1955~56

VICTORIA

REPORT OF THE

EGG AND EGG PULP MARKETING BOARD

FOR THE

POOL YEAR ENDED 2ND JULY, 1955

PRESENTED TO BOTH HOVSES OF PARLJA~1E:'\T PGHSllANT TO SEC'l'lOX 10 OF THE MARKJ;J'J'ING OF l'RIJl!ARY l'RODUC'!'S (EGU AND EGG l'I'LP) ACT 1951 (:\o. 5612).

By Authority ·

W. Id. HOUSTO!\'. GOVERN1v1ENT PRINTER. "-lELBOl'RNE.

:-\o. 25.-[lS. 3n.]-l0978j55.

ANNUAL REPORT

OF

THE EGG AND EGG PULP MARKETING BOARD

H. 0. Murray (Chairman)

R. W. Freeman

G. H. Roadley

G. R. Boulton

P. Ryan

I 954-55 POOL YEAR

1\lEMBERH.

Producer .Member: No. 1 Area: Elected

Producer Member: Appointed

Producer Member: No. 2 Area: Elected

Government Nominee : Appointed

Representative of Department of Agriculture : Appointed

GFlNERAL lVIANAGER.

P. G. Barwell.

8ECRETAR'l.

K. G. Lee, .~.A.S.A., A.c.r.s., F.S.B.M .. L.C.A.

The H onorable the Jlini.~ter of Agn:culture, Pa.rlt:amu:nt ll ouse, 111 elboume, G .2.

DEAR SIR,

In pursuanee of Section 10 of the Marketing of Primary Products (Egg and Egg Pulp) Act 1951, No. 5612, the Board presents to you a resume of the operations of the Board, and the Pool Account and Balance-sheet (dui:· R-udited) for the Pool Year 1~)54-50, which ended on Raturday, 2nd July, Hl:);).

BOARD PERSONNEL.

No changes occurred during the period under review. In pursuance of Regulation ;) of the Egg and Egg Pulp Yiarketing Board Regulations, an election for the office of Chairman was held during April, HJ55, and Mr. H. 0. Murray, of Eaglehawk, the elected member for the No. 1 Area, "vas re-elected, unopposed, for the ensuing twelve months.

4

REHUME OF THE YEARN Ol'ERATIONS.

The effect of changed marketing eonditionH in Cheat Britain was reflected in the lower net average financial retmn to produceri:l throughout the Commonwealth. Local sales exceeded those of the previous year, and the industry's interest in its most vital market has been aroused by the preliminary discussions upon the formation of " P.I~.P." a voluntary Organization designed to promote local sales of eggs and poultry meat.

The Board completed its building projects at Port :Uelbourne and Warragul : its Ballarat lnoor at Alfredton is nearing completion ; and the foundations have been laid for the Horsham Floor. It is expected that operations 'ivill be commenced in the new premises at Rallarat and Horsham during the month of Reptemher of the ensuing pool year.

A surplus of £120,311 resulted from the operations, and a final payment to producers is to be made in due course. 'rhe surplus includes £49,852, which is the total of grading and selling dedudion of 3~d. per dozen eliminated from producers' account sales as from 11th April, 1955. In effect, the Board has already distributed this £49,852, but the amount is written back :-;o aH to nltimely establish a diviclent rate for the final payment. The producers who have thm; received the greater part of their entitlement are classed temporarily as " Sundry Debtors., in the Balance-sheet. The surplus in excess of the Budget arose as a result of the unexpected distributions by the Australian Egg Board of funds obtained from sales in the United Kingdom of eggs at prices which exceeded the equivalent of advances paid to State Boards during the period of packing­July to November, 1H54, inclusive. The distributions by the Australian Egg Board were received during the period January to .June, 19f)5, inelusive, and approximated £102,000. :Further detai]H in respect of export matters are mentioned in a separate st>etion of this Report.

POOl~ ACCOUNT.

