H,— 29,

Of the total exported, 703,770 cases apples and 94,159 oases pears were consigned to Great Britain, 80,164 cases apples to the Continent, 67,747 cases apples to North America, 42,579 cases apples to South America, 47,028 cases apples and 26,965 cases pears to Sweden, and 1,008 cases apples to the East. In connection with the 1935 fruit exports, the Government guarantee applied only to fruit shipped to new markets, and in respect to the fruit shipped to established markets the Government agreed to contribute, irrespective of claims, to an export-guarantee fund to be established by the New Zealand Fruit-export Control Board on a pound-for-pound basis up to £12,500. In 1936 and 1937, where a grower's average return is below the average rate determined by the Board, the Government will pay to the Board's central fund 50 per cent, of the shortages, provided the agreed-upon rate does not exceed 9s. New Zealand currency per case c.i.f. overseas destinations, and provided the fruit has been exported in accordance with Government export requirements. The liability of the Government under this arrangement is not to exceed £12,500 for each year. Government assistance to the central fund will cease with the payment made for the year 1937. Reports to hand indicate that the bulk of the 1935 fruit shipments arrived at its destination in good condition, with the exception of Cox's Orange Pippin, which showed a considerable percentage of bitter-pit. Prices realized for apples on the overseas markets right through the season were considered very satisfactory, this being largely due, no doubt, to the reduced exports. Pears were, however, disappointing, both in regard to condition and price, the keeping-quality being poor as compared with the 1934 shipments. This, combined with excessive quantities from Australia, had the effect of making a low price range. The following figures show the quantities of fruit (apples and pears) exported from the Dominion during the last five years : 1931, 1,349,895 cases ; 1932, 1,596,058 cases ; 1933, 1,430,513 cases ; 1934, 1,574,912 oases ; 1935, 1,063,420 cases. Owing to the effects of the February storm and the inclement weather conditions encouraging the development of black-spot and russeting, it is anticipated there will be a considerable reduction in the quantity of fruit available for export during the 1936 season. The first of this season's (1936) fruit for overseas markets was despatched from Wellington per m.v. " Waiwera " on the 11th February, and consisted of twelve thousand cases of apples and forty-six cases of pears. Local Markets foe Fbuit and Vegetables. The local markets have been well supplied with fruit and vegetables, and the inspection of shops and auction-rooms in the main centres has been systematically and regularly maintained. While the standard of marketing has been generally satisfactory, closer attention is necessary on the part of some growers to the quality and grading of the produce sent forward. The fair-packing regulations, especially in regard to vegetables, are being more strictly complied with, the number of infringements in this connection being comparatively few. Brown-rot was more in evidence and caused considerable losses in stone fruit. The prices realized by growers did not show any marked improvement, but, generally speaking, the returns for the year's working were considered to be fairly satisfactory. Imported Fruit, Plants, etc. All reasonable precautions are taken to prevent the introduction of diseases and pests into the Dominion, and the inspection of imported fruit, plants, bulbs, &c, was carefully carried out by the Fruit Inspectors attached to the Division at the different ports of entry—viz., Auckland, Wellington, Lyttelton, Dunedin, and Bluff. They report that while some consignments arrived in a more or less " wastey " condition, the bulk of the fruit was clean and free from disease, and it was found necessary to take action in connection with only one or two lines found to be affected with mealy bug requiring fumigation before being allowed entry. Imported nuts, especially almonds and walnuts, are subject to the attacks of the Indian mealmoth, and several lots found to be infected with the larvae of this insect were dealt with in the usual manner. There was a falling off in the quantity of fruit received from the Cook Islands, due mainly to the effects of the severe hurricane experienced there early in the season. The majority of the consignments arrived in good condition, though some shipments of oranges showed a fair percentage of wastage when opened up. Imports from the other Pacific Islands were in excess of those of the previous year. A considerable quantity of grass-seed, chiefly from Australia, requiring fumigation at this end, was dealt with. Feuit Cold Stoeage. A matter that has been receiving considerable attention for several seasons past is the cold storage of fruit, both on land and on overseas vessels, the successful carrying-out of which being of vital importance to the fruit industry. With the view of gaining first hand information regarding fruit shipments from New Zealand, Mr. R. Sutherland, Cool Storage Officer attached to the Division, proceeded to London in April last per m.v. " Rangitane " for the purpose of observing conditions and recording data relative to the cargo of apples on that boat; also to examine shipments on arrival in the United Kingdom, conditions of handling, storage, and transport to the markets, and to make contact with the various research organizations in England engaged in investigating fruit storage and transport problems. These matters were fully investigated, and valuable data have been supplied by Mr. Sutherland in his report. The experimental work inaugurated some three or four seasons ago in conjunction with the Department of Scientific and Industrial Research for the purpose of determining the effect of a number of factors on the keeping-qualities of fruit during cold storage is now reaching finality, and some very useful information is now available in this regard. These investigations cover a wide field, and include the influence of locality and soil types on the keeping-qualities of apples, influence of maturity at time

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