chases of the manufactured goods of the Home country. Therefore, the more prosperous the dairying industries of the Empire, both in respect of wages and profits, the greater will be their demand for British goods.* At the same time the British consumer cannot afford to ignore price and quality. While it is essential for the Overseas Dominions to send to the United Kingdom produce of the best quality, well graded and packed, it is equally important that it shall be sold at competitive prices. Therefore, Empire producers must adopt all possible methods of reducing those costs of production which can be curtailed without lowering the standard of living of the members of the industry itself.

32. Before discussing how Empire dairy producers may improve their efficiency and reduce their costs we desire to contrast the Danish type of dairying with that which prevails in the Overseas Dominions. In Denmark we have intensive farming. Consequently, Denmark is one of the most densely populated countries in the world, although the soil is sandy and poor, and the climate, like that of the United Kingdom, far from ideal for dairying. In the Overseas Dominions, on the other hand, and particularly in Australia, dairying is often practised under the conditions of extensive farming, although the climate. and soil are as a rule far more suitable than they are in Denmark. By encouraging the growth of the most suitable grasses, and by raising fodder crops, matters with which we deal later, and by adopting more intensive methods of production generally, the dairying industries of the Empire could support a far larger population to the acre. This would produce that closer type of settlement peculiarly acceptable to the migrant from the Home country, who naturally prefers a relatively thickly populated area with the social life and the educational facilities which it provides.

33. As already indicated, one of the best ways by which the producer can increase his profits, notwithstanding severe foreign competition, is by increasing the output of butter fat per cow. To secure this, we cannot too strongly emphasise the value of cow testing (milk recording) societies. Considerable progress in this respect has already been achieved both in the United Kingdom and in the Overseas parts of the Empire, as subsequent sections of this Report show. We have had laid before us results which have been obtained in the United Kingdom in recent years. In the case of one society the average yearly yield of milk per cow over a period of four years increased by 168 gallons, representing, at 1s. a gallon, a definite gain to the producer of £8 8s. per cow on the fourth as compared with the first year. In another society, covering a period of five years, the increase in the annual yield per cow was 194 gallons, repreSee also paragraph 247.

In some parts of the Empire this is known as "herd testing" or testing."

"milk

senting, at ls. a gallon, an added cash value of £9 14s. per cow. In one The results shown per herd are even more striking. herd of 30 cows in the United Kingdom the cash value of the output was £445 10s. greater in the seventh year than in the first year. In another herd of 20 cows, over a period of six years, the increased output was £388. In a third case for a herd of 46 cows, over a period of four years, the increase was no less than £798. Similar results have been, and are being, achieved in the Dominions. We have been told of dairy farmers in New Zealand who, by means of herd testing, have reduced their herds by one-third without reducing their output of butter fat. What has been achieved in many herds on record could by the same methods be accomplished in all herds.

34. We do not contemplate that cow testing should have for its object outputs such as 2,000 or 2,500 gallons of milk a year, which have indeed been reached by exceptional cows in Such achievements competitions amongst different societies. have, no doubt, their value from a breeding standpoint, but what we wish to see is a steady and general increase in the milk output per cow and a similar improvement in the percentage of butter fat yield. From the point of view of butter and cheese making, the percentage of butter fat is as important as the volume of

milk.

35. We would further point out that the cost of cow testing and milk recording societies is low, and that the return to the producer after a few years is far in excess of any expense entailed. In 1924 the average cost per cow to the members of societies in England and Wales was only 4s. 5d., though in the case of many societies the cost was much in excess of this amount. With the more efficient working of societies and the spreading of overhead expenses over larger numbers of cattle, the cost per unit should still further decrease. We are so convinced of the importance of the rapid extension of cow testing and milk recording that we would venture to urge upon the Governments of the Empire that they assist financially in the establishment of schemes where special difficulties arise.

36. We recommend that the proposal which we made in our Second Report for payments toward the transport of pedigree breeding stock from the Mother-country to the Dominions should be extended to cover stock for dairying as well as meat-producing herds. In this connection the maintenance of herd books and the licensing of bulls are most important. Bull clubs, such as have been initiated in Denmark and adopted in the United Kingdom and Canada, should be multiplied, and the extension of Government stud farms would prove invaluable to the industry as well as repay any initial expenditure. There is also considerable work to be undertaken in the Overseas Dominions in the eradication of unprofitable cows and scrub bulls unsuited for the propagation of a rich dairying strain.

37. Pasture improvement and fodder conservation are of great importance to producers. A sum has already been set apart from the Empire Marketing Grant for organising research into the mineral content of pastures. There is much work of this type to be undertaken. Experiments are also being conducted in various parts of the Empire to measure the increase in the stock-carrying and milk-producing capacity of pasture which receives applications of artificial fertilisers as compared with pasture which does not receive the additional manure. Further research is necessary, as we indicate below, in connection with foodstuffs for good milk production during the winter period when pasture feeding is not practicable.

38. Not only is it important that research on the lines we have indicated should be carried out, but it is equally important that the producer should be made aware of the results of this research and should apply them in his own pastures and among his own herds. We are told, for instance, that in Australia the application of a top dressing costing in all for the dressing and its application not more than 10s. per annum per acre will, in many areas, result in an increase in the carrying capacity of from 75 per cent. to 100 per cent.

