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of the dairy factories at present working for a term of, say, three years, and, if not already done, to fit it up with suitable plant for the manufacture of both butter and cheese. Any plant put in by the Government could become the property of the company or proprietor at the end of the lease, by mutual agreement as to price, or the Government could remove the same. Pock Industry. Settlers supporting factories neglect one of the most valuable adjuncts to their business when they do not avail themselves of the pig as a means of assisting them to make money from the byeproducts of the factory—whey, skim-milk, and buttermilk. Speaking generally, the attitude of farmers in the colony is against pigs, and they seem to regard " the dead pig as the only good pig." I feel sanguine that this view is directly opposed to the best pecuniary interests of dairymen. Any farmer milking cows for factory purposes should be able to fatten two pigs for every milch cow he keeps. Whey, skim-milk, and buttermilk are, if properly treated at the factory, and. fed to pigs in a judicious manner, very valuable feed. The refuse at the factories is not at the present time utilised to anything like the best advantage. I believe that the farmers will soon find that the addition of this little branch to their business will bring in more money than they expect. In fact, as yet the pig is an unrecognised and undervalued source of wealth to our farmers, or any one who seeks to give them a fair amount of attention. Hitherto the market outlet for pork has been spasmodic, irregular, and of a limited nature, but the introduction of the mess-pork industry at an early date promises to open up an unlimited market, and prove a most valuable appendage to our dairy work. With a regular and unlimited market, coupled with a fair return, the pork industry will assume large proportions. The importance of the pig, with the opening of the mess-pork industry on such a large scale as predicted, can hardly be over-estimated. Cool-Stoeage and Teansit. The erection of cool-storage at the principal ports of shipment is a matter of primary consideration, and one on which the success of our export trade very largely depends. This question is one of the most important connected with the trade; and as it admits of no two opinions, I will not at this time argue the matter at great length. The erection is simply an absolute necessity, if we are to succeed in our butter-trade with Great Britain. The sooner butter is put in a cool-chamber, having a mean temperature of about 30° Fahr., after it it is made, the better. If butter is not put into a cool-chamber soon after it is made (the sooner the better) it will change from fresh to stale; and shippers can only rely on good luck or a strong market to in any way meet their expectations in price. Until we get cool-chambers at the principal ports, and these universally utilised, we shall never be able to land high-class butter in England—it is simply impossible. We must arrest the process of decay in butter by means of cold. I trust something may be done in this matter for the ensuing season, so that we may have a chance to protect and maintain the quality of our butter production. To some extent the transit from the place where the butter and cheese is made, to the coolstores at the ports, also requires attention. Once in the cool-stores, or in the chambers of the Direct steamers, there is little risk attending transport to Great Britain. From strict personal observation, I am in a position to say that the arrival of inferior butter in England is in a great measure owing to the treatment it is subjected to before it reaches the freezing-chambers of the Direct steamers. Any one attending at the port of shipment when dairy-produce is being put on board, must be convinced that much loss is occasioned through lack of cool-storage. It is true that butter suffers more than cheese ; much benefit, however, would accrue to shippers of cheese if storage at a suitable temperature, say 55° Fahr., was available ; so I venture to urge the need of providing for the storage of cheese as well as butter. During the past season I have examined tons of cheese, when being received on board, out of warehouses and Harbour Board sheds, where the temperature had been so high that the cheese was unduly heated; so much so that the butter-fat was becoming liberated from the body of the cheese. Needless to say this is very bad for the product; once the butter-fat becomes liberated it tends to become rancid, and so affects the flavour of the goods. It would be well for me to remark that the temperatures which would be required to be maintained in these chambers would be 35° Fahr. for butter, and 50° Fahr. for cheese. A variation of 5° Fahr., one way or the other, would make no appreciable difference. Another reason why cool-storage is required at the chief shipping-ports, and the needs of producers thus provided for, arises from the fact that often butter and cheese, through the exigences of shipping, arrive at the port before the steamer is ready. Until cool-storage is provided, the want of it will constitute one of the very weak spots in the conduct of the dairying industry. To carry out this suggestion requires the erection of suitably-constructed cool-stores at Auckland, New Plymouth, Wellington, Port Chalmers, and possibly Invercargill. Lyttelton is already provided for. The erection of such stores would be best in the sphere of the Bailway Department. It seems a pity that some of the local steamers are not fitted with special appliances and chambers for the coastal traffic of dairy-produce, as the products are in much danger of being heated. If cool-chambers were erected at the ports above mentioned, I believe much more of the produce would go by rail rather than risk heating in coastal vessels. Little or no fault can be found with the improved railway facilities for the carriage of dairy-produce. From a perusal of a letter to Mr. Newton King, New Plymouth, embodied in this report, you will gather my view concerning the temperature at which dairy-produce should be carried on board the Home steamers. The regulating of the temperature is important; and if self - registering thermometers could be placed in every ship, set and sealed by some competent official at the port of departure, and the record removed on arrival by some responsible person acting under th.9