MARKETING DEPARTMENT REPORT AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 30th SEPTEMBER, 1949

Appendix to the Journals of the House of Representatives, 1950 Session I, H-30

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1950 NEW ZEALAND

MARKETING DEPARTMENT REPORT AND STATEMENT OF ACCOUNTS FOR THE YEAR ENDED 30th SEPTEMBER, 1949

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, 1949. I have, &c., L. C. Webb, Director of Marketing. The Hon. the Minister of Marketing.

INTRODUCTORY During the year covered by this report certain fundamental changes have taken place in. the organization and functions of the Department. As pointed out in the Introductory section of the last annual report, the Marketing Amendment Act, 1948, abolished the separate Divisions of the Marketing Department (Internal Marketing, Milk Marketing, and Export Marketing) and transferred their functions to a single Marketing Department. I have to report that the amalgamation has now been completed and that the unified Department is operating efficiently with advantages for each of the functions which were previously operated independently. The milk scheme, in particular, has benefited from the decentralization of certain operations to district offices more conversant with local interests.

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The Department during the year took over certain duties upon the winding-up of the Food Controller's Office and the Ministry of Supply. These operations are, to a large extent, temporary in that they involve commodities under international allocation, in short supply, or subject to subsidy. As soon as the supply position warrants their reversion to private trading, this action will be taken. As an example, the Department during wartime imported certain scarce fertilizers under international allocation. When the allocation system was abandoned in 1949, the Department ceased its operations and advised the trade accordingly. An important development has been that the New Zealand Apple and Pear Marketing Board, which was granted full autonomous powers, has found it advantageous to appoint the Department as its master agent for the physical handling and marketing of its products. I have to record that this arrangement has worked to the satisfaction of the Board who have asked that it be allowed to continue. The Department has again contracted for main-crop potatoes for the 1949-50 season, but this should be the last year as negotiations are taking place for the creation of a Potato Marketing Authority which will be representative of growers and other interests. This Authority will be vested with the. functions of a marketing authority for this commodity. The policy of devolution in milk treatment has been continued, and where treatment stations have been acquired steps have been taken to arrange for local corporations representing producers and consumers to take over. A new public corporation has been set up in Invercargill and given control of the treatment station which was purchased, and discussions are proceeding to hand over the treatment facilities in Christchurch to a company composed of representatives of the producers and of the local milk authority. The Department is assisted in its operations by marketing committees including principally producers' representatives, and I wish to express my appreciation of the valuable assistance and co-operation which has been given to the Department by the members of these committees. EGG SECTION On the 29th November, 1948, wholesale egg-prices throughout New Zealand advanced by a l|d. per dozen to offset the increase in egg-production costs. This was followed on the 24th January, 1949, by an additional |-d. per dozen in the North Island only, to meet the increase in the price of standard poultry mash. On 11th July, 1949, prices were increased by a further Id. per dozen in both the North and South Islands. The subsidy on wheat was abolished on the 31st January, 1949, and its equivalent of 3£d. per dozen was added to the existing 4d. per dozen egg-floor subsidy. Though the egg-floor subsidy has attracted more eggs to the egg floors, it seems clear that the improvement in the feed-supply position has resulted in an over-all increase in production. All areas show marked increases in intake on the previous year's figures. Consumer demand for fresh eggs during the winter months has not been fully met, but plentiful supplies have been available during the current " flush " production period. For the first time for several years retailers have displayed eggs to encourage sales. The following figures compare the intake of eggs through approved egg floors during Ist October, 1948, to 30th September, 1949, with the total for the previous year:— Dozens. Ist October, 1948, to 30th September, 1949 .. .. 12,787,101 Ist October, 1947, to 30th September, 1948 .. .. 11,186,815 Increase .. .. .. .. 1,600,286

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Distribution

Previously, the retail distribution of eggs has been made on the basis of butter registrations or past deliveries. With consumers now free to purchase their butter wherever they may choose, egg quotas (in those districts previously operating on the basis of butter registrations) have been calculated on the total butter usage of each retailer. Priorities for young children under five, nursing and expectant mothers, invalids, and hospitals have again been fully met, and consideration is now being given to the revocation of priority registrations if it can be demonstrated that sufficient supplies will be available to meet all requirements. The following is a schedule showing eggs transferred to Wellington from other floors during the year ended 30th September, 1949, as compared with the same period for the previous year :

Chilling

In an endeavour to have a steadier and more continuous supply of eggs available all the year round, a chilled egg programme was again instituted and as many eggs as possible were placed into cool store. Unfortunately, cool-store facilities are available only in the non-production areas and this entails the transportation of eggs prior to chilling. A comparison of the quantities of eggs chilled since 1946, together with the estimated objective for next year, is shown below :

In addition to the foregoing schedule, distribution during the winter months was assisted by a small quantity of chilled eggs purchased from Australia.

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Twelve Months Ended 30th September, From 1947-48. 1948-49. 1 Dozens. Dozens. Auckland 5,820 Hamilton 16,254 Tauranga 46,360 Gisborne .. .. .. » 111,058 154j 078 Hawke's Bay .. .. .. 118,334 100,793 New Plymouth .. .. 155,850 171,212 Wanganui .. .. .. 66,595 77,305 Manawatu .. .. .. 62,409 109,422 Masterton .. .. .. 119,243 198,924 Blenheim .. .. .. 107,582 151,956 Nelson .. .. .. .. 18,930 47,537 Christchurch .. .. .. 165,188 167,000 Ashburton .. .. .. 30,240 60,180 Timaru .. .. .. 127,226 228,409 Oamaru .. .. .. .. j 38,130 Dunedin .. . . .. 57*370 134,648 Invercargill 8,760 20,105 Totals 1,217,219 1,659,699

. — 1947-48. 1948-49. Estimated, 1949-50. * Auckland Wanganui Wellington Christchurch Dozens. 90,095 51,180 15,900 19,170 Dozens. 12,930 56,320 25,590 Dozens. 89,000 60,000 180,000 50,000 176,345 94,840 379,000

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Egg-pulp Imports of egg-pulp from Australia have made it possible to meet all the requirements of the baking trade. Minimum quantities only have been manufactured in New Zealand so that the maximum quantity of eggs in shell can be released for consumer requirements. The following schedule shows the quantities of egg-pulp imported in previous years and the year under review : Dozens Equivalent. 1942-43 .. .. .. 2,722,020 194-3-44 .. .. .. 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 .. .. .. 4,229,370 1949-50 .. .. .. 3,450,000 (estimated). Last year's report mentioned that steps were being taken to improve the quality of the New Zealand manufactured egg-pulp and that a quality standard for shell eggs would be established. Egg-pulp manufacturers have now undertaken to improve the conditions under which egg-pulp is manufacturered and it is hoped that this will bring about an immediate improvement in quality. Previously the Department owned all egg-pulp, purchasing from manufacturers at freezer door. Pulp manufacturers, however, will now own the pulp they manufacture, and in consideration of this and the expected improvement in quality, price increases have been approved by Government. With the co-operation of the Department of Agriculture a " standard for egg quality " campaign will shortly be launched. PRODUCE SECTION Potatoes Under the contract system which has operated over the war and post-war years, Government undertook the purchase and disposal of potatoes surplus to New Zealand requirements. It was the first occasion since the inception of the scheme on which it was necessary to implement arrangements to this end. Committees were set up in each district to assess the quantities of contract grade potatoes for which the Government were liable.- The committees consisted of one representative of the potato-growers, one representative of the merchants, one representative of the Department of Agriculture, one representative of the Department, and the official port Potato Grader at each shipping port. The fifteen committees made in all approximately twelve hundred inspections and the work was carried out expeditiously being completed by mid-November, 1948. The members of these committees worked long hours and their services were appreciated. It was also necessary to arrange transport to the growers' farms and assistance in this connection was given by the Army Department. Growers in general expressed their appreciation of the arrangements made and of the way in which the Government met its liability under the contracts. Including potatoes which had already been taken over under the North Island contracts which expired at the end of June, the total Government payments for potato contracts amounted to '£159,213. The heavy surplus of potatoes in the 1948 season was due to exceptional climatic conditions which provided record yields in all districts and not through increased plantings which were actually below those recommended by the Potato Advisory Committee.

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The average yield, of potatoes for the season was 7-08 tons per acre, the highest ever recorded in New Zealand, and is substantially higher than the average annual yield of 5*75 tons per acre. Although every effort was made to use these surplus potatoes for stock feeding and free distribution to institutions, the quantity that could be absorbed in such a manner was very small. Growing conditions for the 1949 season were the reverse of the previous year, and although an additional 2,300 acres were planted the yield was very poor and. supplies have been fairly short in the North Island during the past six months. Arrangements have therefore been made through members of the New Zealand Oram, Seed, and Produce Merchants' Federation for the importation of a total of 3,250 tons of Australian potatoes. The first of these shipments arrived in September and turned out very satisfactorily. So that these potatoes could be sold at the same price as the New Zealand grown potatoes, Government has approved a subsidy which is being administered through the Department. With regard to next year's potato supply, it has been hoped to establish a Potato M arketing Authority. It was not possible to finalize arrangements for such an Authority in time to deal with the coming season's crop, and on the recommendation of the Potato Advisory Committee, the Government agreed to- a continuation of the present contract system to cover the period ending, 30th November, 1950. Contracts, therefore, are now being taken for the main-crop potatoes for delivery March to November next. It is hoped that legislation to set up the Potato Marketing Authority can be introduced early in the next session of Parliament so that the Authority can contract for the crop to be planted in the spring of 1950. Onions The climatic conditions which favoured the growth of excessive crops of potatoes for the season 1947-48 also resulted in there being a surplus of onions which it was necessary for the Department to take over under the contracts with growers, such contracts being held only in the Manawatu and North Canterbury districts. Arrangements for the assessments of the Government's liability for onions similar to those made with regard to potatoes, were introduced to deal with the surplus and here again the committees established worked smoothly and satisfactorily. Onion contracts expired at the 30th September, 1948, in the North Island and at the 30th November, 1948, in the South Island. The total amount paid out to contract onion-growers for onions taken over was £17,692. Contracts for onions have now been discontinued and the Department's interest has been mainly of a supervisory nature. The crop has been a good one, although not productive of a heavy surplus as was the case the previous year. Some exports were made to America early in the season, with one shipment of 500 tons to Cuba, which turned out there in quite satisfactory condition. A direct freight from New Zealand to Havana was secured and this shortened transit time and reduced transport costs very considerably. The shippers sent one of their representatives to Cuba to inspect and supervise the onions on their discharge and to get such information as might be useful in the securing of further business in the future. Opportunities for shipment to Cuba and other American distinations are limited to shipments that can be made during the months of February and March, otherwise they? arrive too late in the season and clash with the locally grown new season's onions. More could have been shipped last year had the necessary freight space been available at the right time, and it is possible that quite a useful export business of onions could be developed to North America during those two months if suitable freight space is available.

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Present indications are that the quantity of onions still available in New Zealand will be just sufficient to meet civilian requirements up to the time that the new season's onions commence to come on the market in December. Maize For the past season the maize crop has been a very good one with yields on the average probably higher than any ever recorded in the past. These improved yields are due in a large measure to the widespread use of the new hybrid varieties of maize introduced from America over the past few years and which have been specially grown for seed purposes in the Poverty Bay district by the Department of Agriculture and also by some private firms. The crop has all been allocated by the Maize Marketing Committee for various purposes, mainly for use in the production of standard poultry mash which is greatly strengthened by the addition of 10 per cent, of maize. Allocations are also made for green-feed production ; for the manufacture of chick-raiser ; and this year it has also been found possible to make an allocation of maize for sale as whole or kibbled grain, this allocation being due to the increased crop available. For the current season's crop a rearrangement of prices has taken place and part of the subsidy has been absorbed in the price, the present position now being that the basic starting price (plus monthly increments) is 7s. 6d. per bushel instead of ss. 6d. and the subsidy payable is Is. per bushel, making the total basic price to the grower Bs. 6d. The quantity produced by the Department of Maori Affairs shows a substantial reduction this season, due to a reduced area being brought under cultivation by that Department. Hops This year's crop was not equal to that of the previous year and totalled only 2,607 bales, the reduction being due in the main to adverse weather conditions prior to> harvesting. Although the whole of the crop, 2,607 bales, was taken by New Zealand brewers, it was insufficient for their requirements. Due to the difficulty of making any importations from overseas, the brewers will make this quantity suffice. It is unlikely, even with favourable growing conditions, that the crop for the coming season will be larger in yield as the area sown shows a reduction of about 50 acres. Growers, who are dissatisfied with the present price of 3s. per pound, have applied to the Price Tribunal for an additional 3d. per pound to cover increased costs and a final decision is expected shortly. Raspberries The Nelson crop was a good one, and in addition to a substantial quantity estimated at about 50 tons that was sold in buckets to the retail trade, some 241 tons were delivered to manufacturers. The area planted in raspberries in the Nelson district is showing some increase, but there is still a long way to go before the full requirements of New Zealand jam-manu-facturers and the retail bucket trade can be fully met. During the year a Dominion Raspberry Growers' Council was formed with representatives from all the raspberry-growing districts in the North and South Islands. It i» possible that the South Island growers will be asking that the Nelson Raspberry Marketing Regulations should be extended to cover all raspberries grown in the South Island, it being considered that such an extension would be of substantial assistance in the marketing of their crop.

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Fertilizers During the year importations of sulphate of ammonia, sulphate of potash, and muriate of potash have again been under the control of the Department and substantial quantities have been landed to meet all requirements. These have been distributed through the normal wholesale and retail channels, but on the completion of shipments now coming to hand it has been decided that the importation and distribution of these fertilizers should revert to private channels as was the case prior to the Department in 1941 taking over the distribution on account of shortage of supplies due to war conditions. For many years all these fertilizers were under control and allocation of the International Emergency Food Council, but with an improvement in the supply position these have been decontrolled and this has been deemed an opportune time for the Government to relinquish the importation and distribution. HONEY SECTION During the past few years beekeepers have looked upon the Department as an outlet for honey they could not readily sell direct themselves. During the war years, owing to sugar shortages, there was an abnormal local demand for honey and beekeepers met this demand, thereby reducing the amount of honey received by the Department. This year beekeepers were asked to indicate whether the industry as a whole desired to retain a marketing organization, and various branches of the National Beekeepers' Association passed resolutions indicating that they desired the Honey Section of the Department to continue. Early in the season crop prospects appeared very good, but because of the weather the crop in some districts was well below normal. The Department received 370 tons of honey which was an advance on the receipts for the previous year when only 178 tons were received. The average grade of the honey, however, was much below that of previous years. The advance payment was 7d. a pound pro rata according to grade, plus 2|d. per pound flat, plus a further bonus, bringing the total payment to lid. a pound. Sales during the year were : lb. Armed Services .. .. .. .. .. 10,426 Hospitals .. .. .. .. .. .. 37,080 Naval and shipping .. .. .. .. .. 8,673 Manufacturing services .. .. .. .. 270,022 Sundries .. .. .. .. .. .. 5,146 Total.. .. .. .. .. 331,347 Honey sent to England for sale .. .. .. 174,000 Honey held for shipment to England for sale .. .. 81,200 Honey Marketing Committee The election of members of this committee was held during the year and the following members were appointed : Mr. E. A. Field .. .. . . Producer elected representative. Mr. F. D. Holt .. .. .. Producer elected representative. Mr. W. W. Nelson .. .. Producer elected representative. Mr. A. C. Bridle .. .. Government nominee (Chairman). Mr. C. R. Ridding .. .. Government nominee. Recommendations on various matters affecting the industry have been submitted by the Committee for consideration.

