H.—29a.

There are a number of subsidiary industries concerned with the processing of sheep products, and the approximate added value and the wage payments attributable to the handling of sheep products alone in 1937-38 is given in round figures in Table 111, while total figures are also given for five seasons. Added Salaries Tahlp TTT Value - and Wages. lam-111. £(m) £(m _j Freezing-works .. .. .. .. .. .. 2• 30 1-40 Boiling-down works .. .. .. .. ..0-11 0-05 Tanning .. .. .. .. .. .. 0-06 0-02 Scouring .. .. .. .. .. .. 0-15 0-08 Woollen-mills .. .. .. .. .. ..0-66 0-42 Total for 1937-38 .. .. .. ..3-28 1-97 1936-37 3-90 2-00 1935-36 .. .. .. .. .. 4-40 1-80 1934-35 .. .. .. .. .. 3-20 1-70 1933-34 .. .. .. .. .. 3-20 1-50 There is a substantial correlation between the welfare of many other industries and the state of the sheep industry, but it is not possible to determine this correlation exactly, since such industries are not concerned with sheep interests alone. In brief, the sheep industry is important to New Zealand because of the following facts :— (i) It contributes 30 per cent, of the total value of production, valued at £136,000,000 in 1937-38. (ii) Processing industries concerned with sheep products alone had an added value of £3,300,000 in 1937-38, and their wages bill amounted to £2,000,000. (iii) Transport and other interests draw a considerable portion of their income directly from the sheep industry. (iv) Interests supplying sheep-farmers' requirements are aflected directly by changes in the sheep industry. (v) Variations in the numbers employed on sheep-farms, and the wages, salary, and income derived from sheep-farms directly and indirectly, affect the volume of purchasing-power and the National income of New Zealand. Comparison of Export Trade in and Local Consumption op Pastoral Products. An analysis of income derived from exports and from local consumption of pastoral products shows a steady relative increase in importance of the overseas trade. Figures showing the position over a period of years are given below, the average of three seasons being taken to minimize the effects of incompleteness of statistical information and the impossibility, owing to seasonal variations, of regarding year-to-year returns as comparable. The export trade is now four times as important as local consumption: —

Table IV.

The relative importance of local consumption and export in respect of the principal sheep-farming products of New Zealand is as follows :— Consumed in New Zealand. Exported. Per Cent. Per Cent. Wool . . . . . . . . 3 97 Lamb .. .. .. .. . . 9 91 Mutton .. .. .. .. .. 51 49 Beef .. .. .. .. . . 73 27 The approximate amount of gross sheep-farming income derived from local and export sources in the 1937-38 season is given below: — Local E Total ©roes Consumption. J "" ' Income. £(m.) £(m.) £(m.) Wool .. .. .. .. 0-3 10: .0 10-3 Lamb .. .. .. ..1-2 10-4 11 -6 Mutton .. .. .. ..2-0 2-0 ■ 4-0 Total .. .. .. ..3-5 22-4 25-9

4

(Reference to Pastoral Production only.) Annual Average Gross Income. Percentages of Gross Income from Three Production Total Exnorts ■ New Zoaland Tfvnm+a NeW Zea l and Production. P ' Consumption. J ' 1 ' Consumption. £(m.) £(io-) £(m.) Per Cent. Per Cent. 1929-31 .. ... 25-1 18-6 6-5 74 26 1930-32 .. .. 19-5 14-0 5-5 74 26 1931-33 .. .. 16-1 11-7 4-4 73 27 1932-34 .. .. 17-8 13-8 4-0 78 22 1933-35 .. .. 20-1 15-9 4-2 79 21 1934-36 .. .. 24-2 19-2 5-0 79 21 1935-37 .. .. 28-5 22-7 5-8 80 20