilities. MILK DIVISION National Milk Scheme The Department has continued to operate the National Milk Scheme, which aims to ensure an adequate supply of good-quality milk every day of the year in all areas of consumption throughout the Dominion. Under the scheme a guaranteed farm-gate price is paid to town milk producers, and various margins are paid for services performed from farm gate to consumer, while the selling-prices are fixed by Price Orders. The difference between the guaranteed price plus margins and the selling-prices to the public is met by way of subsidy. The guaranteed farm-gate price is paid to producers who guarantee the area's requirements every day of the year ; to allow for seasonal variations in production, the price is also paid on percentages of surplus above the guaranteed nominated quantity. These are, in accordance with the agreement with the Town Milk Producers' Federation, 17 per cent, in the five summer months and 10 per cent, for the remainder of the year'. Fixation op National Town Milk Producer Price, 1947/48 Milk Year For the milk year commencing Ist September, 1947, and terminating on 31st August, 1948, the national town milk price was fixed at 19-1352 d. per gallon, which represented an increase of 3-5052 d. per gallon on the previous year's price of 15*63 d. This increase was mainly in line with the increases awarded to the butter and cheese industry. The average price of 19-1352 d. was, in consultation with the Town Milk Producers' Federation of New Zealand, divided into the following seasonal differentials:— North Island — Pence per Gallon. September, 1947, to January, 1948, inclusive .. 15-75 February to April, 1948, inclusive .. .. .. 19-5 May to August, 1948, inclusive .. .. 23-785 South Island— October, 1947, to February, 1948, inclusive .. .. 15-75 September, 1947, March and April, 1948 .. .. 19-00 May to August, 1948, inclusive .. .. .. 24-1975 Terms op Agreement Between the Minister op Marketing and the Town Milk Producers' Federation of New Zealand The terms of the agreement entered into between the Minister of Marketing and the Town Milk Producer's Federation of New Zealand covering the operation of the National Milk Scheme for the 1947-48 year were the subject of major alterations in that the guaranteed price was not accepted as the basis for fixing the town milk price.

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Instead the price was based on the weighted average pay-out (including farm-costs allowance) per pound of butterfat to cheese-suppliers in five districts—Auckland,. New Plymouth, Wanganui-Patea, Wellington, and Southland. It was agreed that such pay-out for any year should be arrived at by taking:the basic figure for that year, adding thereto the difference between the basic figure for tte previous year and the actual weighted average pay-out (including farm-cost allowances) during the same year of the cheese-factories in the above districts and to such pay-out adding o*7sd. as compensation for loss of whey. The above pay-out with such additions was to be multiplied by 12,000, this being considered the number of pounds of butterfat produced on the standard dairy-farm under the guaranteed price. As in previous years, two further additions were made to this figure— , ~ (1) £lO5 6s. (to cover the extra labour reward to producer and hired worker.! as recommended by the Town Milk Commission). (2) £36 (to cover the interest on the town milk producers' extra capital as recommended by the Town Milk Commission). The final result was to be divided by 20,000 to determine the national town milk price per gallon. This figure of 20,000 was taken by the Town Milk Commission as the production, in gallons of milk, of a standard town milk farm. The application of the above formula to the 1947-48 milk year is as follows : d. Basic pay-out for cheese, 1947-48 .. .. .. 27-907 d. Pay-out of five districts in 1946-47 .. .. 24-084 Basic pay-out for cheese in 1946-47 .. .. 23-675 : ! Difference to be added .. .. 0-409 0-409 Assumed average pay-out for 1947-48 .. .. 28-316 " Compensation for loss of whey .. .. .. 0-75 ; 29-066 £ s. d. 29-066 d, x 12,000 = .. .. .. .. 1,453 6 0 Extra labour reward .. .. .. .. 105 6 0 Interest on extra capital .. .. 36 0 0 £1,594 12 0 £1,594 12s. divided by 20,000 = 19-1352 d. per gallon There was no change in the agreement in regard to payment of a surplus factor of 10 per cent, in the autumn-winter periods and 17 per cent, in the summer period, other than a proviso that the question of surpluses was to be subject to review if cream-rationing should be cancelled or modified before the 31st August, 1950. The agreement is for a three-year period ending 31st August, 1950, but it has a clause that it should not preclude the introduction of an agreed method of payment for milk on a quality basis if it should become practicable before that date.

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Basis of Realization for Surplus Milk Diverted for Cheese or Butter Manufacture After consultation with the Town Milk Producers' Federation it was agreed that for the 1947-48 milk year the credits on surplus milk to be given to the Government on quantities diverted to cheese or butter manufacture were to be on the following basis : Per Gallon, d. For cheese .. .. .. .. 10*625 For butter .. .. .. .. 9-725 All prices to be credited as at the farm gate.

List of Town Milk Producer Organizations, Together With Daily Nominated Quantities Approved by the Minister of Marketing in Respect of the 1947-48 Milk Year

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District. Name of Association. / Nominated Quantity. Gallons. Ashburton Ashburton Town Milk Producers' Co-operative, Ltd. 640 Auckland North Shore Milk Producers' Association, Ltd. 3,244 Auckland New Zealand Co-operative Dairy Co., Ltd. 16,279 Auckland Auckland Co-operative Milk Producers' Association, Ltd. 13,824 Balclutha Dairy Farmers' Co-operative Milk Supply Co., Ltd. 425 Bay of Islands Bay of Islands Milk Producers' Association 125 Blenheim Blenheim Co-operative Milk Supply Co., .Ltd. 896 ' Cambridge St. Peter's School, Cambridge Canterbury Dairy Farmers' Co-operative Milk Supply Co., Ltd. Christchurch Metropolitan Milk Suppliers' Co-operative Association, Ltd. 72 Christchurch 15,455 Christchurch 4,515 Dannevirke Maharahara Co-operative Dairy Co., Ltd. 880 Dargaville Dargaville Milk Producers' Association 230 Dunedin Dairy Farmers' Co-operative Milk Supply Co., Ltd. 7,250 Dunedin Town Milk (Dunedin), Ltd. 3,000 Eltham Eltham Producers' Co-operative Milk Organization 126 Fairlie South Canterbury Co-operative Milk Supply Co., Ltd. 65 Feilding Feilding Milk Producers' Supply Association435 Foxton Foxton Milk Producers' Supply Association .. .. 202 Geraldine South Canterbury Co-operative Milk Supply Co., Ltd. 90 Gisborne Gisborne Co-operative Milk Producers' Association, Ltd. 2,000 Greymouth Grey District Milk Producers' Association, Ltd. 1,133 Hamilton Hamilton Milk Producers' Co., Ltd. 3,520 Hamilton New Zealand Co-operative Dairy Co., Ltd. 1,150 Hawera-Patea Hawera Co-operative Milk Supply Association, Ltd. 720 Napier and Hastings Hawkes Bay Raw Milk Producers' Co-operative, Ltd. 4,000 Inglewood New Plymouth Dairy Farmers' Co-operative Milk Supply Co., Ltd. 95 Invercargill Southland Co-operative Milk Supply .. .. 3,200 Kaikohe . Kaikohe Milk Producers' Association .. 120 Kaitaia Kaitaia Milk Producers' Association 130 Kaitangata Dairy Farmers' Co-operative Milk Supply Co., Ltd. 100 Kaikoura Kaikoura Milk Supply Association .. .. .. ... 90 Kaponga A. M. Wickham 27 Katikati Katikati Milk Producers' Group 35 Levin Levin Co-operative Dairy Co., Ltd. Matamata Milk Producers' Association 380 Matamata 125 Marton Marton Milk Producers' Association 304 Masterton Masterton Town Milk Producers' Association (Inc.) 820 Milton Dairy Farmers' Co-operative Milk Supply Co., Ltd. 175 Morrinsville J. H. Finn 60

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List of Town Milk Producer Organizations, Together With Daily Nominated Quantities Approved by the Minister of Marketing in Respect of the 1947-48 Milk Year —continued

Wellington City Council Price Structure and Reconciliation With Hutt Valley Trade The supply of milk to the Wellington metropolitan area, which includes the Hutt Valley, is not handled under the National Milk Scheme, and a totally different price structure is provided for the purchase of milk from town milk producers. Following upon the increase under the National Milk Scheme of 3-5052 d. per gallon, consultations were held between the Wellington Dairy Farmers' Co-operative Association, Ltd., the Wellington City Council, and the Department, and resulted in the following price schedules being determined upon for the 1947-48 milk year : Summer period .. .. .. 17-75 d. per pound butterfat, plus 8-39 d. per gallon added value. Autumn period .. .. .. 17-75 d. per pound butterfat, plus 11-79 d. per gallon added value. Winter period .. .. .. 17-75 d. per pound butterfat, plus 85 per cent, of 17-75 d., plus. 11-7608 d. per gallon added value.

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District. Name of Association. Nominated Quantity. * Gallons. Mount, Maunganui Mount Maunganui Milk Producers' Association 88 Nelson Nelson Co-operative Milk Producers' Association, Ltd. 2,200 New Plymouth New Plymouth Dairy Farmers' Co-operative Milk Supply Association, Ltd. 2,350 Oamaru North Otago Milk Producers' Association ... 980 Opotiki Opotiki Milk Producers' Association 170 Otorohanga Otorohanga Milk Producers' Association 125 Palmerston North .. Manawatu Co-operative Milk Producers' Co., Ltd. Picton Milk Producers' Association 3,250 Picton 210 Pukekohe Franklin Milk Producers' Association 280 Raglan S. Hampton 80 Rotorua Rotorua Co-operative Milk Supply Co., Ltd. 1,010 Raetihi-Ohakune .. Ruapehu Milk Producers' Association 400 Stratford Stratford Co-operative Milk Supply Association 645 Taihape Taihape Milk Producers' Association 170 Taumarunui Taumarunui Milk Producers' Association 366 Tauranga Te Aroha Tauranga Milk Producers' Association 800 Te Aroha Milk Producers' Association 230 Te Kuiti Te Kuiti Milk Producers' Association 190 Temuka .. 1 South Canterbury Co-operative Milk Supply Co., Ltd. .. 100 Thames Valley Thames Valley Milk Producers' Association 970 Timaru South Canterbury Co-operative Milk Supply Co., Ltd. Waikanae Milk Producers' Association 2,600 Waikanae 70 Waimate South Canterbury Co-operative Milk Supply Co., Ltd. 295 Waipukurau Waipukurau Milk Producers' Association 150 Wairoa Wairoa Milk Producers' Association 300 Waitara .. New Plymouth Dairy Farmers' Co-operative Milk Supply Association, Ltd. 210 Wanganui Wanganui Co-operative Milk Supply Co., Ltd. 2,450 Waverley Waverley Milk Producers' Association .. .. :. 45 Wellington The Nearby Farmers' Association (Inc.) 2,200 Westport Westport United Dairies, Ltd. 609 Whakatane Whakatane Milk Producers' Association 520 Whangarei Whangarei Co-operative Milk Marketing Co., Ltd. 1,375 | Total 111,375