The following statement epitomises the ineome and expenditure for the pool year. The figures, which are shown to the neare:-;t £ for eom'enience, nre compared with those of t.he 1953~!34 Pool Year:

Incorne. 1954-55. 1953-54.

£ £ £ £ Pool Contributions 443,030 406,621 Producer Agent~' Administrative Fee 9,081 11,346 Local Rale,.; 226,6<11 91,641 ( lra<ling and Re !ling ( 'ommir;sion 116,1157 80,881 Jlarket Fluctuation 11,631 Other Income .. 334 146

757,674- 590,635 ~-- ~~.

Expenses.

Eggs ~old to Umat Britain 178,!)51 203,833 Eggs sold Sundry Export 20,316 1,521 Eggs sold Int.erHtate 7,693 2,417 Winter Storage 5,283 15,056 Egg Pulp 225,382 147,659 Case;; and Packing Material 9,M!l 10,484 Grading anrl Selling Expen;o;es; Board Floor::; 66,633 67,279 ReoTadinrr

'"' n 13,n92 14,898

Cartage Surplus Egg~ 2!1,8fi2 7,039 :\Iarkct Fluctuation 18,243 Sales Ptthlicity 2,568 2,476 Arlmiuistrative ExpensPs 70,640 74,557 Other Operating Ex pen Res 11,202 12,867 Defalcation hy Agent 9,163 Balance-~~Surplus for Pool Year .. 120,311 3,143

<---- 757,67 590,635

5

CoMPARISON oF INcoME AND ExPENDITURE- -1953-54 AND 1954-55 PooL YEARS.

Pool Contributions Producer Agents' Administruti1·e Fee Local Sales Grading and Selling Conunis~ion Market Fluctuation Other Income Eggs sold to Great Britain Eggs sold Sumlry Export Eggs sold Interstate Winter Storage .. Egg Pulp Cases and Packing ~taterial Grading am! Selling Expen,;e:; ; Board Floors Regrading Cartage Surplus Market Fluctuation Sales Publicity .. Administratin1 Expenses .. Other Operating Expenses Defalcation by Agent Surplus for Pool Year Balance-Increase Income and Expen;:;es

36,40\l

' 13;),000

.. I 11,631

188

183,228

Income.

Decrea~e.

2,260 I

13,!:124

Hi7JJ3!J

£

l8,79fJ ;i.27fi

77,723

117,168

183.228 ! 237,867

£

2:'i,l82

9,773

\138 646

1,30()

18.243

;~.~ll2 1 ,66f) 9,163

167,03~1

237,867

Income and expenses increa~ed appreciably during the year : income, principally because of additional funds obtained from producers' pool contributioni' and the larger variation in prices to producers and wholesale rate,c; : expenseR, principally because of larger equalization deficits in respect of sundry export sales in shell and export pnlp, and the temporary elimination on llt.h April, 1955, of producers' dockage contribution of ~cl. per dozen.

Comments in respect of :,;ales, local and export, are made in other sections of thiH report. Other items showing variation, and worthy of comment, are as follows:-

Income--Decreases. (i) Producer Agents· Admiinistrative Fee.-'l'he fee of one penny per dozen was

temporarily eliminated on 11th April, IB55.

(ii) Grading and 8ellinq Commission.- The amount paid to grading floors increa:>ed because of the large decreaKe in t,he volume of egg;.; transferred for pulping. It will be recalled that a position in reverse applied in the previous pool year, when heavy pulping occurred-due to the near collapse of the United Kingdom eggs in shell market.

Income--! ncrease. (i) ]tlarket Fluctuation.--A ::-mrpln;.; or deficit in this account m·i:)es as a result of the

variances in wholesale market prices. The increase to ineome and t.he decrease in expenses arose principally because wholesale prices were reduced prior to the end of the 1953-54 Pool Year, but fmbseqnent to the end of the HJ;"\4-55 Pool year.

Expenses--1Jecreases. (i) Winter 8tomge.--The equalization defieit decreased because a lel'~er quantity of

eggs were stored for winter requirements--tlms disposal vYaf'. not affected by an uma]e~ble surplus of eggs in shell when production recovered and receivals exceeded local demand.

