Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698067875197.pdf (Guyana)
REPORT OF THE GUYANA MARKETING CORPORATION FOR THE PERIOD 1st January to 31st December, 1965 The Corporation was established Ordinance (No.

23 of 1962).
Corporations on January 1st, 1964, under the provisions of the Public CONSTITU'fION OF THE BOARD 2.At 1st January, 1965, the Board was constituted as foUow• :­ Mr. Dwarka Nath - Chairman Mr. C. Yong Hing - Dieputy Chairman Mr. M. Correia Mr. A. Kalajmadeen Mr. M. S. H. Rahaman Mr. W. Glen Mis,s Jessie Burnham 3.The services of the original members of the Board were subsequently terminated change of Government, and the Boiard was reconstituted by the appointment u a of the result of a following persons with eiffeclt from 29th March.
1965 : - Deputy Chairman Mr. W. G. s.ton -Chairman Mr. H. Madramootoo Mr. B.

A. Fiemandies Mr. M. S. H. Rahaman Mr. J. Benn Mr. R. E. Davis Mrs. Jane Phillips-Gay POLICY OF THE CORPORATION 4.The general a,gricultural to maintain consumers production as far as posstble throughout the coastal areas.
policy of the Corporation remained unchanged, namely, by offering farmers an assured market at reasonably fair price levels and even distribution o.f available to encourage local economic prices; to supplies SERVICES 5.

The following (a)Central services were operated Produc€ Depot (Geoa:-geit1orwn) and the Produce Depot (New Amsterdam Branch).

by the Corporation : ( b)Fish Marketing Centre ( c)Pro,cessing Factory ( d)Ham and Bacon Factory ( e) Milk Pasteurisaition (f)Edible Oil Distribution.
Plant PRICE GUARANTEES AND INCENTIVE BONUSES 6.For the purpose of stimulating agricultur Gorvernpient guaranteed paid on an acreage imported.

minimum prices .for c:�tain basis to farmers cultivating al production to satisfy farm produce.

the domestic Cash bonuses were also market, specified crops most of which are extensively PRODUCE DEPOTS 7.The CorpoT::i..tion, in keeping with Government policy and through Produce Depots, is obligated prices, on the staite of the market.
all marketable to purchase at the minimum guaranteed produce depending prices offered the medium of its or at ruling market by farmers at 2 the Corporation•s create a serious central distribution purchasing statioDB, problem by way of frequently point, Georgetown.

some of which a.re in remote areas and thereby tend to hoo.vy spoilage of produce intrans it to the 8.Purchasing centres were maintained and New Amsterdam.

Farmers in the Berbice who travelled on the once weekly steamer for this purpose.
Purchases in the 'distant was done by the North West District Farmers Marketing West District acting as agents of the Corporation.
River area were served by a purcha.sing clerk North So,ciety Co-operative at Charity (PomeT1oon), Parika (West Deme.rara) PURCHASES OF AGRICULTURAL PRODUCE 9.COMMODITY Plantains Sweet Potatoes Yams Tannia.s Eddoes Cassava Coffee Beans Cocoa Bean s Whole Oorn Black.Eye Pu)mpkin Oranges Grapefruit Bananas Cabbage Peas WEIGHT or UNITS WEIGHT or UNITS (1965) 6,393,844 65,780 ,, 140,436 ,, 11,441 ,, 50,360 " 4,605 ,, 183,563 ,, 350 ,, (1964) lbs.

1,473,122 lbs.
1,473,122 lbs.

120,086 ,, 163,524 ,, 8,535 ,, 97,424 " 3,664 ,, 93,176 ,, 130 " 1,165,677 ,, 59,694 ,, 129,908 ,, only 1,983,968 only 76,197 ,, 2,052,955 ,, 32,039 ,, 40,047 ,.

2,650,047 330,674 ,, 10,102 lbs.

50,700 ,, The total value of farmers' produce purchased during the year was $669,380.73 .

COFFEE BEANS 10.The export market showed no improvement on the depress,ed year.

To offset this situation, verted to Instant Coff�e.

