H.—29,

being erected at Wallaceville and Ruakura. The following are the main problems being investigated by the Division : Facial eczema, sterility, artificial insemination, mastitis, hogget-mortality, cobalt deficiency, dairy-cow nutrition, and pig nutrition, especially in connection with bacon-production. The new Division will also carry out the diagnostic work for the Live-stock Division. The Animal Research Division is fortunate in having the ready co-operation of farmers, both as individuals and through their organizations. Ruakura lias the assistance of a Farm Advisory Committee, and the facial-eczema investigation is being controlled by a management committee comprising three farmers, two officers of the Department of Agriculture, and one officer of the Department of Scientific and Industrial Research. The Department of Scientific and Industrial Research and Massey Agricultural College have collaborated excellently in the investigation of this disease. In connection with sterility investigations in the Waikato, a small committee, which includes two farmers and one officer of the New Zealand Dairy Board, has been recently established. The Dairy Board is co-operating whole-heartedly in the investigation of all diseases of dairy cattle, and has appointed two of its members to act as a liaison between the Board and the Division. The Dairy Industry Amendment Act, 1938, providing for universal dairy-farm instruction, is already operating successfully. There are now seventy-seven officers engaged under the scheme, and it is pleasing to note that both the factories and the farmers are giving valuable assistance in this work. It is considered by those competent to judge that these instructors are a valuable adjunct to the industry., and that part of the improvement in the quality of dairy-produce during the 1938-39 season, which was a difficult one for the dairy industry, has been due to the institution of this Dominion-wide service. Another Act which was brought into operation last year and which has already proved a distinct success is the Remounts Encouragement Act, 1914, whereby a Government subsidy is payable for selected stallions to be used for the breeding of light horses. Although the subsidy has been operating for only one breeding season, one may prophesy from the number and type of stallions for which the subsidy was granted that this legislation is doing much to encourage the breeding of a type of horse which may be required and which was not being provided. During the year the Department of Agriculture has co-operated fully with the Internal Affairs Department, the Health Department, and the Otago Medical Research Committee in the campaign against hydatid disease. The Departmenthas issued a new bulletin on the subject, and the departmental exhibits at agricultural shows have included informative and instructional demonstrations pointing the way to the eradication of this disease. In this work the Department has had the whole-hearted co-operation of the Otago Medical Research Committee, which has placed an officer in charge of the exhibit and has also contributed material and data. During the past three years concentrated efforts have been directed at the control of noxious weeds, with particular application to ragwort, and these efforts are being continued during the present year. The work, which is on a scale much in excess of anything previously in operation, has been undertaken in co-operation with the Labour Department and the County Councils which have adopted the scheme. Generous allocations for labour and material have been granted, and there is no doubt that there has been a substantial improvement in the ragwort position. The scheme is not confined to unoccupied Crown and Native lands, but also provides for the clearing of individual farms menaced by this weed. The expenditure under the scheme for each of the last three years is as follows: 1936-37, £31,500 ; 1937-38, £74,200 ; 1938-39, £65,000. Recently a committee was set up to inquire into the lime industry, which for some years has been in an unsatisfactory state. A departmental Committee made a preliminary investigation, which brought to light certain facts serious enough to warrant the setting-up of an investigational and advisory committee

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