H.—29.

in the weight of lamb exported for the period specified above, there was an increase of £1,135,874 in its declared value. The price position in the dairy industry was not so satisfactory, but there was an increase of slightly under £1,000,000 in the declared value of the dairy-produce exported, this being due partially to the increased production. The value of the exports of frozen pork showed a marked expansion from £393,726 in 1933 to £950,183 in 1934. In view of the important role played by judicious top-dressing in the past expansion in farm production, considerable significance is to be attached to the decrease in the amount of fertilizer carried by rail, which was the lowest since 1926-27. As an increased amount of fertilizer was used by sheep-farmers, the decrease in respect to top-dressing in dairying must have been greater than the total fertilizer figures for the Dominion suggest. The Department continues to administer measures designed to assist farmers in their financially difficult circumstances. Among the measures taken for this purpose are subsidies on the manufacture and railage of fertilizer, and concessions in respect to railway freights on lime and on primary produce under certain conditions. Though marketing difficulties relative to primary products have still to be faced, there is satisfaction in the view, which seems well founded, that the worst of the depression through which farming industries have been passing appears to be over. It may reasonably be expected that the improved conditions, which are developing in Great Britain and other countries devoted dominantly to manufacturing, will in due course be reflected beneficially in the markets for our farm-produce, and, this being so, it would seem that the process of recovery is already in progress. In the meantime all efforts are being concentrated on the endeavour to ameliorate the vitally important marketing position in the best way possible in the circumstances. I have, &c, Chas. E. Macmillan, Minister of Agriculture. His Excellency the Governor-General.

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