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Honey Seals The seals revenue collected during the year amounted to £5,900, this being the highest amount yet received through this source. IMPORTED FRUITS SECTION Bananas In an endeavour to improve the condition of bananas landing in New Zealand, an officer of the Department made a round trip on the " Matua " in March and called at Fiji, Tonga, Niue, and Samoa where he conferred with the authorities responsible for the preparation of fruit for exportThe Departments of Agriculture in Fiji and Tonga supervise the growing and packing of bananas shipped to New Zealand, and all negotiations in respect of prices are between the Government of Fiji and Tonga and the New Zealand Government. Negotiations in regard to bananas shipped from Niue and Samoa are conducted with the New Zealand Department of Island Territories. All bananas shipped to New Zealand from any source of supply are subject to inspection by Government officers, and any fruit not measuring up to export standard is rejected prior to shipment. Bananas are purchased on an f.o.b. basis and then becomes this Department's property. All payments to growers, cost of cases, packing, and other charges incidental to placing the fruit f.o.b. are the responsibility of the various island Government authorities. The Department continues to face difficulty in supplying bananas to the South Island as all regular shipments arrive at Auckland and have to be transported by rail and sea to the rest of the country. This procedure results in added costs and loss of fruit due to damage and decay during the many handlings before consignments finally reach the consumers. Experiments have been made by utilizing the services of vessels from England calling at Suva, Fiji, and loading bananas for direct delivery to South Island ports, but each attempt has been a failure and has resulted in shipments of good fruit being wasted because of faulty carriage. These steamers are not built for this class of trade and as it is apparently not possible for necessary ventilation to be provided in such deep holds, the bananas have arrived in an over-heated condition. Although continued use will be made of trans-Pacific mail and cargo steamers calling at Fiji, it will be necessary to rely almost entirely on the regular Pacific islands vessel " Matua " for banana supplies, with occasional assistance from the Government vessel " Maui Pomare." As advised in the report for last year, the new fruit steamer to run in conjunction with the " Matua " is expected to be commissioned in 1951 and until then there appears to be no prospect of substantially increasing banana importations.

The figures for 1948 and 1949 importations are shown below and indicate an increase of 5,453 cases for the year.

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Source of Supply. Year Ended 30th September, 1948. Year Ended 30th September, 1949. Cases. Percentage. Cases. Percentage. Fiji Tonga Samoa .. Niue, ... Norfolk .. 131,612 44,097 111,952 45-75 15-33 38-92 165,488 ! 47,265 76,723 3,588 50 56 • 46 i 16-13 26-17 1-22 0-02 287,661 100-00 293,114 100-00

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Oranges The supply of oranges has shown considerable improvement, all sources of supply having shipped larger quantities than for some years. Importations have not only resumed normal proportions but the total number of cases imported is greater than for any year since 1939. For the past few years oranges have been allocated to retailers through the wholesale distributors on the basis of purchases made during the last period of plentiful supplies, but the quantities now coming to hand are proving that many retailers are unable to accept deliveries on this basis as they are finding themselves unable to cope with the increased supply. Other retailers, however, can handle more than is being allocated to them and it would appear advisable to cancel the retail allocation lists as soon as sufficient oranges are available to meet all needs. Although, as stated above, importations are now 'back to normal pre-war quantities, the demand for oranges has increased, and it may be some little time before the retail allocation lists can be cancelled. The landed condition of oranges has also shown improvement. Apart from the fruit being stronger when packed, this has been possible mainly on account of carrying vessels leaving ports of shipment closer to scheduled days for departure and also to stricter attention being given to the method of stowage to give the maximum ventilation. Australia.—Heavy crops were experienced in Australia and this, combined with more shipping space being available, enabled normal quantities to be shipped from Australian ports. The problem of providing a continuity of supply is still made difficult on account of too many steamers leaving Australia about the same time and thus leaving a gap before they return for further loadings. This position accounts for the occasional short periods of slack supplies. All importations were made from the irrigation areas of New South Wales, Victoria, and South Australia, and although oranges were available from the coastal districts of New South Wales where fruit-fly is prevalent, no attempt was made to take advantage of this source of supply. The fruit generally arrived in good condition and met a ready market at fixed prices. Australian oranges are available from June to December with smaller supplies tapering off to March. Cook Islands. —Production in the Cook group still appears to be improving and larger shipments were received than has been possible for some years. Supplies are usually available from April to September but the period is governed by climatic conditions which affect the size and condition of the crops. The landed condition of island oranges was satisfactory. Jamaica.—The quantity of oranges received from Jamaica was larger than for a number of years. This fruit also landed in good condition. The normal season for these oranges to land in New Zealand is from December to April, thus filling the space between the end of the main Australian season in December and the commencement of the island shipments in April. Fiji. —Only very small quantities are available from Fiji , and consequently this fruit has very little effect on the total quantity imported. These oranges are usually available a month or so earlier than the Cook Island variety.

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For comparison purposes importations from the various sources of supply for 1948 and 1949 are quoted below :

GrR APE FRUIT Shipments, were received from Jamaica and also from the Pacific islands. Quantities were not as large as for 1948 but the Jamaican fruit arrived in excellent condition and was eagerly sought after by buyers.

On account of the large supplies of New Zealand grapefruit now being grown, care is taken to avoid the imported commodity landing here during the local season. Importations for 1948 and 1949 were as follows :

Pineapples Although there has been some improvement in the landed condition of Australian pineapples, complete satisfaction has not yet been obtained. The matter is still the subject of investigation by authorities on both sides of the Tasman with a view to arranging an Australian export standard that will ensure the fruit landing here in a good saleable order.

The Department has continued to accept all the pineapples available from Tonga, Fiji, and the Cook Islands. Importations for 1948 and 1949 were as under :

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Source of Supply. Year Ended 30th September, 1948. Year Ended 30th September, 1949. Cases. Percentage. Cases. Percentage. Australia Cook Islands Fiji Jamaica 345,072 35,612 1,791 48,321 80-1 8-3 0-4 11-2 413,222 55,797 2,075 75,771 75-56 10-20 0-38 13-86 430,796 100-00 546,865 100-00

Source of Supply. Year Ended 30th September, 1948. Year Ended 30th September, 1949. Cases. Percentage. Cases. Percentage. Australia Cook Islands Samoa Jamaica Fiji 450 1,223 763 24,740 112 1-6 4-5 2-8 90-7 0-4 3,554 586 14,438 259 18-87 311 76-64 1-38 27,228 100-00 18,837 100-00

* Source of Supply. Year Ended 30th September, 1948. Year Ended 30th September, 1949. Cases. Percentage. Cases. Percentage. Australia Tonga Fiji Cook Islands 6,871 3,597 7,009 808 37-6 19-7 38-3 4-4 13,426 4,839 5,283 676 55-42 19-97 21-81 2-80 18,285 100-00 24,224 100-00

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Lemons The year under review has been the most difficult production year experienced by the Department as the New Zealand crop was extremely heavy, being over 90,000 cases more than the previous year. As intimated in the last report, the lemon season in New Zealand covers the period Ist April in one year to the 31st March of the next, whilst the departmental report covers the period Ist October in one year to the 30th September in the next. The figures for New Zealand grown lemons set out below therefore cover half of one season and half of the next.

The total lemon sales for the past two years were :

A summary of marketable grades received by each packing house for the period under review is set out hereunder :

Receipts and Prices for Lemons, Year Ended 30th September, 1949

£ s. d. Total preferred .. .. 65,088f 34,695 1 8 Total commercial .. .. 37,652§ 17,260 8 9 £51,955 10 5 Average price, 10s. l-37d. By-product Receipts—All Sheds £ s. d. First peel lemons : 26,418f cases at ss. 6d. case .. .. 7,265 3 2 Second peel lemons : 81 cases at 4s. case .. .. 1 12 6 Juice lemons : 6,830f cases at 2s. case .. .. .. 683 1 0 Total Receipts (Including Rejects), All Grades for Each Shed Cases. Tauranga .. .. .. .. .. 83,725f Auckland .. .. .. .. .. 42,747^ Kerikeri .. .. .. .. .. 10,577' Gisborne .. .. .. .. .. 3,314f 140,364

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Source of Supply. Year Ended 30th September, 1948. Year Ended 30th September, 1949. Cases. I Percentage. Cases. Percentage. New Zealand Cook Islands Australia 74,338 1,397 10,453 86-3 1-6 12-1 102,584 1,068 98-97 1-03 "" 86,188 100-00 103,652 j 100-00

Auckland. Tauranga. Kerikeri. Gisborne. Preferred. j Commercial. 1 ■ Preferred. Commercial. Preferred. Commercial. Preferred. I Commercial. 1 16,563£ 53-50% 14,3941 46-50% 41,733§ 68-36% 19,315| 31-64% 5,452| 66-47% 2,750| 33-53% | 1,339 52-92% 1,191| 47-08%

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Total Manufactured, Peel and Juice Processed peel .. .. .. 263| tons. Juice .. .. .. .. 20,846 gallons. APPLE AND PEAR DIVISION This report reviews the completion of the 1948 apple and pear season and themajor part of the 1949 season. The final crop figure for 1948 season was 2,921,730 casesmade up of 2,596,452 cases of apples and 325,278 cases of pears. This constituted a record crop since the commencement of organized marketing in 1940, the total being 273,000 above the previous record established in the 1941 season. Altogether, the 1948 season was a difficult one, not only because of the large crop but also because of the heavy proportion of small sizes and the low quality of fruit in commercial and minimum grades. Another important difficulty was the withdrawal of subsidies, both direct and indirect, plus increased production costs. These conditions made it necessary for the Department, acting in association with the Fruit Marketing Council, to obtain from the market an average return approximately 4s. per case morethan in 1947 in order to give growers a comparable return. The net market return achieved was actually 3s. Bd. per case above the 1947 average. The average return to the grower in 1947 was 9s. 4-78 d. per case, and in 1948 lis. 5-69 d. In view of the magnitudeof crop and the large percentage of small sizes and poor quality fruit, this result reflects great credit on those responsible, and especially on the members of the Fruit Marketing Council whose experience and advice was of great benefit to the Department and tothe industry. New Zealand Apple and Pear Marketing Board The Fruit Marketing Council laid a solid foundation for the setting-up of the New Zealand Apple and Pear Marketing Board which was established at the request of theindustry under the Apple and Pear Marketing Act, 1948. The new Board, the members of which were appointed by the Governor-General on the recommendation of theMinister, consists of two members selected from a panel of names submitted by theNew Zealand Fruitgrowers' Federation, two other members appointed by the Minister,, and an independent Chairman selected by the Minister after consultation with the New Zealand Fruitgrowers' Federation. The present personnel of the Board is as follows : Mr. H. Turner .. .. .. .. Chairman Mr. J. Hainsworth .. .. .. Federation nominee. Mr. K. B. Longmore .. .. .. Government nominee. Mr. G. C. McMurtry .. .. .. Federation nominee. Mr. M. J. Moriarty .. ' .. Government nominee. The principal function of the Board is to acquire apples and pears grown in New Zealand or imported into New Zealand, and to market them both within the Dominion and overseas. The fruit is acquired on a purchase basis, the price being fixed by the Minister afterreceiving the advice of the Board as to the assessed cost of production for the season in question ; the average purchase-price fixed by the Minister is to be within the limits of 6d. above and 6d. below the standard cost of production declared for the season. The standard cost of production is based on production costs for the Hawke's Bay and Nelson districts. The Board has power to pay to growers in other districts an additional amount to compensate for the district's higher cost of production. The Board has the power to set up its own assembly, distribution, and marketing organization or to appoint an agent to carry out these functions. The Department has been appointed agent for a period of two years and was specifically authorized to accept appointment under the Act.

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Payments to Growers The Board advised the Minister that the cost of production for the 1949 season was assessed at 9s. l-8024d. per case, and the Minister declared the standard cost of production to be 9s. 2d., and fixed the overall average price at 9s. 6d. per case, wrapping extra. This in effect meant that the industry had an overall guarantee of 9s. 6d. for the 1949 season plus actual wrapping-costs. As previously pointed out, the Board has the power to pay to growers in districts other than Hawke's Bay and Nelson an amount additional to the general guarantee, and the rates determined for the 1949 season were as follows : Per Case, s. d. Auckland .. .. . . 1 3| Taranaki .. .. .. ..10 Wellington .. .. .. ..06 Marlborough .. .. .. ..11 Canterbury .. .. .. ..21 Otago .. .. .. .. 2 4| If the apples and pears purchased by the Board are sold for a sum greater than that paid to the industry, the surplus, after the deduction of all authorized costs and expenses incurred by the Board, is to be retained as a reserve fund to be used in offsetting any deficiency that may occur in a subsequent season. Table 1 gives the details of consolidated charge, net market return, amount of Government subsidy and overall average payment to growers for the seasons 1940 to 1948 inclusive, together with an estimate of consolidated charges for the 1949 season. Crop It is estimated that the crop figures for the 1949 season will be 1,955,900 cases of apples and 291,300 cases of pears, giving a total of 2,247,200 cases of which 2,219,000 cases have been received up to 30th September. The crop, therefore, appears to be nearly 675,000 cases below the crop of the previous season. In general, the quality of the fruit has been much higher than was the case in 1948. Details of yearly receipts from growers are given in Table 2. Distribution The normal selling policy was continued and endeavours were made to effect an equitable distribution over town and country areas.

Due to the smaller crop in 1949 the export programme was curtailed. The following table shows the distribution : —•

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— 1948. 1949. Apples. Pears. Total. Apples. Pears. Total. Export Dominion Total 999,100 1,597,300 21,900 303,300 1,021,000 1,900,600 524,100 1,431,800 291,300 524,100 1,723,100 2,596;400 325,200 2,921,600 1,955,900 291,300 2,247,200

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The following table gives comparative domestic market quantities since 1940 :

Direct selling to hospitals, Armed Forces, and railway refreshment-rooms was continued, but direct sales to retailers were eliminated early in March by direction of the Boasd. The total distributed through the former channels to 30th September was 31,800 cases, compared with 26,700 in 1948 and 32,100 in 1947. Table 3 shows how fruit has been distributed over the past ten years. Export The total export for the season was 524,064 cases of apples of which 412,597 went to the United Kingdom, 54,000 to the continent, 27,886 to the United States of America, and 29,581 to Canada. This is the first time in history that New Zealand has been able to get apples inffeo the United States. Of,the total quantity, 206,986 cases were loaded at Napier and 317,078 at Wellington. Due to a 5-per-cent. increase in overseas freight, the price offered by the British Ministry of Food was 20s. per case for Cox Orange Pippin, and 12s. per case for other varieties, compared with 20s. 6d. and 12s. 6d. respectively for the 1948 season's export, and in addition, due to the appreciation of the New Zealand pound to sterling, the 25-per-cent. exchange was lost. The net f.o f b. returns for the various markets in 1949 were 13s. 7-98 d. per case for the United Kingdom, 15s. l-sd. per case for the continent, 15s. 4-87 d. per case for Cariada, and 16s. 0-45 d. per case for the United States, giving an overall net return from all export markets of 14s. 0-59 d. per case. Apple Dehydration The apple-processing plant at Motueka continued its operations and 3,775,565 lb. of raw fruit was processed, yielding 345,060 lb. of dried product (apple slices) and 22,974 lb. of dried peels and cores.,

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— Apples. | ! Pears. 1 Total. 1940 1,664,900 167,600 1 | 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 1 2,471,000 1945 1,860,100 275,800 2,135,900 1946 2,087,400 182,000 j 2,269,400 1947 1,333,100 207,200 | 1,540,300 1948 1,597,300 303,300 | 1,900,600 1949 (estimated) 1,431,800 291,300 1,723,100

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Table 1

15

Ifcem - 1940. 1941. 1942. | 1943. 1944. 1945. 1946. 1947. 1948. (Estimated). . ,, s - d. 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 3-68 0 3-78 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 4-65 1 6-83 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 1-86 0 1-36 Lool 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 10-69 0 11-43 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 3-08 0 4-75 2 6-52 2 6-54 2 7-26 2 8-40 2 5-68 2 6-52 2 7-59 3 3-26 2 11-96 3 4-15 „ , . £ £ £ £ £ £ £ £ £ £ iotal •• •• 307,815 337,130 274,415 306,953 319,587 287,178 336,436 294,112 437,773 375,934 AT , , . , s. d, s. d. s. d. s. d. s. d. s. d. s. d. s. d. s. d. s d. 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 4-01 ± 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 2 11-96 % -a, n r 5 0-50 1 10-89 3 9-18 5 0-17 6 3-55 6 2-02 6 3-14 7 5-38 11 4-05 t ±>lus 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 profit,* + Payment to growers .. .. 5 0-27 5 4-65 5 3-00 6 1-90 7 4-93 7 5-32 f7 4-68 4-78 11 5-69 $ ££££££££££ Total payment to growers 607,674 742,335 544,567 672,296 957,755 839,321 f942,599 f723,863 1,677,000 J 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 2,921,730 2,247,177 * Export, 1940=587,504 cases. f Excludes orchard labour subsidy. $ Not available.

