H.—3OA.

Fruit, especially apples and pears, is one of those commodities which has a high packing and transportation cost in relation to the actual cost of the article itself. It will be seen from the above figures that packing-costs almost equal the cost of the fruit, but, in addition to this, the bulkiness of the article and the high transport, storage, and handling charges add appreciably to the cost before reaching the market. Transport and storage costs amounted to Is. Bd. per case. The complete costs incurred by the Division covered all assembly, distribution, repacking, accountancy, and administration, and amounted to 3|d. per case. Costs associated with selling through brokers approximated lOd. per case. The overall returns from the local market showed a loss of 2s. 0-ld. per case, but the substantial profits from export consignments was sufficient to cover all local costs and losses and provide a net profit of £2,370.

District Production, Season 1940.

Summary op Fruit exported. Bushels. To United Kingdom .. .. .. .. 564,334 To Canada .. .. .. .. .. 18,552 To Singapore .. .. .. .. .. 2,278 To Java .. .. .. .. .. 2,340 587,504 PURCHASING SECTION. The purchase of foodstuffs required for Government Departments has been carried on during the year ended 31st March, 1941, with a view to the strictest economy, also the conservation of overseas funds, both sterling and dollar. The great expansion of the training schemes of the armed Services which has taken place during the year has resulted in an ever-increasing demand for foodstuffs being made upon sources which were already experiencing, difficulty in meeting trade demands. Merchants and other suppliers have, however, met this demand to the best of their ability, with the result that trainees have continued to enjoy the variation in the daily menu which modern dietary demands. As it was obvious that the drawing from local stocks of large quantities of certain kinds of foodstuffs would result in the supplies available for civil use being severely curtailed, arrangements were made to indent direct the undermentioned commodities in order to relieve the position : Rice, sago, tapioca, dates, dried peaches, dried apricots, dried pears, dried nectarines, dried prunes, sultanas, butter-beans, dried raisins, currants, canned pineajjple, sardines (for Navy Department), and haricot beans. Some 300,000 lb. of tea has been imported from Ceylon during the same period. The Internal Marketing Division has, when required, co-operated in the handling and distribution of these bulk supplies, providing a convenient and effective service. A high standard of quality has been maintained during the past year in respect of items regularly supplied under contract—viz., meat, milk, and bread ; also hams and bacon. Frequent inspections by the Inspectors of the Departments of Health and Agriculture ensured that only foodstuffs which fully complied with contractual requirements were supplied. Even so, it has been found necessary to cancel several contracts and to take disciplinary measures of a less severe nature in respect of others. The use of locally-produced goods in preference to imported is constantly encouraged. For instance, locally-canned fish is now in general use in Government institutions, and packers are experiencing difficulty in meeting the heavy demand which has developed.

10

Apples. Pears. .District. XF. F. C. Total. V. C. Total. j Bushels. Bushels. Bushels. Bushels. Bushels. Bushels. Bushels. Auckland .. .. 111,452 103,400 63,760 278,612 13,465 7,933 21,308 Poverty Bay .. 8,376 7,276 3,803 19,455 514 49 563 Hawke's Bay .. 437,875 170,503 93,542 701,920 52,398 16,823 69,221 Wairarapa .. .. 18,633 8,833 3,768 31,234 714 218 932 Blenheim .. .. 45,827 21,894 4,214 71,935 1,107 341 1,448 Nelson .. .. 76,171 91,641 43,921 211,733 8,510 3,638 12,148 Mapua .. .. 157,523 166,141 96,640 420,304 8,055 4,435 12,490 Motueka .. .. 137,945 103,714 50,244 291,903 13,126 6,405 19,531 Christchurch .. 72,224 19,961 10,486 102,671 7,856 3,376 11,232 Timaru .. .. 3,276 2,605 1,158 7,039 655 504 1,159 Otago .. .. 64,122 32,401 19,070 115,593 13,354 4,143 17,497 Totals .. 1,138,424 728,369 390,606 2,252,399 119,754 47,865 167,619