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Supplies of Milk The period proved to be one of expanding milk-supplies; a guaranteed supply of milk was available on an organized basis in a number of additional areas, the number of associations guaranteeing supplies being increased by 32 to 71 and the gallonage guaranteed from 87,876 gallons to 111,375 gallons. The increase in gallonage has resulted in a problem in areas where impingement on their supplies by town milk producer associations has led some dairy companies to report the problem to the Dairy Board. The differences have been resolved, but there is no doubt that with the natural increase in town milk requirements it will be necessary to find a solution to what must eventually be a really live problem affecting principally the operation of dairy factories adjacent to areas of population by way of reducing their throughput to the stage where they become uneconomic and in some instances redundant. Treatment of Milk The Department has continued to carry out the policy of public treatment of milk in the greater consuming areas and in smaller areas where treating house proprietors have offered their business for sale. The Department, in carrying out this policy, is taking the opportunity of modernizing several of the existing treatment houses, and in some areas arrangements are being made to build_ new ones. An endeavour is made to obtain local interest in the setting-up of some form of public utility organization to take over the control of the treatment plant purchased ; the usual type of organization has been in the form of a milk treatment corporation with directors representing producers and consumers of town milk, and one Government representative. In two districts, Whangarei and Balclutha, control has been taken over by the local Borough Council. In any rebuilding or re-equipping programme the Department plans with a view to satisfying the needs of the district for the next ten years. In Auckland two milk treatment houses representing half the treating-capacity of the Auckland Metropolitan Milk District are being operated by the Auckland Milk Treatment Corporation, and plans are being prepared for a complete new building and plant which will eventually supersede these two treatment houses. Extensive alterations are being made to Palmerston North, Wanganui, and Nelson treatment houses. During the year the new Dunedin Milk Station was completed, and as a result three obsolete treatment houses were closed down. Progress has been made in the handling of a new treatment house at Hastings. In Napier, Palmerston North, Blenheim, and Dunedin the milk treatment, plants are being operated by the Department pending a decision as to the form of local organization to control and operate the plants ; milk treatment corporations have been set up at Wanganui, Nelson, and Timaru, and on the 31st August, 1948, the existing treating house at Hamilton was purchased and transferred to the control of the Hamilton Milk Treatment Corporation. This Corporation also took over control of the milk depot in Frankton Junction which had up to that date been operated by the Department. Payments Made in Respect op Milk Supplied for Human Consumption for the Period Ist September, 1947, to 31st August, 1948 (a) Payments made under National Milk Scheme to producers, treating £ houses, and vendors .. .. .. .. 1,130,256(b) Cost of surplus milk scheme .. .. .. .. .. 148,729 (c) Payment of winter feed allowances .. .. .. .. 14,188 (d) Payment of administration levy to producer associations .. 7,931 (e) Payment of levies to local milk authorities .. .. .. 12,143 £1,313,247

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BRANCHES Auckland Apples and Pears.—Receipts of these fruits in the Auckland district were approximately 50 per cent, above those of the previous year, a total of 292,099 cases beingreceived, as against 146,040 cases for the previous year. In view of the large crop, double the quantity of apples and pears were cool stored, the total being 338,381 cases. Distribution was maintained on the quota system, a total of 376,000 cases of apples and 115,000 cases of pears being sold in this district. Agar Agar Seaweed. —Although collectors were asked to increase the quantities sent in to the Branch, the results were disappointing, receipts being only 60 tons, as against 78 tons for the previous year. Butter. —As from the Ist May, 1948, the Dairy Products Marketing Commission took over the operations of patting, tinning, and butterfat-drying. The Branch, however, continued to carry out these operations on behalf of the Commission. The following table shows the operations: of this section under two headings, before and after the Dairy Products Marketing Commission took over control:—

Eggs. —Deliveries once a week on a zoned area basis was continued by merchants during the year. The intake of eggs through the Auckland floors was 2,997,122 dozen, a decrease of 8*92 per cent, over last vear, when the intake of eggs received was 3,290,649 dozen. During the- flush period 90,095 dozen eggs were chilled and were placed on the market during April, May, and June. Egg-pulp manufactured locally was 396,200 lb. Honey. —The honey-blending plant is run by the Auckland Branch, and, as mentioned earlier in this report, 178 tons were received. Imported Fruits. —The supply of these.fruits, bananas excepted, is almost sufficient to meet the demand. However, the elimination of dollar buying has made an even distribution of supplies throughout the year more difficult. Storage. —During the apple season the store was used almost exclusively for the handling of apples and pears, but during the off season dry goods were stored on behalf of private firms. Lemons. —The lemon-packing plants at Kerikeri, Tauranga, and Auckland are under the. control of this Branch. During the period covered by this report 129| tons of lemon-peel and 9,641 gallons of lemon-juice were processed. Milk.—-As from April, 1948, the Branch carried oat certain duties on behalf of the Milk Division, including the checking of subsidy claims and vendors' records. Pukekohe Processing Factory Canning. —The factory processed 689,814, 16 oz. peas ; 253,391, 30 oz. peas ; 1-50,393, 16 oz. beans. Casein. —On behalf of the associated casein companies, a total of 2,566 tons of green curd was dried, producing 1,127 tons of dried casein. The casein-factories are installing their own drying facilities, so that in future Pukekohe will handle only their surplus.

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S8||i| ■ 1st October, 1947, to 30th April, 1948. 1st May, 1948, to 30th September, 1948. Total. Butter sales .. Tinned butter .. Butterfat sales Purchases Boxes. 51,386 / 12,246 (48's) \ 63 (60's) 629 (-78) 61,614 Boxes. 36,933 i40 37,366 | Boxes. 88,319 12,246 63 769 98 980

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Storage. —As lias been the case during the past few years, the factory stored onions during the season. This entailed sorting, casing, packing, cool storing, and dry storage of growers' onions. Altogether 32,500 bags and crates were handled. Approximately 60,000 cases of apples passed through the factory's cool stores. In addition; approximately 100 tons of potatoes were coolstored. Pickled Onions. —During June and July the female staff at the factory were engaged in preparing 5,600, 22 oz. bottles of pickled onions. Tomato Puree. —The factory also processed tomato puree under contract. Altogether 252,705, 16 oz. cans and 411,133, 22 oz. cans of this product were processed, packed, labelled and shipped. Hastings This year has been the busiest for the Branch since the end of the war, a record crop of apples and pears being handled. Although the assembly of apples and pears is the main function of the Branch, other activities recently undertaken and set out have materially increased the work performed. Apples and Pears. —Receipts of apples and pears at the assembly depot amounted to 1,009,644 cases. The handling of this crop, which, together with an estimate of 20,000 cases still to come to hand, is a record, taxed the capacity of the assembly shed and cool stores. A total of 295,733 cases passed through the cool stores, and of this quantity the total wastage was 2,597 cases, equal to 0-25 per cent., or 4 cases out of every 1,000 handled. Eggs.—-The branch continued to supervise the activities of the local egg floor, 569,628 dozen eggs passing through the floor, as against 559,305 dozen last year. Since 1945 the number of eggs per year passing through this floor has increased by 98,198 dozen. Agar Agar Seaweed.—lnterest in the collection of this seaweed has been well maintained, and the quantity handled shows a marked increase over the previous year, 89 tons 18 cwt. being received, as against 36 tons 14 cwt. for the previous. period. Milh.—Supervision of the clerical work in connection with the milk treatment station at Napier was carried out by the Branch Accountant. In addition, the Branch's engineering staff assisted in carrying out repairs and minor improvements to the treatment station's' plant. Dry Storage. —As fruit occupied the storage floor for a longer period than usual, storage on behalf of local merchants was not on the same scale as last year. Nevertheless, some 253-| tons of goods were stored. Gisborne % Apples and Pears. —Once again the receipts of apples and pears by this Branch showed a marked increase, a total of 47,422 cases being received, as against 28,200 cases for the previous year. One of Grisborne's main functions is the assembly and cool-storing and distribution of these pip-fruits. Lemons.—The lemon-packing shed, which is under the supervision of this Branch, recorded a large increase in receipts, 5,070 cases being received, as against 3,080 cases last year. Eggs.—The quantities of eggs received at the local egg floor increased to 375,401 dozen, as against 336,564 dozen for the same period during the previous year. Maize. —Being in the centre of the main maize-growing area of the country, the Branch takes an active interest in this product, the local Manager being Secretary of the Maize-Marketing Committee.

Problems and inquiries relating to agar agar seaweed, honey, potatoes, and citrus fruits were also dealt with.

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Nelson Apples and Pears. —Dealing as it did with a record crop of 1,347,055 cases during the year, as against the previous record of 1,302,153 cases in 1941, this Branch experienced a very busy year. In handling this record crop the Branch was handicapped by the inadequacy of the storage and cool-storage space available in the Nelson district. Eggs.—Receipts of eggs at the local egg floor were 61,158 dozen. This is a decrease of 34,842 dozen as against receipts for the previous year. Milk.—By arrangement with the Nelson Milk Treatment Corporation, the Accountant of Nelson acts as Secretary to the Corporation, and all the secretarial, accounting, and stock-recording work is performed by the Nelson Branch. Dunedin Apples and Pears. —Although the crop in the Otago area was for the second year in succession severely damaged by frost, the receipts were well in excess of the previous year's receipts, 77,543 cases being received, as against 16,939 cases last year. Eggs.—A steady and sustained increase was again recorded in the receipts of eggs through the local floors, a total of 1,428,050 dozen being received, as against 1,294,585 dozen for the same period last year. Milk.—-During the period under review this Branch has acted for the Milk Marketing Division in the Otago District. Allocation of fertilizers^and the supervision of imported fruits were also carried out. Christchurch Produce Section. —Although the number of potato contracts made during the period under review was- less than the previous year —869, as against 939—the total acreage was greater, being 8,287 acres, compared with 8,150 acres. The checking of the areas and contracts was carried out by Field Officers of the Branch, and it was estimated a further 1,200 to 1,500 acres were planted without contracts. Contracts for onions were made for the last time, and indications are that the surplus will be very small, as 248 tons were purchased for dehydrating for the local market. This tonnage produced 33,192 lb. of processed onion flakes. Carrots were also dehydrated, 827,687 lb. yielding 57,750 lb. of the processed article, for the local market, and 303,730 lb. yielding 37,275 lb. for rabbit-destruction. Because of the factory operations, only limited space for storage was available. However, grain and seed were stored to the extent of 24,780 sacks ; wool, 1,788 bales ; oil in drums, 338 ; and general goods approximately 150 tons. Apples and Pears. —Although the number of cases of these fruits received, 88,266 cases,-was the largest since 1944, no difficulty was experienced in handling this crop in view of the excellent assembly facilities available at the Branch. The loss of two cool stores in Christchurch affected the cool storage of apples in the district materially, and this problem will not be alleviated until such time as adequate cool-storage space is available. Eggs.—The production of eggs has this year increased considerably in the Canterbury area, the intake for the three licensed floors being 2,836,947 dozen, as against 2,581,909 dozen for the previous year, an increase of 255,038 dozen. As the west coast of the South Island produces only 10 per cent, of local requirements, the bulk of its supplies are railed from the Ashburton area, a total of 149,116 dozen being forwarded during the year. Imported Fruits. —The distribution and supervision of imported fruits for the district were also carried out. Milk.—This Branch undertook work on behalf of the Milk Marketing Division. This work included checking of milk subsidy claims and general investigations of milk problems in the Canterbury and West Coast areas.