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Table 2—District Receipts of Apples and Pears

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Year. Auckland. Poverty Bay. Hawke's 1 Bay. Wellington. Marlborough. Port Nelson. Mapua. Motueka. Canterbury. Timaru. Otago. Dominion. 1940 ... 1941 1942 1948 1944 1945 1946 1947 1948 Estimated, 1949 Total 1940 1941 1942 1943 .. 1944 .. 1945 1.946 . ..... 1947 1948 Estimated, 1949 Total 278,612 251,623 167,110 190,300 236,072 178,749 220,580 135,213 264,033 179,985 19,455 22,992 40,076 23,026 41,577 18,981 32,366 24.686 42.687 26,245 701,920 525,691 770,923 422,517 865,870 585,165 745,060 24-5,660 839,145 617,109 31,234 33,240 34,473 31,917 23,666 20,006 25,270 13,607 24,885 20,075 71,935 78,917 70,557 67,415 74,567 84,567 65,276 77,359 120,276 70,313 Apples 211,733 294,877 183,083 307,911 238,942 254,664 312,788 214,606 304,821 226,112 420,304 1 473,102 243,601 389,539 336,226 296,050 476,123 370,926 517,807 383,849 291,903 353,420 207,072 336,793 273,862 235,426 326,950 226,842 327,701 231,811 102,671 96,961 91,614 121,935 100,466 61,081 42,263 12,996 82,974 70,710 7,039 1 11,179 5,688 5,840 2,602 3,495 3,127 5,900 115,593 158,783 1.09,498 128,515 120,434 122,411 119,525 11,191 66,089 123,797 2,252,399 2,300,785 1,923,695 2,025,708 2,314,284 1,860,595 2,369,328 1,333,086 2,596,452 1,955,906 2,102,277 292,091 6,319,060 258,373 781,182 2,629,537 3,907,527 2,811,780 783,671 50,904 1,075,836 20,932,238 ' 21,398 49,324 17,052 27,766 16,309 29.826 9,430 10.827 28,066 34,132 563 4,403 2,708 3,505 3,053 4,243 1,796 3,514 4,735 3,169 69,221 153,395 90,215 106,245 155,660 151,641 76,178 106,602 187,217 163,738 932 3,483 816 2,766 2,572 1,579 2,382 810 3,350 2,428 1,448 2,202 865 761 1,027 2,075 775 1,005 1,586 1,724 Pears 12,148 26,119 9,446 15,471 13,435 15,765 -13,204 16,986 18,284 13,347 12,490 29,769 9,266 15,130 11,842 11,929 20,778 26,762 24,936 23,182 19,531 43,747 16,830 33,533 30,255 30,352 32,686 33,667 36,600 30,946 11,232 9,808 14,016 9,969 9,737 10 ,"204 4,591 1,325 8,416 6,812 1,159 1.702 1,525 1,797 1,819 1,927 73 634 1.703 17,497 23,732 20,679 18,433 23,985 15,625 20,162 5,749 11,454 10,090 167,619 347,684 183,418 235,376 269,694 275,166 182,055 .'207,247 325,278 291,271 244,130 31,689 1,260,112 21,118 13,468 154,205 186,084 308,147 86,110 12,339 167,406 2,484,808

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Table 3

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Distributed to 1940. 1941. 1942. 1943. • 1944. Apples. Pears. Apples.. Peais. i Apples. | Pears.. Apples. Pears. Apples. | Pears. Domestic markets U.S.J.P.B. N.Z. Forces Schools .. .. Export Miscellaneous Total Dehydration Total crop 1,559,000 30 j000 77,000 159,000 5 000 3^000 2,037,000 55 j 000 113,000 4,000 92,000 329,000 15,000 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 52,000 198,000 23,000 11,000 3^000 1,512,000 479,000 66,000 102,000 43 j 000 230,000 26,000 9,000 4,000 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. 1949 (Estimated). Apples. Pears. Apples. Pears. Apples. Pears. Apples. Pears. Apples. I Pears. Domestic markets U.S.J.P.B. .. N.Z.. Forces Schools Export .. Miscellaneous Total Dehydration Total crop 1,421,000 312,000 44,000 43,000 40 j 000 243,000 18,000 9,000 5^000 1,890,000 17,000 43,000 282,000 137,000 168,000 3,000 11^000 1,176,000 M00 31,000 118 j 000 190,000 1^000 16,000 1,445,000 5,000 999 j000 148,000 280,000 1,000 22 j000 22,000 1,383,000 5,000 524,000 44,000 277,000 1,000 1.3,000 1,860,000 135,000 275,000 2,369,000 182,000 1,333,000 207,000 2,597,000 325,000 1,956,000 291,000 1,995,000 275,000 2,369,000 182,000 1,333,000 207,000 2,597,000 325,000 1,956,000 291,000

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SUNDRY PRODUCTS Importations foe Stores Control Board : Functions Ex Food Control On the closing of the office of the Food Controller early in the year, certain of his functions were transferred to the Department. Among these was the importation of various commodities, principally canned and dried fruits, on behalf of the Stores Control Board for supply to Government institutions. The services of the Trade Commissioners in Australia and elsewhere are used to arrange purchase and shipping, and the distribution in New Zealand is carried out by the Department. The bulk of these commodities are for the Armed Services and mental hospitals, though the smaller institutions such as training-farms and special schools are also supplied. All commodities are sold on a landed cost plus charges basis. Bobby Calf Marketing Pool Operations Bobby-calf pools throughout the country have now become well established and through the elected pool committees an efficient service to the producers is being provided. The efficiency of this marketing system is largely dependent on the collection service, and while some pools have continued the wartime practice of eliminating " side road " services longer than was really necessary, most pools are now finding it better to give a more general cartage service even if additional costs are incurred. The lack of collection services in the off season is a problem for many pools with large sparsely populated areas, and the assembly of calves from these areas at saleyards and other suitable points has assisted the position materially. However, it is hoped that more can be done to improve the collection arrangements for calves offering in the off season, both by direct collection and by centralization. The pools in the Otago district which were formed the previous year, experienced a good season's operations and the results were very encouraging to those producers who were instrumental in forming them. A noticeable feature of annual meetings is that information supplied by different organizations is not always accurate, which leads to confusion among farmers. This was particularly evident regarding conditions of supply to the local market and to export. An improvement was evident following an article supplied by the Department to a farming journal. Another matter which has received some attention is the voting rights for the election of committees of the various persons engaged in dairying. This is particularly evident in districts where large numbers are share-milking. The operation of the Westfield Saleyard Committee, which was set up to negotiate the supply of calves to those yards, was satisfactory. This committee's operations have stabilized the pool-marketing arrangements in and around the Auckland area. The returns for the year ended Ist January, 1949, show that 1,014,689 calves were collected in all pooled areas both gazetted and ungazetted. In previous years the calves collected by ungazetted pools have not been included, but as similar returns are available from these few pools (five) on a similar basis to the others it was decided to include them. For the period under review, ungazetted pools had a total collection of 26,679 calves. Of the total of 1,014,689 calves, 974,491 were passed for export. Some 3-8 per cent, or 40,198 were rejected. This is a big improvement on the previous year's figure of 6-2 per cent. In general, the treatment of calves is satisfactory.

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The cartage-costs were the same as for the previous year, being Is. lid. per calf, which represents a total of £97,993. The return to the producer showed a decline on the previous year and the average "at gate " price was 21s. 3d. This represented a total payout to producers of £1,081,737. The levy imposed on freezer calf-skins for credit to the Bobby Calf Stabilization Account was again fixed at 6s. per skin for the period up to Ist June 1949, but was reduced from that date onwards to ss. per skin. On the 30th September the amount standing to the credit of the industry in the various accounts was approximately £1,500,000. The year's operations have been sound and the drop in prices did not appear to have any marked influence on the marketing arrangements. Apart from some comment on the voting rights and procedure at annual meetings, the relations between producers and the pool committees and between pool committees themselves indicate that the marketing of calves through pools is now on a sound and economical basis. The Department continues to encourage the formation of pools where desirable and has provided assistance and advice upon request during the year. Export Permits for Skins Early in 1949 it was obvious that there were extensive " cheap sterling " operations in freezer calf-skins by continental interests, with a consequent loss of dollars to New Zealand. The number of skins sent direct from New Zealand to North America had dropped from a yearly average of approximately 400,000 to nothing in one year. It was therefore decided just prior to the 1949 season for calf-skin sales, to " screen " all export permits for these skins with a view to making it more difficult for indirect trading to be carried out. This method, while being of some inconvenience to exporters, has been, nevertheless, a very successful way of ensuring that few, if any, indirect sales were made. The direct exports were again brought back to a comparable position to that pertaining in previous years. Later it was decided to extend the screening process to other classes of hides and also pelts. Importation of Commodities in Short Supply : Functions Ex the Department of Industries and Commerce (Ministry of Supply) When the Ministry of Supply ceased to function the Department took over the importation of certain commodities and the disposal of stocks on hand. The reason Government trading has been continued is that the conditions of supply have been such as to prevent the possibility of reversion to normal trade channels in the meantime. The Department does not, however, regard these as permanent functions and is merely carrying on until the time is appropriate for private traders to resume their activities. Coffee. —As Tanganyika coffee is under bulk purchase by the United Kingdom Ministry of Food, purchases for the New Zealand trade are between this Department and the Ministry. The Department, as agent for the trade in New Zealand, purchased 74 tons of Tanganyika coffee from the Ministry of Food. This coffee was landed in good condition and sold on an f.o.b. Mombassa plus charges basis. It is not expected that the Ministry of Food will continue to offer Tanganyika coffee after 1952. In the meantime tin Department will continue to purchase any surplus coffee from them should the New Zealand trade require it. Rice.—The importation of rice has been under the overall control of the International Allocation Committee, and under this arrangement New Zealand has drawn its allocation from Australian sources. It is expected that international control will be lifted late in 1949 and the question of further allocation and supply will then require review. The

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existing allocation of 600 tons of polished rice per year to New Zealand is about onesixth normal consumption and until greater supplies are available it will not be possible to allow rice to revert to a free basis. The supplies available have been distributed by the trade, under departmental supervision, to Asiatics who are dependent on a rice diet, to hospitals, and to medical cases. Desiccated Coconut. —The arrangement whereby the New Zealand Government purchases the whole of the Samoan output of desiccated coconut is still effective, the Department taking over the purchasing arrangements on the closing of the Food Control Office. The dessicated coconut purchased by the Department is produced by the New Zealand Reparation Estates which are administered by the Department of Island Territories. All coconut imported is handed over to the trade for distribution. For the period December, 1948, to September, 1949, the Department purchased 572 tons. The port distribution was as follows : Tons. Auckland . . .. .. .. 206 Wellington .. .. .. .. 186 Christchurch .. .. . . 90 Dunedin .. .. .. 90 The supplies for Government institutions are arranged for by the Department. It is expected that approximately 750 tons of Samoan desiccated coconut would be available to New Zealand over a twelve-monthly period. Ingot Tin. —As tin was under international allocation during the war and post-war years, it was imported and distributed by the Ministry of Supply. The Department has taken over this function from the now defunct Ministry of Supply, having purchased its stocks. The price of ingot tin rose by over £lOO per ton following devaluation but stocks in New Zealand were sufficiently large to meet demand without an increase in price and without having to replenish supplies at the high price. The international Tin Allocation Committee ceased to function during the year and normal buying was resumed through the auctions. The Department continues to hold a sufficient stock to meet requirements for some time and it is the intention that, as soon as the time is suitable, the Department will step out of the trade and hand over the importation of tin to private merchants. Tin-plate.—The international allocation of tinplate has again been the reason for Government trading. The Department (continuing the previous practice of the Ministry of Supply) has acted as a purchasing authority and has handed over the distribution in New Zealand to the usual importers. Fish-liver and Whale Oils. —The Department continued to purchase as required shipments of fish-liver oil and whale-oil on behalf of the Ministry of Food. The fish-liver oil contract is due to terminate at the end of 1949 and the policy regarding future purchases is still uncertain. However, with an improving supply of fish oils, it is possible that the United Kingdom will require only certain of the higher potency oils. Fish-liver oil to "the value of £52,365 and whale-oil to the value of £1,384 10s. were purchased and sold by the Department during the year. War Office Supplies.—When the Department took over from the Food Controller there were in stock considerable quantities of oatmeal and rolled oats held on order from the War Office. The Export Division of the Department had always acted as the shipping authority and the Department in taking over the stock continued this function. All the rolled-oats stock was cleared during the year and the balance of the oatmeal will be cleared, it is expected early in 1950.

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The War Office was approached at the instigation of the New Zealand millers, but it is unlikely that further orders will be placed in New Zealand. Bacon Subsidy.—The administration and payment of the subsidy payable in respect of bacon was another function assumed from the Food Controller's Office. The payment of this was continued until the 30th September when the subsidy was withdrawn,, Agar Agar.—Before the war agar was imported, but local sources of supply are now being used as far as possible, thus effecting a saving in overseas exchange while providing a valuable source of income to part-time collectors, primarily Maoris. The "Department continued to act as the sole collecting agency, and all agar purchased was sold to the Davis Gelatine Co. of Christchurch. The price of Is. per pound was maintained, but certain freight-allowance adjustments were introduced during the year. In general, there has been a slackening off in supplies coming forward, and the whole of the collection and availability of this weed is to be the matter of a special investigation later this year. There is a possibility that many of the beds may have been subjected to over-picking. If this is the case, some measure of protection may have to be adopted to prevent damage to the industry. Local Meat.—During the year the Department was charged with the responsibility of ensuring that during the period when price controls on meat sold locally were not operating ample supplies of good-quality frozen meat would be available on demand to the public at fixed prices. In the North Island fresh meat supplies were generally adequate to meet the demand, and this meant that fat-stock prices did not rise excessively during the decontrol period. When any sharp rise was experienced frozen meat was used, and this had a steadying influence on market values. The position in the South Island was, however, rather different. The Canterbury area, owing to a very favourable season, had a steady supply of meat, but prices rose well above those ruling in the North Island. This was due to the reluctance of the Canterbury wholesale and retail trade to use a proportion of frozen meat. In the Dunedin area the supply of fresh meat was inadequate to meet the demand, and, consequently, fat-stock prices rose to a very high level. The availability of fresh meat for this market is limited for the June-November period and the only alternative appears to lie in the wider use of frozen meat. Good-quality frozen ox-beef is not usually held in stock in Dunedin, and if it is to be made available to the public it must be transferred. The Department did transfer on behalf of the Dunedin trade a small quantity of frozen beef from Southland, and this was favourably received. It is expected that the supply of fresh meat to the local market in the South Island will steadily decrease in the future, and therefore increasing quantities of frozen meat may be required to meet the position. The Department wishes to express its appreciation of the co-operation given to it by the New Zealand Meat Producers' Board, the Freezing Companies' Association, and the Master Butchers' Federation in dealing with local market meat problems. MILK DIVISION National Milk Scheme The milk year commences on the Ist September and finishes on the 31st August. The Department continued to operate the National Milk Scheme which first came into operation during the 1944-45 year, and this year therefore represents the fifth year of its operation. The scheme aims to ensure an adequate supply of good-quality milk all

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the year round in the milk-consumption areas of the Dominion, and also aims to ensure adequate returns to those engaged in the trade. A guaranteed farm-gate price is paid to town milk producers, and various margins are paid for services performed from farm gate to consumers, while the selling-prices are fixed by Price Orders. The difference between the guaranteed farm-gate price plus margins and the Price Order price is met by way of subsidy. The producers give quotas for the milk which they can produce on each day of the year. The town milk price is paid on such quantities, but to allow for seasonal variations in production, the price is also paid on percentages of surplus above the guarantees. In accordance with the agreement with the Town Milk Producers' Federation, these are 17 per cent, in five spring and summer months, and 10 per cent, for the remainder of the year. National Town Milk Producer Price For the 1947-48 milk year the national town milk producer price was fixed at 19-4526 d. per gallon, as compared with the price of 19-1352 d. per gallon for the previous year. In accordance with the agreement with the Town Milk Producers' Federation which operates until the 31st August, 1950, and of which detailed information was given in the last annual report, the town milk price is arrived at. on a formula which takes the average pay-out of. cheese-factories as its starting point. The producer prices thus, by and large, follow any changes in the guaranteed price for export dairy-produce. An increase in the guaranteed price was made from the Ist June, 1949. Accordingly, a corresponding alteration was necessary in the national town milk producer price, this increase being fixed at 0-8372 d. per gallon. The town milk producer price is paid out according to seasonal differentials which were as follows : —- North Island — Pence per Gallon. September, 1948, to January, 1949 .. .. 16-00 February, 1949, to April, 1949, inclusive .. .. 20*00 May, 1949 .. .. .. .. .. 24-05 June to August, 1949, inclusive .. .. .. 24-8872 South Island — October, 1948, to February, 1949, inclusive .. .. 16-00 September, 1948, March and April, 1949 .. .. 20-00 May, 1949 .. .. .. .. .. 24-05 June to August, 1949, inclusive .. .. .. 24-8872 Jn addition, special seasonal differentials were fixed to meet the specific problems in certain districts. Where surplus milk was diverted to butter or cheese factories, the following standard credits were taken as realizations on such surplus so diverted—for cheese 10-9 d. per gallon and for butter lOd. per gallon. These realizations are built up by way of subsidy to ensure the full town milk producer price on the percentages of surplus recognized. From the Ist June, 1949, the realizations were increased to 11-sd. per gallon for cheese and 10-6 d. per gallon for butter.

