H.—29

34

instances had groat difficulty in obtaining these packages from the boxmakers, who in their turn could not procure the timber required from the, sawmillers. Orders for white-pine placed with several of the sawmillers- some of whom, were shipping largo quantities to Australia were refused ; consequently much delay occurred in procuring supplies. This resulted in having recourse to the use of unseasoned timber to a considerable extent, which is, of course, very harmful to the contents of such packages. At a conference of sawmillers, boxmakers, and representatives of dairy companies and freezing companies recently held in Wellington in conjunction with the National rJfficiency Board the whole question of retaining sufficient supply of white-pine to meet the needs of users in New Zealand was discussed at length, and the respective views of the different parties concerned duly emphasized. It is understood that certain recommendations have been made to the Government on the matter, but the writer is unable to say what the outcome will be. As regards the white-pine forests remaining in the hands of the Crown, it is now made a condition of sale that none of the timber will be available for export, and shall be reserved for the purpose of the dairy industry. This arrangement, however, does not overcome the present shortage of whitopine, and it is of the utmost importance that the requirements of New Zealand be supplied before an export of the balance be allowed. There does not appear to be any'sound reason why exporters" of this valuable timber should not contribute their quota for local use at equal market rates. Casein. A. considerable amount of progress has been made for the year with regard to the development of the casein industry. In all some 341. tons of lactic-acid casein and 49 tons of rennet casein have been prepared for export, in addition to this quantity some 20 tons of casein were saved from buttermilk, the increase in total production representing 100 tons over the figures of last season. During the year the instructors in charge of this branch of the work have succeeded in working out a method whereby the casein from buttermilk can be recovered at a small expense. After repeated experiments extending over a considerable time it was found that an article of good quality can be turned out. Tliis new system of saving the casein contained in buttermilk has proved so successful that it was considered advisable to protect it by applying for patent rights, but arrangements have been*made whereby the process will be at the disposal of dairy companies free from any royalty whatever. Another advance has been made with regard to the makin ■ of rennet casein, by means of which the curd is treated in such a way as to prevent any discoloration taking place in the finished product, a fault which formed the basis of several complaints from purchasers of rennet casein from New Zealand last year. The only drawback to the extension of the casein industry at present is the shortage of shippingspace ; but when once conditions again become normal it is expectedfthat a considerable quantity of this material will be exported from New Zealand, for which there seems to be a considerable demand in Great Britain. Dried Mit.k. The drying of milk for the preparation of a food for infants and invalids, which is packed under the name of " glaxo," has shown a phenomenal development 'during the year. Four large factories dealing with many thousands of gallons of milk daily have been in operation, and it is believed the production of "glaxo " for the year will exceed 2,500 tons. Large sums of money are involved in the establishment of these works. The price realized for this product, the bulk of which has been sold to the Imperial Government, has enabled a price to be paid for the milk which , is purchased on the, basis of its butter-fat content - -considerably above that paid at the cheese and butter factories. Consequently many dairyfarmers have given this branch of the industry their liberal support, and have also agreed to continue supplying milk for this purpose for a period of years under certain specified conditions. The milk-drying factories in the Waikato district are carried on by a joint arrangement as between the farmers' companies and the proprietors of the " glaxo " preparations. The establishment of additional factories for the drying of milk is proposed. 01' course, it is impossible to state to what extent this particular branch of the industry will ultimately develop, as this will depend altogether upon the demand for milk-powder in whatever form it may be required. For the time being there is some apprehension on the part of directors of co-operative dairy companies manufacturing cheese and butter as to the effect of the competition for supplies of milk between the milk-drying factories and. (heir own companies, their contention being that some of the latter may have to close or be so weakened by the withdrawal of support in milk-supply that it will not pay to carry on. It would seem, however, that the position in this respect will be automatically regulated by the prices which can be paid for the raw material used for the various products manufactured. An amalgamation of the various interests at stake would appear to be worthy, of consideration. Dairy Instruction. The scope of this work carried on each year includes instruction in almost every branch of factory dairying, and extends to the dairy farms in so far as the production, care, and handling of milk and cream are concerned. It also takes in the supervision of the sanitary state of the dairy premises and utensils used by the owners thereof. Although it is admitted that the amount of instruction directly imparted to the farmers in this connection has been limited owing to the comparatively small number of men employed! in the i