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such a system., but it is considered that a properly organized service on a self-supporting basis could be established and maintained through the medium of dairy factories. Thus, in the case of a large factory whose suppliers own 8,000 cows or upwards, if the whole of the suppliers would combine in forming a veterinary association and each provide a small sum —say, at the rate of 2s. 6d. per cow —the amount derived from 8,000 cows would be sufficient to pay the salary and travelling-expenses of a good veterinarian, whose whole-time services would be available to the suppliers without extra charge. Or, alternatively, the payment could be made on a per-pound of butterfat basis. Arrangements could also be made for medicines to be supplied on the veterinarian's prescriptions at cost price, plus expenses of preparation, handling, &c. A scheme such as this, properly organized and properly managed, would be of great benefit to dairy-farmers and of great economic value to the Dominion. The Government could well assist in bringing about the establishment of the scheme by selecting veterinary surgeons of the right type, and in other ways which would be helpful in placing it upon sound working lines. Dairying. The value of dairy-produce exported has attained to a very high proportion of the value of New Zealand's total exports. For the year under review the value of dairy-produce exports represented £18,842,994. out of a total export of £49,045,817, or 38-4 per cent. Pasturage has been more plentiful than usual, due to a well-distributed rainfall throughout the year, and to the cumulative effect of top-dressing with artificial manures. The plentiful supply of grass, together with an increase in the number of dairy cows, has resulted in a milk-production never excelled for volume in the Dominion. The general unfavourable economic conditions, and larger supplies of butter from a number of countries, have prevented the New Zealand dairyman from increasing his income. The larger production will, however, be helpful in offsetting the shortage due to fall in prices, although the net balance to the Dominion shows a reduction of some two millions sterling. The quality of New Zealand batter has been maintained or improved, and, despite bad market-ing-conditions, has been reported upon as favourably as usual. Cheese quality has been less favourably reported upon, due to at least three factors—namely, (a) unfavourable market conditions, (b) the extensive diversion in the North Island from the manufacture of full-cream cheese, and (c) the endeavour in some cases to ensure yield rather than high quality. The need for improvement in cheese quality is one of very great importance, and this is being more generally recognized. Since his return from Britain in October last the Director of the Dairy Division has brought before the cheese-producers in the various cheese districts the advisability of considering ways and means of providing a premium for qualities as indicated by the varying gradepoints. There is some evidence that this advice is receiving serious consideration in some districts, and, could the principle be adopted in the whole or parts of the Dominion, there are good reasons to expect improvement in quality. Farm dairy instruction on a voluntary basis has been well established in many dairying districts, and there has been an ever-increasing demand that the service should be placed on a Dominion basis. Resolutions to this effect were carried at the last annual meetings of the South Island Dairy Association and the National Dairy Association of the North Island. An amendment to the Dairy Industry Act is necessary before effect can be given to these resolutions. The inspection of New Zealand butter and cheese at various ports, warehouses, and retail establishments in Britain has been continued by Messrs. Wright and Ross in a capable manner. Mr. Ross has been stationed in London for some five years and is shortly returning to New Zealand. Mr. F. H. Taylor, Dairy Instructor, Invercargill, is being transferred to London to undertake the duties Mr. Ross is relinquishing. The work of dairy-herd testing for yield is progressing satisfactorily, and about 19 per cent, ot the Dominion's dairy cows are being so tested. This compares more than favourably with the position in most other countries devoted largely to dairying. During the year Mr. Singleton, Director of the Dairy Division, visited the United Kingdom, Denmark, Holland, Canada, and the United States, and gained much valuable information, which has since been placed at the disposal of the dairy industry here. The Department is co-operating fully with the Dairy Research Institute at Palmerston North, where extensive research and investigation work is being carried out. The establishment of this Institute, together with the smaller laboratories at Hamilton and Hawera, the work of all being co-ordinated as far as is possible by the Department of Scientific and Industrial Research, should