H.—3o.

1939. NEW ZEALAND.

PRIMARY PRODUCTS MARKETING DEPARTMENT ANNUAL REPORT (SECOND) AND ACCOUNTS FOR THE YEAR ENDED 31st JULY, 1938.

Presented to both Houses of the General Assembly 'pursuant to the Provisions of the Primary Products Marketing Act, 1936.

I have the honour to submit the annual report and Statement of Accounts of the Primary Products Marketing Department for the year ended 31st July, 1938. CONSTITUTION OF DEPARTMENT. The Primary Products Marketing Amendment Act, 1937, provided that the Department should be divided into separate Divisions as follows :— (a) The Dairy-produce Export Division ; (b) The Internal Marketing Division ; and (c) Such other division or divisions (if any) as may be constituted. The Department at present consists of two divisions, the Dairy-produce Export Division and the Internal Marketing Division. The Dairy-produce Export Division exercises the functions of the Department relating to the acquisition and sale of dairy-produce exported or intended for export from New Zealand. The Internal Marketing Division exercises all the other functions of the Department, including the control and regulation of marketing within New Zealand of dairy and other products. The activities of the Internal Marketing Division are reviewed in a separate section of this report. REVIEW OF COMPLETED FINANCIAL OPERATIONS FOR 1936-37 SEASON. At the time of issue of the annual report for the year ended 31st July, 1937, the following quantities of dairy-produce were unsold, and were in consequence taken into the accounts at estimated sale values : — Creamery butter : 1,152,752 boxes. Estimated sale value, 115s. sd. per hundredweight sterling gross. Whey butter : 5,139 boxes. Estimated sale value, 107s. per hundredweight sterling gross. Cheese : 325,621 crates. Estimated sale value, 655. 7d. per hundredweight sterling gross. On the basis of these valuations for dairy-produce unsold, the deficit in the Dairy Industry Account for the 1936-37 season was estimated to be as follows :— £ s. d. £ 8. d. Estimated deficit on creamery butter .. .. .. .. 561,397 1 6 Estimated surplus on cheese .. .. .. 18,354 7 6 Less estimated deficit on whey butter .. .. 5,707 5 9 12,647 1 9 Estimated deficit, Dairy Industry Account, 1936-37 season .. .. 548,749 19 9 The actual realizations for dairy-produce unsold exceeded the estimates, the average sale prices being as follows : — Creamery butter : 120s. 4d. per hundredweight sterling gross. Whey butter : 108s. 2d. per hundredweight sterling gross. Cheese : 695. 2d. per hundredweight sterling gross.