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MARKETING DEPARTMENT INTERNAL MARKETING DIVISION Trading Account tor the Year Ended 30th September, 1948 Dr. £ Or. £ Stock, Ist October, 1947 .. .. .. .. 202,026 Sales of fruit, produce, fertilizers, and sundries .. .. 2,659,037 Purchases .. .. .. .. .. .. 2,390,275 Stock, 30th September, 1948 .. .. .. .. 255,990 Wages, processing charges, storage, freight, and distribution expenses .. .. .. .. .. .. 278,885 Gross profit .. .. .. .. .. .. 43,841 £2,915,027 £2,915,027 ===== I 1 Profit and Loss Account for the Year Ended 30th September, 1948 Dr. £ I Cr. £ Salaries, wages, and overtime .. .. . . .. 51,777 i Gross profit on trading . . .. .. .. .. 43,841 Advertising .. .. .. .. .. .. 178 Rents and sundry recoveries .. .. .. .. 8 ,932 Audit fees .. .. .. .. .. .. 1,268 Directors' fees .. .. .. .. .. .. 97 Bank interest and exchange . . .. . . .. 774 Interest on shares in Farm Products Co-operative (Wellington), Depreciation of assets .. .. . . .. . . 2,305 Ltd. .. .. .. .. .. .. .. 124 Expenses of Marketing Advisory Committees . . .. .. 67 Interest on inscribed stock .. .. .. .. .. 7,588 Expenses of officers travelling overseas .. .. .. 474 Recovery of costs of administration of Butter Equalization Account, General expenses .. .. .. .. .. .. 3,145 Honey Pool, Lemon Pool, and other sections .. .. 20,502 Insurance .. .. .. .. .. .. 617 Light, heat, and power . . . . ~ .. .. 299 Maintenance of— Buildings .. .. .. . . .. .. 449 Furniture and fittings .. .. .. .. . , 72 Office machines .. . . . . . . .. 177 Plant .. .. .. .. .. .. .. 633 Motor expenses .. .. . . .. .. 2,623 Postages and telephone services .. .. .. .. 5,417 Printing and stationery .. .. .. .. 1,811 Public Service superannuation subsidy . . .. .. 497 Rent and rates .. .. .. .. .. .. 2,362 j Transfer and removal expenses .. .. .. ' .. 26 | Writings-off Reserve .. .. .. .. .. 103 j Travelling allowances and expenses .. .. .. .. 3,581 i Balance, to Profit and Loss Appropriation Account .. .. 2,429 j £81,084 j £81,084

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MARKETING DEPARTMENT— continued INTERNAL MARKETING DIVISION— continued Profit and Loss Appropriation Account Dr. £ Cr. £ Balance forward from last year .. .. .. .. 113,065 Recovery from War Expenses Account of wartime losses on apples Provision for taxation .. .. . . .. .. 330, 000 and pears .. .. .. . . .. .. 668, 063 Balance forward to next year .. .. .. .. 227,427 Net profit for year ended 30th September, 1948 .. .. 2,429 £670,492 £670,492 Butter Equalization Account for the Seven Months Ended 30th April } 1948 Dr. £ Gr. £ Equalizing payments under section 12, Marketing Amendment Balance forward from last year .. .. .. .. 664,296 Act, 1937— Balance recoverable from the New Zealand Dairy Products (a) Reimbursement of charges payable mainly in connection Marketing Commission .. .. .. . . 44,284 with the storing of butter for local consumption during the winter months in the South Island and not allowed for in the butter differential— £ Interest and insurance . . .. .. 1 Reworking and defrosting .... 6 Storing and freezing .. .. .. 56 63 (b) Servicing-allowances to authorized distributors and patting depots .. .. .. .. .. .. 14,654 (c) Grading fees .. . . .. .. .. 758 Payments under section 11, Marketing Amendment Act, 1937— £ Agency and wharfage ... .. .. .. 25 Ereight and cartage .. . . .. .. 283 Storing and freezing .. .. .. .. 1,299 1,607

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Sutter Marketing Regulations 1937, ciause 16 : Excess of expenditure over income, representing the difference between the proceeds of butter withdrawn from export, &c., for sale at the regulated local price (less allowance for patting, &c.), and the amount paid for purchase at the f.o.b. guaranteed price as follows— £ £ Purchases at the guaranteed f.o.b. prices. . 458, 462 Plus stock on hand, Ist October, 1947 (valued at f.o.b. guaranteed price) .. 4,524 . 462,986 ! Less—" ' Sales .at the regulated local and guaranteed price .. .. 61,865 Stock (sold to. New Zealand Dairy Products Marketing Commission in i July, 1948) .. .. .. 377,002 438,867 24,119 Administration expenses .. .. . . .. 3,083 Balance, representing surplus as at 31st July, 1942 .. 664,296 £708,580 £708,580 Note.—Under the Butter and Cheese Marketing Regulations 1948, responsibility for the marketing of local butter was assumed by the New Zealand Dairy Products Marketing Commission on Ist May, 1948, and the above surplus was transferred to the Dairy Industry Account in October, 1948.

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MARKETING DEPARTMENT— continued INTERNAL MARKETING DIVISION— continued New Zealand Lemon Marketing Account for the Year Ended 30th September, 1948 Dr. £ \ Or. £ Stock on hand, Ist October, 1947 .. .. .. .. 977 i Sales of New, Zealand lemons and by-products .. .. 86,147 Purchases .. .. .. .. .. .. 57,622 j Stock on hand, 30th September, 1948 .. .. .. 15,131 Curing and processing charges, wages, rents, freights, maintenance, Loss, transferred to New Zealand Lemon Pool Account .. 100 and sundry charges .. .. .. .. .. 31,548 Marketing and distribution expenses .. . . .. 6,647 Administration expenses .. .. .. .. 4,584 £101,378 £101,378 New Zealand Lemon Pool Account for the Year Ended 30th September, 1948 (In accordance with an agreement between the Minister of Marketing and the New Zealand Citrus Council, Inc., dated 11th March, 1948.) Dr. £ Or. £ Loss for year brought down from New Zealand Lemon Marketing Balance forward from last year .. .. .. ..11, 434 Account . .. .. .. . . .. 100 Balance as at 30th September, 1948— £ Accumulated net profits to 30th September, 1946 . . 8,395 Net profits, Ist October, 1946, to 30th September, 1948 2,939 ' 11,334 £11,434 £11,434

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HOtfEY SECTION Local and Export Pool Account for the Year Ended 30th September, 1948 Dr. Or. £ ' . £ Stock on hand, Ist October, 1947 £ £ Balance from last year .. .. .. .. 10,317 Local .. .. .. .. .. .. 2,165 Less profit on Australian Honey (erroneously included Export .. .. .. . . . . .. 2 I in Pool) .. .. . . .. . ■ 546 2,107 9,771 Honey purchases .. .. .. .. .. 18,527 Sales— Administration expenses .. .. .. .. 2,819 London .. .. .. .. .. 5,188 Local Pool Account expenses— New Zealand .. .. .. .. . • 7,077 Blending and packing .. .. .. .. 1,941 12,265 Freight and cartage .. . . .. .. 263 Sales second-hand tins and cases .. . . .. 53 2,204 Stock on hand, 30th September, 1948— Export Pool Account expenses— London .. . . . . . • • • 2 London Depot .. ... .. .. .. 453 New Zealand .. .. .. .. .. 10,583 Handling and freight . . ... . . .. 997 10,585 Selling-expenses .. - .... . . . . 827 , 2,277 Expenses and allowances of Honey Control Board and Honey Marketing Committee .. . . . . 363 GrantsNational Beekeepers' Association .. .. . . 100 Honey Suppliers' Association .. . . .. 100 2OO - Balance forward to next year .. .. .. 4,117 £32,674 £32,674 Honey Seals Account for the Year Ended 30th September, 1948 Dr. £ Or. £ Expenses of printing and franking .. .. . . .. 239 Balance from last year .. .. .. . . . . 22,054 Balance forward to next year .. .. .. .. 25,418 Levy under the Honey Marketing Regulations 1938 .. .. 3,603 £25,657 • £25,657

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MARKETING DEPARTMENT— continued INTERNAL MARKETING DIVISION— continued Balance-sheet as at 30th September, 194-8 Liabilities £ Assets £ Creditors .. .. .. .. .. .. 299,880 Land .. .. .. .. .. .. .. 12,557 Butter Equalization Account . . .. .. . . 664,296 Buildings | . • ■ • • • ■ • • • • • • 20,491 New Zealand Lemon Pool Account .. .. .. 11,334 Motor-vehicles .. .. .. .. .. .. 6,503 Apple and Pear Pool Account .. .. .. .... 340,321 Plant and machinery, loose tools, furniture, and office appliances 62,158 Uneconomic Orchards Account .. .. .. .. 43,758 Inscribed stock .. .. .. .. ~ .. 253,510 Honey Pool Account .. .. .. .. .. 4,117 Shares in Farm Products Co-operative (Wellington), Ltd. .. 3,100 Honey Seals Account .. .. .. .. .. 25,418 Stock in trade .. .. .. .. .. .. 281,706 Provision for honey advertising (London) .. .. .. 15,748 Stock of consumable stores .. .. '. . .. 41,284 Surplus in egg-floor pools .. .. .. . .. 4,741 Debtors .. .. ... .. .. .. 393,243 Provision for insurance on goods in transit and in cool store .. 9,500 Cash at bank and in hand • .. .. .. .. 901,988 Provision for taxation .. . . .. .. .. 330,000 Losses in Suspense .. .. .. .. .. 117 Profit and Loss Appropriation Account .. .. .'. 227, 427 Provision for writings off .. .. .. .. .. 117 £1,976,657 £1,976,657 As the apple and pear season closes on the 31st December, the Growers' Pool Account is submitted separately. I hereby certify that the Balance-sheet and supporting accounts have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby, subject to the departmental note enfaced thereon.— J. P. Rutherford, Controller and Auditor-General. L. C. Webb, Director. G. C, JuPP, Accountant.

