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portion of the 1945-46 dairy season presented some degree of difficulty, and several prosecutions against suppliers and dairy companies for contraventions of tlie Order became necessary. The position generally gave rise to dissatisfaction in the industry, and as a consequence Amendment No. 1 was gazetted in July, 1946. This amendment provided for the granting of exemptions to suppliers to butter-factories, to enable them to supply milk for cheesemaking where special circumstances existed. At the request of the dairy industry, an independent appeal authority in the person of the Deputy Chairman of the Executive Commission of Agriculture was appointed. All applications are handled through the Dairy Division, and since the amendment came into force a number of applications have been dealt with. The administration is, in effect, carried out jointly between the Dairy Division and the appeal authority, and is now working smoothly. Farm Dairy Instruction Farm Dairy Instructors made 107,096 visits of inspection, instruction, and advice to farm dairies during the year, representing an average of about 1,409 visits per officer. In respect of milking-sheds, 33-4 per cent, were classified as- good, 50-3 per cent, as fair, and 16-2 per cent, as bad. The classification percentages for milking-machines were 38-5, 41-3, and 20-1 respectively. It is quite clear from these figures that there is considerable room for improvement in the condition of both sheds and machines. The number of new milking-sheds erected during the year was 1,083, while the number substantially reconstructed was 901, compared with 836 and 898 respectively in 1945-46. The amount of repair and renovation work carried out was again to some extent limited by the availability of cement. Farm Dairy Instructors were able to see that such quantities as could be made available were used to the best advantage by making recommendations for releases in accordance with the urgency of the work requiring to.be done. The following provides a general survey of the Division's farm dairy instruction service to dairy-factory suppliers. The year in review has seen the inauguration of a system and control designed to improve' the service of the Farm Dairy Instructor to the industry. The scheme is intended to promote uniformity among the staff of Farm Dairy Instructors and Supervisors, to introduce innovations and reforms to the service on a Dominion basis, to guide officers to a more systematic and improved method of working, and generally to tighten the system of inspection and instruction. The need for improvement in this service has been apparent for some years, and, as the service deals with the fundamental of quality of the raw product, any improvement which can be made should provide a more efficient service in other directions and have a definite bearing on the quality of manufactured dairy products. The first approach to the supervision of policy was the introduction of a number of reforms in method and practice calculated to provide a more efficient service and to serve as starting-points for further and more gradual improvement in the future. There has been insufficient time to obtain first-hand opinion of the effect of these reforms, but several managers of dairy factories have already commented in enthusiastic terms on the effects so far noted in relation to their own particular factories, and the improved service to those factories from the innovations and reforms introduced. Milking-machine s In the period under review 1,375 new and 878 used milking-machines, making a total of 2,253 machines, were installed. In the previous year the figures were 1,165, 917, and 2,082 respectively. Check-testing of Milk and Cream Samples This work was continued as part of the routine duties of Dairy Instructors and Special Inspectors. During the year officers checked the factory testing at 522 visits, and during these visits checked 3,194 samples. The work appeared to be carried out accurately and conscientiously in the great majority of cases, though there were some instances where it was necessary to issue a warning in regard to compliance with the regulations.

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