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At New Plymouth twenty-five lines of butter, representing each brand passing through the port, were held for varying periods and duly regraded. While no cheese was specially held, an even krger number of lines were re-examined prior to shipment. Special storage tests in respect of 340 boxes of butter and 109 crates of cheese were carried out at the Auckland port, each box and .each crate representing a different churning and vat respectively. Much valuable data was so gained, although the outcome of these special tests, taken as a whole, suggested no grounds for variation of present grading standards. Cool-store Temperatures. Occasional checks made in previous years on the temperatures of the stores in which butter and cheese is held prior to shipment pointed to the need for a stricter supervision, with the result that throughout the past year officers of the Division have taken records of daily readings at all ports. In one or two instances it was found necessary to ask a better service from the cool-storage companies, but it can be said that conditions in this respect have shown a marked improvement in recent months, and that the provisions of the regulations with regard to holding temperatures are now being more satisfactorily complied with. Grading of Milk and Cream. While a strict supervision of the work of milk and cream grading at dairy factories is still found necessary, inspections indicate that in the great majority of cases this work is proceeding satisfactorily. The daily grading of milk at cheese-factories was made compulsory as from the Ist October, 1936, and up to the present no difficulties have been met with m connection with the introduction of this new procedure. The daily delivery of cream to creameries is rapidly becoming a general practice, and, combined with cream-grading, is having a noticeably favourable effect on butter quality. Check-testing Suppliers' Milk and Cream Samples at Dairy Factories. Considerably more attention was devoted to this work during the past season, and for the year ending 31st March, 1937, check-tests numbering 858 were carried out by divisional officers, as compared with 440 for the previous year. Taken as a whole, the check-testing has indicated accurate work on the part of factory-managers. Farm Dairy Instruction. The number of Farm Dairy Instructors remains the same as last year —namely 39—these officers being employed by eighty-five dairy companies, whose suppliers number 36,210, of a Dominion total of 70,258. It will be seen, therefore, that little more than half of the suppliers receive the very great benefits of the services which these officers are able to render. Inspection of Milking-machines. For the period under review notifications of 3,195 milking-machine installations were received, as compared with 2,454 for the previous year. Vending and erecting firms have evidenced a desire to co-operate with the Division and to comply with the regulations, and inspections by the Division's officers indicate very few cases of contravention of the regulations. Dairy-factory Managers' Registration Board. This Board of eight members, which has been functioning since June, 1934, held four meetings during the year. A total of 714 applications were dealt with, 568 being renewal of certificate, while 146 were new applications. Of the former all were renewed, and of the latter 113 were granted certificates, ten deferred for further consideration, and fourteen applicants have been requested to sit for examination, the remaining nine being declined registration. A further amendment to the Dairy-factory Managers Regulations, cited as Amendment No. 3, serial No. 13/1936, was gazetted on 3rd September, 1936, and came into operation the day following. The amendment relates to the granting of permission for a manager not the holder of a dual-plant certificate to continue as manager during a temporary change-over in any particular period from the article usually manufactured at the factory concerned. The regulations provide that in the case of any contravention of the Dairy Industry Act the Board may, if it considers the breach of sufficient gravity, deregister the manager concerned. The unpleasant task of carrying out this duty fell to the Board in one instance during the year. Inspection of New Zealand Dairy-produce in Britain. During the year Mr. H. A. Foy, formerly Dairy Instructor with headquarters at Hamilton, went Home to assist Messrs F. H. Taylor and G. V. Were, the Division's London Inspectors. The work in connection with the examination of our dairy-produce at the London end has now assumed such dimensions as to require the full-time effort of three officers. The service rendered by the London Inspectors is of the greatest value, their duties pertaining not only to inspection and suitability, but also to containers, wrapping-materials, adjustment of complaints, both wholesale and retail, and many other phases of the business at the marketing end. The large number of reports received are valuable not merely to officers of the Division, but to dairy companies, factory-managers, and all who are directly concerned with the manufacturing business at the New Zealand end.

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