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Local Markets for Fruit and Vegetables. Close attention lias been given to the inspection of locally-grown fruit and vegetables at the main marketing centres. The Inspectors report that a continued improvement is noticeable in the quality and packing, and the number of diseased lines offered for sale is becoming less conspicuous. Satisfactory returns have been received by growers for all produce of good quality. The practice of " topping," more particularly in regard to vegetables, is still being indulged in by a few unscrupulous growers, and legal action was taken against a number of such during the year. Fruit Cool Storage. The cool storage of fruit is a matter that has made considerable headway during recent years, with the result that at the present time large fruit cool stores with up-to-date equipment are operating in each of the chief commercial fruit-growing districts. Cool-stored fruit placed on the markets is opening up in a much better condition than formerly —a fair indication of improved conditions in coolstore management. Flesh-collapse in apples, which in the past caused considerable loss in cool-stored fruit, is now seldom met with. During the past season experiments in connection with the carriage of stone-fruit by rail from Central Otago were carried out. These experiments demonstrated that the stage of maturity at which the fruit is picked and temperatures during transit are the essential factors in fruit of this kind keeping in good condition when transported over long distances. During the year Mr. R. Sutherland was appointed to the position of Cool Storage Oflicer in the Department. Mr. Sutherland, who is a qualified refrigerating engineer, has had considerable experience in the cool storage of fruit. His services will be utilized in investigating fruit cool-storage conditions in the Dominion, both ashore and on board ship, with the view of effecting further improvements in this connection, for the ultimate betterment of the fruit industry generally. Instructional .and Experimental Work. The educational work which the Division is carrying on through its Orchard Instructors is having good effect, the number of neglected orchards being gradually reduced. Those desirous of obtaining the Department's certificate of proficiency in grading and packing fruit were given the opportunity of improving their knowledge 011 these subjects by attending classes held during the year in the main commercial centres. Further progress has been made in connection with the various experiments which are being carried out in the field, and a number of these are now reaching an interesting stage. These experiments are being carefully supervised by the Orchard Instructors in their respective districts, who furnish half-yearly reports on the progress made. Some of the main features in connection with this work are : Trying-out of new proprietary spraying compounds under New Zealand conditions ; testing various fruit-tree stocks, which include pip, stone, and citrus ; control of the more troublesome diseases and pests, such as brown-rot, pear-midge, and earwig ; orchard manurial trials with the view of increasing production ; growing of subtropical fruits, such as avocados and persimmons, in the warmer districts of the North Island. A fair number of plants of the tung-oil tree have been raised from the seed imported last season, and small supplies have been distributed to different localities in the North Island for trial purposes. A further supply of seed has recently come to hand, and arrangements have been made for the planting out of a further area at the Te Kauwhata Horticultural Station. Viticulture and Wine-making. Steady progress is being made in the growing of grapes, both for wine and table purposes. Taken as a whole, the crop of wine grapes was a good average one, and exceeded that of the previous season. Fungus diseases were prevalent in the earlier stages of growth, and reduced the crops very considerably iii a few vineyards in the Henderson and Hawke's Bay districts. Outdoor-grown table grapes yielded satisfactory returns. With further vineyards in the northern districts coming into bearing there has been an increased supply on the market; payable prices, however, are still being maintained. It is estimated that approximately 800 tons of table grapes were marketed, representing a value of £44,800. The wine produced from the year's vintage is estimated at 95,500 gallons, valued at £38,200. Tests with a number of new varieties of imported vines are being continued at the Te Kauwhata Horticultural Station. A good season has been experienced by growers of grapes under glass, and a further extension in glasshouse-construction is noticeable. The value of hothouse-grown grapes is estimated at £79,500. Cidermaking. The annual production of cider stands at approximately 50,000 gallons, of an estimated value of £12,500. The bulk of the cider produced is of first-class quality, and finds a ready market. This industry offers considerable room for further extension on a profitable basis, especially in the main commercial fruitgrowing districts.