H.—29

Germany from Denmark, thus decreasing Denmark's export to Great Britain. London re-exported butters received from the Southern Hemisphere. Since the imposition of the dutyJPof about lis. per hundredweight in October last this factor, together with the low spending-power of the German people, has caused a great decrease in the imports into Germany of high-class butters. Cheaper butters from Siberia and the Baltic States have been accepted in their stead, .although in lessened quantity. The United States of America had an import duty on imported butter which at 8 cents per pound was considered by some of that country's trade journals to afford sufficient protection to their dairy industry. The duty has recently been increased by 50 per cent., to 12 cents per pound of butter, which would appear to be almost, if not altogether, prohibitive. The reciprocal tariff with Canada came into effect during the year, and has assisted in renewing some trade in butter with that Dominion. Since, however, Canada has more recently experienced a renaissance in her export butter trade, and it is unlikely that she will require to draw on New Zealand for any important quantities. Quality of Cheese. The quality of cheese has evidenced a noticeable improvement, more especially in the Taranaki District. Last year in this District many dairy companies made yield their chief object irrespective of quality, the resultant cheese being weak, open, and sweet, or showing an excess of acid. It is pleasing to observe that cheese of this nature has not been so frequently met with during this year, indicating that more orthodox methods of manufacture have been followed. Less trouble with slimy milk has been experienced, but for a short period a fluctuation of aciddevelopment was met with. The finish of cheese shows a considerable improvement, and a fair number of dairy companies are now turning out a rimless cheese. This is particularly noticeable in the Auckland District, where practically 95 per cent, of the factories are using the rimless hoop. Plants for pasteurizing milk for cheesemaking are steadily being increased, the quantity of cheese this year made from pasteurized milk being equal to 76 per cent, of the output, as against 69 per cent, for the previous year. Further instalments of plant are to be made during the ensuing off season. * Storage of Cheese and Butter. All cheese in store awaiting shipment is now held under controlled temperatures. Owing to the regulation of shipments the storage space at one or two of the ports was overtaxed for a short period, which necessitated some cheese being held at ordinary temperatures. Weather conditions, however, were cool at the time, and the cheese, fortunately, suffered no ill effects. Suitable temperatures for butter in cold storage have been maintained at most of the freezingstores, and close attention to temperatures at time of shipment has been given by the graders in charge. The shipping companies are also requiring that butter and cheese should be at proper temperatures when loading is being carried out. The Dairy-produce Control Board's shipping supervisor continues to do good work in this connection. An experiment is at present being carried out to determine the keeping-quality of butter stored over a period of six months at zero, as compared with the ordinary storage temperatures, and this awaits completion.

Quantities of Butter and Cheese forwarded to Grading-stores for Years ended 31st March, 1925 and 1926.

22

_ — - . _ 1925-26. 1924-25. Port. j 7 Butter. Cheese. Butter. Cheese. I Cwt. Cwt. Cwt. Cwt. Auckland .. .. .. 759,042 224,948 824,081 119,027 Gisborne .. .. .. 15,250 .. 18,599 Napier .. .. .. 18,854 1,876 6,714 578 New Plymouth .. .. 104,137 293,716 117,931 283,697 Patea .. .. .. 21,599 338,990 30,257 340,641 Wanganui .. .. .. 68,174 44,534 92,365 45,836 Wellington .. .. .. 152,866 299,422 205,465 333,534 Lyttelton .. .. .. 40,024 22,852 47,626 30,812 Timaru .. .. .. 10,191 11,735 12,394 6,678 Dunedin .. .. .. 26,662 35,393 31,905 35,572 Bluff .. .. .. 9,460 188,720 19,288 178,861 Totals .. .. 1,226,259 1,462,186 1,406,625 1,447,236