It is placed on record that the ::,plendid outtum of the winter :otorage pack again upheld the principle of packing to export requirements and short term storage.

(ii) .Adm.im'strotioe E:cpense8.- 'l'hesc expen:'ef< decreased principally becaufie of the elirnination of the need to incur hank ovenlmft interest am! the reduction in sa.lariei'\ and 'vage:o reHnlting frorn ofti('<' peonomies.

6

Based on the total reeeivalt~ for the pool year, the cost was ·65d. per dozen, and this ii'l a reduction of · 06d. per dozen hy comparison with tbe figure for 1953~54.

Expenses -Increases. (i) Sundry Export and Interstate Sales.-The equalization deficit increased as a

result of sales to these markets of increa;.;ed quantities. The developrnent of these market>'!, however, was economic in that mneh larger deficits would have occurred if the eggs so sold had been pnlped for loeal or oversea:; tradeH~ the only alternative marketfl.

COMPARATIVE RECETVALS A:"<D DISPOSALS.

The following statement shows the trend of reeeivals and disposals during the past two pool years :-~-

Disposals~-Sales in Shell in Victoria Sales Interstate Manufacture of Local Pulp Sales in Shell to {)nited Kingdom Sales of Pulp to United Kingdom Sales in Shell~~Sundry Export

Dduct I Add~-~ Difference in Opening and Closing Stock

Net Receivals

.. I

. ' I '' I ..

I

1954~55.

16,72G,572 64·63 13H,635 0·54

2,359,172 9·12 2,922/)10 11·29 3,495,121 13·50

423,660 I HH

26,066,670 100·72

I'·l et Average Prices Paid to Producers.

1953~~54.

Penentage.

I l!i,471,362 6:)·36 I 36,240 0·11 I

I 1,394,845 I 5·53 1 .~H3,550 I 7 ·71 4,\J98,057 I 19·84

71,490 0·28

I 2·1,915,544 98·86

(Note: Prices refer only to eggs delivered to grading floors.) Pool Year.

1949~50 H)50~51

1951~52 1952~53 1953~54 1954~55

Net Average Price Per Dozen.

25·00 pence 29·:39 39·85 42·59 45·08 40·59

" " .,

"

The net average price per dozen paid to producers for this pool year wat~ 4·49 penee per dozen less than that paid during the previous pool year. The inability to increase, or even maintain the 1953~54 price, war-; a common factor throughout the Commomvealth. Sal eH priees fell in each a venue of dit<posal, and were moRt marked in export realizations.

LOCAL SALES. The following table shows, for a period of six pool years, the trend of sales on the

local market and the quantity of eggs upon which the Board was obliged to have recourse to its equalization funds. Percentages are also quoted to provide a convenient referenee :--

-------------- - -· -·----·---

I"ocal ~ales in Shell. Total Disposals.

Pool Yeur

Quantity. Percent<~ge~ Quantity, Percentage. Qnautity.

1949-50 . ' I 15,626,141 52·59 14,087,066 47·41 29,713,207 100·00 1950~51 15,726,403 62·13 9,587,211 37·87 25,313,614 100·00 1951~52 15,168,781 65·74 7,905,570 34·26 23,07-1,351 100·00 1952-53 15,413,456 61·82 9,520,883 38·18 i 24,934,339 100·00 1953~5<1 16,471,362 65·36 8,731,526 34·64 : 25,202,888 100·0() 1954~55 16,726,572 64·17 9,340,098 35·83 26,066,670

' l()()o()()

7

It is noteworthy to record continuity of increase in the volume of eggt> sold on the Victorian market. Sale:,; of 16,726,572 dozens exceeded, by 255,210 dozens (1·54 per cent.), those of the previous year. The satisfactory feature of the increase was the regularity of weekly upward trends, and this is indicative of stability within the market and the gradual increase in population.

