H.—29

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DAIRY DIVISION. REPORT OF W. M. SINGLETON, DIRECTOR, Production. During the year 94,054 tons of butter and 87,962 tons of cheese were forwarded to the grading - stores for grading, as compared with 80,932 tons of butter and 84,627 tons of cheese for the previous year. This represents an increase equal to 16-21 per cent, of butter and 3-94 per cent, of cheese. Converted to butterfat equivalent they represent an increase of 11,202 tons, or 11-2 per cent. A more general desire to improve the producing-capacity of dairy herds and the accumulative effects of topdressing are factors which have contributed largely towards this high record production, although favourable climatic conditions are probably the main factors. Quality op Creameby Butter. Despite the large increase in production, the quality of creamery butter has probably never previously reached so high a uniform standard of excellence, the average grade for the year being 92-96, as compared with 92-84 for the previous year. Butters scoring " Finest " exceeded last year's figures by 4-5 per cent., the totals being 74-41 and 69-91 per cent, respectively. The percentage of " First " grade was 24-09, as compared with the previous year's total of 27-82 per cent., and " Under Firsts " 1-5 and 2-27 per cent, respectively. " Soda " flavours have been rarely commented upon, and the highly uniform character of the body and texture, together with the even distribution of the moisture content and more attention paid to the better packing and finish of our butters, is a testimonial to the excellent team work of the factory managers. Whey Butter. The quantity of this class of butter manufactured during the year shows a slight falling-off as compared with the previous year, the totals being 45,152 boxes and 46,336 respectively. More care has been taken in the handling of the whey cream, which is reflected in the general quality of the produce. There is still room for much improvement in quality, which could be greatly assisted by closer co-ordination between the operator in the cheese-factory and the buttermaker. Quality of Cheese. The general quality of cheese manufactured during the year, more particularly in the North Island in districts where " standardized" cheese has been manufactured, has not been entirely satisfactory. Only 24-16 per cent, of all cheese graded was classed as finest, as compared with 29-57 per cent, for the previous year, and 50-16 per cent, for the 1926-27 season, during which the Dairy Produce Board paid a premium for " Finest " over " First." Averages for " First " and " Under First " were 73-85 and 1-98 per cent, respectively, as compared with 69-10 and 1-33 per cent, for the year previous. Openness in texture has ibeen more in evidence, and this defect has occasioned a great number of complaints from Great Britain. The body of many cheese has been inclined to be weak, suggesting that yield rather than quality has been the object aimed at. A good-quality article will always command the highest price, and cheese-producers are therefore urged to adopt without delay the policy of the butter-manufacturers and concentrate on the production of an article of the highest possible quality. The finish of cheese has greatly improved, and in accordance with the requirements of the regulations all cheese are now either rimless or with a minimum rim not exceeding f in. in depth. A large number of paraffin-waxing plants are now in use, and approximately 70 per cent, of the cheese graded were waxed. It is estimated that 90 per cent, of the cheese graded was made from pasteurized milk. Standardized Cheese. Standardized cheese, as the term refers to cheese other than " full cream " cheese manufactured in New Zealand, does not by any means mean a cheese which has been reduced to below the standard which usually obtains in cheese made from milk from dairy cattle other than the Jersey and Guernsey breeds. It is the aim of the New Zealand producers of standardized cheese that they shall be maintained at that standard. The change over from full cream to standardized has continued during the year under review, and, with the exception of three factories in the South Island, has been confined to North Island dairy factories. Of all cheese graded during the year some 50-24 per cent, was standardized, while the quantity of North Island cheese standardized represented some 68-4 per cent, of the cheese made in the North Island.