ALMOST all sheep, as well as some other animals, grazing in certain districts of Australia, develop a peculiar pigmentation of their livers, portal lymph nodes and to a lesser degree of their lungs, without showing any adverse clinical signs. In the Brisbane abattoir about 25,000 livers (3 per cent) are condemned annually because of this discoloration. The pigmented livers are also seen in the Sydney abattoir, but are completely unknown in Tasmania, South Australia, Victoria and Western Australia, according to information obtained from the chief veterinary officers of these States.