PRIMARY PRODUCTS

Otago Daily Times, Issue 23690, 23 December 1938, Page 7

PRIMARY PRODUCTS

MARKETING ACCOUNTS INTERNAL AND EXTERNAL TRADE ANNUAL REPORTS ISSUED (Per United Press Association* WELLINGTON, Dec. 22. The Minister of Marketing (Mr W. Nash) has issued the annual report and statements of accounts of the Primarv Products Marketing Department for the year ended July 31, 1938. “ In the terms of the Primary Products Marketing Act, the report and accounts are to be laid ' efore Parliament within 14 days after they have been received by the Minister if Parliament is then sitting,” said Mr, Nash. ‘ The parliamentary session ended on September 16 1938, before the report and accoun could be completed. I am now issuing these statements and they wi’l be laid before Parliament when it next meets."

The report of the Dairy Produce Export Division reviews the completed financial operations for the year ended July 31, 1937. The deficit for the 1936-37 season is shown to be £272,482 In terms o the undertaking given to the dairy industry this deficit is the responsibility of the Government. The report reviews the operations of the 1937-38 season, and discloses the estimated surplus as £555,185. This estimate was based on the valuations of unsold butter at 110 s a cwt and unsold cheese at 70s per cwt. Sales made to date support the estimated surplus which has been quoted Full details are given of the marketing operations of the department, and references are made to improvements in the distribution of butter and cheese and in the price returns which have resulted from the new marketing procedure. Advertising and publicity activities in the United Ungdom are fully reviewed, and details are given of extensions in the programme which have been made possible by the increased financial allocation for this purpose. There is a complete r ige of all statistical data relating to the gradings of butter and cheese, shipments and deliveries to London and other ports in the United Kingdom. Guaranteed prices for dairy produce are tabulated with the corresponding average payments for butter-fat made by dairy companies to their suppliers. Dairy company manufacturing costs are shown, and comparisons are made with th previous season’s costs. Special references are made to cheese manufacture and to the efforts of the Government to maintain cheese production. The report and accounts of the Internal Marketing Division cover a period of 14 months. The activities of this division are reviewed, and, in particular, much information is given regarding the local marketing of butter, eggs, honey and fruit. Particulars are given of the assistance rendered in the constitution in the terms of the regulations of the bobby calf pools for the collection, handling, and disposal of bobby calves. Accounts show that the trading operations of the Internal Marketing Division have resulted m a net profit of £6804. The accounts for the 1936-37 season show that,-in the case of creamery butter and cheese, the actual realisations for produce which was unsold at the balance date exceeded the estimates and in the case of whey butter, the actual realisations were less than the estimates The net result is that, at the date of closing the accounts (June 21, 1938), the actual deficit for the 193637 season was £272,109 In the accounts published with last year’s report, the deficit for the season was estimated at £548,750. Interest at li per cent, is allowed on the deficit of £272.109 from June 21, 1938, to the end of July, bringing the deficit for the 1936-37 season-at July 31, 1938. to £272,482. WIDER DISTRIBUTION DOMINION LEADS DAIRY IMPORTS (Per United Press Association) WELLINGTON, Dec. 22, “ The distribution of butter and cheese in the United Kingdom has been widened by means of direct shipments to the main United Kingdom ports,” states the annual report of the Primary Products Marketing Department. “In particular, regular shipments have been commenced to Cardiff, Southampton, Hull and New-castle-on-Tyne. Over one-third of the Dominion’s butter and cheese is now distributed from ports other than London, with the exception of butter to Glasgow. The shipping programme for 1938-39 calls for still greater quantities for the west coast ports. The price level of, New Zealand butter and cheese has improved substantially during the year in relation to the produce of the competing countries and disturbing fluctuations in price during short periods have been minimised. ‘‘New Zealand, in 1937, supplied 31 per cent, of the total imports of butter in the United Kingdom, Den mark 24 per cent., and Australia 16 per cent. In the same year New Zealand supplied 59 per cent, of the total cheese imports into the United Kingdom, Canada 25 per cent., and Australia 4 per cent.” SUCCESS OF POLICY ASSISTANCE TO FARMERS BUDGETING FOR EXPENDITURE 'Per United F’hess Association* WELLINGTON, Dec. 22. The accounts for the 1937-38 season cover all export butter and cheese which was manufactured from August 1, 1937, to July 31. 1938, the quantities being as follows: —Creamery butter, 137,542 tons; whey butter. 1796 tons; cheese 83,078 tons. The accounts submitted comprise separate purchase and sale or “ pool ” accounts for creamery butter, whey butter and cheese, the administration and general expenses account, the dairy industry account and the balance sheet. To each purchase and sale account is charged its proportion of the total administration and general expenses, amounting to £ 192,141 The administration and general expenses account shows itemised expenses and charges in the United Kingdom and in New Zealand, It is stated that the itemised expenses for the 1937 38 season are not comparable with the corresponding items in the accounts for the 1936-37 season because the department was not fully organised and staffed at the beginning of that season.

In the advertising, publicity and sales promotion section of the report, reference is made to the increase in the financial allocation for these activities, the expenditure being £81,259. compared with £39,049 for the 1936-37 season

“It is pleasing to record that the success of the policy adopted in the marketing of butter and cheese, which was clearly indicated in the first year after the inauguration of the new procedure, has been fully maintained,” states the report. “ Merchants, agents, dairy industry officials and others qualified to judge are in general agreement as to the soundness of the single-unit system of marketing with general sales instead of sales by individual dairy factory companies and with consignment selling in place of the mixed consignment and f.o.b. and c.i.f. selling which was a disturbing feature in the marketing system of the past. The fixed and uniform monthly rate of payment for butter-fat that the dairy factory companies have been able to maintain enables the dairy farmers to budget with certainty for their farming and domestic expenditure.

The guaranteed price policy has worked smoothly and the administrative procedure has been conducted without a hitch The basic guaranteed purchase orices for butter and cheese are subject to additions and deductions according to the quality of the dairy produce as disclosed by the grading points awarded by the Government graders. The experience of the past two years justifies a continuance of the price differentials. They provide an incentive for the maintenance and improvement of quality, which is appreciated by the representatives of the dairy factory companies.