The average wholesale price for first quality large eggs sold during the whole year was 4s. 9 ·15d. per dozen, and was · H4d. per dozen lesr:; than the H)53-54 average of 4s. 10 ·OHrl. per dozen. This downward trend was common throughout the Commonwealth and followed the marked decline in United Kingdom prices obtained for egg:> exported from Australia. The average net return to producers dropped from the previous year's return, despite the rises in costs of producing eggs.

The Board fixed policy of ensuring, by every precautionary method, that only eggs of top quality are dit>tributed to the consuming public, has again been given top priority in marketing procedures. During the pool year, the Board haH concentraterl upon the mOi;t st,rict compliance with grading gtandards, particularly ::t the point cf original receipt. This has reduc:ed rcgrading, handling, and costs in ret>ped thereto, Rnd altogether has enhanced the produd from the local sale \'iewpoint. The Board, in eommon with the unanimous opinion of the industry, agrees that every effort should be made to develop the local market, and in pursuance of thii-i ]JOlicy, inaugurated a ;::aler:; promotional Bection within its organization. Much preliminary work has been done. It will be appreciated, however, that the development of the local market will be a gradual process, and the Board feels that this project warrants the laying of a ~ound foundation to ensure that iti' efforts are well applied. The Board com.mends the principle of the "Poultry and Egg Promotional Panel", an organization in tbe procers of formation. ThiB organization, comprising representatives of indm;tries directly and indirectly associated with poultry and eggs, is dehigned to promote the 1>ale of poultry meat and eggs. It is anticipated that, when this organization is developed, the combined activity vYill occa::stion benefits to producers and consumers alike.

The Board has, for some considerable time, been invedigating the introduction of cartons for local 8ales. There ii-1 no doubt that consumers would welcome the pack, principally because of the ease with which eggs may be carried between shop and home­thu;; avoiding breakages, and because of the fact that cartons are a useful receptacle for eggs during nt>e at home. Distributors favour the use of cartons as a medium of a saving in handling and breakages, and becam:e cartons lend themselves to the t.rend of modern paekaging in general. The problem is, however, one of eOf~t, and the Board's investigations are aimed to launch the plan with, and maintain it, at the least possible cost. The investigations are proceeding, and the· Board hopes that its endeavours may attain the measure of desired success.

EXPORT.

Packing for export in shell commenced during the week ended 1\Jth June, and continued until week ended 4th December. During that period, H7,417 eases, eaeh containing 30 dozens, were packed. The Board's prestige for egg quality was maintained as a result of notice of the flplendid outturn of the eggs following inspection and examination of samples in the United Kingdom. The first shipment of Australian eggs arrived in England during August, HH54, at which time, Australian eggs were quoted by the London Egg Exchange at 34s. 6d. to 35s., and 38s. to 40H., sterling, per long hundred (ten dozens) for the 14-lb. and 16-lb. packs, respectively. These priceR receded during September, and no price~: were quoted during October due to the United Kingdom~ doek strike. Prices recovered temporarily early in Xovember, then progret::sively receded. The last shipment arrived during February, when the quotes were 23;;. and 24:;. ;-,terling, per long hundred (ten dozens) for the 14-lb. and 16-lb. packs, respectively. The initial advance rates (Am;tralian Currency) of 3s. and 2s. 7d. per dozen, paid by the Australian Egg Board to State Boa.rih, for the 16-lh. nnd 14-lb. packR, respectively, applied for seventeen weeks to 9th October. The rates were then reduced to 2s. 9d. and 2s. 4d. respectively, on 11th October, to 2s. 4d. and 2s., respectively, on lst ~overnber, and finally to 2s. and ls. Rd. per dozen, respectively, on 8th ~ovember.

8

CoMPARATIVE EQUALIZATION 8TATE)1ENT: ExPORT IN SHELL.

(In pence per dozen). 1[~;)4~5.).

~:ggs Purchased

Add~Cost. of Packing .Material, Shipping, Storage, Oiling, Export Levy, &c.