39. Considerable emphasis has been laid by various witnesses, well acquainted with the United Kingdom market, on the fact that if the butter of a given producing country is to secure and maintain a high reputation and the best prices, it must be on the market for as long a period as possible during the year. Danish butter is available in a fresh condition throughout the whole year. This has undoubtedly contributed in no small degree to the great prosperity of the Danish dairy producer. The Danes have achieved this result by careful attention to winter dairying. It is a fact that winter dairying is normally more expensive than summer dairying. Stall feeding, entailing the production and the storage of fodder and the provision of cake, involves an additional outlay on the part of the farmer. Nevertheless, we believe that a higher average price is to be obtained from a prolonged supply. We would, therefore, urge that the producers and their organisations in the Overseas parts of the Empire should carefully re-examine this matter with a view to greater continuity of supply. If Empire dairy produce is to benefit fully from a publicity campaign, it is essential that supply and advertisement shall continue through as great a part of the year as possible.

40. In some of the Overseas Dominions it may be decided on economic grounds that dairying cannot be undertaken during the whole of the winter period. Even in such cases, we would urge an extension of the season of production. In other areas winter dairying may be practicable only by means of fodder conservation. This, however, should be no deterrent, as we see no reason why much more extensive use should not be made

of hay and ensilage. In regard to hay and ensilage we would recommend further research into its vitamin content. If it should be found that some present methods of preservation are harmful in this respect, further investigation should be undertaken with the object of discovering improved methods to ensure the preservation of the important vitamins present in the fresh

crop.

41. In certain regions, as, for instance, in parts of Australia, we are disposed to think that winter dairying may even be more practicable than summer dairying. In the very hot period of the year the vegetation is scorched, and except for ensilage and similar fodder no food is available for the cattle. In such areas

green barley and certain clovers may be grown in the winter, and on these dairying is not only practicable but decidedly remunerative. These are questions into which we recommend local investigation.

C. THE DAIRYING INDUSTRIES OF THE EMPIRE.

42. We now proceed to give a short description of the dairying industries of the different portions of the Empire. The conditions differ so widely that the application of the general principles which we have discussed in the preceding paragraphs must be separately considered.

VI.-United Kingdom Dairying Industry.

43. As the Linlithgow Committee, so recently as 1923, conducted an elaborate inquiry into the methods and costs of distributing Home-produced milk and dairy produce in the United Kingdom, we have not thought it necessary to go into any elaborate repetition of that inquiry. We have, therefore, in our recommendations affecting the Home producer, limited ourselves to emphasising those recommendations in the Report of that Committee which bear upon our present investigation. It is, however, necessary, in order that a proper idea may be formed of the dairying resources of the Empire, to give a brief account of the dairying industry of the United Kingdom.

44. Owing to the density of population in Great Britain, and particularly in England and Wales, dairying is mainly concerned with the production of liquid milk for human consumption. It has been stated in evidence that 80 per cent. of the dairy farmers in England and Wales are engaged in the sale of liquid milk, and a large proportion of them dispose of their whole output by contract throughout the year. On the other hand, some of them are only able to find an outlet for part of their product, and they convert the surplus into butter. Others, again, definitely make cheese during the summer and only revert to the sale of liquid milk in the winter when prices are normally higher. It is usually considered most remunerative to sell milk for direct consumption or, as an alternative, to convert it into cheese. It

is only when a special market can be found for butter, or where remoteness from a market or railway makes the sale of liquid milk impracticable, that butter making is likely to be profitable, though butter making is the usual method of disposal of milk on farms where cattle rearing is the chief concern. There is a fairly substantial production and sale of butter of the best quality at relatively high prices. This high-class farmhouse butter does not compete directly with the Empire products sold on the wholesale markets, but has a specialised and local market which is able to absorb all that is produced at prices which are probably not unremunerative. Apart from this high-class butter, farmers who have surplus milk in irregular quantities also make butter, which is usually of secondary quality. The irregularity and uncertainty of their surplus supply of milk, over and above what is required for immediate consumption, has hitherto been the most serious obstacle to the establishment of butter factories

in England and Wales. On the other hand, the quality of cheese made on farms is usually considered superior to anything that can be produced in cheese factories, and for this reason there has not been any very marked development in the manufacture of factory cheese.

45. Accurate statistics of the dairy produce output of Great Britain and Northern Ireland are not available, but it is evident that there has been an increase in the total milk production in recent years. The Home Departments of Agriculture ascertain annually the number of heifers and cows in milk or in calf, and it appears that these have increased from 2,900,000 for 1900-1904 to 3,400,000 in 1925, that is by about 17 per cent. The annual average production of milk is believed to be in the neighbourhood of 440 gallons per head, so that the total production at the present time is about 1,500 million gallons. It is difficult to say exactly what proportion of this total output. is used for butter and cheese making, but in the absence of precise figures the Ministry of Agriculture has suggested that the production of butter in Great Britain and Northern Ireland is probably about 1,000,000 cwts., and of cheese 1,250,000 cwts. These quantities taken together would represent 450 million gallons of milk, or about 30 per cent. of the total production of milk.

46. The advantages of selling liquid milk have attracted increasing numbers of farmers to this branch of the trade, and within the last year or two the supply has tended to be slightly in excess of the apparent demand. This has led to a concerted effort by producers and distributors to increase consumption. A National Milk Publicity Council has been established which, besides undertaking a general advertising campaign, employs qualified persons to instruct the general public in the food value of milk and supports nutrition experiments having for their object the testing of its nutritive value. Its expenses are met by a levy on producers and distributors.