G. —10,

Horohoro : Waikaukau. Extending along tie Rotoraa-Atiamuri Road, and adjoining the Tuhourangi scheme and Ngakuru settlement, this scheme has a total area of 3,193 acres. The block is administered in conjunction with the Rongomaipapa scheme, and is really an extension of same. It was utilized to absorb the unemployed of the Ngati-Kahungunu Natives of the Wairoa district. Steady progress has been made during the year. Four new sheds were established. Two cottages were erected, and these are now occupied. In addition, there were 5 miles of fences erected, 200 acres put in new grass, and 3 miles draining cleared and opened up. Although milking commenced fairly late in the season, owing to delay in the erection of the cowsheds, the butterfat output, totalling 10,163 lb. from 80 heifers can be considered satisfactory in view of the fact that these men had had no previous experience in this class of work. The pastures are steadily improving, and two more milking-herds will be established this season. The stock on the property as at 31st March, 1936, was a-s follows : 8 bulls, 105 cows, 95 heifers, 15 calves, and 6 horses. Parekarangi. This scheme continues the line of development on the Rotorua-Atiamuri Road, and is the connecting link between the Horohoro and Peka schemes, and has a total area of 1,570 acres, of which 1,116 acres are in grass. Considerable improvement has been effected during the year in the pastures, and it has been decided to proceed with the establishment of another four dairying units this coming season. This is very satisfactory, and shows the quick results that can be obtained from the pumice soils, provided regular top-dressing and systematic consolidation with stock is carried out. One unit milked his herd on Parekarangi during the past season. His herd was increased to 60 cows, and a pumping plant and milking-machine were installed. Actually it is not desirable as general policy to install milking-machines, but in this case the necessity for meeting the shortage of water on the property necessitated the installation of a pumping plant and, in order to obtain the maximum results from the capital invested, it was considered that in this case a milking-machine was warranted. For the present dairying season, this unit's herd produced 6,801 lb. of fat from 52 cows milked. Taking into account the fact that 26 of this number were heifers and that the milking season has not yet finished, the results can be considered satisfactory. Work during the year consisted of draining, clearing second growth fern, fencing, top-dressing, cropping hay, and cultivating turnips. This was carried out by the labour available from the families of the owners of the Parekarangi sections, and wages for this work have been their principal means of sustenance for the year. At the 31st March last the stock on hand was : 1,592 wethers, 2 bullocks, 109 run heifers, and 96 head of dairy stock. Parekarangi Extension. Adjoining Parekarangi proper, this block contains an area of 700 acres. With the exception of fencing and planting of shelter-belts, development work has not been proceeded with, but, owing to the necessity for providing useful and productive work for the unemployed Maoris of the area, it will be part of the coming year's development programme. The shelter-belts are growing splendidly, and will ensure a good start for the units as soon as development has been completed. Peka. This scheme, comprising a total area of 1,364 acres, is situated at the forks of the RotoruaAtiamuri Road and the Rotorua-Taupo Highway. Of the total area, approximately 395 acres are in grass. During the past season one unit started milking, and it is intended to start another two during 1936-37. A prolific growth of gorse has had to be coped with, and the clearing of same provided useful work for the unemployed of Whakarewarewa. Subdivisional fencing was carried out on three of the sections, two new milking-sheds were erected, the grassed areas top-dressed, hay saved for winter feed, and 75 acres put down in grass. The block wintered 435 ewes which produced 355 lambs, and, in addition, 35 head of dairy stock, 116 black Polled Angus heifers, and 30 bullocks were carried through the year. The pastures on the road-frontages are looking excellent, but second-growth gorse on back portions will require further treatment before becoming suitable for dairying. Stock on the property as at 31st March, 1936, was : 4 bullocks, 116 run heifers, 239 run cows, and 90 head of dairy stock. Wharenui Nursery. This nursery is performing a very useful service in development operations of the Rotorua district, as it has ensured a continuous and cheap source of supply of trees for the planting of shelter-belts besides providing useful work for six men and their dependants. During the year the following trees were planted out : 14,750 Lawsoniana, 3,100 poplars, 16,550 macrocarpa, 12,600 barberry, 62,000 Macarthuri, 57,150 viminalis, 89,000 Douglassi, 3,900 gigantea, and 96,000 radiata.

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