1969
VICTORIA
REPORT
OF THE
EGG AND EGG PULP MARKETING
BOARD
FOR THE
POOL YEAR ENDED
5rH
JULY, 1969
PRESENTED TO BOTH HOUSES OF PARLIAMENT PURSUANT TO SEC1'ION 44 OF THE
MARKETING OF PRIMARY PRODUCTS ACT 1958 (No. 6304).
By Authority:
A. C. BROOKS, GOVERNMENT PRINTER, MELBOURNE.
No. 16.-9942/69.-Price 25 cents
ANNUAL REPORT
OF
THE EGG AND EGG PULP MARKETING BOARD
1968-69 POOL YEAR
MEMBERS.
Producer Member : Appointed.
R. W. Freeman
A. N. Hudson
..
Producer Member : No. I Area : Elected.
B. Talbot
..
Producer Member: No. 2 Area! Elected.
Col. M. H. McArthur, O.B.E. . .
..
Government Nominee : Appointed.
D. R. Meadley, B.Agr.Sc.
..
Representative of Department of Agriculture :
Appointed.
CHAIRMAN.
R. W. Freeman.
GENERAL MANAGER.
D. K. Bain, B.COM.
SECRETARY.
K. G.
Lee, A.A.S.A., A.C.I.s., F.I.S.M.
REPORT
The Honorable, The Minister of Agriculture,
Parliament House, Melbourne.
DEAR SIR,
The Members of the Board have pleasure in presenting the Thirty-second Annual Report
on operations, covering the pool year ended 5th July, 1969.
AVERAGE PRICE PER DOZEN PAID TO PRODUCERS.
The average price per dozen paid by the Board to producers for the year 1968-69, was
43·10c per dozen. This compares with 39·16c in 1967-68. These prices do not allow for the
Commonwealth hen levy paid by producers under the Council of Egg Marketing Authorities of
Australia Stabilization Plan. The hen levy in 1967-68 and 1968-69 was $1.00 per hen, but the
equivalent cost per dozen eggs depends on the individual production efficiency of the producer.
TABLE I.-COMPARATIVE NET PAYMENTS TO PRODUCERS.
The following statement shows basic production, domestic sales, surplus statistics and the
net average prices paid to producers during the past four years (since the operation of the
Commonwealth hen levy for equalization purposes). Prior to 1965-66 equalization charges were
deducted by the Board from payments to producers. The prices refer only to eggs delivered to
Grading Floors.
Year.
1965-66
1966-67
1967-68
1968-69
..
..
..
..
..
..
..
..
Domestic Sales
(Shell). (a)
Total Surplus over
Domestic Sales
(Shell).
Total Recorded
Production. (a)
Graded Useless.
29,924,638
159,609
27,398,804
2,366,225
42·86 cents
34,099,962
168,079
28,938,011
4,993,872
43·62
38,231,286
179,999
30,059,933
7,991,354
39·16
41,962,931
210,482
31,943,506
9,808,943
43·10
Average Price
(Per Dozen). (b)
"
"
"
(a) Includes Producer Agents' sales.
(b) Does not allow for calculation of Commonwealth Hen Levy.
RECORDED PRODUCTION.
Recorded production was 41,962,931 dozen, and exceeded that of 1967-68 by 3,731,645
dozen or 9 · 76 per cent.
Compared with two years ago, recorded production has increased by
23 ·06 per cent.
Recorded production includes eggs actually delivered to Grading Floors as well as eggs
produced and sold direct by Authorized Producer Agents. The figure does not measure the
complete egg production of the State, as it does not include the production of household flocks
(40 or less birds), or production for interstate trade.
6
TABLE H.-COMPARATIVE RECEIVALS AND 0ISPOSALS.
(All Items Adjusted to Dozens.)
1968-69,
ReceivalsReceivals from Victorian Producers
..
..
Imported from other States as Egg Products (1968-69
222,016 lbs.)
Total Receivals
DisposalsSales in Shell, Domestic Market
Sales in Shell, Interstate . .
Sales of Egg Products, Domestic
5,758,059 lbso)
Sales of Egg Products, Overseas
5,783,606 lbs.) . .
..
Sales in Shell, Overseas Market
0
0
•
•
..
..
.
Market (1968-690.
•
0
••
•
•
•
Dozens.
Percentage.
