H.—44.

Fkozen Okaykish-tails. This is a new industry that has made considerable progress during the year, and shows signs of developing to important dimensions in the near future The principal difficulty encountered is in obtaining 0001-chamber space in the overseas vessels. Fish is not allowed to be carried in the same chambers with meal or other perishable products, for fear of tainting resulting. Musi of the vessels in the Home trade are qoI equipped with chambers small enough to be completely filled with the cased frozen crayfish-tails, so that the ship's provision chambers are often used for this purpose. As these chambers have to be entered frequently during the voyage, the temperature cannot be held so constant as in cold chambers devoted to refrigerated cargo. This trade was started by the enterprise of one or two Dunedin fish-merchants, who met with considerable difficulties and made some losses before the best method of dealing with the fish was ascertained through practical experience. The market is London, and has been supplied for a number of years almost entirely by South Africa. This Department has gone to considerable trouble ami some expense to investigate the market, and obtain all the available information as to best methods of preparing, freezing, and packing the tails, and has through the High Commissioner for New Zealand in London kept shippers aware of the capacity of the market, when to ship and when to hold oil, &c. There has been a steadv increase in quantity of shipments, and the trade has extended from Dunedin, to Bluff, Lvttelton, and Auckland, and exports are expected to be made from Wellington early in 1931. The difficulty in regard to filling a cold chamber in the overseas vessels will, it is thought, then be a thing of the past. EGG-EXPORT INDUSTRY. Elfforts have been made by the Department during the past year, in conjunction with the High Commissioner's office in London and the New Zealand Trade Commissioner in Toronto, to develop the markets for New Zealand eggs in the United Kingdom and in Canada. Eeports upon market prospects have been regularly received, and have been passed on to egg-exporting interests in the Dominion, as also has information concerning names of suitable buyers and brokers overseas who are in a position to handle New Zealand eggs satisfactorily. A full report upon the possibilities of the market in the United Kingdom is awaited from the High Commissioner at the present time, and this will lie made available to those interested as soon as it comes to hand. Exports of eggs to the United Kingdom .show a steady increase during the past three years, and it is anticipated that the trade will show further development in the near future. The figures of export to the United Kingdom are as follows :— Eggs in shell, calendar year — Doz. £ 1930 .. .. .. .. .. .. 24,240 1,344 1931 .. .. .. .. .. .. 111,480 5,646 1932 .. .. .. .. .. .. 160,212 7,574 So far as Canada concerned, the statistics for the past three years show that our export trade in eggs has been nil. The Trade Commissioner at Toronto is of the opinion that Canada may be regarded as a substantial potential customer for New Zealand eggs during the Canadian off season. Exporters in the Dominion have been placed in touch with certain Canadian interests, and an attempt will be made to open up a market during the coming season. It is hoped to demonstrate then that New Zealand can supply quality eggs to the Canadian market, and give such satisfactory service as will ensure permanent seasonal connection in the future. Under the New Zealand-Canada trade treaty shelled eggs are admitted into Canada free of duty during the months of December, January, and February. This is an important concession, as the duties applicable to other countries are British preferential, 2 cents per dozen ; intermediate tariff, 5 cents per dozen ; general tariff, 10 cents per dozen. The British preferential rate applies to New Zealand during the other months of the year. TOBACCO INDUSTRY. This industry continues to flourish in the Nelson District, where a considerably larger area was under tobacco during the \'j:\2 .';:! season. The two old-established tobacco manufacturing concerns in the Dominion drew practically the whole of their requirement of W« Zealand leaf from this district, and purchased a larger quantity than in any previous year. This points to the fact that New-Zealand-grown tobacco is becoming more popular with smokers, and that the demand for the well-known brands is steadily increasing. The position of the plantation companies, which are all located in the Auckland District, continues to be difficult, as no overseas market has been found for leaf tobacco, and their only outlet is confined to two manufacturing companies in Auckland. Those companies air as vet only able to deal with a comparatively small portion of the available leaf. and. moreover, have both experienced difficulties in connection with their organization and finance. At the close of the financial year some of these difficulties were, however, passing, and there were indications that some at least of their troubles would not recur. Their sales of manufactured tobacco in which Auckland-grown leal was blended, and of tobacco made entirely from local leaf are increasing, and the outlook for the future is distinctly brighter.

18