H.—29.

Importation of Stock. The following stock were imported during the year: Cattle, 21; sheep, 203; pigs, 1; horses, 7 (not including the movement of thoroughbreds between here and Australia). Of the above animals the following were placed in quarantine for the respective periods required: Cattle, 21; pigs, 1Exportation of Stock. During the year the following animals were exported: Cattle, 22; sheep, 5,217; pigs, 3; horses, 31. The horse item includes the movement of thoroughbred horses to Australia. Dairy Inspection. The supervision of the production of milk from registered dairy premises for townsupply purposes has been maintained. Labour shortage on many farms is a factor of serious importance in maintaining a high standard of production on the farm. The supervision of the milk-supply to Air Force and Army camps has also been undertaken in several centres at the request of the Marketing Department. The dry autumn season in the Auckland district reduced production from the herds considerably, and other sources of supply had to be found to meet the emergency. In other districts it is apparent that some difficulty is going to be experienced in maintaining the normal winter milk supply, especially to towns in the vicinity of which military and other camps are established. Poultry. Mr. P. C. Bobby, Superintendent of Poultry Husbandry, comments as follows:- - " The poultry industry has been seriously affected by the war situation. Shortage of labour, difficulties in obtaining food-supplies, and increased cost of production have been among the major difficulties. A number of poultry-farms have been closed down, due to the owners being called for military service, while many commercial poultry-keepers, through labour shortage, have reduced the number of birds kept. This has led to an acute shortage of eggs, since the demand by the public and military forces has increased rather than decreased. Egg-prices have been controlled, and have remained substantially the same as for 1939, despite the rising cost of production." Wool. Mr. J. P. E. Duncan, Wool Supervisor, submits the following:— " There has been no marked change in the state of the wool industry. The Appraisal Scheme continues to function smoothly and efficiently, and farmers and brokers are reasonably well satisfied. The farmer is receiving what is in effect a guaranteed price for his wool for the duration of the war and one season thereafter, and he is in the singularly fortunate position that he will be paid for his clip whether it is shipped or not. "Although New Zealand's total production of wool for the 1940~41 season was an all-time record of 331,500,0001b., the production for last season may well equal or even excecd this figure if present indications are fulfilled. The wool was longer and better grown. Many clips were also coarser in quality, and sometimes heavier in condition, due no doubt to the favourable season with abundant feed, and style and character were good. Preparation of the clip was not up to the previous year's standard, in spite of the marked premium for well-skirted wools. The reason was probably increasing labour difficulties." Rabbit Nuisance. In the South Island climatic conditions favoured an increase in the rabbit pest, which, added to the prevailing shortage of labour, increased difficulties in control. Nevertheless, the subsidy on wages provided by the National Service Department (Employment Division) for men employed on rabbit-destruction during the late spring and summer greatly assisted in rabbit-destruction work during this important period. The position in the Otago district is giving some concern, labour difficulties and shortage of rabbit poisons contributing to the spread of the pest. Ways and means of dealing with the position are under consideration. Noxious Weeds. Government assistance to local bodies in controlling noxious weeds, particularly ragwort, was continued, and, in spite of labour difficulties and definite shortage of chemical weed-killers, good work was done in maintaining control. Allocations amounting to £36,650 to cover wages and material costs were made. After deducting recoveries from farmers the net cost was £23,988. As a substitute for sodium chlorate and atlacide, coarse salt has been used in several districts with excellent results.

ANIMAL RESEARCH DIVISION. REPORT OP J. P. PILMER, DIRECTOR. The work of the Animal Research Division has had to be considerably curtailed due to staff shortage. Part of the time of some of our staff is already being devoted to problems arising from the war, which are not always directly associated with animal research, and it is certain that this will increase. It is hoped, however, that it will be possible to continue work on some of the projects of greatest economic importance to the animal industries of New Zealand. Diagnostic Work at Wallaceville. The diagnostic section of the Animal Research Station, Wallaceville, continues to render valuable service, and during the year a large number of specimens have been submitted by officers of the Live-stock Division for pathological, bacteriological, and chemical examination.

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