+7 ·18!:!

1Hl31

Total Value of Eggs and gxpense,;

Realization from A uRtralian Egg Board

Equalization Defirit ..

. . 53.220

. . 38·549

. . 14·671

68·988

7·376

66·364 41·329

The fall in the realization from sales is most marked since the conclusion of the bulk buying contract with the Ministry of Food. In 1952-53 (the final year of guaranteed prices) payments from the Am;tralian Egg Board aggregated 50·75d. per dozen. The realization has deueaEed progressively to 41 · 32~)d. and 38 · 518d. per dozen in the 1953-54 and 1954-55 season, respectively.

The industry throughout the Commonwealth has agitated for Governmental assistance in the form of financial compensation in respect of the difference between the United Kingdom realizations and the cost of production. The Egg Producers' Council has submitted to the Commonwealth Government a comprehensive outline of the conditions affecting the economy of the egg producing industry, and has supported the plea for financial aid. The Council's submission, and its frequent references to it, are based on the faet that realizations from export sales and costs of production are, to a very great extent, beyond the power of the industry to control. The industry's efforts have not yet attained any measure of success.

The egg producing industry in Australia delivered to State Marketing Boards throughout the Commonwealth during 1954--55, 111,902,714 dozen eggs (worth £22,933,000 to the industry), and of this quantity of eggs, 33 · 7 per cent. was exported for commmption overseas-principally in the United Kingdom.

The industry contributes each year, in very material degree, to the national income, and it will, no doubt continue to direct the Commonwealth Government's attention to the need to render financial aid as a means of overcoming its economic problem.

The following statement shows the quantities packed for export to the United Kingdom during the past six years and the percentage of the pack to the total receivals.

l'ool Yt'ar. nozens Exported ' in Shell. 1

I

1!H9-50 6,547,860

1!15051 4,224,630

1951-52 2,168,220

1952-5:3 4.43Ul90

J .94:3,550

1954-55 2,!l22,5l0

Percen t.age of Pack to Total

Rec;,ivals.

22·04

16·69

9·22

18·13

7·71

11 ·29

During the ensuing year, an intensive sales prornotional plan is to be inaugurated in the United Kingdom., and this plan will embody foodstuffs imported from Australia. This campaign, whieh will, of course, include eggs, is designed to bring to the notice of housewives, the top quality of primary products produced, and other foodstuffg manufactured in Australia. The egg industry is, therefore, expending its effort~-> to propagate over:..;eas, its Australian product.

Sales

EXPOHT AND LOCAL PULP. CoMPARATIVE BQFALTZATION STATEMEXT.

(In pence per lb.). 1954-55.

' ' 32 ·11 !1 Cost of Eggs Procf'~bcd ami !\1anufaeturing and Packaging Costs, i.e., Cost of

Flales "· . . 37 · 877

Uross Equalization Dctieit Rrl\ing Costs inclmling Ca.rtage,

Net J<~qualization Deficit

Export Pulp.

.1·758 1·52.'\

7·2.'\6

196S-54.

40·032

4l·rt70

1·938 1·79!1

3·737

The export to the Cnited Kingdom of pulp manufactured in AnHtralia ·was reRtricted to 10,000 tons becau:-;e of the large sto<'kB held in st.ore by the BritiRh Ministry of Food. This factor did not, however, affect adversely the· Board's manufacturing programme, and at the conclm;ion of the pulping Beason, the Hoard waR able to relea:;;e to another State Board the remaining small balance of itB (piOta. The Australian quota waR protected to the extent of a veto on the import into the United Kingdom of pulp from other Rources, and this factor '"a~' of inunem;e value to the An::-;tralian industrv. The Mini::-;try of Food is still holding, in cool stores, large stock8 of Australian pulp imported prior to thi8 year, and Australia's m.anufactme of export pulp in the succeeding season iH again to be subjeeted to a. quota, and because of the United Kingdom pulp position generally, a liai:-;on in respect of dititrihution is to he arranged between the Ministry of :Food and the Fnited Kingdom Pulp Committee.