41,962,931
99·58
38,231,286
·42
91,416
42,141,976
100·00
38,322,702
100·00
31,943,506
44,550
75·80
·11
30,059,933
33,000
78°44
·09
4,662,889
11·06
4,193,455
10·94
4,664,198
800,085
11·07
1·89
42,115,228
99·93
(28,236)
(·06)
(155,498)
210,482
(· 37)
·50
(15,712)
179,999
(·04)
·47
42,141,976
100·00
38,322,702
100·00
179,045*
Dozens.
Percentage.
99·76
0
24
Market (1968-69..
Total Disposals
Add or (Deduct)Difference in opening and closing stock eggs in shell
Difference in opening and closing stock as Egg
Products-1968-69 192,818 lbs.
Graded out as Useless
Total
1967-68.
• NOTE :-The equivalent of 179,045 dozens imported from other States were subsequently exported as egg products on behalf of other State
Marketing Boards whose processing capacity was at the time insufficient to handle the whole of their current surpluses.
This action
was undertaken by arrangement with the Council of Egg Marketing Authorities and the Australian Egg Board.
The surplus over the requirements of the domestic market sales in shell in Victoria increased
to 9,808,943 dozens (1967-68 7,991,354 dozens). Part of this surplus was sold in egg product
form on the domestic market, requiring 4,662,889 dozens which was an increase of 11·19 per cent.
over 1967-68. After,allowing for the sale of egg products on the domestic market, the volume
of surplus eggs for sale on overseas markets was 5,464,283 dozens-an increase of 40·7 per cent.
over 1967-68. The export surplus represented 12·96 per cent. of the total eggs received (10·13
per cent., 1967-68).
Export surpluses in Victoria were exported under the export pooling arrangement through
the Australian Egg Board.
The National export surplus-eggs surplus to the whole Australian domestic market
(including domestic egg products) was 31·4 million dozens, a decrease on the figure for 1967-68
of 1· 3 million dozens or 4·16 per cent.
National statistics provided by the Council of Egg Marketing Authorities of Australia
indicated that recorded Australian production for 1968-69 was 165 · 5 million dozens, an increase
over 1967-68 of 3·6 million dozens or 2·25 per cent. Compared with two years ago Australian
production has increased by 13 · 67 per cent.
Recorded domestic market sales in Australia were 118 · 3 million dozens, an increase over
1967-68 of 4 · 2 million dozens or 3 · 69 per cent. Compared with two years ago, the recorded
Australian domestic sales has increased by 8 · 04 per cent.
The closing stock of frozen Egg products held by the Board at balance date was estimated
to be sufficient to meet requirements of the domestic market over the relatively low production
period between June and September.
PRICES TO CONSUMERS.
Since the commencement of the Council of Egg Marketing Authorities of Australia
Stabilization Plan, fluctuations in consumer prices have reduced and this pattern has continued
in 1968-69 when only four changes occurred in wholesale prices fixed by the Board. The trend
in average wholesale prices over all grades sold on the local market is shown in Table Ill.
The Board has no powers to control retail prices, but the Master Grocers' Association of
Victoria as a guide to retailers, uses a formula to determine " recommended margins " to be applied
to the wholesale prices set by the Board. The resultant " recommended retail prices " are the
maximum prices normally paid by consumers in Victoria.
7
Table Ill. also shows average wholesale prices realized by the Board for eggs and egg
products sold on markets other than the local shell market. These prices are subject to substantial
packing, processing and storage costs, and in the case of overseas sale, also freight cost. After
allowing for these costs, domestic frozen and liquid egg product sales, although less remunerative
than domestic shell sales, yield a far greater net return to producers than sales made on export
markets.
TABLE IlL-AVERAGE WHOLESALE PRICES.
(Cents per Dozen.)
I
-
Eggs in Shell-Domestic (per dozen)* . .
..
Frozen and Liquid Egg Products-Domestic (per lb.)
Eggs in Shell-Export (per dozen)
..
..
Frozen Egg Products--Export (per lb.) . .
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
..
1966-67.
1967-68.
1968-69.
54·62
33·76
32·98
21·23
51·34
34·69
28·35
20·94
55·54
35·90
30·90
21·50
I
NoTE :-Eggs in shell exported have much heavier packing and shipping costs than frozen egg products.
• Packed for retail sale.
The index shown in Table IV. and designated the "Average Egg Price Index" has been
compiled by the Board in order to show the comparison between the prices of eggs and food in
general.
The "Average Egg Price Index" is calculated from the annual average wholesale price of
all eggs sold to consumers in Victoria, and weighted in accordance with the quantities of each
grade sold.
