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Redundant Cheese Plant The settling of claims for compensation for cheese-factory plant and buildings which became redundant as a result of the change back from cheese to butter production at the beginning of the 1942- 43 dairying season has been under action by the State Advances Corporation. After settlement has been made the Department of Agriculture is responsible for the custody and disposal of the plant and equipment, the buildings remaining under the jurisdiction of the Corporation. A. total of 80 claims from individual factories on account of plant have been received, 5 of which were subsequently withdrawn, these factories deciding to retain the additional plant installed. To (late 57 claims, to the value of approximately £51,800, have been settled, while 18 claims, representing £34,600, have yet to be finalized. The value of plant taken over by the Department from 75 factories is £64,000, of which approximately £18,000 worth has been sold. Arrangements have been completed for the National Dairy Association to act as principal selling agents for all redundant plant in the North Island, while the South Island Dairy Association will act in a similar capacity in respect of the South Island. Transfer of Supply The matter of transfer of suppliers between butter and cheese factories has presented fewer problems during the year, the position now having become practically stabilized, principally owing to the fact that the major portion of the reversion to butter took place during the preceding season. Ihe Division has, however, continued to receive a number of requests for transfers, though most of these have been more or less of a routine nature and inspired mainly by personal or transport reasons. Butter is still regarded by the United Kingdom as first in priority, although both butter and cheese are desired in maximum quantities. Inspection of New Zealand Dairy-produce in Britain Two officers of the Division remain in England as Inspectors of New Zealand dairy-produce. Mr. P. H. Taylor, the Senior Inspector, has his headquarters in London, while Mr. G. V. Were is stationed in Liverpool. Because of the difficulty and uncertainty of shipping, most of the routine examinations of butter and cheese have to be made at short notice and at the ship's side. Under the circumstances a surprisingly large number of inspections have been made, enabling very useful reports to be sent forward. These officers have continued to render help to the Ministry of Pood in respect of selection and distribution of butter and cheese. Much time has been devoted to the inspection of fibre-board butter-boxes, and reports and photographs sent out from England have proved invaluable in the perfecting of this substitute for wood. The experiments have proved, as previously stated, that butter packed in fibre-board boxes can, even under existing transport difficulties, land in England in satisfactory condition. The saving in shipping-space and in charges is a material factor in favour of fibre-board containers. Dairy Laboratory, Wallaceville The number of samples dealt with shows an increase over the previous year, and also exceeded the highest total of pre-war years. Ihe principal chemical work was the analysis of cream and butter for copper contamination, and with improved methods more rapid progress has been made. For the analysis of sour milk a new method has been evolved, which appears to be more reliable than the procedure which has for many years been relied on. Samples of butter to be tested for bacterial content have again provided the largest proportion of the bacteriological work. Examination o I cheese-factory starters for contamination has been continued. Progress in keeping and handling starters under the best conditions appears to have been intensive rather than extensive] In continuation of previous investigations, much time and effort have been devoted to milkingmachine rubber problems, and some progress made. During the winter Dr. Moir met Farm Dairy Instructors in the principal North Island centres and discussed with them the latest results of laboratory work on rubber, and also explained some aspects of water-supplies and the different nature of alkali compounds, which are the principal tools Instructors must use in the cleaning of milking-machines. Dairy Factory Managers' Registration Board Some 43 applications for registration were dealt with during the year, 31 certificates being granted. 1 here are at present 737 holders of certificates on the register, 37 of whom are serving with the Armed Forces. CERTIFICATE-OF-RECORD AND GOVERNMENT OFFICIAL HERD-TESTING Ihe co-operation of Farm Dairy. Instructors, some 40 of whom carry out monthly testing visits to breeders, has enabled this work to bo carried out for practically all breeders offering cows for test. First-class certificates-of-record issued during the calendar year 1943 number 472, as compared with 605 in 1942. In addition, 75 second-class certificates were issued. Of the cows which received first-class certificates, 355 were in the yearly division and the remaining 117 in the 305-day division average production being 523-14 lb. and 430-78 lb. fat respectively. Of the cows which received secondclass certificates, 65 were in the yearly division and averaged 532-33 lb. fat, while the remaining 10, which were in the 305-day division, averaged 352-84 lb. fat. The number of cows tested under the Government official herd-test during the year was 3,184, compared with 2,595 for the preceding year.

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