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DAIRY DIVISION. REPORT OF W. M. SINGLETON, DIRECTOR. Production. Despite the more or less unfavourable weather conditions during the past season, an increase in the quantities of butter and cheese has again to be recorded. For the year ended 31st March, 1931, 95,981 tons of butter and 92,527 tons of cheese were received for grading, as compared with 94,054 and 86,962 tons respectively for the previous year. This represents an increase of 1,927 tons of butter, equal to 2-04 per cent., and 5,565 tons of cheese, equal to 6-4 per cent. In terms of butterfat, equivalent they represent an increase of 4,305 tons, or 3-89 per cent. Quality op Creamery Butter. Butter-factory managers are to be congratulated on the high quality of the bulk of the creamery butter manufactured, the average grade of which during the year was 93-10, as compared with 92-96 for the previous year. Butters scoring finest exceeded last year's figures by 3-9 per cent., the totals being 78-31 and 74-41 per cent, respectively. " Firsts " and " under firsts " were 20-59 and 1-07 per cent, respectively as compared with 24-09 and 1-5 per cent, for the previous year. During the year a regulation was gazetted and came into force as from 7th August last limiting the quantity of salt in butter from not less than If per cent, to not more than 2 per cent. This has resulted in a more even salt content, which, together with the uniformity of body and texture, even moisture content, and more attention to packing and finish, reflects the greatest credit on butterfactory managers. Whey Butter. The production of whey butter shows an increase as compared with the previous year, the figures being 1,358 tons and 1,128 tons respectively, an increase of 229 tons. Although factory-managers have given more attention and care to the manufacture of this class of butter, the infrequent delivery of the whey cream from cheese to butter factories militates against the production of a satisfactory quality article. It is understood that some New Zealand whey butter is at times supplied by the retail trade in the United Kingdom to customers asking for New Zealand butter. It is recognized that most of the exported whey butter goes into manufacturing channels and that some is used by blenders. The prohibition of export to safeguard creamery butter to a greater extent has been considered. The small percentage which whey butter constitutes of the Dominion's total output, together with the fact that comparatively little is presumed to be retailed, seem reasonable grounds for making no change. Quality op Cheese. The quality of cheese manufactured during the year has not been uniformly satisfactory. Cheesefactory managers have experienced a trying year in so far as conditions for the manufacture of goodquality cheese is concerned, and, although an earnest endeavour has been made to improve the quality, this has not been realized to the desired extent, more especially in districts in the North Island where " standardized " cheese has been made. Cheese graded " Finest " for the year amounted to only 17-53 per cent., as compared with 24-16 per cent, for the previous year. Percentages of " firsts " and " under firsts " were 79-80 and 2-65 per cent., as compared with 73-85 and 1-98 per cent, respectively for the previous year. In the early season makers experienced considerable difficulty in developing sufficient acid in the curds, and in endeavouring to make a better-bodied cheese used an excessive amount of salt, resulting in a sweet and mealy-bodied cheese. Uniformity in acid control, and the development of the required amount in a given time, is most essential. Complaints from Britain have been fairly numerous, and refer principally to lack of maturity in the cheese on arrival, harshness in body, and openness, also some discoloration of coloured cheese. These defects are being closely investigated by the Dairy Research Institute staff, and other scientists, who are working in co-operation with them with a view to finding remedial measures. In the meantime cheesemakers are using every endeavour to improve quality, and it is expected that cheese going forward more recently will give better satisfaction. More care and attention should be given to the packing of the cheese- to ensure sufficient air space between the cheese and crate-ends. Too tight packing has resulted not only in soft crowns, but also in numbers of cheese being batten marked, which has rendered them difficult of disposal at rulingprices. Crate-timber which does not comply in size with the regulations should on no account be accepted by dairy companies in fulfilment of orders. During the year approximately 75 per cent, of the cheese were made from pasteurized milk and approximately 85 per cent, were wax-coated. Standardized Cheese. Regulations for the manufacture of " standardized " cheese which provided for a minimum fat content of 50 per cent, by weight of milk-fats in the dry matter from Ist August to end of February and 52 per cent, from Ist March to 31st July, came into force on the 21st December, 1928, and the legal manufacture of this class of cheese commenced early in January, 1930, and continued up to the 31st December, 1930. Complaints from Britain were numerous concerning the quality of much of this cheese, and, as a. result of the apparent prejudice created against this standardized article, the

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