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APPLE AND PEAR SECTION Growers' Pool Account for the Year Ended 31st December, 1948 (In accordance with an agreement between the Minister of Marketing and the New Zealand Fruitgrowers' Federation, Ltd., dated 10th December, 1947) Dr. £ Or. £ Purchases .. .. .. .. .. .. 1,677,516 Balance brought forward .. .. .. .. 14,656 Assembly .. .. .. .. .. .. 44,802 Sales.. .. .. .. ~ .. .. 2,093,994 Freight and cartage .. .. .. .. .. 225,861 : Subsidy .. .. .. .. .. .. 20,000 Wharfage .. . . . . .. .. .. 22,640 Cool storage .. .. .. .. .. .. 130,115 j Insurance .. . . .. .. .. .. 1,808 ! Balance carried down . . .. .. .. .. 25,908 £2,128,650 i £2,128,650 I = I " Dr. £ 4 Or. £ Advertising .. .. .. . . .. .. 1,054 [ Balance brought down . . . . .. .. .. 25,908 Advisory Committee expenses .. .. .. .. 1,244 ; Balance (owing to Marketing Department) .. .. .. 9,722 Audit fees .. . . . . .. .. . . 405 i Bank charges and exchange .. .. .. .. 813 j Cables, telegrams, and postages .. .. . , .. 2,512 | Printing and stationery .. . . . . . . .. 986 ; Rent, light, and heat' .. .. .. .. .. 1,519 j Salaries .. . . .. . . . . . . . . 23,240 Travelling-expenses .. . . .. .. .. 2,882 General expenses .. . . .. .. .. .. 975 £35,630 £35,630 Uneconomic Orchards Subsidy Account Dr. £ I Or. £ Assistance to uneconomic orchards and compensation for hail and j Balance brotight forward . . . . . , . . 56,862 frost damage .. .. .. .. .. .. 15,147 ! Balance (held by Marketing Department) .. .. .. 41,715 £56,862 £56,862 I hereby certify that the Growers' Pool Account and the Uneconomic Orchards Subsidy Account have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby.— J, P. Rutherford, Controller and Auditor-General. L. C. Webb, Director. W. Lawson, Accountant.

2—H 30

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MARKETING DEPARTMENT— continued MILK MARKETING DIVISION Milk Treatment Stations Profit and Loss Account foe the Period Ist September, 1946, to 31st March, 1948 Dr. I Or. Loss, including interest and depreciation incurred in I Profit (after charging depreciation and interest on capital) operating milk-treatment stations at— £ £ j on operating milk-treatment stations at-— £ £ Dunedin .. .. .. . . . . 9,083 j Hamilton .. .. .. . . 105 Timaru .. . . . . .. .. 1,743 Hastings , .. .. .. . . . . 105 Napier .. .. .. .. .. 6,105 300 Blenheim .. .. .. .. .. 6,612 Net loss .. .. ' .. .. .. 36,724 Palmerston North .. <■ .. .. 1,689 Nelson .. .. .. .. .. 3,916 29,148 Interest on capital invested in Auckland Milk-treatment Station operated by Auckland Milk-treatment Corporation on behalf of the Department . . . . 4,207 Interest on capital invested at Whangarei pending purchase by Whangarei Borough Council .. . . 933 Interest on capital equipment at other milk-treatment stations .. .. .. .. . . 968 6,108 Loss on realization of assets— Dunedin : Horses and carts .. .. .. 242 Palmerston North : Motor-vehicles .. .. 220 462 Less surplus on realization of assets— Dunedin : Motor-vehicles . . .. .. .. 145 317 Provision for bad and doubtful debts .. .. .. 1,451 £37,024 | £37,024 Notes.—(1) Administration expenses of the Division have been borne by Consolidated Fund, and are not included in the Profit and Loss Account; (2) this account does not reflect results of operation of the Nelson Milk-treatment Corporation or Auckland Milk-treatment Corporation, which assumed responsibility for management on Ist September, 1947, and Ist April, 1947, respectively.

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Balance-sheet as at 31st March, 194.8 Liabilities £ j Assets £ Consolidated Fund capital . . .. .. . . 402,101 Purchase and erection of treating-stations, purchase and instalLiability to Export Division for advances from Sundry Products lation of new plant, acquisition of vending interests at Balclutha, Account . . .. .. .. •• •• 49,033 Christchurch, Dunedin, Nelson, Timaru, Auckland, Whangarei, Creditors .. .. .. •• •• 66,380 Hamilton, Wanganui, and Wellington at cost, less depreciation 394,375 Liability for interest on Consolidated Fund capital .. .. 13,706 Stock and stores .. .. .. .. .. 13,343 Writings-off Reserve .......... 317 £ Debtors .. .. .. .. .. 76,135 Less provision for bad and doubtful delTts .. 1,451 74,684 j Cash held by imprestees .. .. .. .. .. 12,094 ! Profit and Loss Account .. .. .. .. 36,724 j Losses in Suspense . . . . . . . . .. 317 £531,537 | £531,537 L. C. Webb, Director. W. T. L. Jones, for Accountant. I hereby certify that the Profit and Loss Account and Balance-sheet have been examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby, subject to the departmental notes enfaced thereon.— J. P. Rutherford, Controller and Auditor- General.

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The following reports and accounts are appended to this Department's annual report.: — (1) Meat.—The administration of the day-to-day export marketing of meat is now vested in the New Zealand Meat Producers' Board. The Meat Industry Account, however, is still administered by Marketing. (2) Tallow. —The administration of tallow has also been transferred to the New Zealand Meat Producers' Board, with a similar arrangement to meat, for the Industry Account. (3) Sheep and Lamb Pelts—-The Sheep-skin Emergency Regulations 1947 and the Pickled Sheep and Lamb Pelt Emergency Regulations 1947 have now been placed under the Economic Stabilization Act, 1948. (4) Hides. —Administered by the Hides Committee. ACKNOWLEDGMENT On behalf of the Minister of Marketing, I take this opportunity of recording the Government's appreciation of the co-operation and assistance given by the Dairy Products Marketing Commission and the New Zealand Meat Producers' Board, together with the respective staffs of both organizations, in effecting a smooth transfer in the reallocation of functions previously vested in the Marketing Department (Export Division). MEAT Long-term Contracts, 1944-48, Between the United Kingdom and New Zealand Governments for Purchase op the Exportable Surplus op Meat por the Production Period Ist October, 1944, to 30th September, 1948, and Its Extension to 30th September, 1950. Following Negotiations Held in London in July, 1948, the Contract Period was Further Extended to September, 1955, Except in the Case of Pig-meats, Where the Period was Extended to 1952. The outstanding feature of the agreement is the fact that the United Kingdom Government has agreed to purchase all the Dominion's exportable surplus of meat for a period of seven years from the end of last season, with the exception of pig-meats, where the term is for four years. The basis of this season's prices represents an increase of 76 per cent, for pig-meats and 70 per cent, for all other meats over the original 1939-40 sterling contract prices. Prices are subject to annual review, with a maximum variation up or down of 7| per cent, in any one year. The contract terms for the various items are as follows : . Pig-meat.—The United Kingdom to purchase New Zealand's exportable surplus of pig-meat up to 30th September, 1952. Prices. —If higher prices are paid to other countries supplying meat to the United Kingdom, notably Argentina and Australia, New Zealand will have the right to reopen the question of prices. Boning of Beef. —All beef normally shipped as quarter beef must now be shipped bone-in. Canning.—(l) Beef: It was agreed to purchase the same quantity of canned corned beef in 1948 as in 1947, at the same price as that paid to Australia. (2) Tongues : The Ministry of Food's preference is for frozen tongues, and they desire that the canning of tongues be kept to a minimum. The fat-stock schedule and f.o.b. prices for the 1947-48 season were quoted in the last report of Export Division of the Marketing Department at pages 28, 29, 30, and 31.

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Purchase and Sale Procedure and Prices Paid for 1947-48 Season's Meat Purchased by Marketing Department for Export The arrangements regarding the purchase and sale procedure were the same as those operating during the previous season. Exports to Countries Other Than the United Kingdom The exports to countries other than the United Kingdom were continued on the same basis as the previous year. . Survey op Season

The killings of meat returned to the Department during the 1947-48 season as available for export totalled 347,036 tons. Average weights of lamb and mutton for the three seasons 1945-46, 1946-47, and 1947-48 are as follows :—-

Details of killings for export month by month, throughout the season, with the 1946-47 season's totals for comparison, are shown in the following table :

Frozen Meat Killings for Export, Season 1947-48

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North Island. South Island. Dominion. 1945-46. 1946-47. 1947-48. 1945-46. 1946-47. 1947-48. 1945-46. 1946-47. 1947-48. lb. lb. lb. lb. lb. lb. lb. lb. lb. Lambs 31-39 35-15 33-4 34-61 35-58 34-9 32-81 35-35 34-1 Wethers 54-32 60-18 59-6 49-67 52-41 51 1 53-86 59-42 58-8 Ewes 52-51 57-23 56-9 52-83 54-01 55-1 52-61 56-05 56-2

— Lamb. Wether Mutton. p 1 1 © & Quarter Beef. Yeal. Boneless Bobby Yeal. Boneless Bull Beef. Boneless Cow and Ox Beef. Baconers. Porkers. Choppers. Edible Offal. Total. 1947 October November December 1948 January February March April May June July August September Totals 1946-47 season Tons. 22 5,639 26,749 47,576 31,341 30,725 20,535 12,477 6,282 546 65 18 Tons. 123 972 1,247 2,107 3,129 4,369 1,466 797 429 66 15 12 Tons. 169 627 1,437 6,640 15,376 14,771 6,703 3,086 1,419 242 46 32 Tons. 285 829 1,212 3,331 6,507 11,636 11,617 8,449 4,843 814 230 396 Tons. 1 3 5 34 120 241 210 81 7 4 2 Tons. 1,078 465 129 46 41 54 59 119 1,216 2,883 2,150 Tons. 179 305 370 576 921 765 752 531 356 110 43 87 Tons. 253 295 254 314 794 1,356 2,260 1,975 1,082 311 104 99 Tons. 673 1,025 1,409 2,039 1,433 1,452 728 245 39 26 8 148 Tons. 45 63 60 190 493 1,296 1,053 640 96 32 29 215 Tons. 32 26 16 43 40 29 10 14 2 Tons. 258 413 1,143 2', 066 1,949 2,411 1,698 1.105 '651 360 441 369 Tons. 3,118 10,662 34,031 64,961 62,064 68,970 47,117 29,588 15,397 3,732 3,868 3,528 181,975 14,732 50,548 50,149 715 8,312 4,995 9,097 9,121 9,225 4,212 212 12,864 347,036 179,908 20,358 57,213 50,728 544 7,469 5,124 7,769 3,736 245 12,609 354,824