As retail (or consumer) prices, recommended by the Master Grocers' Association of Victoria,
are very close to a constant percentage "mark-up " on the Board's wholesale grade prices, the
Average Egg Price Index is an accurate indicator of changes in the maximum annual average
consumer prices in the State of Victoria.
The Commonwealth Consumer Price Index (Food Group) issued by the Commonwealth
Statistician, is based on Melbourne consumer prices for approximately 50 food commodities
(including eggs). This index which has been compiled by the Commonwealth Statistician for
many years has recently been amended by bringing the base year forward to 1966-67. The Egg
Price Index has been similarly computed.
TABLE IV.-PRICE INDEX.
.
Average Egg Price Index
..
..
..
Commonwealth Consumer Price Index (Food Group)
..
..
..
..
..
..
..
..
1966-67.
1967-68.
1968-69.
100·0
94·0
101·7
100·0
103·7
106·2
DOMESTIC SALES AND SELLING POLICIES.
Increased Domestic Sales.
For the eighth year in succession, sales of eggs in shell on the domestic market have shown
an increase over the previous year. In 1968-69, these sales totalled 31,943,506 dozens-an increase
of 1,883,573 dozens or 6 · 26 per cent. when compared with 1967-68.
Of the total sales, Authorized Producer Agents sold 12,078,453 dozens or 37·81 per cent.
The Producer Agents' share of total sales in 1967-68 was 35 ·43 per cent.
Sales of frozen and liquid whole egg and other egg products on the domestic market
increased from 5,012,154 lb. in 1967-68 to 5,758,059 lb. in 1968-69, 14·88 per cent. The
proportion of the sales in liquid form (as distinct from frozen) continues to increase, and deliveries
are made in both 10-gallon cans and 150-gallon tanks.
Apart from the savings in processing costs by the food manufacturers, egg products in
liquid form can be sold by the Board at a cheaper price as costly blast freezing and low temperature
storage is not involved.
The Board has continued to develop its marketing of egg products which include separated
yolks and whites and dried products of special formulation. These products are marketed locally
and overseas and the special requirements of manufacturers are met, particularly by the addition
of salt or sugar, to obtain better net returns to producers.
The Board has recently installed new egg separating and salt and sugar mixing equipment
which has stepped-up production of these special products.
8
Marketing and Sales Promotion Activities.
The principal function of the Board is to ensure that the production of Victorian egg
producers is marketed effectively on behalf of producers. To this end, the Board's marketing
policy includes advertising and sales promotion activities and the encouragement of better marketing
and handling methods by retailers.
The Board regularly meets representatives of Producers, Retailers and Womens Organizations,
Political Committees, Members of Parliament and other bodies interested in the industry from
both the producer and consumer points of view.
The Consumers Committee appointed under the Victorian Marketing of Primary Products
Act to enquire into the activities of marketing authorities, met representatives of the Board on a
number of occasions.
Public relations activities included displays and exhibitions at the Royal Agricultural Show
and a number of Trade Fairs and Country Agricultural Shows. A Journal produced and edited
by the Board is circulated monthly to all registered producers, many official bodies and members
of the public. Industry statistics, reports on marketing activity and articles of general producer
interest are included in every issue.
Eggs sold in one dozen cartons were merchandized under brand names approved by the
Board-VEB, Farm Pride and Humpty Dumpty, and cartonned sales represented approximately
76 per cent. of total sales on the domestic market. Sales in fillers (that is not in one dozen cartons)
are largely made to hospitals, hotels and other bulk users. As indicated in Table 11., 75·80 per
cent. of eggs received from Victorian producers was sold in shell form on the domestic market and
the balance was classified as surplus, although only the export surplus involved significant
" stabilization " cost. This cost is met under the Commonwealth Stabilization Plan.
EXPORT.
All State Egg Marketing Boards again agreed to enter the various export pools of the
Australian Egg Board for the purpose of disposing of the export surplus.
A basic feature of the export activity in the current year is the growth of sales made in Japan
and the requirement to compete with many other countries supplying specialized egg product
formulations. The Board has taken the steps necessary to meet the technical standards of
manufacture, thus ensuring that it is now in a position to meet all likely future market requirements.
This summary of the export situation should be read in conjunction with the detailed Annual
Report to the Commonwealth Parliament of the Australian Egg Board and the Council of Egg
Marketing Authorities of Australia.
