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The wine industry has greatly expanded since 1938, in which year the gallonage of wine produced was 233,500 (including an indeterminate amount of fruit wine) and the area in vineyards 461 acres. The 1949 wine-production figure is about treble that of 1938, an increase of 461,500 gallons. With annual importations of wine amounting to more than 200,000 gallons, of which 80 per cent, comes from Australia, a stage approaching saturation point for the existing Dominion market appears to have been reached. Prices paid for local wines in bulk particularly have fallen appreciably in the past two years. Winemakers report accumulated stocks and difficult trading conditions. The estimated consumption of wine per head of population is about half a gallon. In Australia the consumption per head is more than three times this figure and in other winemaking countries the figures are much higher. It would appear that there is still a big latent market for wine in the Dominion which could be developed by an over-all improvement in the quality of New Zealand wines, a lowering of cost to the public, and active sales-promotion methods by the industry. It is regrettable that the lighter beverage wines which the country is better adapted to produce do not appeal to the palate of the general public. During the past year many vignerons have taken advantage of the technical guidance provided by the Department through the Viticulturist and many improvements in operating efficiency and wine quality have been noted. Numerous wine samples were submitted to the Viticulturist for analysis, microscopic examination, and report. To meet the competitive trading position a number of smaller winemakers have formed a co-operative selling organization in Auckland. Wines will be selected for quality, blended to maintain a uniform standard, and sold under the co-operative's label. Selling and advertising costs and profits will be shared. Such or similar organizations to stabilize the industry seem to be a move in the right direction. In South Africa the wine industry is mostly organized on a co-operative basis. Diseases and Pests. —In the vineyards the most troublesome fungous diseases have been downy mildew, powdery mildew, and black sppt. Frequent spraying has been necessary to keep these diseases under control. The depredations of birds on the grapes is still one of the biggest problems. Shooting, the only satisfactory counter-measure at present, is a costly item in vineyard management. The use of D.D.T. has become general in the control of mealy bugs in glasshouse vineries and thrips in vineyards. A number of inspections have been made of vineyards damaged by 2, 4-D hormone weed-killing spray. Grape-vines are very susceptible to damage by this chemical. European wasps (Vespa germanica) have been observed in a number of vineyards around the Auckland and Te Kauwhata districts, but not in sufficient numbers to do any appreciable damage. Growers are concerned about these wasps as a potential menace to their grape crops. During 1949 some spraying trials were carried out on the Station and five new hybrid grape-vine varieties were imported from the Agricultural Experiment Station of the University of California at Davis. Of these varieties only three survived —Emerald Riesling, a white beverage-wine variety ; Ruby Calimet, a red beverage-wine variety ; and Delight, a white seedless table variety. Several lots of experimental wine were laid down to determine the winemaking qualities of certain grape varieties. As at 31st March, 1950, the area of the station was 121 acres, subdivided as follows : Acres. Established vines .. .. .. .. .. 32 Young vines .. .. .. .. 14 Nursery .. .. .. .. .. 1 Fallow land .. .... .. .. .. 32 Headlands, buildings, residences, roadways, &c. .. 42

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