H.—3o.

Comparison of Costs of Marketing Cheese.

SHIPPING. In last year's report mention was made of the policy of the Department for ensuring greater regularity in arrivals of consignments of butter and cheese in the United Kingdom. It was pointed out that freight contracts are only made possible by co-operation between the dairy and other exporting industries particularly the meat and fruit industries. Consideration has also to be given to the requirements of New Zealand importers, whose goods have to be discharged at ports of destination before the export loading itineraries can be finalized. It is pleasing to record that the shirking programme for the 1937-38 season which was designed to give monthly arrivals in the IMted Kingdom of quantities of butter and cheese to suit market requirements, has been carried out in a satisfactory manner. Ihe extent of the possible regulation of shipments is necessarily somewhat limited, because there are sixteen ports of loading in the Dominion for overseas vessels, five of these being roadstead ports, where the risk of delay is considerable. r>f ti° Uri fin r S °, n Vr V T eIS l° aded dair y-P roduoe the Dominion for the United Kingdom Of these, 60 discharged at London the remaining 51 discharging at one or more of the following ports • Cardiff, Avonmouth, Liverpool, Manchester, Glasgow, Southampton, Hull, and Newcastle-on Tyne Many of these latter vessels also discharged dairy-produce at London.

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Charges Items. Costs under Old System Costs under Pr ®sent System. s * d. s. d. s. d. s. d. Sale value (per cwt. sterling) .. .. .. 68 6 68 6 Less— Port dues, &c. .. .. ..12 12 Commission .. .. .. .. 1 8-55* 1 4.5+ Discount (2d. in the pound) .. .. 0 6-85 0 6-85 London interest (5s. per cent.) .. .. 0 2-055 Freight .. .. .. .. 6 2-327 Insurance .. .. .. .. 0 1-834 9 11-616 3 1-35 58 6-384 65 4-65 Plus — Exchange 13 9-762 15 8-316 Le !f~ i+ 72 4-146 81 0-966 Freight J .. .. .. .. .. 7 7-74 Insurance J.. .. .. .. _ 02-16 7 9-90 Interest on overdraft and cost of remittances .. .. 3 to dairy companies Net return, New Zealand currency .. .. . . 72 4-146 73 0-066 72 4-146 Increase in net return, represented by savings .. 0 7- 920 in marketing costs ' Summary of Savings in Marketing Costs under the Present System. Per Cwt. Gains — d Commission .. .. .. .. 4.95 London interest .. . . .. 2 • 055 Exchange .. .. .. .. 4. 3^5 10-920 Less interest on overdraft and cost of re- 3-000 mittances to dairy companies _ _ 7-920 New V?e°aZd t n LoL P o". C6nt - f C ° mmiS8i ° n > 2 *> er t - sterling, plus exchange remittance,