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it can be made. This will only be fully attained after more attention is given to the breed of dairycattle, to the best cultivated grasses, to proper shelter and housing in winter, and to uniformity in the principles and practice of making up. The latter is probably the most needful of attention at present, for it is notorious that very inferior stuff, due to bad handling, is frequently in the local markets. With the object of raising the general standard of quality, an expert is at present temporarily employed in visiting the dairy-factories, to advise and give the results of his observation and experience as to the most approved methods of dairy-management. The Agent-General is to select and send out a dairy expert from Home, who will carry on this work. The dairy industry is essentially the hope of the settler holding 100 acres to 200 acres ; and that rests on the development of a large export to London. This will not be secured without well-directed effort, for the Homo farmer, discouraged by the long-continued low price of grain, is giving more attention to dairying. Dairy-schools are now being established even in districts long famous for the production of butter and cheese, so that the young dairymen and maids may learn the best systems of manufacture. In Victoria and New South Wales recently very great attention has been given, to dairy-management, in employing LaveH's cream-separators, the erection of cool chambers, and the testing of the London market by sample consignments of high quality. The Department of Agriculture in Victoria has just engaged one of the colonists who has been conspicuously successful as a dairyman to visit the districts of the colony with a travelling dairy plant, and teach the settlers by explanation and practical example the way to prepare a good marketable article. Now Zealand lias so many natural advantages in her favour in this industry that no competition need be feared from any quarter if attention only be given to the best methods which experience approves. Departmental. There is not much calling for special notice. The account-keeping and correspondence, and references arising in connection with the working of the settlement conditions, have, as usual, demanded a large share of the time and attention of the head and district offices. The Land and Survey Offices have been more closely amalgamated than before, by combining duties. This has led, I regret, to the retirement of several valuable officers of long standing and faithful service. In conclusion I 'have again the pleasure, as in former years, to acknowledge the able and cordial co-operation of Mr. Eliott and the other officers of the department. J. McKeeeow.