COMMONWEALTH STABILIZATION PLAN.
Commonwealth legislation implementing the Council of Egg Marketing Authorities
Stabilization Plan was brought into operation by Commonwealth and State legislation in 1965.
Under the plan, a fund is set up from levies collected in respect of hens kept for commercial
purposes, and although the Commonwealth makes payments to the State from this fund for
stabilization and other assistance to the poultry industry, it is emphasized that all funds for
stabilization are provided by the industry itself without any Government subsidy. Victoria in
the year covered by this report, received a total of $2,005,181 from this source-subject to final
adjustments-($1,205,785 in 1967-68).
The increased reimbursements received from the Trust Fund were due to increased surplus
in this State.
Marketing Authorities of Australia statistics show that levy was collected
The Council of
for the Stabilization Plan on an average of 10,864,221 hens in Australia (1967-68, 9,672,289). In
Victoria, levy was collected on an average of 2,505,956 hens (1967-68 2,189,453).
Hen levies paid by producers throughout Australia during the year were as follows :28th June, 1968, to lOth June, 1969 . .
4·0c per hen per fortnight
2·0c per hen per fortnight
11th June, 1969, to 30th June, 1969 . .
The 2 cents for part of June, 1969, adjusted the total payment for the year to $1.00 per year
per leviable hen.
ACCOUNTS AND BOARD OPERATIONS.
Summary of Operations.
The Summary of Operations Table V., shows the net operational costs of the Board after
reimbursement from the Poultry Industry Trust Fund (under the Council of Egg Marketing
Authorities Stabilization Plan) of certain expenses directly connected with the disposal of surpluses
and costs of collection of the levy.
9
The Net Operational Costs to be charged to producers amounted to $1,444,900. The
Marketing Charge contributed by producers yielded $1,651,103, resulting in an Operating Surplus
for the year of $206,203 (surplus 1967-68 $245,971).
Surplus for Year.
The surplus for the year of $206,203 (t) has been allocated by the Board as follows :$
For capital expenditure requirements *
Provision for Premium Quality Plan and equalization requirements
88,122
118,081
$206,203
tSubject to any final adjustment of distribution through the Poultry Industry Trust Fund and the Australian Egg Board pools.
*This allocation which is at a rate of ·2lc per dozen receivals. was allowed for in the 5c Local Marketing Charge (2·08c in the case of
Producer Agents) and is subject to an Order in Council approved by the Governor in Council.
Product Trading Accounts.
The Product Trading Statements (Table VI.) show all the costs and revenue re-allocated
to the principal ventures undertaken by the Board. These statements show in detail the various
reimbursements from the Poultry Industry Trust Fund in respect of equalization losses. Total
reimbursements from the fund were insufficient to meet equalization losses, because eggs had been
purchased from producers at prices in excess of the values allowed for under the Council of Egg
Marketing Authorities of Australia Stabilization Plan. The equalization deficiency was offset by
revenue from domestic market sales.
The Summary of Product Trading Accounts (Table VII.) summarizes operational gains and
losses together with the detailed expenses of grading and handling, transportation, Board
administration and research and development.
After allowing for operational gains and losses, the Product Trading Accounts reconcile
with the Summary of Operations.
Balance-sheet Items (See Table VIII.).
The 1967-68 operating surplus after all final adjustments, was increased by $16,303 to
$262,274. The 1967-68 final distribution to producers of · 25c per dozen absorbed $94,975 plus
costs incidental to the distribution of $574. The balance, $166,725 was transferred to General
Reserve after receiving an Order in Council approved by the Governor in Council. Allocations
by the Board out of this sum for capital expenditure plus bank interest thereon was $80,286 and
for a contingent liability to the Poultry Industry Trust Fund was $58,466. This contingent
liability did not eventuate and by resolution of the Board, the full amount of the provision together
with the previously unallocated balance of the 1967-68 pool account ($27,973) will be used for
equalization purposes in accordance with the provisions of the Marketing of Primary Products
Act 1958.
Stock of local frozen egg products on hand at balance date, 5th July, 1969-1,295,873 lb.
was 192,818 lb. less than that held at 29th June, 1968 (1,488,691 lb.). All present stocks are
required for the current operations of the Board.
In accordance with the normal practice of the Board, stocks on hand have been valued on
a conservative basis-in all cases. Adequate provision has been made for cold storage of frozen
whole egg and eggs held at balance date as well as other expenses likely to be incurred before the
stocks are sold.