Local Pulp. The genera.} trend of depressed prices for eggR and egg products was reflected in

the local pulp price, which fell by Rix pence per lb. Despite the fall in realization from sale8 of export and local pulp of 7 · \H 3 pence per lh., from 40 · 032 pence per lb. in 1953.54 to 32 ·11~) pence per lb. in the current year, the priees paid to producers for eggs pnlped fell by only 4 · 978d. The overall equalization deficit (an inevitable condition :-:;o long a;;; surplm~eR exiHt) rose by 3·549d. per lb., from 3·7:37d. to 7·286d. per lb.

Further improvements have been made to the Board'H pulping equipment resulting in a high btandard of hygenie manufacture. The quality of the product has ju;;;tified the Board's insistence of ensuring upon the t:>tandard of egg;; processed and in;;tallat.ion of improved mechanical aids.

Despite the comparatively large fall in price, the tra.de ret>ponded to contractual purehases only on a basis similar to that of the previonH year.

BOARD OPERATED GRADING AKD SELLING FLOORS. The Board owned and operated grading and selling floors have continued to give

a t>plendid serviee to producers in the areas serviced by these floor:,;. By September. gra.ding and selling faeilities under the direct control of the Board as distinct from indirect control through its Agents-.. will be conducted ill freehold premises. This most satisfactory condition, which will ensure a. continuity of eft!eient fl.ervice, ari:-;es as a result of the necessity to vacate leaHehold pn•mi::-;e~ at. Ba.lla.rat, Hor:-:ham, and "'arragul.

Box Hill Floor. FollO\ving the ees;;ation of operations and the clor;ure of this floor at the elo;;e of

the previous pool year, the Board negotiate(! for dispo;o;al of the premi:-;es. During the period of ownership by the Board of the:<e premises, the Yalue appreciated considerably, and as a result, the transaction of sale resnlt.ed in the receipt of £25,074 in exceHs of the book value.

Ballarat Floor. Following notice in the previouH Annual Report of the Board's intentionH to erect

a new grading floor at Ballarat, it is now notified that the plan is likely to be sa.ti:-:f~1etorily completeu during September of the ensuing pool year. The new floor is being erected by a local building contractor, and the whole of the Board's orderly m~:trket.ing procedures in Ballarat will be conducted in one hnilding- commencing in September, Hl55.

10

lV arragu,l Floor. The Licensed Collectorship at \Varragul ceased on 8th October, 1954, and wa:;

substituted by a Board owned floor which commenced operations in new freehold premises on Monday, 11th October, 1H54.

Oakleigh Floor. The frontage of the Board's freehold premiEes has been altered so as to provide

more satisfactory conditions for admini8tration, and to improve and enlarge the area for the receipt and handling of the f:omm.odity. The direct intake at this floor increased considerably due to the closure of the Box Hill Floor.

Jielbourne Central Floor. Although no direct mtake is received at this floor, surplus eggs in country areas

are transferred to it. This procedure provides a ready convenience to carriers, who effect deliveries in the city and near suburban areas. The storage space at this floor has enabled the Board to effectively and economically control itB own packing materials, plant and equipment, and other sundry items.

Ilorsham Floor. During the year, the Board received notice to quit the rented premises so that the

owners could resume occupation and reconstruct the premises for their own needs. As a rewlt of inability to obtain alternative premi~;es, the Board purchased an area of land at the corner of Harriet and Urquhart Streets, and invited tenders for the erection of a building designed to serve satisfactorily the needs of producers in the Horsham area. At the conclusion of the pool year, the building wa.s in the course of erection, and it iB expected that operations in the new freehold premises will commence dming September, 1955.

LICENSED COLLECTORS. This ::;ystem is proceeding satil"factorily, and is giving to producers a l'.ervice in

areas where the establit:ibment of a grading and selling floor is not economiealJy sound.