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Shipping and Storage Frozen-meat shipments to the United Kingdom Ministry of Food were a record for any season's exports to the United Kingdom. The following table shows particulars month by month during the twelve months ended 30th September, 1948, and the totals for each of the previous five years, together with the canned-meat exports and the over-all distribution of both frozen and canned meats :

Record of Frozen-meat Shipments to United Kingdom Ministry of Food (during Each Twelve Months Ending 30th September)

Canned Meats

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— Lamb. I 1 Mutton. | Beef. Boneless Beef. Boneless Veal. Pork. Offal. October November December January February March April May June July August September Totals .. Carcasses. 860,095 506,395 527,266 792,682 1,651,172 1,421,847 1,032,744 1,307,353 1,104,183 1,186,863 877,261 1,261,351 Carcasses. 303,740 141,615 183,466 33,003 145,224 361,870 344,365 338,702 271,963 198,340 293,492 362,191 Quarters. 112,838 130,159 72,158 21,958 27,630 58,178 129,922 112,436 116,216 66,976 74,901 141,704 Bags. 24,223 33,473 21,307 9,295 11,702 25,784 31,718 24,670 26,912 19,600 30,054 34,243 Bags. 11,344 42,502 98,272 8.738 7:259 5,717 660 994 919 i,840 22,927 Carcasses. 19,192 15,334 13,902 15,910 7.302 32,941 14,468 16,313 21,998 13,781 6,108 22,503 Packages. 33,589 17,198 36,180 26,040 55,679 78,899 48,78951,731 50.106 41.107 21,130 19,374 12,529,212 2,977,971 1,065,076 292,981 201,172 199,752 479,822 Lamb. Mutton. Quarter Beef. Boneless Beef. Boneless Veal. Pork. Offal. Total. Total F/CS. October November December.. January .. February March April May June July August September Total tonnage— 1946-47 1945-46 1944-45 1943-44 . 1942-43 Tons. 13,561 8,063 8,307 12,441 25,583 21,624 15,466 19,770 16,541 18,204 13,169 19,179 Tons. 7,542 3,640 4,520 907 3,631 9,394 8,876 8,388 6,703 4,797 7,192 8,685 Tons. 5,460 6,688 3,529 1,117 1,505 3,587 7,819 6,553 6,589 3,737 4,044 7,577 Tons. 1,008 1,254 842 417 177 1,088 1,271 1,012 1,094 676 1,244 1,317 • Tons. 473 1,707 3,897 288 486 279 28 42 38 "96 899 Tons. 903 723 886 994 432 ] ,924 750 755 896 626 252 1,251 Tons. 683 512 988 626 1,297 2,005 1,242 1,255 1.242 1,065 516 575 Tons. 29,630 22,587 22,969 16,790 33,111 39,901 35,452 37,775 33,103 29,105 26,513 39,483 1,106,161 843,254 857,475626,888 1,236,133 1,489,643 1,323,551 1,410,2491,235,814 1,086,581 989,774 1,474,050191,908 74,275 58,205 11,400 8,233 10,392 12,006 366,419 13,679,573175,278 156,894 171,203 141,553 155,139 73,148 70,523 76,111 57,334 22,649 39,795 46,574 7,747 2,316 22,815 12,536 12,801 '4,527 266 2,248 5,563 6,624 7,747 4,036 5,579 6,817 13,351 3.278 '948 728 11,126 11,702 6,936 6,164 8,474 324,263 318,469 277,549 212,617 217,632

— Corned Beef. Corned Mutton. Ox Tongue. Sheep/Lamb Tongue. Calf. Tongue. Pig Tongue. Total. Tons. Tons. Tons. Tons. Tons. Tons. Tons. October 369 49 42 106 566 November 173 7 105 23 308December 69 69 January336 12 43 9 1 401 February 169 23 29 221 March 14 14 April i60 74 243 May 231 27 258 June 277 * * 58 51 386 July 609 203 11 823 August 129 32 161 September 221 ii 196 ! 428 Totals .. 2,743 36 116 753 i 229 i 1 1 3,878

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Distribution

Imports of Meat Into the United Kingdom A summary of meat imports into the United Kingdom for the year ended 31st December, 1948, shows that for the first time New Zealand supplied a greater tonnage of meat than any other country.

The following table illustrates the gap between 1938 imports and the 1948 figure

It will be noted that New Zealand has now reached the position of being the main exporter of meat to the United Kingdom.

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— London. Avon. Liverpool. Glasgow. Hull. Cardiff. Jamaica. Total. Frozen Canned Totals .. Tons. 203,019 2,193 Tons. 27,360 571 Tons. 85,782 649 Tons. 23,584 24 Tons. 10,409 154 Tons. 16,205 287 Tons. 60 Tons. 366,419 3,878 205,212 27,931 86,431 23,608 10,563 16,492 60 370,297

Year Ended 31st December, Country 1938. 1948. Cwt. Cwt. Eire .. .. 808,826 357,718 India, Pakistan, &c. 3 20,618 Australia 4,888,598 3,818,762 New Zealand 5,488;747 7,303,347 Canada 1,606,724 2,437,700 Other British countries 140,470 191,589 Sweden 255,207 43,059 Iceland 35,210 13,230 Denmark 3,476,298 731,271 Poland 556,171 269,149 Netherlands 553,714 141,500 Hungary 188,875 140,753 Yugoslavia 56,361 United States of America 729,809 6,854 Chile 202,685 209,494 Brazil 724,028 64,739 Uruguay 1,122,636 434,702 Argentine Republic .. .. .. 9,644,568 6,193,242 Paraguay 30,092 97,850 Other Foreign countries 454,120 72,854 Totals 30,963,142 22,548,431 New Zealand percentage 17-7 32-3

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TALLOW Purchase by United Kingdom Government op 1947-48 Season's Tallow A contract was completed between the United Kingdom and the New Zealand Governments for the purchase by the United Kingdom Ministry of Food of the exportable surplus, and details of the prices payable were published in the last report of Marketing Department (Export Division) at page 39. For the period ended 30th September, 1948, 30,962 tons were exported. Of this total, 29,860 tons went to the United Kingdom. In addition, 1,047 tons went to India and 55 tons to Fiji.

The prices payable for the 1948-49 season's surplus have also been negotiated, and represent an increase over the previous year of approximately 10 per cent. The following table sets out the purchase and sales prices of the various grades of tallow purchased for export to the United Kingdom.

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Purchase-nriee Per Ton. f.o.b. New Zealand. United Kingdom Government. rinn/Jrt Purchase-price Per Ton, triaae. f.o.b. New Zealand : Casks/Barrels. Drums. Casks and Drums. £ s. d. £ s. d. £ s. d. First beef 48 0 0 45 10 0 113 15 8 First mutton 45 0 0 42 10 0 109 15 8 Good bright prime, mixed 39 0 0 36 10 0 104 5 8 Good colour, mixed 38 0 0 35 10 0 102 15 8 Fair to good colour, mixed 37 0 0 34 10 0 101 5 8 Fair colour, mixed 35 0 0 32 10 0 98 15 8 Good gut 33 0 0 30 10 0 96 5 8 Medium gut 31 0 0 28 10 0 93 5 8 Low and no colour gut 25 0 0 22 10 0 88 15 8 Stearine, superior 51 0 0 48 10 0 115 5 8 Stearine, medium 44 0 0 41 10 0 111 5 8 Lard, edible 80 0 0 77 10 0 149 5 8 Edible mixed tallow 43 0 0 40 10 0 107 15 8 Hog grease/pig fat I.S.R. — F.F.A. under 1 per cent. 51 0 0 48 10 0 113 5 8 F.F.A. 1 per cent, to 2 per cent. 49 .0 0 46 10 0 112 5 8 F.F.A. 2 per cent, to 3 per cent. 46 0 0 43 10 0 111 5 8 F.F.A. 3 per cent, to 4 per cent. 44 0 0 41 10 0 110 5 8 F.F.A. 4 per cent, to 5 per cent. 42 0 0 39 10 0 109 5 8 F.F.A. 5 per cent, to 6 per cent. 40 0 0 37 10 0 108 5 8 F.F.A. 6 per cent, to 7 per cent. 37 0 0 34 10 0 107 5 8 F.F.A. 7 per cent, to 8 per cent. 35 0 0 32 10 0 ' 106 5 8 F.F.A. 8 per cent, to 9 per cent. 33 0 0 30 10 0 105 5 8 F.F.A. 9 per cent, to 10 per cent. 31 0 0 28 10 0 104 5 8 Hide grease, good colour — F.F.A. under 1 per cent. 35 0 0 32 10 0 95 15 8 F.F.A. 1 per cent, to 15 per cent. 33 0 0 30 10 0 ' 93 5 8 Over 15 per cent. 32 0 0 29 10 0 89 15 8 The above plus 5s. per ton for barrels.

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SHEEP AND LAMB PELTS ■ • The Pelt Regulations have been re-enacted and provide for a continuation of the sale of pelts by public auction under the control of the Pelt Controller, Mr. J. J. Evans. The following table gives full details of the disposition of the 1947-48 season's pelts :

Sales of Pickled Pelts, 1947-48 Season

Of the total realizations of £4,723,380, £2,274,814 was paid to vendors or producers and £2,448,566 credited to Meat Industry Stabilization Account.From the results of the first four sales of this season there is every reason to believe that we have seen the last of the strong sellers' market which we have enjoyed for some time. Prices have receded considerably on those of the previous season, the percentage recession being more marked in the case of lamb pelts, which comprise the bulk of our offerings. Demand from the United States of America, our chief market in previous seasons, has been dulled by the drop in commodity prices recently experienced in that country, and other buyers' limits have also been restricted. Surplus proceeds to be credited to the Meat Industry Account this season will, by comparison with previous years, be negligible. The following table shows the average prices per dozen realized for the first four sales, and with last season's figures in parentheses :

Auction Sales

The four sales realized a total of £2,538,185, of which £2,418,597 was paid to producers through the fat stock schedule price and the balance of £119,588 to Meat Industry Account.

