H.—l7

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APPENDIX 111. REPORT OF PRODUCE COMMISSIONER, LONDON. Sir,- — Westminster Chambers, 13 Victoria Street, London, S.W., 7th June, 1907. I beg to transmit herewith the Produce Commissioner's (Mr. H. C. Cameron) report as regards the work transacted through him under my direction. The report, though dated the 16th April, has only been completed within the last day or so, owing to Mr. Cameron's time having been so heavily taken up in the work connected with the Irish International Exhibition and other special matters. I have, &c, Walter Kennaway, For the High Commissioner. The Right Hon. the Premier, Wellington, New Zealand.

Sir, — Westminster Chambers, 13 Victoria Street, London, S.W., 16th April, 1907. I have the honour to submit the annual report of the work done under your direction in connection with the produce trade of the colony during the past twelve months. The number of general reports on matters specially dealt with that have been made by me to you during that period show a considerable increase. There have been seventy-two, as against fifty-six last j-ear, while the usual variety of subjects has been treated on. As in former years, cablegrams advising the prices of various lines of New Zealand produce, and giving particulars concerning the condition of the markets here for same, have been despatched to Wellington regularly each week. These cablegrams have been continued on the method adopted during the previous year, and have been really full weekly market reports, which must have been of considerable use to the producers in the colony. Having kept closely in touch with the markets, I am satisfied that the quotations and particulars given must have been found as nearly accurate as it is possible to have such information. The cablegrams, of course, did not presume to indicate the future prospects of the markets. The general work has been carried on as in former years The amount of correspondence has shown a steady increase. Butter, During the past twelvemonth there has been a continued run of good markets for the sale of New Zealand butter. Prices have been remunerative throughout. In only five instances-—two at the commencement of the official year and three at its close—had a lower average price to be recorded in the weekly cablegram for choicest New Zealand butter than 100s. The distribution of the butter throughout the country has been satisfactory, and, speaking generally, those handling it have been favourably impressed with the quality. I say " speaking generally," as recently there have been a few complaints made. These, however, lam inclined to attribute not so much to faults in the butter as to dissatisfaction on the part of traders with the monetary loss sustained by them through speculative purchasing at a figure above market value. • Supplies of butter from all sources have been heavy, and are expected to continue so for some time. But, although imports have been large, the general trade of the country has been good, and consumption has been satisfactory. It is anticipated that Siberia will enormously increase her output during the coming summer. So far the imports from that country for the first three months of 1907 show an increase over those for the same period of 1906. One regrettable feature in connection with the New Zealand butter trade has been the wide margin that has existed between the price of Danish butter and of that from the colony. I am satisfied this margin should not exist. A few years ago, for three seasons, it did not. Recently it has been growing wider and wider. As I have so frequently reported, combination amongst the Danes in the method of handling their butter, so opposite to that adopted by the New Zealand producers, is the cause of their success in the markets of this country. It is to be hoped that a strong attempt will shortly be made by the New Zealand producers to effect the improvement of their market here; and, by combination, to adopt a uniform system for the disposal of their butter that will be of permanent benefit to the trade. At present no one is specially interested in the future of New Zealand butter on the English market, and, so long as producers fail to take an active interest in this, so long will their butter be at the mercy of outside influences. Butter-adulteration. The important subject of butter-adulteration has received close attention, and all movements connected therewith have been carefully watched. A Select Committee of the House of Commons having been appointed to inquire into the question, I was asked to give evidence before it, which I did. The evidence I gave on behalf of the colony was in support of New Zealand butter being sold in this country on its merits, and of making it illegal to mix it with any extraneous matter whatever.