H.—3oa.

For the current year ending 31st March, 1941, the Division received 69,544 cases of marketablegrade lemons and 33,645 cases of by-product fruit, against the previous year's totals of 49,437 cases of marketable fruit and 18,654 cases of by-product fruit. The Citrus Advisory Committee have at all times during the year been ready and. willing to assist and advise, and their co-operation has been of considerable help in achieving such harmonious progress over the past two years. The personnel of the Advisory Committee has changed —Major Lambden (Auckland) resigned owing to military duties, and Mr. A. Knowles (Kerikeri representative) has resigned owing to ill health, their places on the committee being filled by the appointment of Mr. IT. H. Booth and Mr. A. R. Emanuel, respectively. HONEY. The 1941 production season has closed with a total production similar to that of the previous year. While some of the bigger production areas have had better crops, such as portions of the Waikato district, the Taranaki district, and Westland and Hawke's Bay districts, in others—the Manawatu, mid and northern Canterbury, and North Otago—the crop yield is much below that of the previous year. The quality of the crop is, over all, above the average of the last few years. The following is a summary of the Honey Section operations since the Internal Marketing Division took over in February, 1938 : — 1938 season's honey — Honey received .. .. 1,194 tons. Honey exported .. .. 777 tons. Average grade .. .. 88-26 points. Paid to producers— Advance (on receipt of honey) 4|d. per pound pro rata according to grade. Second payment .. .. -fd. per pound pro rata according to grade. Final payment .. .. fd. per pound pro rata according to grade. Total payment . . 6d. per pound pro rata according to grade. 1939 season's honey— Honey received . . . . 559 tons. Honey exported .. .. 179 tons. Average grade .. . . 87-38 points. Paid to producers— Advance (on receipt of honey) 4|d. per pound pro rata. Second payment .. .. fd. per pound pro rata. Final payment .. .. IJd. per pound pro rata. Total payment .. 6|d. per pound pro rata. 1940 season's honey — Honey received .. .. 970 tons. Honey exported .. .. 339 tons. Average grade .. .. 91-31 points. Paid to producers — Advance (on receipt of honey) sd. per pound pro rata. Second payment . . . . fd. per pound pro rata. Third payment .. .. fd. per pound pro rata. Final payment .. .. per pound pro rata. Total payment .. 6fd. per pound pro rata. 1941 season's honey— (Note. —The following figures are as at 31st March, which is the middle of the period for receiving honey.) Honey received to 31st March .. .. .. .. 585 tons. Honey exported .. .. .. .. .. .. 197 tons. Average grade .. .. .. .. .. .. 91-41 points. Paid to producers : Advance (on receipt of honey) .. .. sd. per pound pro rata. The export position has altered considerably since the last annual report. An import quota has been instituted by the Ministry of Food in London. Owing to the shipping position, exports were short by approximately 60 tons of the quota of 460 tons allowed. While this left our overseas market short of its requirements, it did not seriously affect sales of the honey as a whole, there being a ready sale for the remaining honey in New Zealand. The present packing plant in Auckland has been in use throughout the year to its utmost capacity. To obtain the maximum output, six days a week have been worked over most of the period. Enlarged packing-facilities are now urgently necessary, and the provision of this in the premises nearing completion will give room for expansion and increased efficiency. The equipment to be installed in the new premises will provide for the packing of 1,200 tons a year and can be extended by the provision of one additional packing unit to pack up to 1,800 tons of honey a year. The demand for honey in New Zealand has increased. One reason for this increase is the large number of tins of honey of the smaller sizes being sent to soldiers overseas by friends and relatives. The co-operation of suppliers throughout the year has kept the Honey Section running smoothly, with results that have been mutually satisfactory.

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