Debtors accounts at the end of the year were $870,327 ($804,625 at 29th June, 1968-an
increase of $65,702). Debtors accounts at 5th July, 1969, in respect of export activity were
$367,940 ($142,616 at 30th June, 1968-an increase of $225,324). Amounts due to the Board
in respect of domestic sales decreased $159,622.
Initial advance payments in respect of exports are settled promptly by the Australian Egg
Board, but the final distribution of export proceeds may be delayed as much as 12 months after
the end of the year.
The decrease in the current liability to the Reserve Bank of Australia was a normal trading
variation and the overdraft at balance date was within the limit approved by the Bank.
The working capital ($328,375) decreased $88,596 over 1968, but the Board's liquid position
remains satisfactory. Bank overdraft however, was almost constant in July and August, 1969,
notwithstanding the realization of stocks held at balance date, because of increased export activity
early in the new financial year and the consequent increase in money due by the Australian Egg
Board.
10
Freehold properties are depreciated at 2 per cent. per annum, and leasehold properties are
amortized over the remaining currency of the leases.
Plant, vehicles and office equipment are depreciated at adequate rates depending on the
particular item.
Further Comments, Summary of Operation.
The following further comments refer to the principal items in the 1968-69 Summary of
Operations (Table V.).
Prime Deficit on Egg Values.
The prime deficit on egg values in 1968-69 was $147,413 (1967-68 prime deficit $68,688).
This amount represents the difference between the amount paid to producers, less the proceeds
from the disposal in all markets available to the Board.
Before arriving at the figure, due allowance is made for equalization reimbursements from
the Commonwealth Poultry Industry Trust Fund. The costs and revenue up to this point in the
Summary of Operations refer to egg values only, and do not include any processing, marketing
or administration expenses.
Poultry Industry Trust Fund Distribution.
Under the Council of Egg Marketing Authorities of Australia Stabilization Plan, Poultry
Industry Trust Fund distributions in addition to those relating to equalization on the eggs
themselves, are made in respect of the costs of preparing the eggs for disposal and other payments
authorized by the Minister for Primary Industry. The Board operated within the standards set
and in accordance with the conditions set by the Minister.
Grading and Selling Expenses-Grading Floors.
Grading and Selling Expenses were $1,041,013 ($934,651 in 1967-68, an increase of $106,362).
Due to increases in wages awards and other additional costs, the average cost per dozen graded
increased from 3 · 39c to 3 · 48c. Fees charged for grading, testing, marking and stamping under
Section 41c of the Marketing of Primary Products Act 1958, in respect of eggs imported into
Victoria by persons operating outside the Board, amounted to $34,400. The estimated costs of
this operation were $33,828. The total number of eggs submitted under Section 41c (1) was
1,039,015 dozen.
Board Floor and Depot Operations.
The Board's Grading Floors at Port Melbourne and Ballarat handled 26 per cent. of
receivals (27 per cent. in 1967-68). The Board also operates a selling depot at Port Melbourne
and collection and selling depots at Huntingdale and Frankston. Using the same basis of
remuneration as applies to the Board's Authorized Agents and Distributers, the above Grading
Floors and Selling Depots operated within the remuneration allowed for the services provided.
Transportation Expenses.
Transportation expenses were $307,387 ($236,971 in 1967-68, an increase of $70,416).
The average recorded cost per dozen increased from · 62c to · 73c. This expenditure is incurred
in moving the eggs from Receiving Depots and Grading Floors to the points of sale, at the
producers' cost. Part of the recorded increase related to a more correct classification of certain
expenditures and is offset in the item hereunder headed " Cartage and Insurance ".
Selling Expenses.
Selling commission to Authorized Distributors and Board Sales Depot expenses were
$203,752 ($183,990 in 1967-68, an increase of $19,762). Total expenses per dozen eggs sold
increased from · 99c to 1 · 1Oc and reflects the increase in cost of wages and other handling expenses.
Cartage and Insurance.
This expenditure represents inward cartage of packing materials, miscellaneous cartage
and unrecouped egg delivery charges, including free delivery to hospitals and similar organizations.
The average recorded cost, $22,476 decreased by $21,212 when compared with 1967-68 ($43,688).
The figure was affected by re-classification of certain expenses as mentioned above.
11
Total Packing Costs (Materials and Other).