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Table 4—List of Town Milk Producer Organizations Operating Under the National Milk Scheme, Together With Daily Nominated Quantities Approved by the Minister of Marketing for 1948-49 Milk Year

23

District. Name of Organization. Nominated Quantity. Gallons. Arapuni Arapuni Milk Supply 40 Ashburton Ashburton Town Milk Producers' Co-operative, Ltd. 760 r New Zealand Co-operative Dairy Co., Ltd. 17,502 Auckland < Auckland Co-operative Milk Producers' Association, Ltd. 14,578 \ North Shore Milk Producers' Association, Ltd. 3,470 Balclutha Dairy Farmers' Co-operative Milk Supply Co., Ltd. .. * 460 Bay of Islands Bay of Islands Town Milk Producers' Association 185 Blenheim Blenheim Co-operative Milk Supply Co., Ltd. 1,000 Bluff .. Southland Co-operative Milk Supply Co. t Brightwater G. G. Simkin 20 Bulls .. R. Tricker .. .. .. 40 f Canterbury Dairy Farmers' Co-operative Milk Supply Co., Ltd. .. 15,585 Christchurch < I Christchurch Metropolitan Milk Suppliers' Co-operative Association, Ltd. 4,510 Cromwell Town Milk (Dunedin), Ltd. * Culverden L. Denton 43 Dannevirke Maharahara Co-operative Dairy Co., Ltd. 880 Dargaville Dargaville Milk Producers' Association 280 Dunedin / Dairy Farmers' Co-operative Milk Supply Co., Ltd. 8,000 \ Town Milk (Dunedin), Ltd. 2,761 Eltham .. Eltham Producers' Co-operative Milk Organization 75 Fairlie .. South Canterbury Co-operative Milk Supply Co., Ltd. 75 Feilding Feilding Milk Producers' Association 470 Foxton .. Foxton Milk Producers' Supply Association 190 Geraldine South Canterbury Co-operative Milk Supply Co., Ltd. 130 Gisborne Gisborne Co-operative Milk Producers' Association, Ltd. 2,250 Gore Southland Co-operative Milk Supply Co. t Greymouth Grey District Co-operative Milk Producers' Association, Ltd. 1,371 XT / Hamilton Milk Producers' Co., Ltd. 4,518 Mamuton \ Newstead Town Milk Group 682 Hawera .. Hawera Co-operative Milk Supply Association 780$ Helensville Kaipara Co-operative Dairy Co., Ltd. 120 Huntly .. L. R. Rowan 65 Inglewood New Plymouth Dairy Farmers' Co-operative Milk Supply Associa105 tion, Ltd. Invercargill Southland Co-operative Milk Supply Co. 3,800§ Kaikohe Kaikohe Milk Producers' Association 121 Kaikoura Kaikoura Milk Supply Association 120 Kaitaia .. Kaitaia Milk Producers' Association 140 Kaitangata Dairy Farmers' Co-operative Milk Supply Co., Ltd. 110 Kaponga A. M. Wickham 31 Katikati Tauranga Milk Producers' Association 40 Lawrence Town Milk (Dunedin), Ltd. * Levin Levin Co-operative Dairy Co., Ltd. 450 Marton .. Marton Milk Producers' Association 311 Middlemarch Town Milk (Dunedin), Ltd. * Mil ton f Dairy Farmers' Co-operative Milk Supply Co., Ltd. 175 ioillUu . . . \ Town Milk (Dunedin), Ltd. * Morrinsville Morrinsville Milk Group 65 Motueka Nelson Co-operative Milk Producers' Association, Ltd. It Mount Maunganui Mount Maunganui Milk Producers' Association 180 Murupara E. L. Rossiter 80 Napier-Hastings . Hawke's Bay Raw Milk Producers' Co-operative, Ltd, 4,300 Naseby .. Town Milk (Dunedin), Ltd. * Nelson .. Nelson Co-operative Milk Producers' Association, Ltd. 2,400f New Plymouth . New Plymouth Dairy Farmers' Co-operative Milk Supply Associa2,550 tion, Ltd.

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Table 4—List of Town, Milk Producer Organizations Operating Under the National Milk Scheme, Together With Daily Nominated Quantities Approved by the Minister of Marketing for 1948-49 Milk Year —continued

t Included in Invercargill nominated quantity. J Includes Patea. § Includes Bluff and Gore. |j Included n Nelson nominated quantity. If Includes Motueka. ** Included in Hawera nominated quantity. Wellington City Council Price Structure and Reconciliation With Hutt Valley Trade The supply of milk to the Municipal Milk Department of the Wellington City Council and also to the vendors or other organizations operating in the Hutt Valley is not handled under the National Milk Scheme, and a different producer price and a

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District. Xame of Organization. Nominated Quantity. 1 Gallons. Oamaru North Otago Milk Producers' Association, Ltd. 1,050 Ohura Taumarunui Milk Producers' Association ~ 35 Opotiki Opotiki Milk Producers' Association 200 Opunake Opunake Milk Producers' Association 90 Orepuke Southland Co-operative Milk Supply t Otorohanga Otorohanga Milk Producers' Association 160 Pahiatua .. • Pahiatua Milk Producers' Association 80 Palmerston North Manawatu Co-operative Milk Producers' Co., Ltd. 3,775 Patea Hawera Co-operative Milk Supply Association ** Pieton Picton Milk Producers' Association .. .. .. 230 Pukekohe Franklin Milk Producers' Association .. .. 600 Putaruru Putaruru Milk Supply Association .. .. .. 100 Raetihi .. Ruapehu Milk Supply Association 500 Ranfurly Town Milk (Dunedin), Ltd. * Riverton Southland Co-operative Milk Supply .. t Rotorua Rotorua Co-operative Milk Supply Co., Ltd. 1,145 Roxburgh Town Milk (Dunedin), Ltd. * Shannon Richards and Sons 45 Stratford Stratford Co-operative Milk Association, Ltd. 660 Taihape Takaka Taihape Milk Producers' Association 230 Nelson Co-operative Milk Producers' Association, Ltd. 40 Taneatua M. J. Doran ' 25 Tapanni Town Milk (Dunedin), Ltd. * Taumarunui Taumarunui Milk Producers' Association 410 Tauranga Te Aroha Tauranga Milk Producers' Association 890 Te Aroha Milk Producers' Association 480 Te Kuiti Te Kuiti Milk Producers' Association 223 Temuka South Canterbury Co-operative Milk Supply Co., Ltd. Te Puke Milk Producers' Association 100 Te Puke 110 Thames Thames Valley Milk Producers' Association .. 1,020 Timaru South Canterbury Milk Supply Co., Ltd. 2,700 Waikouaiti Town Milk (Dunedin), Ltd. * Waimate South Canterbury Co-operative Milk Supply Co., Ltd. 370 Waipawa Waipawa Milk Producers' Association 90 Waipukurau Waipukurau Milk Producers' Association 250 Wairarapa Wairarapa Town Milk Producers' Association 1,237 Waitara New Plymouth Dairy Farmers' Co-operative Milk Supply Association, Ltd. 235 Wakefield C. Gardiner 25 Wanganui Wanganui Co-operative Milk Supply, Ltd. 2,650 Warkworth Warkworth Milk Producers' Association 50 Waverley Waverley Milk Producers' Association 46 Wellington The Nearby Farmers' Association (Inc.) 1,951 Westport Westport United Dairies, Ltd; 680 Whakatane Whakatane Milk Producers' Association 560 Whangarei Whangarei Co-operative Milk Marketing Co., Ltd. 1,475 Winton Southland Co-operative Milk Supply t Wyndham Southland Co-operative Milk Supply t * Supplies of these country areas by Town Milk (Dunedin), Ltd. .. 382 120,717

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considerably different supply organization applies. However, the price payable to the supply organizations is altered each year by the same figure as that by which the national town milk price is altered. The following price schedule operated for the 1948-49 milk year:— Ist September, 1948, to 31st January, 1949 .. 17-75 d. per pound butterfat, plus 8-4124 d. per gallon added value. Ist February, 1949, to 15th April, 1949 .. 17-75 d. per pound butterfat, plus 12-1032 d. per gallon added value. 16th April, 1949, to 31st May, 1949 .. .. 17-75 d. per pound butterfat, plus 85 per cent, of 17-75 d., plus 12-730 d. per gallon added value. Ist June, 1949, to 15th August, 1949 .. .. 17-75 d. per pound butterfat, plus 85 per cent, of 17*75 d., plus 13*5675 d. per gallon added value. 16th to 31st August, 1949 ~ ... ~ 17-75 d. per pound butterfat, plus 9-2496 d. per gallon added value. Supplies op Milk One of the objectives of the National Milk Scheme has now been achieved in that practically all areas of population have an organized supply. Whereas the number of producer organizations increased from 32 during the 1946-47 milk year to 71 during the 1947-48 milk year, the number for the 1948-49 year was 96. Most of the increase from 71 to 96 represented larger associations organizing special groups in smaller towns, and there are very few areas now outside the scheme. The great majority of milk producer associations this year were operating on the full National Milk Scheme, including the payment of the full town milk price on surplus production up to the percentages recognized. Previously, a number of the smaller associations had been satisfied to receive the town milk price on sales only. Thus the cost of the surplus milk disposal scheme increased considerably during the 1948-49 year. Better organization, together with a favourable season, resulted in an adequate supply throughout the country, and there were no major problems of milk shortage even at the most difficult point of production during the year. Improvements in organization now enable surplus milk from one area to be switched quickly to any areas where supplies to the public are inadequate. Payments Made in Respect op Milk Supplied for Human Consumption During the Period Ist September, 1948, to 31st August, 1949 (a) Payments made under the National Milk Scheme to Producers, £ treating houses, and vendors in respect of actual town sales . . 1,518,834 (b) Cost of surplus milk scheme .. .. . . .. .. 283,651 (c) Payment of winter feed allowances . . . . .. .. 11,545 (d) Payment of administration levy to producer associations .. 13,915 (e) Payment of levies to local milk authorities .. .. .. 15,098 Total .. .. .. .. .. £1,843,043 Treatment op Milk The Department continued to encourage the milk supply to be arranged so that the consumers in at least the major centres of consumption have a choice of raw milk or pasteurized milk, and that wherever practicable, milk is delivered in sealed containers.

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Figures taken out show that whereas the total town milk sales under the National Milk Scheme (including Wellington City Council) increased from 29,873,449 gallons in 1945-46 to 33,344,559 in 1946-47, to 42,377,765 in 1947-48, and to 45,018,642 in 1948-49, the sales of pasteurized milk over the same period increased from 20,665,957 to 21,813,558, to 26,654,357, to 27,646,413. The sales of bottled milk over the same period increased from 14,180,588 to 17,711,411, to 20,917,115, to 23,330,001. It should be mentioned that from the outset practically all supplies of treated milk •'were through the National Milk Scheme. In furthering the policy of public treatment of milk, the main work of the Department was the completion of purchase of plants in respect of which negotiations had not been completed during the previous year. Only one plant was offered to the Department during the year. In May, 1949, the acquisition of the shares in United Dairies, Ltd., the major treating house in Christchurch was completed. The purchase of these shares automatically acquired for the Crown a major holding of shares in Riversdale Dairy Supplies, Ltd., the treating house for Greymouth. The purchase in Christchurch involved the taking over of a complete business, including land, buildings, plant, and distribution, but in keeping with policy, the retail distribution side of the business was sold to returned servicemen. Other acquisitions made were those of Takapuna Dairy, Ltd., the Midland Cooperative Dairy Co., Ltd., and the Invercargill Milk Supply. In the case of Takapuna Dairy, the Department was involved in the purchase of certain items of plant only, and as had been agreed upon previously, the treatment house, which was obsolete, was closed, and the trade handled through the treatment house of the Auckland Milk Treatment Corporation. In Invercargill, the land, buildings, plant, and distribution of the Invercargill Milk Supply were purchased and, except for the distribution, handed over for control to the Invercargill Milk Treatment Corporation. The distribution rounds were disposed of to the existing roundsmen. The Rotorua Treatment House was offered for sale to the Crown, but arrangments for taking over had not been completed by the end of the milk year. Alterations to the Palmerston North Milk Treatment Station, which is operated by the Department, were completed during the year. Improvements have been made to the plant and equipment at the Nelson Station, and it should be able to run efficiently until a new milk treatment station is erected. Following on the purchase of the Newstead Station at Hamilton on the 31st August, 1948, extensive improvements have been made and new plant installed with a view to meeting the urgent demand for improved methods of handling and treatment pending the erection of the new milk treatment station at Seddon Street, Hamilton. As far as possible the alterations at Newstead were arranged so that there will be a minimum of redundancy when the new Hamilton Station is ready. However, it will not be possible to make Newstead into an ideal station to handle Hamilton milk for any length of time, and it cannot be regarded as an alternative to the erection of a new station. The treatment facilities at the Midland Co-operative Dairy Co., Ltd., Timaru, were closed down during the year and the milk channelled through the milk treatment station operated by the Timaru Milk Treatment Corporation. Certain items of plant were taken over from the Midland Co. Plans have been approved for improvements involving extension of building and new plant at the Timaru Milk Treatment Station. When these alterations are complete, that station should be adequate for Timaru's needs for many years. Conditions at Blenheim have been improved and a boiler-house erected and boiler installed. Arrangements are in train for the installation in the Blenheim Station of plant acquired from the Midland Co. and other surplus plant in the hands of the Department. The facilities in Blenheim should then be adequate until a new station is erected. Steps were taken during the year to acquire a site for a new station.

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At the end of the year the final stages of plant installation at the new Hastings Treatment House were reached. Progress is well in hand with the erection of chill-room facilities at Napier, which can, in due course, be used in conjunction with a separate treatment house at Napier. The opening of the Hastings plant and the erection of the Napier chill-room will enable the present unsatisfactory Napier Milk Treatment Station to be closed down. In Dunedin the new milk treatment station has operated satisfactorily. However, this station was planned and partly erected before it was acquired by the Department and was planned for the trade of the company building it. It is not large enough to handle all the milk for Dunedin, or to enable Dunedin consumers to get all their supplies in sealed containers. Fairly extensive additions both in buildings and plant will be needed. Production sales and treatment of milk passing through National Milk Scheme from Ist September, 1945, to 31st August, 1949 :

Table 5

Table 6 —Schedule Showing Particulars of Production and Town Milk Sales for 1948-49 Milk Year

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Milk Year. Production. Town Milk Price Payable. Town Sales. School Sales. Raw Sales. Pasteurized Sales. Loose Sales. Bottled Sales. 1/9/45-31/8/46 1/9/46-31/8/47 1/9/47-31/8/48 1/9/48-31/8/49 37,332,817 44,921,105 54,935,507 63,960,210 32,751,693 40,230,822 49,952,646 55,456,541 29,873,449 33,344,559 42,377,765 45,018,642 1,394,976 1,640,837 1,369,689 1,808,528 9,207,492 11,531,001 15,723,408 17,372,229 20,665,957 21,813,558 26,654,357 27,646,413 15,692,861 15,633,148 21,460,650 21,688,641 14,180,588 17,711,411 20,917,115 23,330,001

