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Certificate-of-reCord and Government Official Herd-testing Due to acute staffing difficulties and the impossibility of obtaining sufficient motorvehicles, it was decided to hold in abeyance for another year the introduction of plans for the extension of the C.O.R. and O.H.T. systems. Even though entries are still being accepted on a selective basis, rather than under the proposed all-cow rule, both systems continue to receive considerably increased support. The growth of the testing has, in fact, been almost phenomenal. In 1939 there were 247 breeders on our lists. The figure rose to 330 in 1943, to 422 in 1944, to 507 in 1945, and to 627 in the year under review. Cows on certificate-of-record test rose from 611 in 1939 to 1,484 in 1946, while the O.H.T. figures for the same years were 2,200 and 7,900 respectively. It is apparent from these figures that the systems have the confidence of breeders of pedigree dairy cattle. Dairy Factory Managers' Registration Board For some years the number of new applications for registration has been between 40 and 50 per annum. The number dealt with by the Board during the year under review totalled 52, certificates being granted in 43 cases. There are at present 707 holders of certificates on the register, 240 being creamery managers' certificates, 398 cheese-factory managers' certificates, 4 with first-class cheese and second-class butter, 2 with first-class butter and second-class cheese, while 63 hold first-class certificates for both butter and cheese. Redundant Cheese Plant The list value of plant sold during the year was £8,600, and the value of unsold plant at 31st March, 1947, was £B,lOO. The list value of cheese plant rendered redundant at the time of reversion to butter in 1942 was £64,000, and net realizations to date have resulted in a loss of approximately £20,800. The plant remaining on hand will be difficult to dispose of because of the lack of demand, and such of it as may ultimately be saleable will have to be offered at a price considerably below the list value. As the plant was originally purchased by cheese-factories in preparation for an output considerably beyond normal operations, and in general can be used only by cheesefactories, it was expected that there would ultimately be a fairly substantial residue of plant and equipment for which little use could be found. It is considered that the transactions relating to the disposal of this redundant plant have been reasonably successful, and the final loss will be smaller than anticipated. General The work of the Division is in three main sections : (1) that relating to butter and cheese and the by-products of milk and cream, (2) market milk, and (3) herd recording of pedigree dairy cattle. The Division's assumption of responsibility for administration of the Dairy (Milk Treatment) Regulations 1946 is an additional activity. The appointment of a Supervisor of Herd Recording is in readiness for an extension of the service to breeders of pedigree dairy cattle through the long-established certificate-of-record and Government official herd-testing systems. Activities in relation to farm dairy instruction, butter and cheese instruction, and the grading of dairy-produce are directed towards assisting the industry to produce and maintain an even uniformly higher standard of quality than in the past. It is not unlikely that before long our dairy products, which under war conditions have enjoyed an unlimited and uncompetitive market, may have to compete in quality and attractiveness with much improved products from other countries. Staff Director and Assistant Director. —Consequent upon the retirement of Mr. G. M. Valentine from the position of Acting-Director, Mr. H. A. Foy was appointed Director and Mr. H. J. Petch Assistant Director.

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