H.— 29.

greater improvement in the quality of the milk and cream supplies has been made than in areas where there are no instructors. Similarly in a number of cases where the services of the Farm-dairy Instructor have been discontinued a falling-off in the quality of the dairy-factory output has been manifest. The need is therefore apparent for the institution of farm-dairy instruction on a Dominion basis as soon as economic conditions will permit. Inspection of Milking-machines. In districts where Farm-dairy Instructors are operating these officers give special attention to the inspection of new and renovated milking-plants installed during the year, and elsewhere the inspection was carried out as opportunity offered by the Butter and Cheese Instructors. During the year some 3,125 plants were inspected, the great majority of which were found to comply with the regulations. A few required minor adjustments, and. necessitated a further visit before being finally passed. The reduction in the number of Farm-dairy Instructors must necessarily throw more work on the Dairy Instructors in connection with the inspection of the erection of new milking-machines, and any re-erections of used milking-machines. This is important work, and has been the means of ensuring that these installations are such that they can be kept clean without unnecessary care and attention. Since the amending regulation has placed some responsibility on the vending and erecting firm, fewer erections are found to contravene the regulations, and their assistance is appreciated. Check Testing of Suppliers' Milk and Cream Samples at Dairy Factories. The check testing at dairy factories of suppliers' samples of milk and cream for butterfat content has been considerably extended during the year, as, in addition to the two officers specially detailed for this work, the Dairy Instructors have assisted as opportunity offered. In all, 550 visits were made to dairy companies for this purpose. Dairy companies are keen to carry out the testing accurately and efficiently. Very few samples of milk and cream now come forward to the Division for testing as a check against that of the factory test, which is an indication that suppliers are satisfied that the factory testing is being carried out accurately. Dairy Bacteriology. This section of the Division's activities is under the direction of Mr. G. F. V. Morgan, N.D.A., N.D.D., Dairy Bacteriologist, and as the problems investigated by him during the year are of interest and value to the industry a summary of his report is appended. (See General Appendix III.) Inspection of New Zealand Dairy-produce in Britain. , The divisional officers have had a strenuous year in examining butter and cheese on arrival in Britain, and furnishing detailed reports to the Division on the quality and condition of this produce at time of examination. This information is of great value not only to the Division, but to the dairy companies also, who receive a copy of each report received dealing with their particular produce. Owing to the ever-increasing volume of dairy-produce being exported to Britain, it is evident that the two officers engaged in this work are unable to examine as many lines as is desirable, and it would seem that consideration should be given to the desirability of appointing a further officer to assist Mr. Wright. Mr. A. C. Ross, who had assisted Mr. Wright for some four years, returned to New Zealand in August last, and was replaced by Mr. F. H. Taylor, formerly Dairy Instructor, Invercargill. Certificate-of-record Testing. Statistics relating to this branch of the Dairy Division's work are classified in calendar years, the 1930 returns being the latest available. The calendar year 1930 must be written down as one of the good years of the C.O.R. system. First-class certificates were issued to 643 cows as compared with 491 cows in 1929, and despite an increase of 152 in the number of certificates gained, average production rose by over 4 lb. of butterfat, the 1930 figure being 474-02 lb. fat as compared with 469-95 lb. for 1929. Thirty-four second-class certificates were issued during the year under review as compared with twenty-eight for 1929. Official Herd-testing. The O.H.T. system experienced a marked revival of support for the season just closing. The largest number of cows tested under this system in any one month during the 1929-30 season was 1,365, while for the peak month of 1.930-31 we reached the very encouraging figure of 2,054. Quoted in herds we have had 167 breeders on our list this year as compared with 129 at the height of the preceding twelve months. Herd-testing. During 1929-30 some 283,731 ordinary herd cows were under test, as against 259,594 cows for 1928-29. Classified according to the three principal systems the 1929-30 total is divided as follows : Association system, 40,667 cows; group system, 242,688 cows; dairy company system, 376 cows. The Government subsidy to herd-testing has been continued, though decreased from £10,500 for the 1929-30 season to a maximum of £8,000 for the current financial year. Appreciation. The season has been a particularly arduous one for the staff, and the cordial co-operation, attention, and enthusiasm of all members is much appreciated. Thanks are also extended to the Department's Chief Chemist, State Forest Service, Dairy-produce Board, the various cattle-breeders' associations, and freezing companies for their co-operation and assistance during the year.

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