The oeca.Rion has not arisen during the year to appoint any additional Collectors, and the temporary expedient at Warragul ceased on 8th Oetober, H)54. The new floor at Warragul opened on 11th October, 1954.

THE "EGG PRODUCEH" MAGAZINE.

The egg producing industry has been kept informed of items of current and topical interest by the posting to producers of the Board's journal, the " Egg Producer ". The Board expresse::; the opinion that producen; do not use the journal to aid themselves or fellow producers, and in respect thereto, invites producers to swap ideas by requehting the publieation of proved methods relating to egg production and/or poultry farming generally. The Board also invites constructive criticism, and undertakes to reproduce suitable letters and comments thereon.

The journal is published for tbe benefit of producers, and, accordingly, they are urged to accept the Board's invitations as a means of helping one another, and, at the same time, assisting the Board to enhance the value generally of this medium of contact.

RESERVE ACCOUNT.

During the pool year, a number of transactions occurred which caused a variation to the balance of the account shown in the 1953-54 Annual Aecounts, and these transactions are explained as follows :-

Increases. Bad Debts Reserve.-·-The provu.non in 1953 in reBpect of reserving an amount to

provide for bad debts ~s written. back. into the Reserve Account, and the bad debts incurred have been wntten off m th1s account.

Bad DebtFI Recm:ered.-The Board recovered £10 3s. lld. from debtors, whose indebtednefis had been written off as irrecoverable in previous years.

8nrph~s on Sale of F·ixed Assets:--The Board obtained ~he sum of £164 Os. 10d. in exees; of the book value of t-mndry Items of plant and eqmpment sold.

11

Surplus on Sale qf Freehold Property.--Arising from the sale of the Board's freehold premi:-:es at Box Hill, the Board obtained the sum of £25,074 14s. lOd. in excess of the book value.

Decreases. Depreciation-Idle Pla:nt.-Depreciation of £2,519 1 Hs. 6d. has been written off

in respect of new plant pureha~:ecl in 1951, which plant is surplus to current needs, and other itemt> of plant held in reBerve to provide for any possibility of mechanical fault.

The " E'.r;g Producer,. Jla.r;a:ine.-The co:>t or produeing and posting the Board's journal to producerB exceeded revenue by £839 3s. 1d.

Bad Debts Written qff'.-The sum of £386 5s. Sd. has been written off t:-mndry debtors' accounts as irrecoverable.

POOL ACCOUNT~·-HJ53~54 POOL YI•JAR.

During the year the Board received from the Australian Egg Board finvJ payments in respect of the l 953-54 export Heason, and the two amount,s of £1,881 7s. :3d. and £5,619 13H. 3d. have been ad.ded to the halanee as at 5th <July, Ul54, allll from this total an amount of £3i31 7s. Sd. in re:;pect of bad debts incurred in that year has been deducted.

The amount of £10,312 14s. 8d. ltl the final balance of that year'H pool account, and thiG will, nltirnately, be transferred to the Reserve Account.

BALANCE-SHEET.

The Balance-sheet reveals a verv sound financial condition. The Board's funds increased during the year by £149,983 ·(a very large proportion of these fund:"~ is to be distributed to producers a.l:l a final payment).

The following statement is presented in an abridged form, and, as a convenience for easy comparison, the 1954-55 figures are compared with those of the previous year :--

Reserve Funds~

1953-54 Pool Account

1 ~54-55 Pool Account

General Reserve

Commonwealth Egg Control Rurpln~ Distribution

Current Assets-­

Ca;.;b on Hano ('m;h at Bank

In H'Htments ..

Arnonnt. Owed hy D0bton;

Rtoch

Less C11rrent Liabilitie.~~­

Awount Owed to CrcditorR

Fi:red Assets·--Offiee )lachinery and Equipm0nt

Mot.or Vehieles

Plant and Equipment .. Pulping Plant Installation

Freehold Property Leasehold Property

Alterations and Improvements

1964-55.