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Method of Disposal. • Sheep. Lambs. Total Value. Number of Dozen. Value. Average per Dozen. Number of Dozen. Value. Average per Dozen. Destination. Auction Auction Auction Auction Auction Auction Auction Auction Auction Auction 114,959 Vi* 91,454 */i. 4,852 6 /1, 20,237 1 °/! „ 3,775 724 V x o ■7,460 9 /i2 3,509 Vj. 143 ' £ 569,589 506,046 28,578 123,399 25,470 2,440 43,483 15 ,'747 71 s. d, 99 1 110 8 117 9 121 11 134 11 67 5 116 7 89" 9 100 0 626,298 V1 •> 292,473Yi»l 16,528 13,165V 1 „ 5,135 6 / x ., 17,764"/ j 2 6,906 s /!, 4,145 70 3,996 3 /12 £ 2,096,577 1,005,701 58,537 40,561 22,907 47,766 21,991 11,783 5,675 s. d. 66 11 68 9 70 10 61 7 89 3 53 9 63 8 56 10 70 0 28 5 £ 2,666,166 1,511,747 . 87,115 163,960 48,377 50,206 65,474 11,783 15,772 5,746 U.S.A. ■ • U.K. Sweden. Belgium. FranceAustralia. Holland. Denmark. .1 apan. Canada. Totals — Auction Allocated to local tanners 247,116 5 /i 2 32,844 2 /12 1,314,823 72 222 106 5 44 0 986,482 '/„ 15,517 6 /12 3,311,523 j 24,812 67 2 32 0 4,626,346 97,034 Local tanners. 279,960'/12 1,387,045 99 1 1,002,000'A s j 3,336,385 66 7 4,723,380

Description. First. Second. Third. Fourth. s. d. s. d. s. d. s. d. s. d. s. d. s. d. s. d. Sheep 80 1 (134 8) 92 3 (128 3) | 78 1 (106 2) 76 6 (107 10) Lambs 46 0 (87 6) 45 5 (65 8) 39 1 (57 9) 43 10 (68 6)

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Pelt values used in assessing this year's schedule prices are set out below, with those of last season in parentheses :

Woolly Sheep-skins The regulations governing the sale of woolly sheep-skins continue in force under the control of the Sheep-skin Committee, consisting of one representative each of the Meat and Wool Boards and one representative of the Government. HIDES Report of Hides Committee on Operations for Year Ended 31st March, 1948 The following report, in terms of the Hides Emergency Regulations 1940, has been submitted to the Hon. the Minister of Marketing on behalf of the Hides Committee by the Chairman, Mr. A. P. O'Shea : I have pleasure in submitting the eighth annual report and statement of the Equalization Fund for the year Ist April, 1947, to 31st March, 1948 : Export Levy.—The following fluctuations to the export levy occurred during the past twelve months : Effective Ox Cow Bull Ylg. Calf as from A/W. A/W. A/W. A/W. A/W. 1/4/47 .. .. 16 16 10 17 26 22/4/47 .. .. 15 15 9 17 26 8/5/47 .. .. 14 14 8 16 25 1/6/47 .. ..11 11 7 15 25 40Up. U/40. Fmrs. Ox and Cow. 17/11/47 .. ..13 13 15 7 20 35 11 1/12/47 .. .. 13 13 19 7 20 35 11 1/2/48 .. .. 16 16 19 9 27 45 11 8/3/48 .. .. 13£ 13£ 16£ 6J 21 30 6 Towards the end of 1947 overseas buyers were paying a premium for light-weight cow-hides, and as the percentage of under 40 lb. hides offered for sale was considerably in excess of the heavier weights, the over-all levy basis was altered on 17th November, 1947, as shown above. Minimum, Floor Prices.—During the first quarter of 1947 the over-all levy operative on all grades of ox and cow hides brought about a return on the lower-grade hides to a figure below that which the Government considered the producer was entitled to under stabilization.

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Works or Freezing-works. Amounts to be Paid to .Vendors of Pelts. Lambs (Per Dozen). Sheep (Per Dozen). s. d. s. d. s. d. s. d. Wairoa, Kaiti, Tokomaru Bay 42 1 (29 7) ! 61 2 (48 8) Moerewa, Southdown, Horotiu 'S ; Westfield, Hellabys, Waitara Patea, Imlav, Feilding, Longburn . . - 44 4 (31 10) | 64 2 (51 8) Ngahauranga, Petone, Waingawa Whakatu. Tomoana J Pioton, Nelson, Kaiapoi 1 Belfast (C.F.M.), Belfast (T.B.S.) Islington, Fairfield, Pareora I 44 9 (32 3) 54 0 (41 6) Balclutha, Makarewa, Gore (Wallis) I Ocean Beach 1

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A sub-committee was appointed to meet the Economic Stabilization Commission to discuss the following points : (1) That the present arrangements are not achieving the purpose for which the Hides Regulations were drawn up ; and (2) That overseas markets are getting weaker every day, making the levy system difficult to operate to conform to stabilization ; and (3) That the existing Regulations are not the basis of the present operations, therefore the Hidefv Committee recommends to the Minister of Marketing a complete revision of the regulations to conform to present requirements. Arising out of the subsequent meeting the suggested scheme of minimum floor prices for abattoir, country butcher, and farmers' hides was agreed to, subject to the approval of the Minister of Marketing. The following letter was received from the Acting Director of Stabilization : " Hides Equalization Fund " I have to advise that Government has approved of—- " (a) The Hides Committee being given discretion to fix ' floor ' prices for all classes of hides covered by the Hides Emergency Regulations 1940 (No. 2) which will have regard to the prices paid for hides during the six months ended 30th June, 1946; and " (b) The Hides Committee being authorized to make payments from the Hides Equalization Fund to the seller of hides to bring his return up to the ' floor ' prices in cases where the tender or auction price is below the ' floor ' price. " The necessary amendments to the regulations will be made at the first available opportunity."

The schedule below sets out the minimum return to the producer on all classes of hides, including freezers, which are covered by the meat export schedule. Operative as from 15th May, 1947 :

Statistics.—Hides " freed for export " during the year, and the estimated levy recoverable, were as follows :

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Range. Freezers f.o.b. Abattoirs' Loose. Country Butchers' Loose. Farmers' Loose. 1st. 2nd. 1st. 2nd. 1st. 2nd. 1st. . 2nd. 3rd. Ox— 70/up 10i 9f 10 n 9 H n 6f 5f 59/69 10i 9f 10 n 9 »i n 6f 5f 53/58 10* 9| 10 9i 9 H n 6| 5| 45/52 • 10i 9| 10 9i 9 8i 7f 6f 5f UN/45 Cow — 51/up 10 n 9f 9| 8f 8i n 6i 5i 40/50 10 n 9| 9i B| n 6i 5i 30/39 10 n 9t 9i 8f 8i n 6i 6i 5i UN/30 10 n H 9i e*N» 00 8i 7i 5i Bull— A/W 7 «i 6 5 *i 4 3 2 Yearlings— 25/30 12 ni 11 10£ 10 94 8 7 6 17/24 13 m 12 Hi 11 10| 9 8 7 9/16 14 13i 13 m 12 Hi 10 1 9 8

Ox. Gow. Bull. Yearlings. Calf. Levy. 119,792 278,039 27,387 15,922 42,728 £969,500

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The following table shows : (1) The number of hides claimed by the tanners. (2) The number of hides " freed for export " under the Hides Emergency Regulations 1940 (No. 2) during the year Ist April, 1947, to 31st March, 1948.

As compared with the previous year :

Financial Report.—This is set out in detail in Schedule A and, based on the number of hides handled in terms of the regulation, the administration cost is 0-39 d. per hide. The overdraft of £110,367 10s. Bd. as at 31st March, 1947, has now become a credit balance at the Bank of New Zealand amounting to £674,565 13s. 3d., with a further £200,000 of estimated levy on hides " freed for export " prior to 31st March, 1948, still to be received. The Customs Department have received as revenue the following commission for the collection of export levy on hides : Year. £ s. d. Year. £ s. d. 1941 .. .. 342 15 4 1945 .. .. 1,233 14 10 1942 .. .. 1,142 6 1 1946 .. .. 1,627 7 5 1943 .. .. 2,027 17 6 1947 .. .. 2,394 15 0 1944 .. .. 1,727 15 5 1948 .. .. 10,666 17 9 The rate of commission charged as from the inception of the Hides Scheme in 1940 to August, 1946, was 2 per cent., and since that date the rate has been on the hasis of 1 per cent. During the year Mr. W. V. Watson retired as President of the New Zealand Hide and Skin Buyers' and Exporters' Association, and his resignation as a member of the Committee was accepted with regret. Mr. Watson, who was a foundation member of the Committee, rendered excellent service not only during the formulation of the scheme, but also during the early stages and right up to his retirement in October, 1947. The thanks of all parties connected with the Hides Equalization Scheme are due to Mr. Watson. Mr. L. M. Wallace, of Messrs. Wm. Haughton and Co. Pty., Ltd., was appointed to succeed Mr. Watson as a member of the Committee Obituary.—J. regret to report the death of Mr. S. L. Wright, who died on the 20th March, 1948. I would like to place on record my appreciation of the great service rendered by the late Mr. Wright to the Equalization Scheme, which would not have functioned nearly so smoothly in its early, stages but for his great knowledge and helpfulness, which were always at the disposal of the Committee. I cannot express adequately the regret which the Committee felt at Mr. Wright's untimely passing, and I feel sure that they will agree with me that no praise could be too high for the efforts which Mr. Wright made to ensure the successful functioning of the scheme. General.—l desire to again express my thanks to the members of the Committee, Government Departments concerned, and to all sections of the trade for their willing assistance at all times. On the eve of my retirement as Chairman of the Committee I wish particularly to express my own personal appreciation of the work of the Secretary, Mr. H. G. Andrews. The inauguration of the scheme of minimum floor prices has resulted in additional duties which have been carried out with conspicuous ability. The Committee is indebted to Mr. Andrews for his continued help and assistance during another most difficult year. A. P. O'Shea, Chairman.

