1.—12.

45

D. CUDDIE.

competent rennetmaker should be imported from some of the main centres of other countries. The Rennet Company which was formed about two years ago tried time arid again to obtain the services of a competent man from Home. I think the dairy companies should take action in this respect; it is quite within their province. I think the failure in this respect was mainly owing to war conditions. Ido not see why the Government should not co-operate with the factories in this respect. If the raw material is going to waste we should make every effort to save it. I cannot say definitely whether the utilization of lambs' veils will come out all right; it will have to be tested. 2. To Mr. Poland.] I think the dried-milk manufacture has come to stay, but I think it would be very unwise for dairy people to rush into it until they are sure of a market. There are a great many foods on the market quite suitable for rearing calves. Ido not think the dried-milk industry is going to extend to a large extent in New Zealand. The present excitement about the matter appears to have arisen owing to the high prices created by the war. A few herds here and there might not be producing an average of 1001b. butter-fat. An average of 1601b. does not pay. Feeding is a very important phase of the matter. The £13 12s. 6d. applies to cows supplying butter-factories, after deducting the by-products. Included in the cost there is the cost of the land, cost of labour, interest, and depreciation of buildings and plant, &c. —all charges. We have got a very large number of first-class bulls in New Zealand, the dams of which have been tested. We have got the foundation stock to build on. There is no need for any importation at all. Ido not think the present price of butter will be maintained after the contracts expire. We cannot expect to get 181s. per hundredweight for butter all the time. Ido not think it will go back to what it was before the war. Ido not see how the cost of production is going to be reduced. I think the majority of farmers are doing very well with cheese and butter. The question of the success of lambs' veils depends upon whether the rennet is found suitable for the manufacture of cheese; it is only in its experimental stage at the present time. The average price dairy factories were netting for their butter last year was Is. 6d. for butter-fat; for the 1916—17 season it was Is. 6'lsd. at butter-factories. We base the calculation of the cost of keeping a cow on land at the value of £90—£90 worth of land to carry a cow. The 161 lb. of butter-fat was worked out on the basis of all the cows in the Dominion—in milk and dry—not only the cows in milk. The dry cows have to be fed, and you have to take them into calculation. Some cows calve and do not milk. An increase of 25 per cent, in the value of butter-fat would have a tendency to increase land-values. There is no doubt the price of land has been forced up as a result of the high price of butter-fat. Farmers find that they can get a much better orop of grass and a better yield of milk as a result of top-dressing their land. They could certainly do more in that direction. I do not think there is any best breed of dairy cattle. Heavy cattle like Friesian do best on rich land, and lighter cattle are more suitable for hilly country. In regard to getting better dairy results, I do not think the Department can do more than follow the policy now adopted; they might extend the policy by devoting more men to the work, and it would be a good investment for the country. There are quite a number of herd-testing associations. We are trying to get the factories to take the matter up and do the testing as part of their ordinary business. 3. To Mr. Graigie.] There is no doubt that under better conditions and with more attention being devoted to the matter increased production per cow would result. Speaking generally, it is thought that cattle do better outside than inside in New Zealand so long as they have a reasonable amount of shelter and have plenty of food. Housing cattle has a tendency to spread disease among the animals. There is no country in the world where the live-stock are so healthy as in New Zealand. I believe the average in Denmark, is about 200 lb. per cow. In Denmark the testing is voluntary. On account of our climate and good natural conditions I think we can compete with any country in the world. 4. To Mr. Luke.] Dried milk will not be a serious competitor in drawing of a city's supply. Ido not think that the competition for the supplies will increase the price to the consumer. The dried-milk factory can only operate where there is a large dairying-area. They want at least about three thousand cows to make it a payable proposition. With the great inducement to put milk into butter and cheese the tendency is to make it difficult for a city to obtain its supply. It is a matter, of course, of price. The farmer wishes to sell his product in the best market, Besides, if he sends his milk to a factory the conditions are less exacting than if he sends it to a city supply. By sending his milk to a factory for butter or cheese lie is enabled to fit in his domestic arrangements better than if he supplies a local authority. Moreover, he has a spell for three months every year when he is supplying a factory. The town supply has to go on all the year round. 5. To Mr. Graigie.] The hydro-electric power will be a great boon to the dairy-farmers and to settlers generally. I understand that the dairy factories and farmers at Tai Tapu are using the power largely. It will save fuel in the factories, and it all helps to increase production. 6. To Mr. Sidey.] There is only one preserved-milk faatory of any size in New Zealand. There is a small concern in another district in the South. There is a future before the industry for local consumption. We are still importing preserved milk, even against the tariff. Nestles Company proposes to establish a factory in New Zealand, and has bought a property close to Palmerston North for it. As to its capital, I think it is doubtful where it comes from. The possibility may be that this company, working on a large scale, will squeeze out the other branches of the industry in New Zealand. The same company has done that to some extent in Australia. To begin with, it undersells, and subsequently it puts up the price. In view of that experience the Government in New Zealand should prevent a similar thing taking place here. Of course, if it is a British company no exception can be taken to it, If it is a foreign company it should