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PROBLEMS OF EMPIRE. Association—a co-operative society of the best kind, which has already done a great deal (as is apparent from the figures quoted above) to secure better prices for its members. The Commission came to the conclusion that the market prospects for Mildura fruits, both green and preserved, are decidedly favourable. Mildura has not yet overtaken the local demand for lemons, oranges, raisins, and dried fruits. In the home market, and in the markets of the world generally, Mildura can only hope to compete, under present conditions, with other fruit-growing countries in lemons, dried apricots and peaches, the best sort of raisins, and olives. Great improvements have already been made in methods of production. It is certain that, as time goes on, the cost of production will be considerably diminished, and further improvements will be made. The fruit-preserving companies are capable of dealing with a far larger quantity of fruit than they deal with now, which means a reduction in the fixed charges which each pound of fruit has to bear. It would be unwise to extend the cultivation of raisins and currants beyond the amount necessary to supply the home demand. The same may be said of oranges. In canned fruits California at present holds the pre-eminence; though it is possible that Mildura, with a diminished cost of production, may be able to compete with her in the future. There is little evidence that the vignerons can compete successfully, with the assistance of irrigation, with wine-makers in other parts of the Colony under natural conditions.

I have said sufficient to show that Mildura has a great future, provided that she is able to overcome her present difficulties, viz., the defective water supply, and 218