Packing material and packing costs for the domestic market were $785,067 ($717,192 in
1967-68, an increase of $67,875). These costs include materials purchased and warehousing
expenses and increased from 2 · 39c to 2 · 46c per dozen eggs sold on the domestic market in
1967-68 and 1968-69.
Domestic Market Advertising and Sales Promotion.
This expense was $136,265 ($143,616 in 1967-68, a decrease of $7,351). The cost per
dozen sold on the domestic market decreased from ·48c in 1967-68 to ·43c. This equals 0·77
per cent. of the wholesale value of domestic sales which is a very small percentage compared with
advertising expenditure on many other commodities sold by retail.
Wholesale Price Margin.
This margin is included in the wholesale price of eggs sold on the domestic market. The
Summary of Operations is set out to show the general marketing expenses which must be met
before graded eggs can be sold on the domestic market, and the wholesale margin was sufficient
to meet these expenses and provide a surplus of $498,333 ($402,871 surplus in 1967-68) an increase
of $95,462. This surplus is used for price stabilization and other specific expenses of the Board
not covered by reimbursements under the Commonwealth Stabilization Plan.
Pulp Plant Expenses.
The Board operates egg processing plants in Melbourne and Bendigo, which produce egg
products of various formulations. The principal product is frozen whole egg, but separated yolk
and white, salted yolk, &c. are produced in accordance with the requirements of food
manufacturers. Manufacturing and handling expenses were $497,216 ($328,378 in 1967-68) an
increase of $168,838. The egg content of the production of both of the Board's Pulping Plants
was 11· 3 million lb. (9 · 2 million lb. in 1967-68, an increase of 2 ·1 million lb.). The processing
cost per dozen increased from 4 · 29c to 5 · 42c. A principal factor in this cost was increased
depreciation on new processing equipment installed at both pulping plants in order to meet
increasing domestic and world-wide standards. Labour cost per lb., for processing at these new
standards was also higher. The cost of this operation approximated the allowance for the process
from the Poultry Industry Stabilization Fund.
Cold Storage.
Cold storage costs were $109,906 ($92,206 in 1967-68, an increase of $17,700). 8·7 million
lb. of pulp and products were frozen and stored during the year at an average cost of 1 · 27c per lb.
Shell Eggs-Export Packaging and Handling.
These expenses were $35,124 ($17,512 in 1967-68, an increase of $17,612) due to increased
exports of eggs in shell. Export in shell was a minor operation, but recorded costs per dozen4 · 39c were less than the allowance of the Poultry Industry Stabilization Fund for the packing and
handling operation.
Export Levies.
Export levies which are paid to the Australian Egg Board were $32,327 ($22,292 in 1967-68,
an increase of $10,035). The additional levy was due to increased frozen whole egg exports
which totalled 5,783,606 lb. (4,222,162 lb. in 1967-68, an increase of 1,561,444 lb.) and increased
shell egg exports which totalled 800,085 dozen (313,905 dozen in 1967-68, an increase of 486,180
dozen).
The levy is fixed by the Australian Egg Board to cover its administrative costs and is
contributed by all States on the basis of quantities exported.
General Administration.
Total administration after allowing for the charge to Producer Agents and the payment
from the Poultry Industry Trust Fund in respect of levy collection costs, was $229,057 ($221,638
in 1967-68, an increase of $7,419). When related to total recorded production, the administration
cost per dozen decreased from · 58c in 1967-68 to · 55c in 1968-69.
Research and Development.
The research and development costs written-off were $13,760 ($10,498 m 1967-68, an
increase of $3,262).
Marketing Charge.
This contribution by producers covered the " net operational costs " as disclosed by the
Summary of Operations. The average contribution of both producer agents and non-producer
agents was 3 · 93 cents per dozen compared with 3 · 99 cents per dozen in 1967-68.
12
BOARD MEMBERS.
No changes occurred during the year.
At the twenty-sixth meeting of the seventeenth session of the Board on 9th July, 1969, Mr.
R. W. Freeman, Producer Representative, was re-elected as Chairman for the ensuing twelve
months, and Mr. A. N. Hudson, Producer Representative for No. 1 Area was re-elected Deputy
Chairman for the same period.
Col. M. H. McArthur is Chairman of the Australian Egg Board and President of the Council
of Egg Marketing Authorities of Australia. The headquarters of both organizations are located
in Sydney, New South Wales.
The Chairman of the Victorian Board, Mr. R. W. Freeman, is a member of the Australian
Board, representing the Victorian Board.