Al'together sent abroad for prooessi.ng during the year.
the bulk of the Corporation' s purchases 156,800 lbs.

of coffee beans valued at $78,400 :-were of the previous prices was therefore con­ INSTANT COFFEE 11.· Returns of Instant Coffee from beans shipped to the U.S.A. for processing amount­ ed to 46,101 lbs.

TRADING AND PROFIT AND LOSS ACCOUNTS 12.GEORGETOWN PRODUCE DEPOT - The sales for 1965 at $862,654.31 were ap­ proximately mately 5.8% higher than the value orf s,ales.
22% higher than 1964, while cost of sales was $911,95L50 which was approxi­ It is therefore cle,ar sold either at buying price, cases much of what was received thus realising no revenue whatsoerver.

that the produce, which was handled by this deparune,nt had to be or, as happened in many cases, below buying price.
In some had to be dumped was unmarlreta;ble and as a consequ,ence GROSS PROFIT - The Gross Profit in this dep,artment on the purchaae and sales of goods amounted to $49,297.19 siituation can be identified loss intransit suffered compared with the factors , which was approximately with a profit of $55,913.73 in 1964.

This reverse listed under sales, and in addition the heavy $12,000 higher than 1964.
NET LOSS - The Net loss amounted to $249,742.86, compared wi,th los,s of $92,638.35 to the inadequacy of profits to cover the running expenses in 1964.

This is attributable ve costs which in the fe>!

'jmer case was approximately and administrati 1964, due mainly to an increase in labour cost occas,ioned partly by an in,crease in the extent in order to handle the increased volume of goods.
of labour employed; this was nec,essary $74,000 higher than NEW AMSTERDAM - Sales in New Amsterdam at $140,842.44 was 8«}Proximately 20% higher than that of 1964, and cost of sales is approximately 98.5% co;m,pared with 92% in 1964.

This indicates or partial loss from spoilage.

It is signif"le8.llt to note thait even though the volume of pur­ chase handled was 20% higher in 1964, transportation charges and loss intransit remain vir.

tually at the same level of 196'.


that more produce was sold at give away prices in order to avoid total GROSS PROFIT - Gross Profit at $2,197.56 is $5,103.84 less than 1964: and th.ia level of profit is representative of only 1.5% of sales compared with 8% in 1964., but this can be explained by reference to the oomments in the previous paragraph.
3 NET LOSS - The Net Loss of $32,278.73 is due to the inadequacy of the gross profit to cover th ment and administrative eosit, which put together totalled $34,481.22.

W8S therefore sufferied by this department and e running gpenses of the depart.

HAM AND BACON FACTORY 13.

The Ham and Bacon Factory continued tx, provide an assured market for pig rear­ per lb., which was very much better than that realised in .

ers at an average price of 53.lc.

1964.

14.1,789 pigs yielded 175,981 l:bs.


carcase �ight at a value of $93,497.00.

15.Production of finished products was as follows: tl965 12,058 lbs.

46,011 " 1,771 7,189 " Ham (1all types) Bacon (all types) Pork Sausage Lard (fresh) TRADING AND PROFIT AND WSS ACCOUNT 1964 19,625 lbl.
56,469 " 1,808 " 8,4:08 If HAM and BACON - The Ham and Bacon sal!es were $15,545.03 less than 1964 and this was due to the low leve,l of pig production which resulted in less products being made avail-­ able for processing and for sale as f:resh pork.

A Gross ·Loss of $48,950.55 resulted compared with gross profit of $12,372.17 in 1964. manufacturing cost resulting from wages and salaries coat This is due principally increases and the low lievel of operation over which these charges had to be spread.
The effect of this was that processing costs were big.her than the average sale price.

to higher Net Loss -The Net Loss was $39,852.62 as CCJlmparefd with net profit in 1� of $5,416.16.

because of added administrativ e charges which increased by $5,117.64.
This l<JBS /taking into account the factors �entioned above was increased mainly FISH MARKErI'ING CENTRE 16.The Centre provides facilities for the orderly marketing of fi&h either by Bale to Fish Market operated by the Corporation, or directl y by the fishermen to re­ the Wholesale tailers.

