H.—l7.

should be closely watched, as probably further developments will take place before the New Zealand Government complete their arrangements for direct shipping communication. lam sending forward one plan of a proposed cold-store. The Introduction of New Zealand Produce into South Africa. I now come to my second subject. In regard to this—l was instructed to determine (a) whether there is an opening for produce ; (b) if so, for what class of produce ; (c) the convenience for storing; and (d) distribution. I will deal with these seriatim. Touching (a), I reply unhesitatingly and unreservedly in the affirmative. There is an unlimited market for produce of all kinds, particularly mutton, beef, butter, cheese, hams, bacon, eggs, oats, wheat, flour, hay, and maize. This brings me by a natural sequence to the consideration of (b), the class of produce, which I must treat in some detail. Butter. —Amongst frozen products butter is an article in large demand in bulk and in 1 lb. pats, also in 1 lb. tins. Bulk butter* should be packed 56 lb. to a box, and the boxes should be either dovetailed, or wired round the ends, to prevent them bursting in the process of landing, where rough handling is occasionally unavoidable. Each box should contain fifty-two lib. pats, wrapped in butter-muslin, and the boxes should be wired or dovetailed as in the previous instance. Tinned butter should be in 1 lb. tins. The tins should be hermetically sealed and have a patent key opener, and have such a lid that the tin can be closed at any time after being opened, and be practically airtight. Each case should contain 100 lib. tins (neither more nor less). All cases containing butter should have the name or brand thereof stamped on each side of the case, and the quality or nature of the contents stamped on in the same manner at one end only, leaving the other end, as well as the top or lid, vacant for the buyer's mark or brand. In no case should tinned butter be packed in lever-top tins ; large shipments have been made from New Zealand in such packages, but have turned out not only disastrous' to buyers, but most injurious to the market from whence they were shipped. In fact, butter in this class of tin, in a climate like that of South Africa, is most liable to get "blown," and become a danger to consumers. The value of bulk butter, taking the average for the year, would be about lOfd. per pound c.i.f., and for pats llfd. per pound c.i.f., these being sold by merchants respectively at Is. 3d. and Is. 3|d. Tinned is worth about 14s. c.i.f. per dozen, and is sold by merchants at about 19s. The above figures include the merchant's profit and all other charges in connection with landing, &c. They refer particularly to Durban, but also hold good in regard to other ports. Butter should be shipped in a except tinned butter, which may be carried safely as ordinary cargo. Poultry should be packed in crates of, say, twenty-four fowls, twelve turkeys, and the same quantity of ducks or geese. Babbits, in crates of twenty-four. Hares, in crates of twelve. Cheese. — A large demand exists for this in loaf shape (in bladders), averaging from 101b. to 12 lb. each, each in a separate box. These boxes should be hooped together in fours, making a package of about 501b. weight, including boxes. Cheese of any description should on no account be tinned for our market. Hams and Bacon.— These should be wrapped in thin canvas cloth, and packed only in salt in cases of about 1, 2, or 3 cwt. Sides of bacon are not much in demand, but flitches are—i.e., the sides without the ham and shoulder, and with ribs and backbone removed. Potatoes.— The demand for these is considerable, and to insure their carrying satisfactorily they require to be packed in crates of 75 lb. net weight, about 87 lb. gross, hooped round the -ends to prevent breakage, with a partition in the centre of the crates to strengthen them. This centre partition is a means of considerable saving to buyers in the matter of loss through breakage, the risk of which is materially minimised thereby. They should be carefully graded, and only medium-sized potatoes should be selected for shipment. Large potatoes are not so much in demand, and are much more liable to go bad than those of medium size. Care should be taken to have them perfectly dry, and on no account should they be packed in sacks. Onions.— -The same remarks apply here also as regards packing and grading. The demand is a large one, and is continually growing. Oats. New Zealand "stouts" are a favourite in this market, and are largely used for both seed and feed purposes. These should be in the usual 3£ lb. grain-bags, and it is advisable to use only new bags. There is a splendid market for oats of all kinds and grades, New Zealand oats being well known in South Africa. The Imperial Government must of necessity require to feed thousands of horses in this country for some years to come. Barley. —The demand for this is very small, and it is principally used for seed purposes. Maize. This is a product of considerable demand, and if it can be supplied at comparative rates with the South American product there is no reason why a large share of the business should not go to New Zealand. In order to compete against the Argentine market our prices should not exceed £1 14s. per 480 lb. gross c.i.f. Natal, put in grain-bags of even weights—namely, 200 lb. each. Lucerne. This is also a product in which considerable trade can be done, and the principal source of supply at the present time is the Argentine and Australia, in which New Zealand would have strong competitors. Whole cargoes of this fodder are frequently in demand, and find a ready sale on arrival. The packing is in bales of about 1 cwt. each, pressed and wired. The value is about £5 15s. per ton per sailer c.i.f., or equal to £6 16s. per steamer. Shipments have been made from Australia; the quality of the lucerne from Australia has been preferable to that from the Argentine, but the prices of the former have been very much higher. Consequently, on account of distance and climatic considerations, this fodder practically may be considered outside of New Zealand markets.

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