Gallonageon Town. Production. Which Town Milk Price Payable. Town Sales. School Sales. Raw Sales. Pasteurized Sales. Loose Sales. Bottled Sales. Kaitaia 49,224 49,224 48,245 48,245 48,245 Bay of Islands 64,698 64,698 64,667 64,667 64,667 Kaikohe 4 44,868 Itawene !- 77,301 55,510 44,868 44,868 Okaihau 327,954) Whangarei .. 806,554 604,500 457,204 28,786 457,204 129,254 Dargaville .. 104,217 104,030 100,644 100 ,"644 100,644 Warkworth .. 15,186 15,186 15,035 15,035 15,035 Helensville .. ,37,268 37,268 37,125 37,125 37,125 Auckland 17,900,047 14,456,111 11,035,554 4oi j 230 603,881 10,431.^673 6,288,991 4,746 j 563 Pukekohe .." Waiuku Mercer .. I 338,735 237,397 208,759 208,759 190,893 17,86# Tuakau Thames 349,604 Paeroa )■ 518,098 418,127 349,604 349,604 Waihi .. j 78,455 Te Aroha 280,747 187,399 78,455 52,990 78,455 Hamilton .. "1 ! Huntly Ngaruawahia 2,627,114 2,044,077 1,496,346 76,576 1,175,766 344,099 1,382,640 137,22s> Te Awamutu 1 Morrinsville .. f 103,061 Cambridge .. 107,435 107,435 103,061 103,061 Matamata 61,617 61,617 59,727 59,727 59,727 Putarura 44,486 44,486 43,053 43,053 43,053 {Jtorohanga .. 129,710 65,528 48,489 48,489 48,489 1^291 Te Kuiti 97,833 92,159 84,405 84,405 65,124 Taumarunui \ Ohura .. J 201,887 168,317 155,608 155,608 155,608 Mt. Maunganui 95,107 77,351 73,795 73,795 73,795 Tauranga .. \ Katikati .. j 429,985 379,802 303,642 20,598 12,841 290,801 48,882 254,760 Te Puke 68,857 44,946 35,698 35,698 35,698 Rotorua 605,135 473,166 376,806 18^361 134,430 242^376 179,880 196]926 Murupara 31,815 31,815 31,815 31,815 31,815 Whakatane .. \ Taneatua .. J Onotiki > 238,091 225,062 157,450 24,673 5,777 151,673 18,870 138,580 112,484 81,843 51,280 8,530 % 24,214 27,066 5,548 45,732 New Plymouth 1,108,305 1,001,551 766,974 64,967 32,253 734,721 91,328 675,646 Waitara 119,868 96,492 84,732 84,732 53,376 31,356

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Table 6 —Schedule Showing Particulars of Production and Town Milk Sales for 1948-49 Milk Year—continued

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Gallonage on Town. Production. Which Town Town School Raw Pasteurized Loose Bottled Milk Price Sales. Sales. Sales. Sales. Sales. Sales. Payable. Xnglewood 59,685 43,267 37,508 37,508 129 ,"313 37,508 123j 108 Stratford 262,140 256,121 132.789 59488 3,476 9,681 Kaponga 16,349 12,768 10.693 10,693 16^733 10,693 Opunake 27,722 27,722 27,181 27,181 10,448 Hawera Patea i r 348,079 307,788 273,437 273,437 2,676 270,761 Manaia J 3,765 Eltham 35,605 25,883 41,705 41,705 37,940 Waverley 17.474 16,740 15,471 15,471 480j 142 15,471 780,3l8 Wanganui 1,220,587 1,058,022 923,340 * 659 443,198 143,022 Raetihi 297,872 202,397 142,162 18j386 142,162 30,710 111,452 Taihape 109,540 93,601 76,629 76,629 76,629 6394 Marton 117,480 117,480 115,412 115,412 96j 963 108,518 Feilding 364,820 190,565 157,629 60,666 14,187 143,442 Bulls 13,064 13,064 12,829 12,829 951. j 537 12,829 935;838 Palmer,ston If. 1,857,220 1,528,851 1,052,617 47,664 101,080 116,779 27,885 Foxton 99.477 83,462 27,885 27,885 Levin 244,153 179,011 171,487 111,752 59,735 113,158 58,329 Shannon 11,221 11,221 11,200 11,200 623,654 11,200 609,026 Gisborne 904,444 889,997 636.691 66j 411 13,037 27,665 Wairoa 107,072 107,072 107,072 107,072 107,072 Napier Hastings } 1,958,564 1,713,988 1., 474,805 49,104 .943,883 530,922 1,016,442 458,363 Waipawa 42,726 37,293 33,401 33,401 33,401 Waipukurau 130,364 102,103 88,442 88,442 88,442 Dannevirke .. Pahiatua 1,039,748 387,109 176,552 65,980 71,801 104,751 81,024 95,528 Masterton Carterton 457,765 Greytown 472,935 472,935 462,032 462,032 4,267 Featherston .. Marti nborough Wellington .. 2;602,202 Metropolitan - 7,984,575 7,704,359 7j649,547 280,216 1,402,687 6,246,660 5,047,345 Otaki J Nelson 1 Richmond Motueka 1, i r 1,055,654 869,570 770,131 47,691 52,560 717,571 159,982 610,149 Murchison .. j Westport 1 • l>enniston Stockton y 287,170 277,488 177,305 20,288 11,760 165,545 34,303 143,002 Miller ton i Grahity J < rreym'outh .. 1 171,566 258,157 Runanga 498,081 496,792 429,723 118,696 311,027 Hokitika J Pict'on 1 Blenheim I > 615,378 528,518 405,833 23,856 276,611 129 222 164,5^2 241,261 Kaikoura j < 'ulverden Hawarden .. > 16,746 16,746 16,746 16,746 16,746 < ihristchurch.. ! Lyttelton Kaiapoi k 8,774,696 8,335,160 6,383,123 190,935 4,839,225 1,543,898 2,011,888 4,371,235 Rangiora ; Ashburton .. Methven i > 294,216 294,216 283,964 283,964 283,964 Timaru 1,092,034 ],058,206 826,940 55,416 184,926 642,024 276,595 550,355 Geraldine 46,760 47.268 45,891 45,891 45,891 'J'emuka 37,663 37,663 37,435 37,435 37,435 Fairlie 26,230 26.700 27,219 27,219 27,219 Waimate 141,205 141,101 112,994 2,776 110^218 4,170 108 j 824 Oamaru 423,615 413,618 334,029 20^424 36,103 297,926 60,614 273,415 Dunedin Milton 1 ► 4,565,977 4,288,317 3,268,283 113,299 1,800,937 1,467,346 2,042,394 1,225,889 Cromwell ■I i Alexandra .. | Roxburgh [ 138,152 138,152 137,413 137,413 137,413 Lawrence Ranfurly i Balelutha Kaitangata .. 1 407,058 154,255 125,822 120,894 4,938 43,048 82,774 Invercargilland 1,524,855 1,524,855 1,440,895 1,336,721 104,174 1,271,592 169,303 Southland towns Totals .. 63,960,210 55,456,541 45,018,642 1,808,528 17,372,229 27,646,413 21,688,641 23,330,001

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BRANCHES Auckland Apples and Pears.—ln view of the smaller crop, the receipts of apples and pears for the Auckland district were less than for the previous year, a total of 214,116 cases being received as against 292,099 cases. The number of cases of apples distributed and sold in this district was 352,000 whilst for pears the total was 94,000. Agar Agar Seaweed -Receipts of this seaweed again showed a decline, only 48 tons being received as against 60 tons for the previous year. For the coming year, a freight pool is being established in order that all producers, irrespective of locality, will be put on almost the same financial basis. It is hoped that this step, together with visits to the collecting areas, will increase the quantity of agar next year. Butter. —The Branch continued to carry out patting, tinning, and butterfai-drying on behalf of the Dairy Products Marketing Commission. The following table shows the quantity of butter processed during the year for local markets and export' Butter patting .. .. 2,965,189 lb. in 1 lb. and lb. pats. m- j , ~ f 1,436,420 lb. in 1 lb. tins. Ixnned butter .. ..< ow IM] , . K ~ \ 375,125 lb. m 5 lb. tins. Butterfat-drying .. .. 676,165 lb. Eggs.—The receipts for the year showed an increase of 3-29 per cent. 3,095,847 dozen being received as against 2,997,122 dozen for the previous year. Deliveries continued on a zoned area basis through six distributors. • Only 12,930 dozen eggs were chilled during the flush of the season whilst egg pulp manufactured locally was 507,600 lb. Honey.—This Branch is responsible for the running of the honey-blending plant and 370 tons were received during the period. Further details appear elsewhere in this report. Imported Fruits. —The supervision of allocations of these fruits for the Auckland district was again under the control of this Branch. Lemons.—The Auckland packing-plant, which together with the Kerikeri arid Tauranga plants, is controlled by Auckland was overhauled during the year. A total of 268 tons of lemon-peel and 20,288 gallons of lemon-juice was manufactured during the year. Storage.—ln addition to the utilization of the storage space at Auckland for assembling apples and pears, the storage floor was used for storing other products during the off season on behalf of private firms. Products handled on behalf of the Sundry Products Section of the Department included dessicated coconut, canned fruit, and tin. Milk: —The checking of subsidy claims and vendors' records for Auckland district was again carried out. _ Pukekohe Processing Factory Casein.—Mention was made in the last report that Pukekohe would continue casein drying only until such time as the casein-factories installed their own drying facilities. On the 17th December, 1948, therefore, Pukekohe ceased drying casein, and the amount of rennet casein dried up till that date was 3,654 sacks. Canning.—The factory processed 461,000 16 oz. cans of peas, 330,000 30 oz. canp of peas, 71,565 16 oz. cans of half carrots and half peas, and 959 30 oz. cans of half carrots and half peas. In addition, 74,000 lb. of peas were quick frozen. Tomatoes. —Tomatoes were again processed under contract, a total of 666,717 lb. being processed into 12,471 401b; cans. Storage.—-56,668 cases of apples and 4,000 cases of pears were cool-stored during the year whilst, on'behalf of private firms, a total of 600,000 lb. of onions were dry stored.

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Hastings Apples and Pears. —Although, the district crop was lighter than the previous year, nevertheless it turned out larger than anticipated, the receipts of these fruits at the assembly depot amounting to 767,783 cases. Full use was made of the district's cool stores, a total of 403,453 cases passing through them during the season. Out of this total, the losses through repacking or deterioration amounted to only 163 cases, representing less than half a case out of each 1,000 cases handled. Eggs. —The quantity of eggs passing through the local egg floor, which is under the supervision of this Branch, showed a substantial increase, 660,421 dozen being handled, an increase of 90,793 dozen over the previous year. Agar Agar Seaweed. —Due to the unfavourable weather conditions that prevailed along the coast for a considerable period, the total quantity of agar received showed a reduction, 59 tons being handled as against the previous year's total of 89 tons 18 cwt. Milk.—ln addition to the supervision of the clerical and accounting work of the Napier Milk Treatment Station, the Branch now supervises the accounts for the Palmerston North Treatment Station. Dry Storage. —In accordance with the usual practice, the storage floor was used for storing goods on behalf of local merchants as space became available. A total of 1,102 tons was stored during the year, consisting mainly of potatoes 345 tons and cardboard 746 tons. Gisborne Apples and Pears. —As was the case with other branches, the total number of cases of apples and pears received by Gisborne showed a reduction, 30,000 cases being received as against 47,422. cases for the last period. Lemons.—3,l2l cases of lemons were received by the local packing-house which is under the supervision of this Branch. Eggs.—During the year the local egg floor handled 490,181 dozen eggs as against 375,401 dozen for the previous year, an increase of 114,780 dozen. Maize.—The Manager of the Branch continued to be Secretary of the Maize Marketing Committee and was constantly in touch with grower, consumer, and merchant interests in this regard. Numerous inquiries and problems relating to agar agar seaweed, honey, potatoes, grain, citrus fruits, and milk were also dealt with as necessary. Nelson Apples and Pears.—Due to inadequate facilities at Mapua and Motueka, no fruit could be accepted at these assembly points for a few days in the middle of May, when the receipts of apples and pears were at their peak. It is hoped to have additional assembly facilities available before next season. The receipts for the year were 910,384 cases of apples and 69,123 cases of pears, giving a total of 979,507 cases. Eggs.—The receipts of eggs at the local egg floor showed a very substantial increase, 154,921 dozen being received during the year as against 61,158 for the previous year, an increase of 93,763 dozen. Milk.—During the year this Branch became responsible for the accounting work of the Blenheim Milk Treatment Station. Christchurch Apples and Pears.—No difficulty was experienced by this Branch in handling the local crop of 75,522 cases of apples and pears on account of the excellent assembly facilities available. Consideration is at present being given to the erection of a cool

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store adjoining the assembly shed at Riccarton. The erection of this cool store will assist in overcoming a serious handicap felt by the Branch through the lack of adequate cool-store space. Milk. —The Branch continued its work in connection with the checking of subsidy and margin claims and generally supervised milk activities in the Canterbury and West Coast areas. Imported Fruits.—The supervision of the distribution of imported fruits was again an important part of the functions of the Christchurch Office. Produce. —The total number of potato contracts made during the year was 1,299 and covered an acreage of 10,664 acres. As mentioned elsewhere in this report, there was a heavy surplus of potatoes due to exceptional growing conditions, and to Christchurch fell most of the burden associated with the compensation claims. The storage floor was again used for storing goods on behalf of merchants, and included in the goods stored were grain and seed 32,440 sacks ; bales of sacks, 85 ; cartons and cases, 196 ; drums of oil, 330 ; and bales of wool, 2,109. Eggs.—There were increases in the receivals of eggs at all three floors under the supervision of this Branch. At Christchurch, 2,169,829 dozen as against 1,826,118 dozen for the previous year, an increase of 343,711 dozen ; at Timaru, 755,983 dozen as against 745,618 dozen, an increase of 10,367 dozen; and at Ashburton, 322,119 dozen as against 265,211 dozen, an increase of 56,908 dozen. This gave a total for the three floors of 3,247,931 dozen as against 2,836,947 dozen, a total increase of 410,986 dozen. Dunedin Apples and Pears. —Receipts of apples from growers were the highest on record, being 3,701 cases more than the receipts for 1946, hitherto regarded as an exceptional year for this district. The quantities of apples and pears received were 123,225 cases and 10,159 cases respectively. Eggs. —As has been the case in other districts, the receipts of eggs on the floors under the supervision of this Branch have shown a substantial increase. Receivals at the Dunedin floor were 1,682,714, an increase of 244,336 dozen, whilst at Invercargill the receipts were 496,318 dozen, an increase of 152,095 dozen, giving a total increase of 396,431 dozen over the previous year. Milk. —In common with other branches, Dunedin has been actively engaged in the checking of milk-subsidy claims. Allocations of fertilizers and the supervision of imported fruits were again part of the functions of the Branch.

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MARKETING DEPARTMENT GENERAL ACTIVITIES Trading Account for the Year Ended 30th September, 1949 Dr. . £ Cr. £ Stock, Ist October, 1948 .. .. ... .. 255,990 Sales of fruit, produce, tea, fertilizers, and sundry products .. 4,887,291 Purchases .. .. .. .. .. .. 4,870,536 Stock, 30th September, 1949 .. .. .. .. 616,904 Wages, processing charges, storage, freight, and distribution expenses .. .. .. .. .. .. 289, 833 Gross profit .. .. .. .. .. .. 87,836 £5,504,195 £5,504,195 Profit and Loss Account for the Year Ended 30th September, 1949 Dr. £ Cr. £ Salaries, wages, and overtime .. .. .. .. 53,916 Gross profit on trading .. .. .. .. .. 87,836 Advertising .. .. .. .. .. .. 193 Rents and sundry recoveries ... .. .. ... 4,436 Audit fees .. .. .. . . .. .. 1,304 Directors' fees .. .. .. .. .. .. 97 Bank interest and exchange . . . . . . .. 745 Interest on shares in Farm Products Co-operative (Wellington), Compassionate grants to dependants of deceased officers .. 100 Ltd. . . .. .. .. .. .. 124 Depreciation of assets . . . . . . . . .. 1,504 Interest on inscribed stock .. .. . . .. 7,562 Expenses of Marketing Advisory Committees .. .. 299 Recovery of costs of administration of Honey Pool, Lemon Pool, Expenses of officers travelling overseas .. .. .. 752 and other sections .. .. .. .. .. 11,114 General expenses .. .. . . .. .. 2,290 Insurance .. .. . . . . .. .. 549 Light, heat, and power .. . . .. .. ... 402 Maintenance of— Buildings . . .. .. ... .. .. 579 Furniture and fittings .. .. . . .. .. 22 Office machines . . . . .. . . .. 296 Plant .. .. .. .. .. .. 190 Motor expenses .. .. .. .. .. .. 1,757 Postages and telephone services .. . . .. .. 5,085 Printing and stationery . . . . . . . . .. 1,923 Provision for bad debts .. .. .. .. .. 173 Public Service superannuation subsidy . . . . .. 898 Rent and rates .. .. .. .. .. .. 1,911 Transfer and removal expenses .. . . . . . . 689 Travelling allowances and expenses . . .. .. 2,992 i Net profit- .. .. .. .. .. .. 32,600 j £111,169 £111,169

