H.—29

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reached. Nitrogenous fertilizers are of special significance in this respect, and with their recent great lowering of price seem likely to play an important part in the future of top-dressing programmes. The Department during the past year has carried out a great deal of experimental work with nitrogenous fertilizers, but it will require the accumulation of several years' data before their exact place in New Zealand top-dressing practice can be accurately defined. One point, however, is certain, and that is that nitrogen will largely increase production on a payable basis on the high-production farm or the one brought up to high production by adequate phosphating, but on the low-production farm it is of comparatively little moment. The use of potash, again—provided it gives a response — on high-production farms appears sound. An expansion in the liming of grassland is also more than warranted —on the one hand to increase phosphate efficiency on phosphate-responsive soils, and on the other to make top-dressing efficient on soils where phosphate alone gives poor results both from the grass-growth and animal-health standpoints. The future so far as capacity to increase the grass crop by top-dressing is concerned is bright enough, but the successful utilization of this enormously increased grass crop bristles with problems and difficulties. It is clear that stock-management practice, satisfactory enough as it has been in the past, will have to be thoroughly modified and adjusted to the changing conditions largely being brought about by top-dressing. The adequate conversion of the grass crop into animal products, and the avoidance of excessive waste of good grass, together with the important point of maintaining the health and reproductivity of grazing-animals under conditions of far closer stocking than in the past, is-essential if the real production increase that can be brought about by general top-dressing is to be reaped by the New Zealand grassland-farmer. A close study of the whole of the problems involved in what may be termed modern grassland live-stock management is demanded, and until that has been done, and management methods attuned to the new conditions are in operation, top-dressing development will be in danger of serious retardation, with the possibility of monetary loss resulting from inability to efficiently utilize the excess feed, and consequent inadequate returns from the money and labour expended in top-dressing. Dairying. As will be noted from the report of the Acting Director of the Dairy Division, the dairy industry has experienced a record season as regards production. This, however, can be regarded as only a step towards a further increase, having regard to the gradually improving methods of dairy-farmers and the better understanding of the utilization of fertilizer top-dressings to the best advantage, together with the improvements resulting from herd-testing. It is satisfactory to note that the" good standard of quality attained by our butter has been maintained. As regards cheese, however, there is an undoubted necessity for improvement in more than one direction, though the most outstanding feature lies in the condition known as openness. This is the subject of intensive research at the Dairy Institute at Massey College, and, apart from this, the instructional staff of the Department has been devoting consistent attention to the manufacturing side in the hope of assisting towards overcoming the trouble, co-operating in this with the research workers. The instructional work being done at Massey College and the Dairy Institute, as well as the research work, is 011 good lines, and it should prove of benefit to the industry and of aid towards its advancement. An important feature of the year lies in the decision of a large section of the industry to adopt a system of standardizing the butterfat content of cheese at factories where the milk-supply as a whole possesses a high butterfat content. The standard set is a high one, and it is satisfactory to note, at the time of writing, that cheese manufactured under this system is selling in the overseas market at prices equal to those ruling for our full-cream cheese. In regard to casein, the output was somewhat less than in the previous year, but the quality continued good. A charge of l|d. per hundredweight is now made for grading this article. The system of cream-grading at factories has worked well on the whole, and is of undoubted value as an aid to maintaining a high standard of quality in the butter manufactured. All cream graders are certificated, and their work is under regular supervision by the Instructors of the Division. Suggestions have been made that the Department should take over the control and direction of this service, and also the testing of milk and cream at factories. This is still a matter for discussion by the industry as a whole, and no recommendation regarding it can be made at present. The Dairy Division's two special officers have carried out considerable check testing at dairy factories, and valuable work has been done in the direction of seeing that the regulations pertaining to the testing and grading of milk and cream have been complied with.