Mr. Hudson was also re-appointed to represent the Board on the Council of Egg Marketing
Authorities of Australia Technical and Research Sub-committees.
Mr. Talbot, Producer Representative for No. 2 area was re-appointed to act as Board
Liaison Officer with the Royal Agricultural Society in all aspects of the Board's participation in
the Royal Show.
All members of the Board are members of the Council of Egg Marketing Authorities and
attended the four meetings of the Council held in 1968-69.
PRODUCER AND OTHER ORGANIZATIONS.
The Board is pleased to again record its appreciation of the support of all organizations
with which it confers from time to time, and of the liaison between representatives of those
organizations and the Board's executive staff.
These organizations include :Producer Organizations.
The Council of Egg Marketing Authorities of Australia.
Australian Egg Board.
Authorized Egg Agents and Distributors Association.
Consumers' Committee.
The Retailers' Consultative Council.
AGENTS, DISTRIBUTORS AND ASSOCIATES.
The Board records its appreciation of the co-operation and support extended by all of its
associates who have continued to respond to the many requirements in their representation of the
Board in its marketing operations.
MANAGEMENT AND STAFF.
The Board expresses to the General Manager and staff, its appreciation for their work
throughout the year.
On behalf of the Board,
R. W. FREEMAN,
Chairman.
13
APPENDIX.
TABLE V.-SUMMARY OF OPERATIONS.
1sT JULY, 1968 TO 5TH JULY, 1969.
Cents
per
Dozen.
$
$
$
Costs of eggs and egg products available were as follows:Stock on hand 1st July, 1968
48·85 a Gross advances to producers
Purchases of eggs and egg products from other Boards
469,510
20,497,999
75,669
TOTAL COST OF EGOS AND Boo PRODUCTS AVAILABLE
21,043,178
Proceeds from disposals of eggs and egg products were as follows:Sold in shell on domestic market
Sold in shell on overseas markets
Sold as egg products-domestic and overseas
Stock on hand 5th July, 1969
16,098,684
153,050
2,748,231
442,133
TOTAL GROSS PROCEEDS FROM SALES AND DISPOSALS
19,442,098
1,601,080
1,453,667
Poultry Industry Trust Fund distribution (egg values) ..
PRIME DEFICIT ON Boo VALUES
To which is addedDirect costs to prepare products for sale-domestic and surplus
Grading and selling expenses-grading floors
3·48 b
Transportation expenses
·73 a
147,413
1,041,013
307,387
1,348,400
1•10
·08
2·46
·43
e
b
g
g
5·15 g
General marketing expenses re domestic sales
Selling expenses-authorized distributors and Board depots
Cartage and insurance ..
Total packing costs (material and other)
Domestic market advertising and sales promotion
Less-recovered in wholesale price margin
Disposal expenses re surplus
Egg products manufacturing and handling expenses
..
Cold storage-egg products and shell eggs
Shell eggs-export packaging and handling
4·39 c
Australian Egg Board export levies
·59 d
5·42 I
Less-Poultry Industry Trust Fund distribution (costs)
203,752
22,476
785,067
136,265
1,147,560
1,645,893
(498,333)
497,216
109,906
35,124
32,327
674,573
469,970
204,603
1,054,670
TOTAL OPERATING CosT
·55 a
·03 a
To which is addedAdministrative expensesGeneral administration
Research and development
1,202,083
229,057
13,760
242,817
3·44 a NET OPERATIONAL CoSTS TO BE Q:IARGED TO PRODUCERS
3·93 a MARKETING CHARGE CoNTRIBUTED BY PRODUCERS
·49 a OPERATING SURPLUS FOR THE YEAR
NoTE.-Amounts in cents per dozen have been based on the applicable dozens of eggs as follows:Dozen
Basis a-Total production ••
41,962,931
b-Total production less producer agents sales
29,884,478
c-Export shell dozens
800,085
d-Dozens exported as egg products and as shell
5,464,283
e-Dozens sold by distributors and Board depots on local market
18,518,987
/-Dozens processed for egg products ••
9,171,589
g-Dozens sold in shell on local market
31,943,506
----1,444,900
1,651,103
206,203
14
TABLE Vl.-PRODUCT TRADING ACCOUNTS 1sT JULY, 1968, TO 5TH JULY, 1969,
EGGS IN SHELL-DOMESTIC MARKET,
s
$
39,618
To Stock on hand 1st July, 1968
16,234,317
Eggs from consignors
785,067
Packing materials
6,232
Storage
22,476
Cart age
136,265
Advertising and sales promotion ..
