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DAIRY-PRODUCE REVIEW OF COMPLETED FINANCIAL OPERATIONS FOR THE 1942-43 SEASON The accounts presented with the report for the '1942-43 season covered purchases and sales of butter, cheese, and processed milk by the Department up to 31st July, 1943. These purchase and sale transactions showed a surplus of £709,724. The final results of the operations for the complete 1942-43 season were — £ £ £ Surplus on creamery butter .. .. .. 116,117 Surplus on cheese .. .. .. .. 834, 501 Surplus on whey butter .. .. .. 44, 626 Surplus on processed milk .. .. .. 1,437 996,681 Less cheese " change-over " payments .. .. 364,465 632,216 Transfer from Internal Marketing Division (Batter Equalization Account) .. .. .. .. .. .. 100,000 Recoveries from manufacturers of special milk products .. .. 2,441 Net surplus for 1942-43 season .. .. .. .. £734,657 The final accounts for the 1942-43 season are shown in detail on page 29 of this report. BULK PURCHASE OF 1943-44 SEASON'S BUTTER AND CHEESE BY UNITED KINGDOM GOVERNMENT For the 1943-44 season the United Kingdom Government desired New Zealand to aim to make available for shipment to the United Kingdom not less than 85,000 tons of cheese and as much butter as possible. The New Zealand Government replied stating that every effort would be made to meet this request, and that rationing of butter and cheese in New Zealand would be introduced in order to make further quantities available for export to the United Kingdom. Rationing of butter and cheese was introduced on 28th October, 1943, and in response to a specific request for a close estimate of the quantities which would be available, the New Zealand Government stated that after providing for the increased requirements of the United States Armed Forces in New Zealand and the South Pacific Area it was estimated that from 96,000 to 101,000 tons of butter and 85,000 to 90,000 tons of cheese would be available for shipment to the United Kingdom during the 1943-44 season. It should be noted that these figures included the estimated saving of butter through rationing- -namely, 6,000 tons. It should also be noted that arrangements settled between the Governments of the United States, United Kingdom, and New Zealand provided for the release by the United Kingdom of all supplies required by the United States Forces in the South Pacific Area. The quantities of butter and cheese actually exported to the United Kingdom were : butter, 101,068 tons ; cheese, 81,54-4 tons. Conditions and terms of the bulk-purchase contracts were the same as those applying for the 1942-43 season (see annual report for year ended 31st July, 1943, page 7). The prices of butter and cheese applying to these contracts were increased as the result of the London discussions which took place in July, 1944. The purchase-prices paid by the United Kingdom Ministry of Food for the 1943-44 season's butter and cheese are as follows, the previous prices being shown in parentheses Butte e Creamery Finest Grade, 93 points and over : 1435. lfd. sterling per hundredweight delivered f.o.b. ocean steamer (1175.)." Creamery First Grade, 90 to 92| points : 141s. lOid. sterling per hundredweight f.o.b. (115s. 9d.). Creamery Second Grade : 138s. l|d. sterling per hundredweight f.o.b. (1125.). Note. —(1) This price increase for butter of 265. lfd. sterling per hundredweight applied to production for sale to the United Kingdom Government during the period Ist April, 1943, to 31st July, 1944. (2) The price increase was first announced as an increase of 265. 2d. per hundredweight, but later the figure was adjusted (in relation to the increase on cheese) to 265. l|d. per hundredweight. Cheese Finest and First Grade, 9J. points and over : 85s. 6jd; sterling per hundredweight delivered f.o.b. ocean steamer (735.). Second Grade : 83s. 6jd. sterling per hundredweight f.o.b. (715.). (AH cheese to be white and unwaxed.) Note. (1) This price increase for cheese of 12s. 6|d. sterling per hundredweight applied to production for sale to the United Kingdom Government during the period Ist April, 1943, to 31st July, 1944. (2) The price increase was first announced as an increase of 12s. 3d. per hundredweight, but later the figure was adjusted (in relation to the increase on butter) to 12s. 6|d. per hundredweight. During the season under review (1943-44) all whey butter was shipped frozen to the United Kingdom, the dehydration of this butter being discontinued at the request of the United Kingdom Ministry of Food.

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