Establishment of piggeries
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As stated previously, the Corporation's final objective is the production of pigs for export to Britain. Grain sorghum will be an essential constituent in the pigs' diet, which will be supplemented with green feed and other protein rations.
It was decided as a matter of policy that the pig-raising side of the Cor- poration's activities would proceed cautiously-the main emphasis for the first year or so being placed on the production of grain sorghum-a large task in itself. However, it was decided that five experimental pig units should be established in selected localities in order thoroughly to test conditions and costs in various areas, methods of feeding, most suitable breeds and so on.
As previously mentioned the first piggery site has been selected on the Dawson River at Moura where there is an abundant water supply and suitable land both for the growth of pasture under irrigation and for the piggeries.
At the close of the financial year the design of the piggery had been completed and preliminary work done in preparing the site.
An organisation has been decided upon to enable the work to proceed as early as possible in the new financial year.
The piggery will be on a 200-sow basis, and a supply of breeding sows has been secured for transfer to the property as soon as work is sufficiently far advanced.
A site suitable for several further piggeries has been secured, by agree- ment with the owners in the Bajool area south of Rockhampton. Here again there is a good water supply and land both for irrigation and piggery sites. Final arrangements regarding the transfer of the land to the Corporation were being made at March 31.
A further area has been selected along the Nogoa River in the vicinity of Emerald and proceedings for acquisition are about to commence. The State Government proposes a new weir on the river convenient to this site thus assuring an ample supply of water for irrigation and other purposes.
The possibilities for pig-raising of several other sites both on the coast and inland are being closely investigated.
Finance
In accordance with the provisions of the Queensland-British Food Produc- tion Act a system of accounts based on best commercial practice has been adopted after consultation with the Overseas Food Corporation and their auditors, Messrs. Cooper Bros. & Co., Chartered Accountants, London, through their associated office, Messrs. Cooper Brothers, Savage & Co., Queensland.
The results of transactions for the year appear in the Revenue and Expendi- ture Account, Profit and Loss Account and Balance Sheet (pp. 89-90).
Owing to the financial year ending before the harvesting of the crop, the Corporation was faced with the problem of valuing standing crops. After full consideration it was decided to adopt a prudent policy and bring the growing crops into the balance sheet at the actual expenditure incurred at the farms. This will enable the expenditure to be carried forward into next financial year and correctly charged against the return from the crops to which it relates.
Expenditure by Head Office amounting to £15,225 17s. Od. has also been carried forward to the next year.
It is pointed out that the whole of this expenditure has been incurred in connection with the establishment and administration of the Head Office of the Corporation. Whilst it is usual for the preliminary expenses of an undertaking to be temporarily capitalised and written off over a period of years, the Cor- poration has decided to carry the amount forward and charge it against the revenue from the first crop.
Having regard to the useful life of the various assets full provision has been made in the Revenue and Expenditure Account for depreciation. Provision has also been included for interest and accrued charges.
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