17.The Wholesale Fish Market handled 390,881 lbs.

of fish valued at $H6,265.00 u against 303,965 in 1964. lbs.
valued at $135,853.00 18.Inadequacy and inefficie·ncy of oold storage f1acilities again frequently compelled the disposal of purchase at uneconomic prices in order to avoid heavy losses !rom apoilap.

19.Extensive rehabilitation work was undertaken in connection with the refril'era­ exists much doubt a:s to the cost but there at considerable tion plant and storage facilities eventual of this operation.
efficacy TRADING AND PROFIT AND LOSS ACCOUNT FISH MARKET and CENTRE - The Fish Market and Centre increased its turn over by 22% in 1965.

The turn over wa.s $201,220.96 and approximately sale value which c:ompares very favourably reduced cost of sales was due to the hwdling of a wider variety profi t margins.

with 1964's 92.4%, This increased turn over and CtOSt of sales was 76% of of fish which afforded higher Gross Profit - This was approximately 24% as cd,mpared with 7.6% an increase of 16.0� in 1964.
The Net Loss of $14,036.90 was $10,086.00 less than 1964, despite the fact that revenue to which was collected as market dues in 1964:, was not collectable the extent of $21,000 in 1965.

This together with the fact that operation expenses were reduced by some $24,000: made it possible, however, for the department to reduce its losses.

.t PROCESSING FACTORY ·20.


The main operations Factory (a)the mechanical dryin� of corn rurchased of the Processing were :- during the crop periods, and storing it in silos.

l.bJ manufacturing Corn Meal and Pla...'ltain Flour.

21.

Production of Corn Meal and Plantain Flour was aa follows :- Co:rn Meal Plantain Flour 244,305 lbs.
162,432 ,, Value $25,896.33 Value $56,851.20 22.Raw Material used in the manufacture of the two products was as hereunder set out:-· Whole Corn (dried) Plantains 369,333 730,944 lb.II. "

23.The Factory handled 1,055,394 lbs.

of Whole Corn which was purchased at the buying out-sta -ge in the drying process added c:ost ex factory was therefore tion.s at 6c.

per lb.

Oost o,f transportation, approximately 7 .8c per lb.

1.8c.

to the in situ ·buying price.


The final loss intransit and loss by shink­ 24.-·Corn Meal manufacture ahsoTbed 369,333 was sold mainly tc B.G.

Stockfeeds Limited lbs.

of the tot al supply purchased.

at 7 c. per lb.

that is, The bulk of .

the remainder at an approximate loss of 80c.

per 100 lbs.
per 100 lbs.

THADING AND PROFIT AND LOSS ACCOUNT Proc�sing li'actory and this is .. due principally realise $191,404.08 � 1964 therefore, to the manufacturf' compared with $90,605.91 -- This department mo•re than doubled its turn over for 1965 over of processed goods and some 90% sales in 1964.
Gross Profit - Despite the fact that turn over doubled, the loss was $14,110.76, com.pired for the previous y,ear although it migiht have been expected that the loss to gre·ater extent this was not possible because of the increased used in process.ing aud process,ing expenses which rose very sha.rply.
with $17,560.30 might have b2en reduced cost of the materials The NetLoss of $33,259.24 this is an increase of $4,614.75 $8,023.17 compared with over 1964, and is due to an increase in operating by this department expenses of was suffor,ed $28,644.49 which is less than proportionaite to the increased level of activity.

MILK PASTEURISATION PLANT 2�.

The Plant purchas,ed 559,867 glns of milk valued at $445,721.04 , the average price on the dock being 78.5.c.
Cost of production was $1.24 per gallon of pas­ per gallon landed teurised milk.

The average sale pric.e per gallon was 88.3 cents.

MILK PASTEURISATION PLANT -Sales increased by of $381,723.19.

a.nd the cost of sales was 31 % lower than 1964, mainly because there was not as much dump­ .

ina-: of milk.
ina-: of milk.

