ENG-1953 — Page 104

HONG KONG ANNUAL REPORT, 1953

ing depôts have been established in the main production areas, and farmers operating through them may leave their produce 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% commission charge) are taken back to the depôts by the same staff for distribution to the farmers.

It is Government's intention that the Organization should later be run as a co-operative enterprise by the farmers them- selves. To this end, farmers are being actively encouraged to form co-operative societies to take over the work of the Organization's depôts. By the end of the year, some 45% to 50% of all locally grown vegetables were being handled by registered Co-operative Marketing Societies, and farmer-operated Collect- ing Centres (embryo Co-operative Societies, financed by the Organization but administered by the farmers).

The marketing scheme is operated under the "Agricultural Products (Marketing) Ordinance, 1952" which provides for the appointment of the Director of Marketing as a corporation sole with power to acquire and dispose of property. The Ordinance also provides for the appointment of a Marketing Advisory Board, consisting of the Director as chairman and four other persons nominated by Government.

For many years, one of the main problems of the local vegetable farmers was the lack of a cheap fertilizer. In 1952, the Organization started a scheme for the maturation and dis- tribution of nightsoil collected from the Kowloon area. This scheme proved to be most successful and during the year it was decided to take nightsoil collected from the urban area of Hong Kong island.

During the latter part of the year the Organization set up a revolving fund for the purpose of extending credit facilities to vegetable farmers. The loans are for productive purposes only and are made available to farmers through Co-operative

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