H.—29.

Cool-store Temperatures. The period for which butter and cheese must be held in cool store prior to shipment is prescribed by regulation, while the temperature at which such produce must be held is also laid down, in the Dairyproduce Regulations. During the past year officers of the Division have continued the practice, commenced in 1936, of taking records of the daily readings at all ports. A survey of these records indicates a decided improvement, and while there have been odd periods of irregularity it can now be stated that the general position with regard to holding temperatures is satisfactory. The matter is of great importance from the point of view of its influence on the ultimate quality of the product. Grading op Milk and Cream. As stated elsewhere, the zoning of supply has had a favourable influence on the grading of milk and cream at dairy factories, the opportunity for transfer of supply owing to dissatisfaction with the grading having been removed. Officers of the Division have continued to exercise a strict supervision over the work, and inspections have shown that, taken as a whole, the grading is being satisfactorily carried out. Each year, however, brings a number of cases where the grading standards adopted by certain, factory-managers are in need of adjustment, and the necessity for supervision is amply demonstrated. The regulations appear to be working smoothly, and the methods laid down accepted as part of the dairy-factory routine. Milk and cream grading, combined with farm dairy instruction, and the more general practice of daily delivery of cream to creameries, have had an obviously favourable effect on the quality of our produce. Check-testing Suppliers' Milk and Cream Samples at Dairy Factories. Recognizing that the testing for butterfat of milk and cream supplied to dairy factories calls for extreme accuracy and warrants careful supervision, officers of the Dairy Division devoted considerable time to checking up the work of factory-managers in this connection. For the year ended 31st March, 1938, divisional officers carried out 1,303 check tests, as compared with 858 for the previous year. In a number of cases factory-managers were advised that more careful work was expected, though, taken as a whole, investigation indicated that most factory-managers were performing this duty in a manner which left no grounds for adverse criticism. Farm Dairy Instruction. Three additional Farm Dairy Instructors were appointed during the year under review, the total now being forty-two, these officers being employed by eighty-six dairy companies, whose suppliers number 35,030 of a Dominion total of 69,698. The value of farm dairy instruction is particularly apparent in climatically unfavourable seasons, and the Division's officers have reported that during the past season the produce of dairy companies enjoying the services of a Farm Dairy Instructor did not decline in quality to the same extent as that of less-fortunately-placed creameries. The question of placing the Farm Dairy Instruction service on a Dominion-wide basis has been the subject of considerable discussion by the Government, and it is expected that during the coming season all dairy factories in New Zealand will be brought within the scope of the scheme. Should this eventuate it will have to be regarded as one of the most important reforms in the history of outdairy industry. Inspection of Milking-machines. According to notifications received in the Division's Head Office 3,006 milking-machines were installed during the past financial year, as compared with 3,195 during the previous twelve-months. The majority of the installations are inspected by Farm Dairy Instructors, who report a commendable effort on the part of erecting firms to comply with the regulations. Very few contraventions are met with. Dairy-factory Managers' Registration Board. The Board held three meetings during the year, two in Wellington and one at Palmerston North. Applications dealt with totalled 691, 631 of these being for renewals of certificates previously issued and sixty were new applications. Of the former all were renewed, and of the latter forty-two were granted certificates. Fourteen were requested to sit for examination, three were deferred for further information, and one was declined. In addition, twelve names were removed from the Register of Dairy Factory Managers owing to the holders of the appropriate certificates of registration having given up dairy-factory work. During the year Mr. P. C. H. Petersen, who had been Chairman of the Board since its inception, resigned, as he was leaving for an extended trip abroad. Mr. J. McK. McDonald, Manager, Cheltenham Dairy Co., Ltd , was appointed to fill the vacancy, and is the present Chairman. It is pleasing to record that dairy companies, as well as all holders of appropriate certificates as managers, appear to have a fairly good knowledge of the Dairy-factory Managers Regulations, and that it has not been necessary to institute proceedings against any company or certificated person for any contravention of these regulations. Inspection of New Zealand Dairy-produce in Britain. The work and responsibilities of the Division's officers in London appear to be increasing annually. Mr. F. H. Taylor and his two assistants, Messrs. G. V. Were and H. A. Foy, report another extremely busy year. The present system of marketing brings them into close co-operation with the

7—H. 29.

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