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TO HIS EXCELLENCY, FRED M. WARNER, Governor of Michigan:

SIR-I have the honor to submit herewith the annual report of the Dairy and Food Commissioner for the year ending June 30, 1905. This report covers six and one-half months of the administration of this office by my predecessor, and the five and one-half months since my succession to the position of State Dairy and Food Commissioner. On assuming the duties of this office my first thought was given to the reorganization of the Department along the lines laid down in the first message of Your Excellency to the Legislature. In that message you made use of the following language:

"It is my belief that the Dairy and Food Department should be so broadened in its scope that an opportunity may be given to foster and encourage the dairy interests of the State. Michigan agriculture is in a transitory condition. Our farmers are turning their attention from grain growing, as the chief source of income, to live stock husbandry, prominent in which is dairying. To my mind our State should become a great dairy state. There is no branch of agriculture that will add more to our resources, or bring greater material prosperity to our people. Michigan has not kept pace with her neighboring states in this industry. Wisconsin, no more favorably situated as to soil, climate or market conditions, has today 1,800 public creameries compared with Michigan's 238. Wisconsin has 1,700 cheese factories, while Michigan has only 137. Wisconsin produces annually nearly 74,000,000 pounds creamery but ter; Michigan produces less than 27,000,000 pounds. Wisconsin produces annually over 90,000,000 pounds of cheese, Michigan a little over 15,000,000 pounds. Estimating these products at a fair price, the annual income to the farmers of Wisconsin is about $25,000,000, while from the same sources the farmers of Michigan receive only $6,700,000. It is admitted by all competent to judge, that the factory system of making butter denotes progress in this industry. On the average, butter products of much, better quality come from the factory, and they bring correspondingly higher prices. The respective amounts of creamery and dairy butter produced by a few of our neighboring states in 1903, as compared with Michigan, is as follows:

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