44

1947-48. Ox. Cow. Bull. Yearling. Calf. Tanners 112,785 244,997 1,552 | 28,650 22,369 Export 119,792 278,039 27,387 I I 15,922 42.728 Totals 232,577 523,036 28,939 i 44,572 65,097

1946-47. Ox. Cow. Bull. Yearling. Calf. Tanners .. .. 133,535 254,791 2,265 | 38,309 | 31,871 Export .. .. .. 60,886 274,588 32,254 j 24,386 38,135 Totals .. 194,421 34,519 ! 62,695 70,006

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Schedule A—Hides Equalization Fund as at 31st March, 1948 Receipts | Payments £ s. d. £ s. (1. i £ s. d. Levy on hides .. 1.070,192 0 4 j Overdraft at Bank of New Zealand, Ist Less cost of collection 10,66(5 17 9 j April, 1947 .. .. .. 110,367 10 11 — 1,059,525 2 7 | Claims paid to freezing companies, Levy on leather .. .. .. 9,249 18 6 j tanners, and brokers .. .. 281,214 0 9 | Interest on overdraft .. .. 1,174 7 0 i Expenses— £ s. d. Salaries .. .. 1,043 13 9 Rent and telephones .. 66 11 8 Telegrams, stamps, and petty expenses .. 67 10 6 London cables .. 33 2 7 Stationery .. .. 49 6 10 j Typewriter .. .. 71 10 0 Audit fee . . . . 20 0 0 Bank fee and cheque-book 4 10 0 Travelling-expenses .. 73 3 0 Bureau fees . . .. 24 0 10 1,453 9 2 Bank balance as at 31st March, 1948 674,565 13 3 £1,068,775 1 1 £1,068,775 1 1 Estimated Position When All Hides " Freed for Export " to 31st March, 1948, Have Been Shipped £ s. d. £ s d Credit balance as above . .. 674,565 13 3 Claims unpaid at 31st March ,1948 .. 22,565 13 3 Outstanding levy at 31st March. 1948 .. 200,000 0 0 Estimated credit balance - .. 852,000 0 0 £874,565 13 3 £874,565 13 3

45

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MARKETING DEPARTMENT EXPORT DIVISION Meat Industry Account Administration and General Expenses Account for the Period Ist August, "1947, to- 30th April, 1948 Note.—Since 30th April, 1948, the New Zealand Meat-producers Board, acting on behalf of the Marketing Department, has carried out certain functions previously performed by that Department, and has borne the administration and general expenses relating to those functions. Dr. £ Cr. £ Salaries .. .. . . . . . . . . 5,900 Allowance for administration on sales of 1946-47 season's meat Office rent, maintenance, cleaning, telephones, and sundry after 31st July, 1947 . . .. .. .. .. 27,913 expenses .. .. . . .. .. .. 1,201 Allowance for administration on sales of 1947-48 season's meat Postages, cables, printing and stationery .. .. .. 598 up to 30th April, 1948 .. .. .. .. .. 28,635. Travelling-expenses .. .. .. .. . . 63 j Allowance for administration on sales of bobby veal up to 30th Shipping inspection and refrigeration supervision .. .. 1,125 ; April, 1948 .. .. .. .. .. .. 1,851 Audit fees .. .'. .. .. . . . . 316 Depreciation (office and departmental equipment) .. .. 121 Payment to New Zealand Meat-producers Board in lieu of levy for nine months ended 30th April, 1948 (section 42 (3), Statutes Amendment Act, 1947) .. . . . . .. . . 30,000 Exchange on remittances .. .. .. .. .. 2,468 j Subsidy, Public Service Superannuation Fund . . .. 40 Balance to Meat Account .. .. .. .. .. 16,567 £58,399 £58,399

46

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Final Purchase and Sale Account, 1946-47 Season's Killings Dr. £ £ Or. £ £ Stock on hand and loadings not departed at 31st Sales : Shipments to United Kingdom after 31st July, 1947 .. .. .. ..8,711,036 July, i 947— Less preserved meat transferred to 1947-48 i Lamb . . .. .. .. . . 5,794,621 Purchase and Sale Account .. .. 64,645 Wether mutton .. .. .. . . 427, 396 ———- Ewe mutton ' .. .. .. 1,019,086 8,646,391 Beef and veal .. .. .. .. 1,750,228 Less meat withdrawn from stock for local use .. 306,581 Boner bull beef .. .. .. 107,053 —: 8,339,810 Boner cow beef .. .. .. .. 182,586 Purchases after 31st July, 1947— Pig-meat .. .. .. .. 415,270 Lamb .. .. .. .. .. 26,977 Offals .. .. .. .. .. 310,632 Wether mutton .. .. .. .. 8,486 10,006,872 Ewe mutton .. .. .. .. 14,813 Beef and veal . . . . .. .. 35,296 Boner bull beef .. .. .. .. 6,195 Boner cow beef .. .. .. .. 18,898 : Pig-meat .. .. .. .. 19,262 Offals .. .. .. .. .. 15,613 145,540 | Allowance for administration and general expenses (f per cent, on sales of £7,443,470), carried to Administration and General Expenses Account .. .. .. 27,913 ; Transfer to Meat Industry Stabilization Account— £ Proceeds of increases in sale-prices of meat after 15th December, 1942 .. .. 2,563,402 Less amount of increases in purchase-prices of meat after 15th December, 1942 .. 1,524 ,201 —— 1,039,201 | Surplus on transactions after 31st July, 1947, carried to Meat Pool Account .. .. .. .. .. 454, 408 | £10,006,872 | £10,006,872

47

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MARKETING DEPARTMENT— continued EXPORT DIVISION— continued Meat Industry Account— continued Purchase and Sale Account, 1947-48 Season's Killings up to 30th September, 1948 Dr. I Cr. Purchases, Ist October, 1947, to 30th September, Sales : Shipments to United Kingdom up to 1948— £ £ I 30th September, 1948— £ £ Lamb .. .. . . .. 17,142,492 ! Lamb .. .. .. .. .. 15,787,923 Wether mutton . . . . . . . . 894,407 Wether mutton . . . . . . .. 731,771 Ewe mutton .. .. .. 2,358,748 I Ewe mutton .. .. .. 1,878,124 Beef and veal .. .. .. .. 3,017,647 Beef and veal .. .. .. .. 2,136,184 Boner bull beef .. .. .. .. 254,088 Boner bull beef .. .. .. .. 232,138 Boner cow beef... .. .. .. 341,101 Boner cow beef .. .. .. .. 221,141 Pig-meat .. .. .. 1,217,371 j Pig-meat .. .. .. .. 912,706 Offals .. .. .. .. 830,920 Offals .. .. .. .. .. 922,760 26,056,774 j Preserved .. .. .. .. 697,492 Preserved meat— —— 23,520,239 Stock transferred from 1946-47 Purchase and ; Transfer from Meat Industry Stabilization Sale Account .. .. .. .. 64,645 j Account— Purchases .. • .. .. . . 693, 893 Amount of increases in purchase-prices of meat . 758,538 after 15th December, 1942 .. .. 5,784,668 Exchange on remittances . . . . .. . . 1,950 j Less proceeds of increases in sale-prices of Allowance for administration and general expenses (-§. per cent. meat after 15th December, 1942 .. 5,632 ,.163 on sales to 30th April, 1948, £7,636,157), carried to i 152,505 Administration and General Expenses Account .. . . 28,635 | Stock on hand and loadings not departed at 30th September, Payment to New Zealand Meat-producers Board in lieu of j 1948 .. .. .. .. .. .. 4,319,914 levy for five months ended 30th September, 1948 (section 42 (3), Statutes Amendment Act, 1947) .. .. 16,667 Surplus on transactions up to 30th September, 1948, carried ' to Meat Pool Account ... .. .. .. 1,130,094 £27,992,658 : £27,992,658 . i

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Meat Pool Account from Ist August, 1947, to 30th September, 1948 Dr. £ Gr. £ Insurance on frozen and preserved meat .. .. .. 11,379 Balance as at 31st July, 1947 .. .. .. .. 11,162,172 Refund to War Expenses Account in respect of amounts Surplus on 1946-47 season's killings sold after 31st July, 1947 454,408 charged to that account for supplies to the United Surplus on 1947-48 season's killings sold up to 30th September, States Joint Purchasing Board in 1943, 1944, and 1945— 1948 .. .. .. .. .. .. 1,130,094 Expenses for which Meat Industry Account £• Surplus on tallow sales.. .. .. .. .. 338,635 received an additional |d. a pound .. .. 570,905 Kakariki Freezing-works (being surplus on transactions) .. 3,577 Portion of profit on vegetable content of meat and Interest .. .. .. .. .. .. 515, 193 vegetable rations credited to Meat Pool Account 72,574 Payment by Ministry of Food for storage on stocks in store 643,479 beyond agreed period .. .. .. .. 32,877 Balance, being surplus to 30th September, 1948 .. .. 12,982,098 £13,636,956 £13,636,956 Meat Account Dr. £ Gr. £ Payment to War Expenses Account (section- 19, Finance Act Balance as at 31st July, 1947 .. .. .. .. 26,919 (No. 2), 1942) .. .. .. .. .. 43,486 Surplus from Administration and General Expenses Account to 30th April, 1948 .. .. .. .. .. 16,567 £43,486 ■ £43,486

3—H 30

49

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MARKETING DEPARTMENT— continued EXPORT DIVISION— continued Meat Industry Account— continued Meat Industry Stabilization Account : Transactions During the Period Ist August, 1947, to 30th September, 1948 Dr. £ Cr. £ Background advertising in United Kingdom .. .. 34,351 Balance as at 31st July, 1947 .. .. .. .. 7,059,968 Subsidies on fertilizers and stock-food .. . . .. 485,471 Transfer from 1946-47 Purchase and Sale Account— Freezing- costs subsidy (being additional costs due to forty- Proceeds of increases in sale-prices of meat £ hour week, 1946-47 season) .. .. .. .. 188 after 15th December, 1942 .. 2,563,402 Refund to War Expenses Account in respect of amounts Less amount of increases in purchasecharged to that account for supplies to the United States prices of meat after 15th December, Joint Purchasing Board in 1943, 1944, and 1945: Portion 1942 .. .. .. .. 1,524,201 of profit on vegetable content of meat and vegetable rations 1,039, 201 credited to Meat Industry Stabilization Account .. 163,079 Transfer from Tallow Purchase and Sale Preserved meat: Adjustment of price by Ministry of Food Account— in respect of 1945-46 season's preserved meat .. .. 8,466 Proceeds of increases in sale-price of Grant to National Pig Industry Council for administration tallow after 15th December, 1942 2,811,835 expenses .. .. .. .. .. .. 3,000 Less amount of increases in purchaseTransfer to 1947-48 Purchase and Sale Account— prices of tallow after 15th December, Amount of increases in purchase prices of £ 1942 .. .. .. .. 612,026 meat after 15th December, 1942 .. 5,784,668 —— 2,199,809 Less proceeds of increases in sale-prices Pickled pelts (being surplus on transactions from auction sales) of meat after 15th December, 1942 5,632,163 (Pickled Sheep and Lamb Pelts Emergency Regulations 152,505 1947, Regulation 14) .. .. .. .. 2,984,395 Balance as at 30th September, 1948 .. .. .. 12,646,537 Freezing-costs subsidy (being refund of 1946-47 season's costs due to wage increases) .. .. .. .. 562 Sheep-skin Committee (being levy collected on sheep-skins) (Sheep-skin Emergency Regulations 1947, Regulation 15(2)) 209, 662 £13,493,597 £13,493,597