· From this it can be said the level of activity just I-!% over 1964, with a value was almost the same as 1964, Gross Profit -The Gross Profit at $185,388.34 have been higher were it not responsib1e for the high incidence for more stringent of dumping in 1964. was $113,102.86 less tihan 1964. lit might measures in testing of illlilk which w as A Net Loss of $353,702.73 less than the previous was suffered by this department w h ii a,h is approximately year.
There: might have been a further $39,000 had it not been for an increase in the operating, expenses of the department.

have been wages and salaries, cost from breakage, and loss of bottles and milk churns.. reduction in the loa Principal areas EDIBLE OIL Edible Oil sales decreased slightly This slight drop of supply of oil which occurred during the year and which neces­ f.r,om $2,589,272.72 to $1,542,280.30.
was due to some shortages , sitated the importation of Soya Bean Oil and Raipeseed Oil Gross Loss at $137,941.53 �as $89,051.40 more than 1964, and was due to the purchase ·price of the Rape,seed Oil being higher than the selling extent of $13,395.50 was however rea lised fr� the sale of the drums and t his served to price of Edible Oil.

Revenue to the - ·.

reduce the �:irroas'·'loss to $124,546.03.


·s Net Loss - The Net Loss suffered w previous year and is ·attributable the imported oil and an increase in operating of $15,541.65 and above the looaJ price, for processing into Edible Oil.
as $191,555.14, over the of $97,190.38 to the differenc e between the purchase and selling price of expenses of $20,438,48 subsidy which includes',� at a-price over an increase to the local Mills for Copra imported by them, and purchased GENERAL COMMENTS The total turnover for 1965 was a.pproximat.ely .7 per cent ·more than 1964 ·though losses period.

This total loss.
This total loss.

is attributable were approximately 48 % higher than the corresponding to increased ineffciencies Produce, Milk Pasteurisation total subsidy of $1,305,000 $230,076.98 o.f $112,289.47 of 1964. over the above losses actually was granted suffered, in trading in three of the main departments viz : Georgetown Plant and Edible· Oil.
To cover this loss of $1;275,322.02, a to the Corporation which meant that the subsidy was but this w as in fact reduced to the extent which was the a.mount by which the 1964 �ubsidy fell short of the actual loss GUYANA MARKETING CORPORATION.

BALANCE SHEET AT 31st December, 1965.


1964 CAPITAL 1965 1964 FIXED ASSETS Cost Accumulated Net Depreciation Book Value 1965 $1,102,108 Indebtedness to Government of by an satisfied Guyana ( Since Issue of Perpetual Debentures bearing interest at 7% tn accordance with Article 11 (2) of the Guyana Marketing Cor- poration Order 1963).
$1,102�108.00 $ 418,030 Freehold Land and Buildings 26,930 Plant and Machinery 16,342 Furniture and Equipment 10,008 Motor Vehicles 7,H7 Sundry Equipment - Launches 78,457 __ $ ___ 4 38,705 CAPITAL RESERVE 74,928.69 CURRENT ASSETS $ 23,299.89 $ 4.40,594 .52 29,733.35 194,227.45 3,816.01 33,853.04 2 10,597.08 13,189.5 13,086.03 64,476.91 $463,894.41 223,960.80 37,669.05 23,786.60 77,562.94 9,639.61 --- $836,513.t.1,1 121.17 9,518.44 $ go]53.53 ----$755,859.8 8 ( 112,290) $1,028,5 23 SURPLUS (Statement attached) 117,394.32 $l 294 431 01 __ ______ ' ' .
$ 407,390 Stocks and Stores at the lower of oost and net realisable value Dru:m Deposits :- $755,826.33 °' CURRENT LIABILITIES $ 144,900 With Suppliers Government of Guyana Loan Account 77,147 Government of Guyana $ 300,000.00 123,340 $ 21,560 Less By Customers Interest on Debentures Bank Overdraft 15 4,295.11 110,090.16 $ 287,680 Sundry Debtors and Debit Balances Less :- 105,624.34 670,009.61 $ 177,680 110,000 Provision for Bad and Doubtful Debts $141,930.00 105,380.00 --·----- 36,550.00 $307 ,124.00 110,000.00 197,124.50 172,383 Cash at Bank and on Hand 219,079.91 $1,208,580.74 --$-779,013 $1,964,440.62 $1,257,470 $1,964,440.62 151,800 Sundry Creditors and Credit Balance $ 228,947 $1,257,470 NOTE: To be satisfied by an issue of Debentures in accordance with Article 11(2) of.
the Guyana Marketing Corporation Order 1963.

