H.—3o.

Season 1940-41: Costs in Manufacture and Delivery of Cheese to f.o.b. Overseas Steamers.

ACCOUNTS. The dairy-produce accounts covering the completed operations for the 1939-40 season and the operations for the 1940-41 season are shown in the accounts section at the end of this report, pages 34 and 35. The completed operations for the 1939-40 season are referred to on page 4of this report. In last year's report the surplus on 1939-40 season's dairy-produce purchased up to 31st July, 1940, was shown as £49,788. After sale of the balance of the 1939-40 season's dairy-produce which was in store at 31st July, 1940, the final result of the operations for the complete 1939-40 season is a surplus of £62,363. The accounts now presented for the 1940-41 season cover purchases of butter and cheese by the Department up to 31st July, 1941. The following table shows the quantities so purchased, the total season's production for export, and the stocks in store awaiting purchase and shipment at 31st July, 1941 :—

The accounts for the 1940-41 season comprise Purchase and Sale and Kevenue Accounts, and Administration and General Expenses Account. It will be observed from the accounts that the purchase and sale transactions to 31st July, 1941, show a surplus of £130,799 after allowance has been made for administration and general expenses. Against this surplus must be set the contingent liability on produce not yet shipped. The Dairy Produce Account at 31st July, 1941, is shown on page 35 to be in debit £1,745,003. MEAT. REVIEW OF COMPLETED FINANCIAL OPERATIONS FOR THE 1939-40 SEASON. The Accounts presented with the report for the 1939-40 season covered purchases of meat by the Department up to 31st July, 1940. These accounts showed a surplus of £59,411. On page 36 of this report accounts are shown covering the purchase and sale transactions in respect of the 1939-40 season's meat, which took place after 31st July, 1940. These accounts show that the final net surplus on purchase and sale of the complete 1939-40 season's meat was £74,748. BULK PURCHASE OF 1940-41 SEASON'S MEAT BY UNITED KINGDOM GOVERNMENT. In terms of the contract for the first year of war the United Kingdom Ministry of Food undertook to purchase 300,000 tons of frozen meat from the production of the season ending 30th September, 1940, and from the carry-over from the previous season, which amounted to 45,000 tons. The actual liftings of meat for this first contract year were 351,000 tons, which left a carry-over in store at 30th September, 1940, of 39,938 tons,

16

(In pence per pound of butterfat.) ! Maim- . Repairs Charges: 0verhead Total , facturmg Depreciation. and Factory to ch ch Charges. Maintenance. f.o.b. ° ° I I Auckland .. .. .. 2-182 0-145 0-255 0-684 0-198 3-464 New Plymouth .. .. 2-283 0-144 0-122 0-500 0-221 3-270 Patea-Wanganui .. .. 2-293 0-131 0-175 0-558 0-244 3-401 Hawke's Bay-Gisborne .. 2-334 0-137 0-179 0-834 0-340 3-824 Wellington .. .. 2-313 0-131 0-170 0-690 0-256 3-560 Mdrlborough-Nelson-Westland 2-665 0-181 0-181 0-886 0-386 4-299 Canterbury .. .. 2-585 0-220 0-143 0-626 0-514 4-088 Otago .. .. .. 2-669 0-191 0-192 0-747 0-449 4-248 Southland .. .. .. 2-719 0-174 0-187 0-675 0-407 4-162 New Zealand average — 1940-41 season .. 2.323 0-144 0-184 0-620 0-258 3-529 1939-40 season .. 2-259 0-148 0-180 0-624 0-299 3-510 1938-39 season .. 2-289 0-157 0-203 0-617 0-326 3-592 1937-38 season .. 2-151 0-141 0-166 0-589 0-290 3-337 1936-37 season .. 2-056 0-134 0-146 0-577 0-226 3-139

Pnrehaaea un to Remaining Total Season's fwrT YL, in Store, Production for 31st July, 1941. 3]8tJuly>1^L Export . Boxes. Boxes. Boxes. Creamery butter .. .. .. 4,625,481 708,007 5,333,488 Whey butter .. .. .. 102,355 11,865 114,220 Total butter .. .. 4,727,836 719,872 5,447,708 Crates. Crates. Crates. Cheese .. .. .. ... 1,505,569 143,603 1,649,172