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Bobby Calf Pool Account from Ist August, 1947, to 30th September, 1948 Dr. £ Gr. £ Stock on hand and loadings not departed as at 31st July, 1947 57,304 Balance as at 31st July, 1947 .. .. .. .. 387,896 Purchases— £ Sales— Season 1946-47 .. .. .. .. 240,993 Shipments to United Kingdom of 1946-47 season's meat Season 1947-48 .. .. .. ..489,890 after 31st July, 1947 . . .. .. .. .. 467,699 — 730,883 Shipments to United Kingdom of 1947-48 season's meat up to Allowance for administration and general expenses (f per cent. 30th September, 1948 .. .. .. .. 286,876 on sales to 30th April, 1948, £493, 513) carried to Administration Interest .. .. .. .. .. .. 8,116 and General Expenses Account .. .. .. .. 1,851 Stock on hand and loadings not departed at 30th September, Transfer to Bobby Calf Stabilization Account, (being 1948 .. .. .. .. .. .. 272,135 proceeds of increases in sale-prices after 15th December, 1942)— £ £ Season 1946-47 .. 108,115 Season 1947-48 .. .. 60,663 168,778 Less amount of increase in purchase-price of meat after 15th December, 1942 .. .. 12,301 156,477 Balance as at 30th September, 1948 .. .. .. 476,207 £1,422,722 £1,422,722 Bobby Calf Stabilization Account : Transactions During the Period Ist August, 1947, to 30th September, 1948 Dr. £ £ Gr. £ .Freezing-costs subsidy (being additional costs from Balance as at 31st July, 1947 .. .. .. .. 423,684 wages increases, season 1946-47) .. .. .. 625 Bobby-calf Skins—■ £ Freezing- costs subsidy (being additional costs due to Export levy .. .. .. .. .. 238,644 the forty-hour week, season 1946-47) .. .. 6,150 Less subsidy on skins used in local manufacture .. 205,041 6,775 33,603 Balance as at 30th September, 1948 .. .. .. 606,989 Transfer from Bobby Calf Pool Account .. .. .. 156,477 £613,764 £613,764

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MARKETING DEPARTMENT— continued EXPORT DIVISION— continued Meat Industry Account— continued Balance-sheet as at 30th September, 1948 Liabilities £ Assets £ Sundry creditors .. .. .. .. .. 741,963 . Sundry debtors .. .. .. •• •• 2,945,265 Meat Industry Stabilization Account .. .. .. 12,646,537 Stocks .. .. .. .. •• 4,592,049 Bobby Calf Stabilization Account .. .. .. 606,989 Investments in Treasury bills and Government stock .. 20,000,000 Meat Pool Account .. .. .. .. .. 12,982,098 Bobby Calf Pool Account .. - .. .. 476,207 Reserve Bank of New Zealand .. .. .. .. 83,520 £27,537,314 £27,537,314 L. C. Webb, Director. Gr. C. Jupp, Accountant. I hereby certify that the Balance-sheet as at 30th September, 1948, and supporting accounts in respect of the Meat Industry Account have been examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby.—J. P. Rutherford, Controller and Auditor-General.

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Sundry Products Account TALLOW Purchase and Sale Account for the Period Ist August, 1947, to 30th September, |1948 Dr. £ Or. £; Purchases .. .. .. .. .. .. 1,384,673 Sales to United Kingdom .. .. .. ... 3,774,425; Allowance for administration and handling .. .. 9,283 Sales to India .. .. .. .. .. .. 136,157 Marketing-expenses .. .. .. .. .. 6,426 Sales to other destinations .. .. .. .. 6,271 Transfer to Meat Industry Stabilization Account— Surcharge on soap exports .. .. .. .. 20,97:3; Proceeds of increases in sale-prices of £ tallow after 15th December, 1942 .. 2,811,835 Less amount of increases in purchaseprices of tallow after 15th December, 1942 .. .. 612,026 2,199,809 Surplus, carried to Meat Pool Account .. .. .. 338,635 £3,937,826 £3,937,826 Revenue Account for the Period Ist August, 1947, to 30th September, 1948 Dr. £ Gr. £ Salaries .. .. .. .. .. .. 2,089 Allowance for administration and handling .. .. 9-,283 Office rent, maintenance, cleaning, telephones, and sundry expenses .. .. .. .. .. .. 262 Postages, cables, printing, and stationery .. .. .. 443 Travelling-expenses .. .. .. .. .. 187 Audit fees .. .. .. .. .. .. 72 Cost of remittances to manufacturers and others .. .. 782 Balance to Tallow Account .. .. .. .. 5,448 £9,283 £9,283 Tallow Account Dr. & Gr. £ Payment to War Expenses Account (section 19, Finance Act Balance as at 31st July, 1947 .. .. .. ... 3,546 (No. 2.) 1942) .. .. .. .. .. 3,546 Surplus from Revenue Account to 30th September, 1948 ... 5,448 Balance as at 30th September, 1948 .. .. .. 5,448 £8,994 £8,994 =====

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MARKETING DEPARTMENT— continued EXPORT DIVISION— continued Sundry Products Account— continued WAR OFFICE CONTRACTS Purchase and Sale Account for the Period Ist August, 1947, to 30th September,. 1948 Dr. £ Gr. £ Purchases , 4 .. .. .. .. .. 37,922 Sales .. .. .. .. .. .. 37,922 Revenue Account for the Period Ist August, 1947, to 30th September, 1948 Dr. £ Gr. Salaries .. .. .. .. 233 Balance as at 31st July, 1947 .. .. .. .. 150 Postages, cables, printing, and stationery .. .. ~ 51 Net deficit .. .. .. .. . . .. 193 Telephones, rent, and sundry expenses .. .. .. 59 £343 £343 Balance-sheet as at 30th September, 1948 Liabilities £ Assets £ Sundry creditors .. .. .. .. .. 2,539,234 Cash: Reserve Bank of New Zealand .. .... .. 2,368,665 Sheep-skin Control Account .. .. .. .. 446,077 Sundry debtors .. .. .. .. .. .559,079 £ Advances to Milk Marketing Division .. .. .. 62,760 Net surplus on administration allowance : Tallow .. 5,448 One share, U.K. - Dominion Wool Disposals,. Ltd. .. .. 62 Less net deficit on administration allowance : War Office contracts .. .. .. .. 193 5,255 £2,990,566 £2,990,566' L. CL Webb,. Director. G. C. Jupp,. Accountant. I hereby certify that the Balance-sheet as at 30th September, 1948, and supporting accounts in respect of the Sundry Products Account have been examined and compared with the relative books and documents submitted for audit, and correctly state the positioDk as disclosed thereby.—J. P. Rutherford, Controller and Auditor-General.

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Neiv Zealand Sheep-shin Control Purchase, Sale, and Revenue Account for the Period I£t July, 1946, to 13th August, 1948 (End of Control) Dr. £ Stocks 30th June, 1946 .. .. 237,646 Sales .. .. .. •• 81^.f 95; Purchases .. .. .. .. •• •• 406,756 Stocks, 13th August, 1948 .. ... ... . Working charges and trading expenses .. .. .. 86,174 Gross surplus carried down .. .. .. .. 86,919 £817,495 £817,495. Administration expenses—- £ / Salaries .. .. .. .. .. •• 6,640 Gross surplus brought down .. ... ... —• Bb,yiy Travelling-expenses .. .. • • • • • • 502 Payments by British Wool Control— Postages and telegrams .. .. .. .. • • 179 New Zealand Government's share of profits during period of Telephones .. .. .. .. .. • • 476 control for resales of sheep-skins by British Wool Control .. 247, 134 Stationery .. .. .. .. . • • • 22 Slipe wool bonuses, 1942-46 .. .. • • • ■ 18, 314 Exchange .. .. .. .. • • • • 20 Surplus on sale of car .. .. .. . • • • 214 General expenses .. .. .. .. •• 319 Interest .. .. ... . . 663 Insurance .. .. .. • • • • • • 23 Rent .. .. .. .. .. .. .. 290 Net surplus .. .. .. .. ... •• 344,773 £353,244 £353,244 Balance-sheet as at 13th August, 1948 Liabilities £ £ Assets £ Reserve Account, 30th June, 1946 .. .. .. 96,644 Sundry Products Account, Reserve Bank of New Zealand .... 446,077 Plus— Pool surplus for present period.. .. .. 344,773 5 per cent, wool retentions .. .. .. 4,660 446,077 £446,077 £446,077 I hereby certify that the Revenue Account and the Balance-sheet have been examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby.— C. J. M. GpAir, Deputy Controller and Auditor-General.

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MARKETING DEPARTMENT— continued EXPORT DIVISION— continued Sheep-skin Committee Income and Expenditure Account prom Ist November, 1946, to 31st March, IMB Expenditure Income First distribution of levies collected— £ £ Levy— £ £ Wool Disposal Commission .. .. .. 13,618 1 Period ended Ist April, 1947 .. .. .... 61,554 Meat industry stabilization .. .. .. 40,451 2 Period ended 16th December, 1947 |.. .. 182,135 C 1 . 54 ' 069 HPeriod ended 18th March, 1948 .. .. 49,193 fealaries .. .. .. .. .. 0,007 4 J 292 882 Travelling-expenses 670 Fellmongers' levy 75 >2 Postages and telegrams .. .. .. .. 119 ° J Telephones and tolls .. .. .. .. 307 Stationery .. .. .. .. .. 28 Rent .. .. .. .. .. .. 358 General expenses .. .. .. .. 60 Exchange .. .. .. .. .. 2 — 5,411 Excess of income ever expenditure to be distributed .. .. 308,974 £368,454 £368,454

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Balance-sheet as at 31st March, 1948 Liabilities £ Assets Sundry creditors .. .. .. .. .. 171 Cash at bank— £ £ Excess of income over expenditure to be distributed .. .. 308,974 Bank of New Zealand, Dunedin .. .. .. 58,804 Bank of New Zealand, Christchurch .. .. 14,130 Bank of New Zealand, Wellington .. .. 167,378 Bank of New Zealand, Auckland ".. .. 37,219 277,531 Cash in hand— Imprest accounts .. .. .. - - 190 Petty cash .. .. .. • • • • 10 2OO Sundry debtors : Levies unpaid .. .. . • • ■ 30,663 Office furniture, machines, &c. .. .. .. • • 751 £309,145 £309,145 R. C. Calder, Secretary. I hereby certify that the Income and Expenditure Account and the Balance-sheet have been examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby.— J. P. Rutherford, ■Controller and Auditor-General.

By Authority: E. E. Owen, Government Printer, Wellington.— 1949. Pricey} s. 3d.~\

Approximate Cost of Paper.—Preparation, not given; printing (1,008 copies), £l4O.

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