H.—29,

" While the ideal of fourteen pigs slaughtered per sow can be kept in mind, the increase from 5-7 to 10-7 in ten years is decidedly hopeful. " Pedigree Sow Recording.—This service, instituted in October, 1936, has received fair support from the breeders. Up to 31st March, 1938, 493 sows have been entered for recording under the national scheme, and 198 under the auspices of the old Waikato and Manawatu Pig Recording Clubs. The areas served by these two organizations have now been taken over by the Department. Out of the 691 sows entered to date, 286 have qualified in one or other of the five grades. The difference between the numbers of sows entered and those that have qualified is due partly to a lag in time between receipt of nomination and the completion of the test, partly to accidents such as litters being overlain, sows dying, &c., and partly to the number of low-producing sows —i.e., sows with litter-weights of less than 2001b. at eight weeks old. Accidents between service and farrowing time account for approximately 25 per cent, of sows entered, and low production for approximately 15 per cent. Both these factors are largely man-made, and will probably be eliminated with time. " Pedigree sow recording alone does not discover the capability of the recorded pigs to produce good-quality carcasses. This aspect of recording should receive immediate attention in the form of a system of advanced registry, based on the ability of the sow to produce (1) good litters, (2) earlymaturing pigs, and (3) pigs of good carcass-quality. This subject is now being given consideration by the Department and other interested bodies. " National Instruction Service.—As from the Ist May, 1937, Cabinet gave its approval for the establishment of a levy of 2d. per pig on all pigs killed in licensed plants. This levy was to be used for the purpose of financing a scheme of national instruction. The revenue expected was approximately £7,000 for the eleven months ending 31st March, 1938, and at the present rate of killings should amount to about £8,000 annually. " The organization established for the administration of the sum realized from the levy consists of a National Pig Industry Council with headquarters in Wellington, eight District Pig Councils, one each at Whangarei, Pukekohe, Whakatane, Hamilton, New Plymouth, Palmerston North, Christchurch, and Dunedin, and a number of pig clubs in each District Pig Council area. The National Pig Industry Council consists of twenty-five members, representative of every phase of the industry, including one representative from each District Pig Council, and is under the chairmanship of the Director-General of Agriculture. Its functions are to meet at least once a year and advise the Minister of Agriculture on all problems affecting the industry. Its executive consists of the representatives of the eight District Pig Councils. " The District Pig Councils are composed of delegates from pig clubs, with the addition of any non-pig-club members who may be elected at the club's annual meeting. Each council is controlled by an elected executive of seven or eight members, who meet once a month. It employs a secretary and organizer, who is required, at the jurisdiction of his council, to give whatever service is needed by producers in his area. It receives £800 per annum from the levy fund. " Pig clubs are local voluntary organizations of from ten to twenty-five producers, who subscribe to a fund sufficient to purchase a pedigree sow and suitable accommodation. One member is appointed custodian. He looks after the sow, whose progeny are distributed, after weaning, for breedingpurposes to club members at a price fixed by the club. The custodian finds the feed-supply and is paid by the club from the sale of piglets. A Selection Committee, consisting of the chairman, secretary, custodian, and other elected members, decides what pigs are fit for breeding-purposes. The club appoints one delegate to the District Council, which is thus largely composed of club delegates. " Thus from the pig clubs, through the District Councils to the National Council, producers have an opportunity of expressing their viewpoints and of taking a leading part in the development of the industry. To date over two hundred and fifty pig clubs have been formed in eight months over the whole of New Zealand. The movement will be satisfactory when the majority of producers are behind it, and at the present rate of progress this should be quickly achieved. " The Grading of Baconers. —Regulations for the grading of baconers were gazetted from the beginning of February, 1938. From the outset the greatest difficulty about grading was to find some means whereby the producers of better-quality pigs could be equitably rewarded. Several preliminary meetings of those interested were convened during 1937, and it was agreed to institute a three months' trial of grading, during which the measurements of all bacon pigs would be taken by the trade and submitted weekly to this Department. Almost unanimously the trade gave us their assistance and during the three months supplied the weights and measurements of approximately 80,000 baconer carcasses. After analysis and consideration of these it was found impossible to fix on any standards that would be fair both to the producer and to the trade. At that time it was hoped to base the payment of premiums for quality on an average grading that would be true for the whole of our pigs, and fairly constant from works to works. Whatever standards were employed it was found that whereas the New Zealand average of, say, No. 1 primes was 40 per cent., this average fell as low as 20 per cent, in some works, and rose as high as 70 per cent, in others. The only alternative was to use the standards at present employed by English bacon-curers, thereby allowing the trade to pay such premiums for quality as they ultimately received on realization in England. This course was finally adopted, and grading standards based on the thickness of fat over the shoulder and over the loin were ultimately adopted. " Although breeders and producers have been told for many years that our pigs are too short, payment by curers is not made on the basis of length, and the inclusion of length in the grading standards would have caused a number of pigs to be degraded in New Zealand, with resultant loss to the producer. These pigs would be purchased by the curer as ' second-class,' but would still be fit to be made into first-quality bacon. The object of grading was to pay premiums for pigs of high quality, and this could be achieved only by grading on the standards recognized by the curers.

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