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since one of its weaknesses is that it is concerned with only one aspect of the industry — i.e., slaughtering under inspection. This closer integration could ensure to the butchery trade the financial benefits to be derived from ancillary operations such as the processing and handling of by-products. In this connection the Commission would refer also to its previous remarks on the necessity for the organization of both butchers and producers if any system of schedule buying for the domestic market is contemplated. It is obvious that any organization of butchers for this purpose would be strengthened if it operated abattoirs and the ancillary processing of by-products. The Commission is unable to recommend that all killing for the domestic market should be done at abattoirs, but it fully appreciates that if the present drift of butchers away from the abattoirs continues, then the local bodies cannot be expected to maintain the abattoirs at a high standard. The Commission is of the opinion that, in general, the most satisfactory solution would be for abattoirs and the ancillary operations to be taken over by co-operative organizations of butchers. 6. (b) And generally upon other matters affecting producers, wholesalers, retailers, and consumers of meat, or affecting one or more of such classes of persons as may come to our notice in the course of our inquiries and which we consider should be the subject of opinions expressed by us in our report. By-products. —We must reiterate that we are of the opinion that butchers could very well help themselves by a greater application to the matter of dealing efficiently with their by-products. Where this is the case it is noticeable that the complaints of the butchers have been very much less than where efficient processing of by-products did not obtain. We are of the opinion that butchers, in conjunction with abattoirs, should receive every encouragement to undertake efficient processing and selling of by-products. Meat Grading for Local Consumption.—The regulations under which meat for sale on the local market is marked with stripes according to quality came in for a considerable amount of comment from many witnesses. It was generally contended that the public had now become " red-stripe conscious," with the result that there was now a much greater demand for ox beef and wether mutton which tended to raise the price of that class of meat. A relaxation of the present grading regulations was widely advocated, but in no instance was any practicable method by which this could be accomplished placed before the Commission. We could not help noting that there appeared to be a general lack of understanding on the part of most witnesses of the basis and scope of the present meat-grading regulations. After thoroughly examining this problem of grading, we are satisfied that the present meat-grading regulations covering the sale of meat on the local market are basically sound. The master butchers have not asked for any variation, and we consider that the grading is of benefit to the consumer. We do feel, however, that the operation of the grading regulations in some freezing companies should be under stricter supervision and that a greater degree of uniformity should be aimed at in the grading in various districts. We are also of the opinion that a super grade of beef should be introduced. We visualize that this grade would be one which was comprised of animals of recognized beef types, within very strict age-limits similar to the chiller grade that used to exist for export. We recommend, therefore, that the Meat Grading Committee should examine this proposal. If such a grade were introduced it would of necessity command a premium over prime-quality beef, and we consider that the possibility of treating it on a similar basis to early lamb should be examined —that is, it should not be subject to price order during the winter period for three months in the North Island and four months in the South Island.

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