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degree of improvement they are considered capable of. Many of the smaller stations, which were considered fully stocked a few years ago, have now, by the aid of fencing and surface sowing of grass seed, been improved up to double, and in not a few instances to treble their former carrying capacity, and when we consider that at least three-fourths of the pastoral lands of the Province are capable of similar improvement, that every bushel of grass seed judiciously sown will, in the course of two or three years, produce pasturage for a sheep, it is not easy to define a limit to our increase, which will indeed be governed more or less by the price of wool, and the amount of capital available for the improvement of the land; the recent establishment of large freeholds into smaller properties, which I hope to see still further practised in the future, will tend not a little to the more rapid improvement of our pastoral lands.

From what information I can gather, I estimate the quantity of grass seed to be sown this season at not less than 70,000 bushels, and whilst on this subject I cannot but deprecate the almost exclusive use of perennial rye grass seed by our graziers and runholders, which is yearly augmenting the number of staggering stock of all description to be met with in the early autumn wherever this grass preponderates in any very marked degree; this, I am aware, has been more a matter of necessity than choice, no other grasses having been propagated to any extent in the Province, but it is nevertheless a mistake which ought to be carefully guarded against and assiduously corrected in the future. This circumstance presents a good opening to some of our enterprising farmers to cultivate for seed other grasses, such as cocksfoot, timothy, and some of the varieties of fescue, for which, even at the present time, there is a considerable local demand. The continued improvement in the character of our flocks and herds should elicit from me more than passing comment; quality rather than numbers is, as it ever ought to be, now the chief desideratum, and the emulative and spirited enterprise displayed by many of our stockowners in the importation of valuable stud animals to improve their flocks and herds, is producing the most gratifying results, the numbers and excellence of our stock being year by year more nearly contemporaneously progressive, and we are now exporting a better class of wool than that of some years ago; it is to be regretted, however, that owing to the demand for Sheep being in excess of supply this year, many cull ewes which ought to have been boiled down have met with a ready sale for breeding purposes.

From a classification of the flocks in the Province I find that nearly one-half of the Sheep are now either long-woolled or cross-bred, chiefly graded Lincoln and Merino. No Sheep have been introduced overland since the date of my last report. The imports of Sheep at the Port of Napier during the past twelve months number 769, and comprised 298 long-woolled rams, 103 long-woolled ewes, 303 merino rams, and 65 merino ewes. Those Sheep, and occasionally a few imported cattle, which I hope I have had also to inspect, have been arriving in small numbers nearly every week during the last five months, and has been a severe tax on my time, and as the increasing number of importations demands increased vigilance, I consider it necessary that an assistant should be appointed to relieve me of Port duties and those of the Public Slaughter-house. A more commodious sheep yard and convenient dip will be required to be erected at the Port, to expedite the dipping of imported Sheep. Although foot-rot has become more widely disseminated, few flocks indeed being now free from it, yet, during the past year, it has not assumed that virulent form which characterised its earlier attack. I have much pleasure in reporting all the flocks still free from scab. The erection of the double line of fence near the southern boundary, together with the careful shepherding and attention it receives from the boundary shepherd, as also the energetic and systematic manner in which Mr. M’Lean’s flock is being handled, goes far to allay any apprehensions which were entertained of this disease getting across our southern boundary. At latest advices both fences were in an efficient state, and the portions running into the sea had successfully resisted the effects of the heavy surf. The defective provisions of our Sheep Act, which I pointed out in my last report, still exist, rendering Inspectors powerless to compel the immediate eradication of scab if it once appeared within our boundaries, and although I drafted a Sheep Bill last session, designed to remedy those defects, which was disallowed, I still think it my duty to call attention to the fact that our Sheep Act is still defective in this respect.

I have the honor to be, Sir,

Your most obedient Servant,

GAVIN PEACOCK,

To His Honor the Superintendent.

Inspector of Sheep.