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Profit and Loss Appropriation Account for the Year Ended 30th September, 1949 Dr. Or. £ Deficit in Apple and Pear Growers' Pool Account as at 31st £ Balance forward from last year .. .. .. .. 227,427 December, 1948, the date of conclusion of Government control 9,723 Net profit for year ended 30th September, 1949 .. . . 32,600 Taxation under-provided, year ended 30th September, 1948 .. 4,902 Provision for taxation .. .. .. .. .. 10,000 Balance forward to. next year ... .. .. .. 235, 402 £260,027 £260,027 New Zealand Lemon Marketing Account for Year Ended 30th September, 1949 Dr. £ Or. £ Stock on hand, Ist October, 1948 .. .. .. .. 15,13.1 Sales of New Zealand lemons and by-products .. .. 119,534 Purchases .. .. .. .. .. .. 60,874 Stock on hand, 30th September, 1949 .. .. .. 12,846 Curing and processing charges, wages, rents, freights, maintenance, Loss transferred to New Zealand Lemon Pool Account .. 5,153 and sundry charges .. .. .. .. .. 44,924 Marketing and distribution expenses .. .. .. 11,221 Administration expenses .. .. .. .. .. 5,383 £137,533 £137,533 New Zealand Lemon Pool Account for Year Ended 30th September, 1949 (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 Balance forward from last year .. .. .. .. 11,334 Marketing Account .. .. .. .. 5,153 Grant to the New Zealand Citrus Council .. . . . . 200 Balance as at 30th September, 1949 : £ Accumulated net profits to 30th September, 1946 .. 8,395 Less grant to New Zealand Citrus Council . . 200 8,195 Less net losses, Ist October, 1946, to 30th September, 1949 .. .. .. .. 2,214 5,981 £11,334 £11,334

2—H 30

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MARKETING DEPARTMENT— continued HONEY SECTION Local and Export Pool Account for the Year Ended 30th September, 1949 Dr. Or. £ Stock on hand, Ist October, 1948— £ £ Balance from last year .. .. .. .. .. 4,117 Local . . . . .. . . . . 10,583 Sales— £ Export .. .. .. .. .. 2 London .. .. .. .. .. 13,145 10,585 New Zealand .. .. .. 14,717 Honey purchases .. .. .. .. .. .. 32,693 27,862 Administrative expenses . . .. . . . . .. 1,000 Sales second-hand tins and cases . . . . . . .. 39 Local Pool Account expenses— Stock on hand, 30th September, 1949— Blending and packing .. .. .. .. 3,026 London Freight and cartage .. .. .. .. 708 New Zealand .. .. .. .. .. 18,399 Selling-expenses .. .. .. .. 264 18,399 3,998 Transfer from Honey Seals Account .. .. .. .. 8,777 Export Pool Account expenses— London Depot .. . . .. .. . . 847 Handling and freight .. .. .. .. 3,005 Selling-expenses .. . . . . . . 1,760 5,612 Expenses and allowances of Honey Marketing Committee .. 248 Grant to the National Beekeepers' Association .. .. 100 Balance forward to next year .. .. .. .. 4,958 £59,194 £59,194 Honey Seals Account for Year Ended 30th September, 1949 Br. £ Cr. £ Expenses of printing and franking .. .. .. .. 250 Balance from last year .. .. .. .. ..25,418 Transfer to the Local and Export Pool Account .. .. 8,777 Levy under the Honey Marketing Regulations 1938 .. .. 5,664 Balance forward to next year .. .. .. .. 22,055 £31,082 £31,082

34

H—3o

Balance-sheet as at 30th September, 1949 Dr. Liabilities £ Or. Assets £ Creditors .. .. .. .. .. .. 379,613 Land .. .. .. .. .. .. 12,556 New Zealand Lemon Pool Account .. .. .. 5,981 Buildings .. .. .. .. .. .. 28,434 Honey Pool Account .. .. .. .. .. 4,958 Motor-vehicles .. .. .. .. .. 8,473 Honey Seals Account .. .. .. .. .. 22,055 Plant and machinery, loose tools, furniture, and office appliances 46,282 Provision for Honey Advertising (London) .. .. 15,748 Investments— Surplus in egg-floor pools .. .. .. .. 5,647 Inscribed stock .. .. .. .. .. 250,000 Provision for insurance on goods in transit and in cool store .. 9,500 Shares in Farm Products Co-oporation (Wellington), Ltd. .. 3,100 *Provision for taxation .. .. .. .. .. 10,000 Share in United Kingdom Dominion Wool Disposals, Ltd. .. 62 Profit and Loss Appropriation Account .. . . .. 235,402 Stock in trade . . .. . . . . . . . . 660,866 Bank overdraft .. .. .. .. .. 2,257,298 Stock of consumable stores .. .. .. .. 45,562 Provision for writings-off .. .. .. .. 33 Debtors . . . . .. .. .. 1,825, 448 * Advances to milk marketing .. .. .. .. 65,419 Losses in suspense .. .. .. .. .. 33 £2,946,235 £2,946,235 * The extent to which losses of milk-treatment stations are deductible for taxation is under discussion with the taxation authorities. Accounts of the operation of milk-treatment stations are submitted separately hereunder. L. C. Webb, Director. GL C. Jupp, Chief Accountant. 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. (15th September, 1950.)

35

H—3o

MARKETING DEPARTMENT— continued MILK-TREATMENT STATIONS Profit and Loss Account foe the Period Ist April, 1948, to 31st August, 1949 Dr. £ £ I Or. £ Losses, after charging interest and depreciation— Profits, after charging interest and depreciation— Stations operated under deed of management— Stations operated under deed of management: Auckland .. 1,037 Balclutha .. . . . . .. . . 1,626 Stations operated by the Department— £ Timaru .. .. .. .. 2,224 Hamilton .. .. .. .. .. 159 Invercargill .. .. .. .. .. 3,062 Christchurch .. .. .. .. .. 3,011 Nelson .. .. .. .. .. 2,507 3,170 Hamilton .. .. .. .. .. 6,141 Net loss .. .. .. .. .. .. .. 50,896 15,560 Stations operated by the Department— Dunedin .. .. .. .. .. 15,587 Timaru . . . . . . . . . . 173 Blenheim .. .. .. .. .. 4,164 Palmerston North .. .. .. .. 9,379 Napier-Hastings .. .. .. .. 7,742 37,045 Costs not chargeable against stations— Sundry .. .. .. . . .. 720 Interest .. .. .. . . .. 1,778 2,498 £55,103 £55,103 Note.—Head Office administration expenses have been borne by Consolidated Fund and are not included in the Profit and Loss Account. Profit and Loss Appropriation Account for the Period Ist April, 1948, to 31st August, 1949 Dr. £ Gr. £ Balance forward from last period .. .. .. .. 36,724 Balance forward to next year .. .. .. .. 87,620 Net loss for seventeen months ended 31st August, 1949 . . 50,896 £87,620 £87,620

36

Balance-sheet as at 31st August, 1949 Liabilities £ Assets £ Consolidated Fund capital .. .. .. .. 702,887 Treatment stations vending interests and shares in companies at Cash advances by Marketing Account .. .. .. 72,589 cost .. .. .. .. .. .. .. 702,854 Creditors .. . . .. .. .. .. 64,157 Losses on sale of treatment stations .. .. .. 33 Liability for depreciation and interest on Consolidated . . Stock and stores .. .. .. • .. .. 28,287 Fund capital—• £ £ Depreciation .. .. .. .. ..38,847 j Debtors .. .. .. .. ..94,813 Interest .. .. .. .. .. 34,686 i Less provision for bad and doubtful debts .. .. 1,451 73,533 i 93,362 Writings-off reserve .. .. .. .. .. 390 Cash held by imprestees .. .. • .. .. .. 1,010 Profit and Loss Appropriation Account .. .. .. 87,620 Losses in suspense .. .. .. .. .. 390 £913,556 £913,556 L. C. Webb, Director. G. C. Jupp, Chief Accountant. 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 and to the following comment: Figures supplied by the Department in connection with stations at Dunedin and Balclutha have been accepted pending examination of the records in those centres.— J. P. Rutherford, Controller and Auditor- General.

H—3©

Tlie following reports and accounts are appended to this Department's report:— (1) Meat.—As stated in the report last year, the day to day export marketing of meat is vested in the New Zealand Meat Producers' Board, whilst the Meat Industry Account is administered by this Department. (2) Tallow.—The New Zealand Meat Producers' Board have continued to handle tallow administered with the Department administering the Industry Account. (3) Sheep and Lamb Pelts.—The statutory authority covering sheep and lamb pelts was transferred to the Economic Stabilization Act, 1948. For convenience the report is published here. - (4) Hides.—Again for the sake of convenience this report is included sis the Hides Regulations were also placed within the scope of the Economic Stabilization Act, 1948.

37

H—3o

ACKNOWLEDGMENT The Department wishes to record its appreciation of the assistance given to it by the staffs of the Dairy Products' Marketing Commission, the Dairy Board, the Hides Committee, the New Zealand Meat Producers' Board, and the Sheep-skin Committee. MEAT The basis of the long-term contracts between the United Kingdom and New Zealand Governments for the purchase of the exportable surplus of meat for the production period Ist October, 1944, to 30th September, 1948, and its extension to 30th September, 1955, was fully set out in the last annual report. The contract prices for 1948-49 were almost 18J per cent, sterling up on those listed for the previous season. The New Zealand Government has agreed to jput into operation a programme for increasing the production of meat. The object of the increased production programme is to expand the export of meat by 50,000 tons annually by the end of the contract period. This represents an increase of 14 per cent, over present export tonnage. The 1948-49 contract prices, together with the original 1939-40 contract prices and the appropriate interim increases, are set out in Table 7.

Table 7

38

Original 1939-40 Price (Sterling), Per Pound. Increases Per Pound (Sterling). 1948-49 Description. To Prom From Prom Contract Price 1st October, 1st October, 1st October, 1st October, (Sterling). 1943. 1 1944. 1946. 1948. Lambs— Prime down cross— d. d. d. d. d. d. 23/36 6-375 0-375 1-75 0-6375 1-7 10-8375 37/42 6-3125 0-375 1-7291 0-6312 1-6834 10-7312 43/50 6-125 0-375 1-6666 0-6125 1-6334 10-4125 51/56 5-625 0-375 1-5 0-5625 1-5 9-5625 Prime Canterbury— 23/36 6-3125 0-375 1-7291 0-6312 1-6834 10-7312 37/42 6-1875 0-375 1-6875 0-6187 1-65 10-5187 43/50 6 0-375 1-625 0-6 1-6 10-2 51/56 5-5 0-375 1-4583 0-55 1-4667 9-35 Prime crossbred— 23/36 6-1875 0-375 1-6875 0-6187 1-65 10-5187 37/42 6-125 0-375 1-6666 0-6125 1-6334 10-4125 43/50 5-875 0-375 1-5833 0-5875 1-5667 9-9875 51/56 5-25 0-375 1-375 0-525 1-4 8-925 Seconds — 23/36 5-875 0-375 1-5833 0-5875 1-5667 9-9875 37/42 5-5 0-375 1-4583 0-55 1-4667 9-35 Wethers— Prime— 48/U 4-3125 0-75 0-6875 0-4312 1-15 7-3312 49/56 3-875 0-75 0-5416 0-3875 1-0334 6-5875 57/64 3-6875 0-75 0-4791 0-3687 0-9834 6-2687 65/72 3-5 0-75 0-4166 0-35 0-9334 5-95 0/72 3 0-75 0-25 0-3 0-8 5-1 Seconds — 56/U .. ... 3-6875 0-75 0-4791 0-3687 0-9834 6-2687 57/72 3-375 0-75 0-375 0-3375 0-9 5-7375 Ewes — 64/U 2-75 0-75 0-1666 0-275 0-7334 4-675 65/72 .. 2-375 0-75 0-0416 0-2375 0-6334 4-0375 Boned out price— 73/90 .. 3-4375 0-75 0-3958 0-3437 0-9167 5-8437

H—3o

Table 7 —continued

Opening Schedule Prices 1948-49 Just prior to the 1948-49 schedule being negotiated the appreciation of the exchange was announced and the effect on costs was not immediately apparent. The stabilization contracts on hides, pelts, sheep-skins, and tallow were continued, and an allowance was made in lieu of the appreciation of exchange by an increase of 12s. 6d. per dozen for pelts. This increase was granted to offset the loss on slipe wool. The opening schedule prices for the season are shown in Table 8. Table B—Opening8—Opening Schedule 1948-49 Lambs (woolly) Prime down cross and prime Canterbury— .. d. 20/36 1U 37/42 iof 43/50 .. .. .. .. .. ..101 51/56 .. .. .. .. .. .. 9f Prime crossbred — 20/36 .. .. .. .. .. .. 10| 37/42 .. „. .. .. .. ..10| 43/50 .. .. .. .. .. •• 9| 51/56 .. .. .. .. .. .. 9f Seconds—--20/36 .. .. .. .. .. .. 9| 37/42 91 43/50 .. .. .. .. .. ..9}

39

Increases Per Pound (Sterling). Original 1948-49 ]939-40 Contract Description. Price To Prom From Prom Price (Sterling), 1st October, 1st October, 1st October, 1st October, (Sterling). Per Pound. 1943. 1944. 1946. 1948. Quarter beef (bone in) — Ox and heifer G.A.Q. — 210/under — Hinds 4-375 0-5625 0-8958 0-4375 1•1667 7-4375 Fores 2-5625 0-5625 0-2916 0-2562 0-6834 4-3562 Over 210— Hinds 4-375 0-5625 0-8958 0-4375 1•1667 7-4375 Fores 2-5625 0-5625 0-2916 0-2562 0-6834 4-3562 Ox and heifer F.A.Q. — All weights— Hinds 3-4375 0-5625 0-5833 0-3437 0-9167 5-8437 Fores 2-5 0-5625 0-2708 0-25 0-6667 4-25 Cow G.A.Q. — All weights— Hinds 3-25 0-5625 0-5208 0-325 0-8667 5-525 Fores 2-4375 0-5625 0-25 0-2437 0-65 4-1437 Porkers (unsinged)— Full carcasses— 1st quality 6 1-5 0-5 0-9 1-66 10-56 2nd quality 5-75 1-45 0-4666 0-8625 1-5909 10-12 Headless sides— 1st quality 6-3125 1-5625 0-5417 0-9468 1-7465 11-11 2nd quality 6-0625 1-5125 0-5084 0-9093 1-6773 10-67 Baconers (singed)— Full carcasses— 1st quality 6-0625 1-6625 0-3584 0-9093 1-6773 10-67 2nd quality 5-8125 1-6125 0-325 0-8719 1-6081 10-23 Wiltshire sides— 1st quality 6-8125 1-8125 0-4584 1-0218 1-8848 11-99 2nd quality 6-5625 1-7625 0-425 0-9844 1-8156 11-55

B-30

Table B—Opening Schedule, 1948-49—continued Wethers — North Island—- , Prime — d. 48/U .. .. .. .. .. 7J 49/64 .. .. .. .. .. 6| 65/90 .. .. .. .. As 64 lb. @ 6|—36s. Bd. Seconds — 64/U 6f 65/72 .. .. .. .. As 64 lb. @ 6f—34s. South Island — Prime—--48/U 6£ 49/64 .. .. .. .. .. 6f 65/90 .. .. .. .. As 64 lb. @ 6| —355. 4d. Seconds — 64/U .. .. .. .. .. 6-| 65/72 .. .. .. .. As 64 lb. @ 6-^—32s. Bd. Ewes — 64/U .. .. .. .. .. .. 4f 65/90 .. .. .. .. .. As 64 lb. @ 4|—2ss. 4d. Quarter beef — Ox— G.A.Q. — 720/U .. .. .. .. .. 51s. per 100 lb. 0/720 .. .. .. .. .. 48s. per 100 lb. F.A.Q. : All weights .. .. .. .. 435. per 100 lb. Heifer — G.A.Q. — 720/U .. .. .. .. . . 50s. per 100 lb. 0/720 .. .. .. .. .. 475. per 100 lb. F.A.Q. : All weights .. .. .. .. 425. per 100 lb. Cow — G.A.Q. : All weights .. .. .. - - 41s. 6d. per 100 lb. Boner beef— Ox .. .. .. .. .. .. • • •" • • "" " " • • J-Sls. per 100 lb. Heifer .. .. ~ .. .. .. J Pig meat — North Island. South Island. Porkers, 60/120 d. d. Prime .. .. .. .. .. 9| 9f Second .. ~ .. 9f Baconers, 121/175 Prime .. .. .. .. .. 9£ 9f Second .. .. .. 9£ 9f Baconers, 176/185 — Prime .. .. .. .. .. 8f 8f Second .. .. .. .. 8f 8f Choppers .. .. .. .. .. 3 3 Purchase and Sale Procedure for 1948-49 Season's Meat Purchased by Marketing Department for Export The arrangements regarding purchase and sale procedure were the same as in previous seasons. Export to Countries Other Than the United Kingdom The procedure for purchase and sale has remained unchanged.

