H.—29a.

From experience obtained in respect to cognate work in regard to the dairy industry it may be deduced that an adequate knowledge of costs of production and their trends in sheep-farming would call for the annual examination of the economy of about two thousand sheep-farms. This is mentioned specifically to indicate the magnitude of the task involved, having due regard to the fact that costs-of-production studies are only one phase of the investigational work which should be carried out. It becomes clear from the foregoing considerations that the inauguration of a suitable investigational service is required. Such a service would fill a gap which still remains after the creation of the research bureaux already in existence in that it would concern itself with farm-management studies and farm economics studies which are not within the spheres of activity of the present bureaux. The work of the Commission has provided a striking demonstration of the need of such an organization, and war developments have intensified that need. An illustration of this lies in the fact that costs-of-production data and knowledge about trends in such costs would be of undoubted value in negotiations with the Imperial Government regarding the sale of wool, meat, &c. We return herewith the Warrant of Appointment with which Your Excellency was pleased to favour us. In witness whereof we have hereunto set our hands and affixed our seals this 27th day of September, 1939. F. V. Feazbe, Chairman. H. M. Cheistie ~] Aethur Cook ( M , DrcKSON Jardine f Members - R. A. RoDGEB j

Approximate Cost of Paper.—Preparation, not given ; printing (865 copies), £15.

Authority: E. V. Paul, Government Printer, Wellington. —1940.

Price 6d.]

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