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Building of wineries, distilleries, and vineyards continued during the year, approximately £15,000 being expended in the Hawke's Bay, Waikato, and Henderson areas. Four new wine distillery licenses were granted by the Customs Department during the year. A considerable area of land was purchased during the past year for the future planting of vineyards. The position of the wine industry is still showing improvement. Tβ Kauwhata Horticultural Station The grape crop on the Station was light this year, fruit being available only from the established grape-producing blocks. The new blocks of vines planted are in good condition, and it is expected to complete these plantings during the coming season. Depredations by birds were the worst experienced for many years. In general, fungous diseases were kept under control by the application of a thorough spraying programme. A successful year was experienced in the sales of wines, and stocks maturing during the period under review have all been disposed of. Cidermaking.— Throughout the Dominion there are about 40 manufacturers of cider. The annual production of New Zealand apple wines and cider is estimated to be about 60,000 gallons. Market Gardening Industry Commercial vegetable production is carried on throughout both Islands and, in the main, is confined to the better-class lands. Considerable areas are cropped under leasehold tenure, these generally being broken from the pasture, cultivated in vegetable crops for a few years, and then again sown in grass. Market Garden Registration (exclusive of Potatoes, Onions, Kumaras, and Swedes).—The increasing economic importance of commercial vegetable production can be appreciated from the registrations for the current year, which number 2,936, representing 21,135 acres of commercial gardens ranging from £ acre upwards, being an increase of 4,000 acres on that recorded for the previous year. The season proved a very suitable one for the main basic vegetables, good yields, generally, having been obtained. Many of the crops produced during the year were grown under contract to the Internal Marketing Division for use by the Armed Forces in both fresh condition and dehydrated form. The transition from horse to mechanical methods of production which has been taking place for some considerable time has been particularly noticeable during the past year, and it would be difficult to find any appreciable number of commercial vegetable-producing areas on which motor-propelled implements are not in operation. By the use of this modern machinery larger areas of land have been brought under cultivation than would have been possible by the methods which previously obtained. This was an important factor in enabling the Dominion to meet its commitments of vegetables for Armed Forces and civilian requirements. The " Dig for Victory " campaign to encourage home gardeners in the production of more vegetables on a planned basis was this year an unqualified success. Members of all committees showed a great deal of enthusiasm, and the results of the various competitions which were arranged justified the campaign, especially in the Canterbury and Otago districts. Demonstrations, shows, garden competitions, and instructional pamphlets were arranged, and full use was made of the broadcasting facilities. Vegetable instruction work has expanded considerably during the past year owing to the increase in the number of commercial gardens through persons with land and implements answering the call for a greatly increased production of vegetables and to more or less experienced growers taking up this branch of production. Advice has been given on crop production, diseases of crops, and glasshouse construction. Rehabilitated ex-servicemen have been instructed in vegetable culture and advised regarding the suitability or otherwise of land to be acquired for this work. Standardization of Grades of Vegetables The Emergency Standard Specifications for vegetables prepared by the New Zealand Standards Institute were used by the Department's Inspectors. All vegetables grown under contract to the Internal Marketing Division have been inspected by officers of this Division, mainly at the appointed inspection points. The extent of this work has increased tremendously during the year. The Standardization Officer of this Division has visited the various districts to ensure uniformity of grading and to discuss problems associated with grading. Every opportunity was taken to explain to growers the specifications of the Standards. Dehydration Vegetable dehydration factories are operating at Pukekohe, Hastings, and Christchurch, the last named having been opened this year. At Motueka the dehydration factory for apples has been in operation this year. Owing to the great loss of stone-fruit in Central Otago on account of frosts, the dehydration plant at Roxburgh has operated only for making a small quantity of jam. Fertilizer Rationing Rationing was introduced and extended to market gardeners to ensure that the limited amounts of blood and bone and superphosphate available were equitably distributed among users in accordance with their respective needs. Unless some regulation of delivery of supplies to primary producers had been undertaken, it might have been difficult for many to have secured sufficient to maintain their normal production or to make increases in certain kinds of crops when they were asked to step up production.

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