40

H—:-so

Survey of Season The killings of meat returned to the Department during the 1948-49 season as available for export totalled 340,009 tons. Average weights for lamb and mutton for the four seasons 1945-46,1946-47, 1947-48, and 1948-49 are as shown in Table 9.

Table 9

The killings for export month by month throughout the 1948-49 season with the total 1946-47 and 1947-48 figures for comparison are shown in the following table. Frozen meat killings for export, season 1948-49, were as shown in Table 10.

Table 10 —Frozen Meat Killings for Export, Season 1948-49

41

North Island. South Island. 1945-46. 1946-47. j 1947-48. | 1948-49. 1945-46. j 1946-47. lb. lb. lb. lb. lb. lb. Lambs 31-39 35-15 33-4 35-32 34-61 35-58 Wethers 54-32 60-18 59-6 59-87 49-67 52-41 Ewes 52-51 57-23 56-9 56-43 52-83 54-01 South Island —contd. Dominion. 1947-48. 1948-49. 1945-46. | 1946-47. j 1947-48. J 1948-49. lb. lb. lb. lb. lb. lb. Lambs 34-9 35-76 32-81 35-35 34-1 35-54 Wethers 51-1 51-81 53-86 59-42 58-8 59-19 Ewes 55-1 55-13 52-61 56-05 56-2 56-00

— ) rO a r ether Mutton. we Mutton. uarter Beef. "3 ■ oneless Bobby Veal. oneless Bull Beef. oneless Cow and Ox Beef. <D rt o § 1 ■g o ai g © JS i o £ 3 5 o Hi > Of > M PP ffl M F4 O H H 1948 Tons. Tons. "Tons. Tons. Tons. Tons. Tons. Tons. Tons. Tons. Tons. Tons. Tons. October 8 20 79 67 6 910 114 154 487 48 13 190 2,096 November 3,644 449 550 227 5 460 241 192 1,136 59 12 316 7,291 December 30,529 796 1,378 330 10 169 363 199 2,029 74 22 1,220 37,119 1949 January44,554 1 ,255 6,483 563 6 76 443 387 1,320 105 25 1,889 57,106 February 35,068 2 ,420 17,401 1 ,793 21 26 838 813 1,326 371 38 2,302 62,417 March 32,300 3 ,604 16,533 5 ,885 35 2!) 894 1,412 1,347 783 30 2,374 65,226 April 20,763 2 , 552 5,578 8 ,560 41 42 556 1,441 721 969 14 1,525 42,862 May 15,087 1 ,413 3,901 10 ,968 53 51 560 2,926 276 809 21 1.466 37,531 June 5,797 381 1,942 5 .722 29 99 381 1,696 109 136 1 '695 16,988 "July 360 80 361 775 ■ 4 1,231 94 343 85 2 421 3,756 August 86 22 27 201 4 3,562 72 195 70 3 526 4,768 September 1 122 73 129 2 1,841 64 151 140 10 316 2,849 Totals 188,197 13. , 114 54,406 35. ,220 216 8,496 4,620 9,909 9,046 3,369 176 13,240 340,009 1947-48 season 181,975 14, ,732 50,548 50 ; ,149 715 8,312 4,995 9,097 9,225 4,212 212 12,864 347,036 1946-47 season 179,908 20. ,358 57,213 50, ,728 1 544 7,469 5,124 9,121 7,769 3,736 245 12,609 354,824

H—3o

Shipping and Storage The shipments of frozen meat to the Ministry of Food showed a slight decline on the previous year's record. Tons. Lamb .. . . . . .. ' .. 6,889 (increase). Mutton .. .. .. .. .. 1,493 (increase). Sundries .. .. . . .. .. 239 (increase). Beef .. .. .. .. .. 16,465 (decrease). Pig meat .. .. .. .. .. 1,019 (decrease). 8,863 (decrease). Tables 11 and 12 set out below, give particulars of the month by month exportsduring the twelve months ended 30th September, 1949, and the totals for each of the previous six years, together with canned meat exports and the overall distribution of both frozen and canned meats.

Table 11—Frozen-meat Shipments to the United Kingdom Ministry of Food (During Each of the Twelve Months Ended 30th September, 1949)

42

— Lamb. Mutton. Beef 1 and Veal, j Boneless Beef. Boneless Veal. Pork. Offal. October November December January February March April May June July August September Totals Carcasses. 628,143 528,655 666,223 845,200 1,157,779 1,636,960 1,467,679 983,250 1,604,343 1,334,246 226,673 664,111 Carcasses. 117,835 72,094 114,329 12,602 118,920 290,073 498,572 345,006 324,894 359,967 68,819 210,604 Quarters. 62,294 40,143 39,671 5,430 4,382 6,739 20,033 62,285 108,580 124,363 34,240 44,627 Bags. 42,257 16,739 23,438 8,237 4,153 16,479 27,359 20,124 17,272 95,171 10,579 23,244 Bags. 26,987 41,769 84,434 4,197 1,634 230 25 23 •1,176 636 15 23,772 Carcasses. 5,828 10,295 26,277 15,738 7,674 13,010 18,048 4,542 15,544 25,853 2,455 6,014 Packages. 29,396 14,712 32,817 13,897 54,493 80,697 80,206 52,777 60,049 49,844 5,976 24,671 11,743,262 2,533,715 552,787 305,052 184,898 151,278 499,535 P-^7 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— 1947-48 1946-47 1945-46 1944-45 1943-44 1942-43 Tons. 9,649 7,958 10,662 13,390 18,647 25,813 23,037 15,628 25,684 21,005 3,544 10,366 Tons. 2,800 1,623 3,029 331 3,136 7,502 12,644 8,562 8,11-5 9,287 1,756 5,152 Tons. 3,387 2,133 2,129 294 241 425 1,360 4,406 7,499 8,741 2,412 2,995 Tons. 1,664 646 875 344 161 703 1,147 824 738 3,850 483 1,052 Tons. 1,021 1,527 3,779 205 86 11 1 1 60 30 '985 Tons. 359 441 1,656 1,019 466 760 1,075 195 529 938 149 366 Tons. 914 379 921 336 1,267 1,978 2,052 1,293 1,556 1,247 190 683 Tons. 18,794 14,707 23,051 15,919 24,004 37,192 41,316 30,909 44,172 45,098 8,534 21,599 738,964 549,067 860,488 594,389 896,114 1,388,474 1,542,458 1,153,992 1,649,152 1,683,640 318,554 807,466 185,383 63,937 36,022 12,487 - 7,706 7,944 12,816 326,295 12,182,758 191,908 175,278 156,894 171,203 141,553 155,139 74,275 73,148 70,523 76,111 57,334 22,649 58,205 39,795 46,574 7,747 2,316 22,815 11,400 12,536 12,801 4,527 266 2,248 8,233 5,563 6,624 7,747 4,036 5,579 10,392 6,817 13,351 3,278 948 728 12,006 11,126 11,702 6,936 6,164 8,474 366,419 324,263 318,469 277,549 212,617 217,632

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Table 12 CANNED MEATS

DISTRIBUTION

Owing to the decline in New Zealand's meat export during tlie year the Argentine Kepublic regained its position as being the principal exporter of meat to the United Kingdom. However, as will be noted in Table 13, the margin is not very great, and New Zealand meat exports during the year formed 27-3 per cent, of United Kingdom importations.

43

— Corned Beef. Corned Mutton. Ox Tongue. Sheep/Lamb Tongue. Calf Tongue. Pig Tongue. Total. Tons. Tons. Tons. Tons. Tons. Tons. Tons. October 215 50 7 5 277 November 174 4 28 1 1 208 December 221 11 232 January 3 2 5 February 2 55 97 March April May 350 350 June 362 ii 32 406 July 450 20 470 August 521 30 5 556 September ... i 32 32 Totals 2,327 40 74 173 13 6 2,633

— London. Avon. Liverpool. Glasgow. Hull. Cardiff. Swansea. Total. Frozen Canned Tons. 190,312 1,283 Tons. 31,838 174 Tons. 67,775 877 Tons. 12,074 294 Tons. 9,668 5 Tons. 2,702 Tons. 11,926 Tons. 326,295 2,633 Totals 191,595 32,012 68,652 12,368 9,673 2,702 11,926 328,928

H—3o

The figures for imports of meat into the United Kingdom for the year ended 31st December, 1949, together with the 1938,1947, and 1948 figures, are as shown in Table 13.

Table 13

44

Year Ended 31st December, n x country. 1938. 1947. 1948. 1949. Cwt. Cwt. Cwt. Cwt. Eire 808,826 335,110 357,718 500,387 India, Pakistan, &c. 3 50,698 20,618 Australia 4,888,598 4,225,918 3,818,762 4,478,311 New Zealand 5,488,747 6,973,063 7,303,347 6,414,210 Canada 1,606,724 2,515,157 2,437,700 504,936 Other British countries .. Whale Fisheries (British) 140,470 53,488 191,589 46,379 Sweden 255,207 18,257 43,059 51,239 Iceland 35,210 8,237 13,230 Denmark 3,476,298 1,111,809 731,271 2,003,636 Poland 556,171 10,036 269,149 495,985 Netherlands 553,714 19,618 141,500 383,912 Prance 174,116 Hungary 188,875 101,959 140,753 122,210 Yugoslavia 56,361 3,577 United States of America 729,809 1,147,601 '6,854 481,556 Chile .. 202,685 207,589 209,494 66,585 Brazil 724,028 186,308 64,739 79,045 Uruguay. 1,122,636 657,027 434,702 902,138 Argentine Republic 9,644,568 10,014,960 6,193,242 6,442,336 Paraguay 30,092 145,832 97,850 114,784 Other foreign countries 454,120 260,123 72,854 68,786 Total 30,963,142 28,046,367 22,548,431 23,423,489 New Zealand percentage 17-7 24-9 32-3 27-3

H—3o

TALLOW The United Kingdom Ministry of Food continued to purchase the exportable surplus of tallow under contract, the details of which were set out in the last report of the Marketing Department (Export Division) at page 39. For the period ended 30th September, 1949, 25,4:37 tons were exported, the whole quantity going to the United Kingdom.

The following table sets out the purchase and sales prices of the various grades of tallow purchased for export to the United Kingdom :

45

Purchase-price Per Ton, f.o.b. New Zealand. United Kingdom Government. 01*3 H p Purchase-price Per Ton, * f.o.b. New Zealand : Casks/Barrels. Drums. Casks and Drums. £ s. d. 1 £ 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.

H—3o

WOOLLY SHEEP-SKINS Consideration was being given to the proposals to abolish these regulations during the latter part of the year, but no decision had been made at the 30th September. The Committee continued to function on the same basis as it had in previous years. The accounts covering its operations appear at page 58. SHEEP AND LAMB PELTS The Pelt Regulations were placed under the Economic Stabilization Act, 1948, and this report is being included here so that meat and allied sundries will appear in the one publication. Mr. J. J. Evans continued to act as the Pelt Controller. Table 14 gives particulars of the disposition of pelts for the 1948-49 season.

Table 14—Sales of Pickled Pelts, 1948-49 Season

The total realizations for pelts was £3,350,972, which is £1,372,416 less than the previous year's realizations. The sum of £3,168,996 was paid out to vendors or producers while £181,976 was credited to the Meat Industry Stabilization Account. The first sale of the current season indicated that there was a general firming tendency in the market, and it is anticipated that realizations will show a considerable advance over the 1948-49 season's figures.

46

Sheep. Lambs. Method of Disposal. Total Value. Number of Dozen. Value. Average per Dozen. Number of Dozen. Value. Average per Dozen. Destination. £ s. d. £ s. d. £ Auction 160,648 Via 603,124 75 1 743,229 Via 1,595,989 42 11 2,199,113 U.S.A. Auction 87,685 '/ i 2 348,726 79 7 177,863 Via 408,241 45 11 756,967 U.K. Auction 3,448 Via 16,741 97 1 20,965 Via 51,279 48 11 68,020 Sweden. Auction imos 11 /^ 45,339 76 2 45,339 Belgium. Auction 4,027'/is 16,797 83 5 16,797 France. Auction 12,75i Via 21j 454 33 "8 21,454 Australia. Auction 10,210 37,252 73' '0 9,477 Via 19,937 42 2 57,189 Holland. Auction 1,000 3,000 60 0 3,000 Italy. Auction 2,998 Via 11,093 74 0 5,009 Via lij048 44' "l 22,141 Japan. Auction 1,500 4,851 64 8 21,163 46,195 43 8 51,046 Canada. Auction 3,668 8,303 45 3 8,303 Peru. Totals — Auction 283,424 '/is 1,086,-923 76 8 994,428 Via 2,162,446 43 6 3,249,369 Allocated 25,375'/ 12 68,994 54 5 14,602 '/is 32,609 44 8 101,603 Local tanners. to local tanners 308,799 1 Via 1,155,917 74 10 1,008,731 2,195,055 43 6 3,350,972

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HIDES Report of Hides Committee on Operations for Year Ended 31st March, 1949 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. J. P. Mackay. I have pleasure in submitting the ninth annual report and statement of the Equalization Fund for the year Ist April, 1948, to 31st March, 1949. Export Levy.—The following fluctuations to the export levy occurred during the past twelve months : Effective as Ox Cow. Bull Ylg. Calf Farmers from A/w. 4 OUp. TJ/40. A/w. A/w. A/w. Ox and Cow. d. d. d. d. d. - d. d. 1/4/48 . . .. 13£ 13£ 16* 6£ 21 30 6 24/6/48 .. .. 12i 12f 14* 6| 18 20 6 1/8/48 .. ..10* 10| 14* 6* 18 20 6 1/9/48 .. ..6 6 4 4 15 10 6 1/10/48 .. ..9 9 9 4 15 10 9 29/11/48 .. ..11 11 13 7 16 17 9 24/1/49 .. ..13 13 15 7 16 27 11 14/2/49 .. ..11 11 13 7 16 27 11 Amendments to Hides Emergency Regulations 1940 (No. 2). —The introduction in May, 1947, of the schedule of minimum floor prices based in the meat export schedule required that the existing regulations be amended, and the opportunity was taken to incorporate other amendments and additions. Amendment No. 1 became effective as from 23rd March, 1949, and covered the following main points : (1) Provision to transfer surplus moneys to the Meat Industry Account for investment. (2) Adjustment to export levies paid, based on actual landed weights. (3) Second Schedule : Scale of " floor prices."

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

The following table shows : (1) The number of hides claimed by New Zealand tanners. (2) The, number of hides " freed for export." (3) Total hides handled during season 1948-49.

As compared with, the previous year:—

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Ox. Cow. Bull. Yearlings. Calf. Levy. 116,814 295,562 28,856 14,897 35,406 £971,620

1948-49. Ox. Cow. Bull. Yearling. Calf. Tanners 108,485 211,687 795 41,395 14,290 Export 116,814 295,562 28,865 14,897 35,406 Total 225,299 507,249 29,651 56,292 49,696

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 15,922 42,728 Total 232,577 523,036 28,939 44,572 65,097

H-30

Financial Report.—The credit balance as at 31st March, 1948, £674,565 increased to £1,521,505as at 31st March, 1949. Administration costs were approximately 0-sd. per hide plus the Customs Department's charge for the collection of export levies which amounted to £10,636 6s. 6d., as compared with £10,666 17s. 9d for the previous twelve months. Under clause 4, subclause 4, of the Hides Emergency Regulations 1940 (No. 2), Amendment No. 1, transfer of the credit balance in the Equalization Fund to the Meat Industry Account will be authorized at the next meeting of the Hides Committee to be held early in April, 1949. General.—The personnel of the Committee has remained unchanged during the year, and I would like to take this opportunity to express my thanks not only to the members of the Hides Committee but also to the various Government Departments with whom the work of the Committee is associated, and to all sections of the trade for their assistance during the year. J. P. Mackay, Chairman. HIDES EQUALIZATION FUND Table 15—Statement op Receipts and Payments foe Year Ended 31st March, 1949 Receipts Payments Balance at Bank of New Zealand, Ist £ s. d. Claims paid to tanners, April, 1948 .. .. .. 674,565 13 3 brokers, and freezing £ s. d. £ s. d. Cash on hand, Ist April, 1948 .. 10 0 0 companies .. 212,951 18 6 Less refunds of claims 674,575 13 3 on caif-skins (not £ s. d. used for footwear) 361 4 6 Levy on hides ..1,063,632 16 7 212,590 14 0 Less cost of collection 10,636 6 6 Overhead expenditure— 1,052,996 10 1 Audit fee .. 50 0 0 Levy on leather Bank charges and exported .. 9,799 6 8 exchange— Less refunds on goods £ s. d. not shipped .. 983 3 6 Paid . . 183 1 0 8,816 3 2 Received 217 6 lBO 3 6 Cables .. .. 16 15 1 Miscellaneous expenses .. .. 28 12 9 Printing and stationery .. 38 1 7 Postages and stamps 21 6 1 Rent .. . . 50 0 0 Maries .. .. 1,824 17 6 Telegrams .. 3 16 6 Telephones .. 18 5 0 Toll charges .. 17 19 1 Travelling-expenses 36 9 1 2,286 6 2: Balance at Bank of I New Zealand, 31st March, 1949 .. 1,521,505 4 2 Cash on hand, 31st March, 1949 .. 6 22 1,521,511 6 4 £1,736,388 6 6 £1,736,388 6 6 H. G. Andrews, Secretary. I hereby certify that the Receipts and Payments Account has been duly examined and compared with the relative books and documents submitted for audit, and correctly states the position as disclosed thereby.—J. P. Rutherford, Controller and Auditor-General.