£ 10,313

120,310

195,081

234,065

126

22ct,399

4,000

ll3,fl62

128,526

6,13\l

4,465

24,858

1,213

51,497

93,145

1 ,6GH

£

559,76B

470,913

\14,130

37fi,7H3

11"12,986

.'\fl!l,76fl

1953 54.

£ 3,143

172,578

234,065

125

64,()}2

4,000

89,487

158,()]8

6,622

4,8\)5

26,723

1,883

39,137

92,350

3,107 ~~------

£

409,786

316,242

235,069

174,717

i09,7R6

12

The most notable variations are the large increases in liquid funds, sundry debtors and freehold properties, and the decrease in stocks on hand. The large increase in liquid funds arises because of the distribution by the Australian Egg Board, and, to a lesser degree, by the decrem;es in stockR, and debtors' accounts because of the writing back of the producers' grading and selling deduction as a result of the elimination of this deduction on 11th April, 1955. The increase to freehold properties arises from the final payment in respect of the Warragul building and progress payments in respect of the new floors being erected at Ballarat and Horsham.

SOURCE AND APPLICATION OF Ji'UNDS.

The application of funds aH at 5th .July, 1954, of practical necessity varied from that of the previous year, and the following statement of the source a.nd application of funds shows the manner in ·which the variations occurred. The details of variance have been mentioned in commenting upon the Balance-sheet :-

Sm'RCE oF Fu);DS. Decrease in Current Assets~

Stock on Hand

Increase in C'111rent Liabilities~~

Creditors

Disposal of F'i.red Assets­Office Machinery Plant. and :bJquhnnent Freehold Property

Depre1·iation Prov·ided-()ffice )lnchinery aml l•]I!Uipment Motor Vehicles Plant and Equipment Pnlpin~ Plant Jn,;tallation Alterations and Improvements Freehold Properties Leasehold Propert,ies

Increase Boarrl Fu il(ls aml Deferred L iabil1:t ie,,

APPLICATION oF FeNDs. Increase in Current Assets­

Cash· at Bank Debtors

/'urdl!lse of Pi:ced As.~ct.~

Office ::Vlaehinery aJHl E(L uil>ment \1.otor Yehides Plant, and Equipment Pulping Plant and li:quipment A Iterations and Improvements Freehold Properties Leasehold Properties

STAFF.

£

43 567

9,821

708 1,488 5,012 1,884 1,670

352 2,300

160,387 2'1,375

2G8 1,05H 3,714 1,213

233 22,533

3,09[)

£

30,092

12,957

10,431

13,414 149,983

216,877

216,877

The Board places on record appreciation to its staff for its diligence and ability m performing the adminititration of the Board'R affairs.

The intricatieR of egg marketing necest<itate close liaison between the staff and other boclies and organizations \\ith whiel1 the Board indirectly a:-;Rociates, and the Board expres:o;es it" thank."l to all concerned who aRHisted during a difficult year.

13

CONCLl:TRION.

During the year the Board attendecl, by invitation, a number of meetings convened by producers, and has also received representative hodieH of producers in itH Board-room. These meetings provided opportunities to discuss matters of interest in respect of production and marketing.

The Board expresses to producer organizations, and to producers generally, its appreciation for the notes of eo-operation and confidence which have eharaeterized these discussions, which, after al1, are designed primarily to uphold and demomtrate the principles of orderly marketing. The dominant tenor of realistic approach to the many problems associated with the industry refers to local marketing and the endeavours to be made to foster and extend it. The Board has already refened to this subject under a separate heading of " Local Sales ". It is anticipated that more progress will result from action already taken by the Board.

It has been freely acknowledged that, 'vithout t.he Board's eontrol of matketing and the stability ereated by it, the industry would have failed during the past two years. 'rhe Board's operations have clearly demom;tmted the vital need to uphold and support the principle of orderly m.arketing for the benefit of the industry and the eonsuming publie.

On behalf of the Board,

H. 0. MURRA Y,

Chairman.

By Authority: W. M. HoUSTON, Government Printer, Melbourne.