�he Debentures are to be issued as PeT'petual Debentures, mt.eirest to be chargeable at 7%.

Interest on the indebtedness at 7% has been ch'arged in the General Profit and Lees Account in the sum of $77,147.56 .

(Sgd.)

E. KW AYANA Members of R.BEHARRY the Board a 2 0 v - 4 *" 2 N r - 4 C A 0 c d e I 4 N 0 0 .

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4 - 1 N 4 - - 4 C O O o i C O $ 392,099.12 64 D - g o r i C O v - 4 • e C O 1 0 6 01 C C O I ; 0 C O 6 5 ) ' 4 C ° • * , C g 0 p i 0 0 4 l e i 1 1 1 1 - 1 ' I N C O C A r - 4 0 0 0 ; .
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C O C D N C R N .

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• • 0 GUYANA MARKETING CORPORATION.

GENERAL PROFIT AND LOSS ACCOUNT F'OR THE YEAR ENDED 31ST DECEMBER, 1965.
1964 $ 630,02'6 Operating Loss 37,066 77,148 Before Charging ·- Depreciation Interest on Capital Indebtedness Government @ 7 % to Guyana $ 904,421.40 $43,.747.25 77,147.56 120,894.81 $ 114,214 $ 743,900 Net Operating I.o&B $1,025,316.21 631,610 Less: Subsidies received from Government $(112,290) Surplus for the year Deduct:- Deficit �hit forward $(112,290) Balane;e, being accumulated Surplus carried forward 1,255,000.00 $229,683.
79 112,289.47 $ 117,394.32 ' PANNELL FITZPATRICK & CO. and FITZPATRICK GRAHAM & CO. Ohu'tered Acoountants REPORT OF THE AUDITORS ON THE ACCOUN"-8 OF GUYANA MARKETING CORPORATION· FOR THE YEAR ENDED 31ST DECEMBER, 1965.

23rd May, 1969.

We have examined the Accounts of Guyana Marketing Corporation which are in agret­ menit with the books of the Corporation and report .

that we have received .

all the infOl".DJ&­ tion and explanations we have required.
We further- report that sU!bject to the two matte� referred t.o below the annexed Balance Sheet dated 31st Dec.emiQer, 1965, and the General Profit and Loss Acoount for the year a true and correct view ended on that date, are properly drawn of the Surplus for of the state of the Corporation's the year then ended, in accordance with generally accepted accounting principles.
affairs at the 31st December, 1965, and up so as to give respectively 1.We have bee :n unable to confirm either the amount or the terms of the loan indebt­ edness to the Government of Guyana amounting to $300,000.

2.Because of the lack of proper documentation the Cor .. w� have been u.na.ble.

to veriify poratton's legal title to the Freehold Property as set· out in the Balance Sheet.

PANNELL FITZPATIHCK GRAHAM & CHARTERED ACCOUNTANTS AUDITORS GUYANA MARKETING CORPORATION.
DEPARa.1MENTAL PROCESSING ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER, 1965.

HAM & BAOON FACTORY PROCESSING FACTORY MILK PASTEURISATION PLANT Raw Materials Stocks at 1st January 1965 Purchases Transferred from Finished Products Leiss to Finished Transferred Cost of Raw Materials So,ld Shrinkage Stoc�s a.t 31st December, 1965.
Products Raw Materials Used Add: Finished Processing Expenses Shrinkage Products used in P:rodJucition Cost of Processing Trading and Profit and Loss Account Transf e:rred to $ 4,513.09 93,496.58 $ 98,009.67.

$ 34,860.74 158,496.77 5,278.42 $ 198,635.93 $ 1,562.86 451,293.40 ' 8,1569.02 $ 8,569.02 $ 144,540.88 $ 19,997.67 $ 4,9'46.53 110,621.45 rn,770.61 15,202.29 $ 452.856.26 $ 54,095.05 $ 432;858.59 50,061.21 $ 43,313.21 33,367.86 13,770.61 90,451.68 141.327.79 S 139,501.8 6 $1.44,546.

73 $ 574,186.38