that area are sold, wholesale, by a Vegetable Marketing Organization, the aim of which is to ensure fair and steady returns to vegetable producers and reasonable selling prices to consumers. It is intended that in due course this organization, like the Fish Marketing Organiza- tion, will become a cooperative enterprise.

The Organization undertakes the collection and transport of vegetables from collecting points in the New Territories to a central wholesale market in Kowloon. In the main production areas collecting depôts have been established, and farmers operating through them may leave their vegetables in the hands of the Organization's staff who look after the vegetables until they are sold in the market.

The proceeds of sales (less a 10 per cent commission charge) are taken back to the depôts and collecting points by the same staff for distribution to the farmers.

During the year, the quantity of vegetables handled by the Organization increased considerably. In 1947, the first full year of its existence, it handled 19,427 tons of local vegetables and 7,658 tons of imported, the total wholesale value being $7,348,690. Trading has increased steadily each year and the corresponding figures for 1951 were 39,775 tons and 13,639 tons respectively, with a total value of $18,960,670. Increase in local production is particularly noticeable and local producers are now supplying a considerable proportion of the Colony's requirements.

The establishment of collecting centres run entirely by farmers is strongly encouraged by the Organization and four such centres have been started—at Kutung, Fanling, Taipo and Sheung Shui. The centres at Fanling, Taipo and Sheung Shui were subsequently registered as cooperative vegetable marketing societies.

The Organization has received valuable aid from Colonial Development and Welfare funds. Grants and loans from this fund have been used to purchase a fleet of 16 diesel-engine lorries and helped in the establishment and running of small village vegetable collecting centres in outlying districts. Up to the end of the year a total sum of $689,722 had been disbursed from the Colonial Development and Welfare funds for the purchase of transport equipment, construction of depôts and the provision of numerous rural services.

Cooperative Department

The newly-formed Cooperative Department started operations early in the year. Its activities so far have been concentrated mainly on the welfare of the primary producers-the farmers and fisherfolk and the department has worked in close cooperation with the two Marketing Organizations.

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