H.—2l

28

Agent-General much good would result. Such a step would be useful as a check on the refrigerating engineer's log, and would satisfy many shippers, who are inclined to be too ready to attribute deterioration of dairy-produce to a want of attention and vigilance on the part of the shipping companies. Conclusion. In concluding this report, I am pleased to be able to state that our shipments of produce have arrived in England in much better condition during the past season, and complaints as to quantity, quality, and uniformity have been much less numerous. Although the bottom, to a great extent, dropped out of the butter-market, due to mild weather and heavy stocks, our best " factory" has met with a ready and remunerative sale, and the trade in this class of goods seems to be capable of an enormous extension. If New Zealand dairy-produce is ever to obtain a recognised position in the markets of Great Britain, it is obvious that the elimination of farmers' and grocers' blended butters from our export is a consummation greatly to be desired. It is becoming more and more clear to settlers that factory butter and cheese realise very much higher prices than that made by small farmers, in consequence of better buildings, plant, and skill being employed in the manufacture. Experience is teaching all interested that the co-operative system is the only satisfactory one upon which to work, and I am pleased to note that many of its strongest opponents are now favouring it. This, then, is a desirable advance, for it is upon the establishment of the factory-system that the success of the industry depends, and by it that we can insure the right quality of produce being sent, so as to bring steady and paying prices. In proof of this, I may state that, having examined a large proportion of our factory butter and factory cheese, I find it of as fine quality as it is possible to wish for; and it is not to be thought for a moment that farmers' butter and cheese of various qualities, quantities, and marks can be compared with the fine, regular productions of factories, and, accordingly, they realise lower prices. I am doing my very best in supplying every possible information, by correspondence and personal visits, to further the adoption of the co-operative factory-system, which cannot but lead to great financial benefit to the settlers. Mr. W. W. Crawford, Assistant Dairy-Instructor, has devoted his labours principally to Canterbury, where he has been doing useful work in connection with the establishment of the Central Dairy Factory, and attached creameries. He was also employed for some time on Banks Peninsula, and in the Timaru District, South Canterbury. A report of his work is attached. Mr. Newman Andersen severed his connection with the department early in this year. I have written him to furnish a short report concerning his labours while Assistant Dairy-Instructor. This will be furnished you as soon as it comes to hand. I have, &c, John Sawees.

PAPEE BEAD BY ME. J. SAWEES AT THE MEETING OP CHEESE- AND BUTTER-MAKERS HELD AT DUNEDIN ON 17th AUGUST, 1892. Peactical Cheese-making. Me. J. Sawees, the Government Dairy Expert, read a lengthy paper on "Practical Cheese-making," but, as it was not completed, it was resolved that he be asked to complete it for publication. When the resolution had been carried, Mr. Sawers said he would be most happy to finish the paper, and it would be distributed amongst the dairy factories in due course. It was the intention of the Department of Agriculture this year to publish pamphlets on various subjects dealing with the dairy industry, and the first one would deal with practical cheese-making. The paper was' as follows : Mr. Chairman and Gentlemen, —Allow me at the outset, and before starting to read this paper, to congratulate yourself and the other members of the Committee of the Dairy Association on having taken such an important step as convening a meeting of those so directly interested, and on whom the success of the dairying industry so much depends —I refer to the makers. Allow me to express my delight at seeing so many factory-managers present, and to express a hope that each and every one present will do his share to make this gathering a fruitful one. We are gathered together in the interests of an important industry to consider in a friendly way all the details which enter into its successful operation, and if possible to point out the mistakes which often cut short our profits. Gentlemen, I realise the importance of gatherings of this kind, and I trust it is only the first of many profitable gatherings we shall have together. In all branches of business men co-operate and combine for their self-protection and self-interest, and that, too, although their interests are in very many cases competitive—yes, I might say, antagonistic. But although the Committee has asked and wish the makers and factory-managers to co-operate, they do not ask them to combine in the true sense of the word. There is a great difference between co-operation and the commercial combinations we see at work in many parts to-day. In the combination there is always a tendency towards commercial coercion, while co-operation means giving more to the world by taking more from it. When one learns to make a better article in the shape of dairy produce than another, by our meeting in this way others will be induced to follow; and thus we create demand, and increase the price through the production of a better article. Thus, I say, factorymen would serve their employers and the country well by more thorough co-operation. Our interests on this side are in no way antagonistic, neither are they individually competitive, although collectively they are, or ought to be. Gentlemen, a gathering like this is of the utmost importance to our dairy interests. It is replete with interest to us all, and one from which we can gain much and lose nothing. I trust no individual or local jealousies will be allowed to interfere with the successful issue of this meeting, but that we will all render it our best assistance. It is with much pleasure, and yet with no little embarrassment, that I appear here. lam pleased because I can fully recognise the value of this