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H—3o:

MARKETING DEPARTMENT Meat Industry Account Final Purchases and Sale Account, 1947-48 Season's Killings Dr ' £ £ i (7r. £ £ Stock on hand and loadings not departed at 30th Shipments to United Kingdom after 30th September, 1948 .. .. .. 4,319,914 September, 1948 Less preserved meat transferred to 1948-49 Lamb .. . . . . 2 321 115 Purchase and Sale Account .. . . 68, 669 Wether mutton . . . 97'966 Ewe mutton .. .. .. .. 312,754 4,251,245 Beef and veal .. .. .. 560'362 Less meat withdrawn from stock for local use 201,140 Boner bull beef .. .. .. 50'372 .—— 4,050,105 Boner cow beef .. .. H1'539 Pig meat .. .. .. 172^772 Offals .. .. .. .. .. 212,404 3,839,284 Transfer from Meat Industry Stabilisation Account ~ 210, 821 £4,050,105 £4,050,105

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MARKETING DEPARTMENT— continued Meat Industry Account— continued Purchase and Sale Account, 1948-49 Season's Killings up to 30th September, 1949 Dr. Gr. Purchases, Ist October, 1948, to 30th September, Sales : Shipments to United Kingdom up to 1949— £ 30th September, 1949— £ £ Lamb .. .. .. .. .. 18,160,432 Lamb .. .. .. .. .. 16,212,962 Wether mutton .. .. .. .. 832,432 Wether mutton .. .. .. .. 583,896 Ewe mutton .. .. .. .. 2,619,984 Ewe mutton .. .. .. .. 2,052,337 Beef and veal .. .. .. .. 1,991,312 Beef and veal .. .. .. .. 1,424,590 Boner bull beef .. .. .. .. 260,846 Boner bull beef .. .. .. .. 219,482 Boner cow beef .. .. .. .. 464, 354 Boner cow beef .. .. . . . . 289, 926 Pig meat .. .. .. .. 1,069,040 Pig meat .. .. .. .. 746,691 Offals .. .. .. .. .. 863,902 Offals .. .. .. .. .. 962,728 26,262,302 Preserved .. .. .. .. 414,281 Preserved meat-— 22,906, 893 Stock transferred from 1947-48 Purchase Stock on hand and loadings not departed at 30fch September, and Sale Account .. .. .. 68,669 1949 .. .. .. .. .. .. .. 4,046,258 Purchases .. .. .. .. 418,388 487,057 Exchange on remittances .. .. .. .. 3,716 Payment to New Zealand Meat-producers Board in lieu of levy for twelve months ended 30th September, 1949 (section 42 (3), Statutes Amendment Act, 1947) .. 88,056 Transfer to Meat Industry Stabilization Account .. 112,020 £26, 953 jl5l £26,953,151

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Meat Pool Account, Year Ended 30th September, 1&49 br. £ (Jr. £ insurance on frozen and preserved meat .. .. .. 4,616 Balance as at 30th September, 1948 .. .. .. 12,982,098 Balance as at 30th September, 1949 . . . . 13,742,556 Emergency cool stores : Realization of emergency stores and equipment.. .. .. .. .. .. 38,250 Refund by New Zealand Government Earthquake and War Damage Commission of excess premiums in respect of previous season's meat .. .. .. .. 4 ; 833 Interest on investments .. .. .. .. 710 421 Payment by Ministry of Food for storage on stocks in store beyond agreed period .. .. .. .. 11,570 £13,747,172 £13,747,172

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MARKETING DEPARTMENT— continued Meat Industry Account— continued Meat Industry Stabilization Account, Year Ended 30th September, 1949 Dr. £ Or. £ ..... . New Zealand Meat-producers Board, London advertising .. 40,000 Balance as at 30th September, 1948 .. .. .. 12,646,537 Background advertising in United Kingdom .. .. 19,133 Surplus from 1948-49 Purchase and Sale Account .. 112,020 Subsidies on fertilizers and stock-food .. .. .. 151,103 Surplus from Tallow Purchase and Sale Account .. .. 1,628,738 Transfer to 1947-48 Purchase and Sale Account .. .. 210,821 Surplus moneys in Hides Equalization Fund transferred Balance as at 30th September, 1949 .. .. .. 15,793,104 (Hides Emergency Regulations 1940 (No. 2), (Regulation 4 (4), Amendment No. 1, 1949) .. .. .. 1,500,000 Pickled pelts (being surplus on transactions from auction sales) (Pickled Sheep and Lamb Pelts Emergency Regulations 1947, Regulation 14) .. .. .. .. 257,833 . , Payment by New Zealand Meat-producers' Board of balance v . J ' .. of income from investments (section 17 (2), Veterinary - " ' * Services Act, 1946) .. .. .. .. .. 12,391 Sheep-skin Committee (being levy collected on sheep-skins) (Regulation 15 (2), Sheep-skin Emergency Regulations 1947) 56,642 £16,214,161 £16,214,161 sjr-s >•<-.. 3 £i: ~~

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Bobby Calf Pool Account, Year Ended 30th September, 1949 Dr. £ £ Cr. £ Stock on hand and loadings not departed as at 30th Balance as at 30th September, 1948 .. .. .. 476,207 September, 1948 .. .. .. ..272,135 SalesLess meat withdrawn from stock for local use .. 6,796 Shipments to United Kingdom of 1947-48 season's £ meat after 30th September, 1948 .. .. 357,140 265,339 Shipments to United Kingdom of 1948-49 season's Purchases, season 1948-49 .. .. .. 566,727 meat up to 30th September, 1949 .. .. 235,452 832,066 592,592 Transfer to Bobby Calf Stabilization Account, being gross profit Interest on investments .. . . . . .. .. 10,832 on purchases and sales .. .. .. .. 136,112 Stock on hand and loadings not departed at 30th September, 1949 375,586 Balance as at 30th September, 1949 .. .. .. 487,039 £1,455,217 £1,455,217 Bobby Cale Stabilization Account, Year Ended 30th September, 1949 Dr. £ Cr. £ Balance as at 30th September, 1949 .. .. .. 943,699 Balance as at 30th September, 1948 .. . . .. 606,989 Bobby calf-skins— Export and local levy .. .. .. .. 323,720 Less subsidy on skins used in local manufacture .. 123, 122 200,598 Transfer from Bobby Calf Pool Account .. .. .. 136, 112 £943,699 £943,699

4—H 30

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MARKETING DEPARTMENT— continued Meat Industry Account— continued TALLOW Administration and General Expenses Account for the Period Ist October, 1948, to 30th April, 1949 Note.—Since 30th April, 1949, the New Zealand Meat-producers Board, acting on behalf of the Marketing Department, has carried out certain functions previously performed by that Department in relation to the export of tallow, and has borne the administration and general expenses relating to those functions. Dr. £ Cr. £ Salaries .. .. .. .. .. .. .. 1,103 Allowances for administration and handling .. .. .. 1,668 Office rent, maintenance, cleaning, telephone, and sundry expenses 106 Postages, cables, printing and stationery .. .. .. 160 Travelling-expenses .. .. .. .. .. 68 Audit fees .. .. .. .. .. .. 65 Exchange on remittances .. .. ... .. .. 166 £1,668 £1,668 Purchase and Sale Account for Year Ended 30th September, 1949 Dr. £ Cr. £ Purchases .. .. .. .. .. .. 940,127 Sales to United Kingdom .. .. .. .. 2,540,267 Allowance for administration and handling for the period Sales to other destinations .. .. .. .. 13,780 Ist October, 1948, to 30th April, 1949 .. .. .. 1,668 Surcharge on tallow products exported .. .. .. 18,202 Marketing expenses .. .. .. .. .. 1,433 Exchange on remittances .. .. .. .. 283 Transfer to Meat Industry Stabilization Account .. .. 1,628,738 j j £2,572,249 j £2,572,249

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H—3o

Balance-sheet as at 30th September, 1949 Liabilities £ | Assets £ Sundry creditors .. .. .. .. .. 800,193 I Sundry debtors .. .. .. .. .. 973,858 Meat industry Stabilization Account .. .. .. 15,793,104 j Stocks .. .. .. .. .. .. 4,421,844 Bobby Calf Stabilization Account .. .. .. 943,699 : Investments in Government stock .. .. .. 27,000,000 Meat Pool Account .. .. .. .. .. 13,742,556 Bobby Calf Pool Account .. .. .. .. 487,039 Reserve Bank of New Zealand .. .. .. .. 629,111 | £32,395,702 J £32,395,702 Note.—In terms of the agreement validated by section 4, Finance Act, 1946, the increases in the purchase -prices and sale-prices above the level at 15th December, 1942, are required to be debited and credited respectively to the Industry Stabilization Accounts, and prior to 1948-49 this was done. In order, however, to show the results of operations for the 1948-49 season more clearly, the Purchase and Sale Accounts include the full purchase and sale prices as previously, but the results of trading, including the net results of stabilization increases, have been transferred in one amount from each Purchase and Sale Account to the Stabilization Account.

L. C. Webb, Director. A. E. Ormandy, for Chief Accountant. I hereby certify that the Balance-sheet as at 30th September, 1949, and supporting accounts in respect of the Meat Industry Account have been compared with the relative books and documents submitted for audit and, subject to the following comment, correctly state the position as disclosed thereby. There has been no apportionment of the results of trading as between the Pool and the Stabilization Accounts, the net result of trading in bobby calves having been credited to the Bobby Calf Stabilization Account and net result of trading in other meat and tallow having been credited to the Meat Industry Stabilization Account. The Audit Office is not able to say with certainty if this falls within the terms and conditions of the agreements between the Government and the producers, but it is understood that it is proposed to amalgamate the Stabilization Account with the Pool Account in each case, in which event the question will be of no importance. The difficulties have arisen because the agreements did not specify the adjustments to be made in the event of alteration of the exchange rate.— J. P. Rutherford, Controller and Auditor-General.

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H—3o

MARKETING DEPARTMENT— continued Sundry Products Account TALLOW Note.—Since 30th April, 1949, the New Zealand Meat-producers Board, acting on behalf of the Marketing De^ rtm JelatS/tothose previously performed by that Department in relation to the export of tallow, and has borne the administration and general expenses functions. Tallow Account £ Gt' Payments to War Expenses Account (section 19, Finance Act Balance as at 30th September, 1948 (No. 2), 1942) .. .. .. •• •• 5 > 44 8 £5,448 £5,448 « —-— ===== WAR OFFICE CONTRACTS Purchase and Sale Account for the Period Ist October to 31st December, 1948 c Cr .. •' .. MJI •• "

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H—3o

Revenue Account por the Period Ist October to 31st December, 1948 Dr. £ Or. £ Balance, net deficit as at 30th September, 1948 .. . . 193 Sundry creditors for expenses, over-estimated at 30th September, 1948 .. .. .. .. .. • • • • 43 Net deficit transferred to War Expenses Account .. .. 150 £193 £193 Balance-sheet as at 30th September, 1949 Liabilities £ £ Assets £ Sundry creditors (tallow) .. .. .. .. 9 Cash: Reserve Bank of New Zealand .. .. . 446,084 Sheep-skin Control Account— As at 30th September, 1948 .. .. .. 446,077 Less cost of cables .. .. .. .. 2 446,075 £446', 084 £446,084 L. C. Webb, Director. A. E. Ormandy, for Chief Accountant. I hereby certify that the Balance-sheet as at 30th September, 1949, 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 position as disclosed thereby.— J. P. Rutherpord, Controller and Auditor- General.

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MARKETING DEPARTMENT— continued Sheep-skin Committee Income and Expenditure Account for Year Ended 31st March, 1949 Expenditure £ £ Income Salaries .. .. .. .. .. 2,851 Levies collected— £ £ Travelling-expenses .. .. .. 562 Levy 5: Period ended 15th April, 1948 .. .. 4,741 Postages and telegrams .. . .. .. 60 Levy 6: Period ended 2nd September, 1948 .. 46,101 Telephones and tolls .. .. .. .. 201 Levy 7 : Period ended 31st March, 1949 .. .. 29,927 Stationery . . • • • • • • • ■ 16 Rent 228 80,769 General expenses .. . . .. .. 175 Less refunds— £ Exchange .. .. .. .. .. 3 Levy 1 .. .. .. .. 110 4,096 Levy 2 .. .. .. 39 Excess of income over expenditure to ba distributed .. .. 115,920 Levies 3 and 4 .. .. .. 607 756 80,013 Fellmongers' levy .. .. .. .. .. 40,003 £120,016 £120,016 Balance-sheet as at 31st March, 1949 Liabilities £ Assets £ £ Balance available for distribution as at 31st March, 1948 .. 308,974 Cash at bank— Less second distribution of levies collected— £ Bank of New Zealand, Dunedin .. .. .. 25,502 Meat Industry Stabilization Account .. .. 209,664 Bank of New Zealand, Christchurch .. .. 30,773 Wool Disposal Account .. .. .. 31,114 Bank of New Zealand, Wellington .. .. 17,286 — 240,778 Bank of New Zealand, Auckland .. .. 104,703 178,264 68,196 Cash in hand— Excess of income over expenditure for year ended 31st March, Imprest accounts .. .. .. .. 200 1949 .. .. .. .. .. .. .. 115,920 Petty cash .. .. .. .. .. 10 2lO Balance available for distribution .. .. .. .. 184,116 Sundry debtors: Levies unpaid .. .. .. .. 4,898 Office furniture, &c. .. .. .. .. .. 744 £184,116 £184,116 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.

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Sheep-skin Committee (Final Accounts) . Income and Expenditure Account fob Year Ended 31st March, 1950 Expenditure £ £ Income , Salaries . .. •• •• 2,921 Levies— £ £ Travelling-expenses .. .. •• 393 Levy?: Period ended 26th June, 1949 .. .. 9,582 Postages and telegrams .. .. .. •• 28 ■ Levy 8: Did not operate •• •• • • Telephones and tolls .. .. .. •• 93 Levy 9: Period ended 12th July, 1949 . .. 1,427 Stationery 22 Levy 10: Period ended 17th November, 1949 .. 9,157 Rent .. "!! " •• •• 146 . 20 > 166 General expenses .. .. .. .. 144 Fellmongers' levy ....... •• .•• 10,539 Exchange .. .. • • • • 2 Wool contributory charge on skins purchased and exported since Loss on sale of furniture .. .. .. .. 193 17th November, 1949 . . .. .. • • • • 445 Bad debts .. .. .. • • • • 558 4,500 Excess of income over expenditure to be distributed .. .. 26,650 £31,150 £31,150

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H—3o

MARKETING DEPARTMENT— continued Sheep-skin Committee (Final Accounts)— continued Balance-sheet as at 31st March, 1950 Liabilities £ £ j Assets Balance available for distribution as at 31st March, 1949 184, 116 Plus excess of income over expenditure, year ended 31st March, 1950' .. .. .. ..26,650 Nil 210,766 Less third distribution of leviesMeat Industry Stabilization Account .. .. 56,644 Wool Disposal Account . . .. .. .. 29,400 Fourth distribution of levies— Meat Industry Stabilization Account .. .. 117,587 Wool Disposal Account .. .. .. .. 7,135 210,766 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. Approximate Cost of Paper.—Preparation, not given ; printing (1,084 copies), £l7B.

By Authority: R. E. Owen, Government Printer, Wellington.— 1950.

Price Is. M.~\

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