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Instructor as a friend and helper, rather than an inspector, is growing to such an extent that dairyfarmers now frequently send for the officer. The farm-dairy instruction work in conjunction with the efficient grading of cream and milk, with differential payments according to quality, is a very effective combination in the interests of improved quality of milk and cream. 1 expect the farm-dairy instruction work will, if given the necessary encouragement, become general throughout New Zealand. Inspection in United Kingdom. Mr. W. Wright, Inspector of New Zealand Dairy-products in London, who is attached to the' High Commissioner's Office, has elone good service to the industry since lie again took up the dutie;s. Many reports have been received from him, and passed on to the dairy companies concerned. General elefects have been pointed out, and these are receiving attentiem. It is believed that, in connection with some of the majeir defeot's, remedial measures can and will be taken at this end. A number of Mr. Wright's special reports have: contained matter which is calculated to be of special assistance to Dairy instructors and Graders, anel these have been passed on to such officers for their guidance. Testing op Purebred Dairy Cows. The highest number of purebred cows on certificate-of-recorei test for any one month of the; past season was 1,185, as against 1,061, for the previous season, or an increase eif 11-7 per cent. In the 1923-24 season the number of ceiws per breeder in November was 3-56, and in the 1922-23 season for January was 3-83, these being the highest months for e;aoh financial ye:ar. Many evutstanding records have been made, and the yield of the; average cow has shown a satisfactory increase—an exceptionally dry year has of course; to be considered in this connection. There have been a large number of purebredstock sales throughout the country, and it is pleasing to see many sires with butterfat backing purchased by owners of grade anel ordinary herds —this be;ing one of the primary objects of the oertifioate-of-record testing of purebred cows. Association Testing op Ordinary Herd Cows. For the season under review statistics collected indicate that 146,637 cows have been tested under this system, as oompared with about 85,000 for the previous season. The increase represents 73 per cent., and this year's total is some 12 per cent, of New Zealand's total dairy cows in milk and dry. The percentage for the previous season was 7-5 per cent. Of the 146,637 ceiws which have been under test, officers of the Dairy Division have controlled the testing of 37,242 cows. It must not be overlooked!, of course, that the Dominion's dairy-ee>w population is increasing annually, and that the number of cows tested consequently should rise. At the same time the: rapidly increasing percentage of cows tested to cows in the country shows that this branch of our work is progressing satisfactorily. Stafp. The volume of elairy-produce now being manufactured has entailed increasing work on the members eif the staff, which is still numerically too small. All have: given good and loyal service:. I also desire to recognize: the able and valued assistance rendered by Mr. W. E. Gwillim, Assistant Director, in the direction of the general work of the Division. HORTICULTURE DIVISION. Mr. J. A. Campbell, Director of the Horticulture Division, and his staff have gone through a strenuous year and have throughout done good work. The fruit industry has needed special attention, particularly in connection with the grading and other arrangements necessitated by the large exports made during the year, and the excellent movement started in the Nelson District for the better organization of local marketing conditions. One of the senior officers of the Division has been sent to the Argentine for the purpose of keeping in touch with the condition and the marketing of fruit exported to that country, and of gaining information regarding marketing-conditions, which is calculated, to assist in making the South. American market a good one for New Zealand fruitgrowers. There should be great possibilities for a successful export trade in fruit to South America, and his report will be awaited with interest. Following is the Director's report: — i The Fruitgrowing Industry. The fruitgrowing industry, in common with other of our primary industries, has not yet emerged from the critical stage of its existence resulting from war and post-war disturbances, though it is satisfactory to report that the outleiok is brighter. The establishment of a Fruit Export Advisory Committee, the function of which is to co-ordinate as far as possible the: fruit-export trade of the Dominion, and the inauguration of the voluntary fruit-control scheme which has been adopted by the bulk of the fruitgrowers in the Nelson Province, together .with the sale of fruit on the local market under the " sticker " system, brought into operation by the Department in co-operation with the 1 auctioneers, should materially assist in placing the industry on a more satisfactory basis. There has been a noticeable improvement in the quality of the fruit coming forward em the local markets during the year.