Selling commission authorized distributors
203,752
and board floors
Transfer operating gain to summary trading
account
367,235
By Sales .•
Wholesale price margin ..
Stock on hand 5th July, 1969
17,794,962
16,098,684
1,645,893
50,385
17,794.962
EGGS IN SHELL-EXPORT MARKETS.
$
To Stock on hand 1st July, 1968
Eggs from consignors
Packing materials
Storage
Export levy
Miscellaneous
Oiling
381,659
30,534
4,451
3,833
816
3,774
$
By Sales ••
Stock on hand 5th July, 1969
Poultry Industry Trust Fund Distribution
(egg value)
Poultry Industry Trust Fund Distribution
(costs)
Transfer operating loss to summary trading
account
425,067
153,050
195,205
63,368
13,444
425,067
EGG PRODUCTS-DOMESTIC AND EXPORT MARKETS.
s
$
429,892
3,882,023
75,669
328,703
157,413
99,223
To Stock on hand 1st July, 1968
Eggs from consignors ..
Eggs purchased interstate
Processing wages and expenses
Packing materials
..
Storage
Cartage, freight and insurance
Export levy
28,494
By Sales . .
.•
2,748,231
Stock on hand 5th July, 1969
391,748
Poultry Industry Trust Fund Distribution
(egg value)
. . 1,258,462
Poultry Industry Trust Fund Distribution
406,602
(costs)
..
..
..
..
Transfer operating loss to summary trading
207,474
account
5,012,517
5,012,517
11,100
TABLE VII.-SUMMARY PRODUCT TRADING ACCOUNT.
1sT JULY, 1968 TO 5TH JULY, 1969.
$
Grading and handling expenses
Transportation expenses
Board administration
Research and development . .
.•
Operating loss, eggs in shell-Export markets
Operating
products ..
Operating sur s for the year
s
1,041,013
307,387
229,057
13,760
13,444
207,474
206,203
Local marketing charge contributed by producers 1,651,103
Operating gain, eggs in shell-Domestic market
367,235
2,018,338
2,018,338
15
TABLE VIII.-BALANCE-SHEET AS AT 5TH JULY, 1969.
Comparable
Figures for
Previous Year
Figures for
Year Under
Review
$
$
1,033,038
245,971
Board Funds
Reserve fund . .
..
..
Operating surplus for the period
1,163,881
206,203
1,370,084
1,279,009 TOTAL BoARD FUNDS
Represented by-
Current Assets833
8,348
Cash on hand and at bank
Claim on or (refund due) Poultry Industry Trust Fund
803
(31,700)
Stocks on handEggs and egg products at valuation ..
Packing material at cost
Supplies at cost or valuation
469,510
89,719
15,512
442,133
73,491
19,163
574,741
534,787
804,625
9,431
DebtorsTrade
Amount due under Contract of Sale
870,327
8,428
814,056
15,000
Less provision for doubtful debts ••
878,755
15,000
799,056
863,755
1,382,978
1,367,645
Less Current LiabilitiesReserve Bank of Australia
The Department of Primary Industry (Hen Levy)
Less Cash at Bank, Commonwealth Hen Levy Account
646,491
95,653
(38,573)
607,945
115,467
44,259
Creditors
Provision for employees Long Service Leave, Annual Leave and Sick Pay . .
209,509
52,927
966,007
416,971 Working capital •.
862,038 Fixed Assets (at cost, less depreciation)
1,279,009 TOTAL AssETS
71,208
296,379
63,738
- · · - - 1,039,270
328,375
1,041,709
1,370,084
The accounts of the Board have been audited and, in my opinion, the foregoing Balance Sheet truly and fairly discloses
the Board's financial position as at 5th July, 1969, and the accompanying Summary of Operations gives a true and fair
summary of the transactions for the period under review, subject to the following qualifications :(i) The asset, "Egg and Egg Products", shown in the Balance-sheet at $442,133, has been valued at current local
market prices after providing for storage and other applicable charges and after deducting an additional 20
per cent from the valuation of stocks of egg products ; and
(ii) The statistical information shown in conjunction with the Summary of Operations has been calculated by the
Board on bases determined by it and as shown at the foot of such Summary.
A. J. A. GARDNER,
Auditor-General.
21st November, 1969.
A. C.
BIIOOKS,
Government Printer, Melbourne.