DAIRY ACCOUNT

Evening Post, Volume CXXIV, Issue 122, 19 November 1937, Page 6

DAIRY ACCOUNT

PURCHASE AND SALE

TRANSACTIONS DETAILED

YEAR'S OPERATIONS

Details of the transactions involved in the purchase and sale of export butter and cheese by the Primary Products Marketing Department are shown in accounts appended to the annual report, which was presented in the House of Representatives yesterday by the Minister of Marketing. CREAMERY BUTTER. Actual sales of creamery butter made for the year ended on July 31 last returned to the: Government, after deducting freight and insurance, a sum of £10,749,869, which represented a deficit of £851,583 on the purchase of the-3,955,212 boxes concerned. Unsold portions of shipments made have been assessed at a sale value of 1,15s a cwt sterling net, and onvthe purchase price of the'; 1,549,036 boxes; in this item; a, net surplus of £370,433 :is shown. This is offset against the actual surplus of the first sales, which is reduced to £481,150.

Still - another account concerns the stocks of creamery, butter awaiting shipment in New Zealand at July 31. These comprise 488,134 boxes, purchased at a cost of £1,502,470. The estimated sale value of these stocks, on a basis of 115s a. cwt sterling net, is £1,595i291, after' deducting the usual

freight and insurance costs. This transaction, which shows an estimated surplus of £92,821, still further lowers the original deficit to £388,328, which is the estimated deficit on the whole purchasing and selling transaction.

The first estimated deficit of £561,397 is made up <of the £388,328, plus the following items:. Estimated amount due to butter-making companies to preserve the equity in respect of grading dates of produce payable at the 1936-37 and the 1937-38 guaranteed prices, £16,000; amount due to the butter box pool (refund of saranac box/ deduction), i £30,867; proportion of administration arid general expenses, £126,202. ■

A note on the account states that the produce unsold at the .! balance date has since been realised at prices in excess of 116s, so that this will reduce the deficit still further./ CHEESE ACCOUNTS. In the cheese account, there is. a deficit of £ 1053 shown on the proceeds of the cheese actually purchased: and sold. On the partially sold shipments, the sale is estimated to produce'a surplus of £299,634, leavings net Surplus at this pointof £298,581. For "the purpose of assessment, the sale value.of the partially unsold; stocks is estimated-at 67s 6d a cwt sterling, less United Kingdom selling charges. * "/; ;

Stocks in New: Zealand stores awaiting shipment at .> July 311 have been valued at 64s a cwt sterling for the purpose of this ( account, and ,' after their disposal;-there is estimated to be a surplus of £258,172. Against this,: however, has to be set the 'following items:—Estimated amount of further', payment to.' cheese-manufac-turing companies on cheese graded up to and including March 18, 1937, and

exported on or before July 31 last, £165,000; estimated t. amount rdue- to - preserve equity in respect of grading dates of produce payable,?al; the ■1936-37 and 1937-38 guaranteed prices, £28,000; and proportion of administration and ; general expenses,: £4*5,817. This leaves a net surplus in the cheese account of £18,354, though this figura will be increased in the final analysis, because, according to a note on the account, the bulk of the cheese unsold at balance date realised more than 67s 6d a cwt. ..... ADMINISTRATION COSTS. ~' Another account shows that.the cost, of administration and general expenses of the Department total £180,529, of which £126,202 is recov* erable from the creamery butter • account, £1247 from the -whey butter account, £46.818 from the cheese acr count, and £6263 from the export levy for the balance of the'l93s-36 season.

The biggest item in the expenses" is £56,683, which represents the-inter-est on an overdraft of, £3,998,118 at the Reserve. Bank.

Another big item is £39,048 for advertising in the United Kingdom/and the sum of £21,300 was set aside for salaries.. The cost of remittances to dairy companies account's for"another £11,846. ■ - - ':..:;'. ■:■■ k?*.,