H.—3oa.

The Division promptly instituted a publicity campaign per radio, newspaper, and grocer displays, and this, combined with a 2d. reduction in consumer price, resulted in an increased sale of over 1,000,000 lb. without detriment to consumption of creamery butter. Following experiments by'the Dairy Research Institute, a commercial plant for drying butter for shipment in non-refrigerated space has been erected by the Division at its late Auckland butter-patting plant, and this is coping with the -problem of future surplus whey quantities. See further details in this report. The Division is now arranging the manufacture of a plant for tinning butter, which is in much demand for overseas forces, patriotic parcels, and other military and essential civil needs.

Table showing Local Market Turnover of Butter for the Year ended 31st March, 1942.

Table showing Local Marketing Turnover op Cheese for the Year ended 31st March, 1942. 1941. lb. 1942. lb. April .. .. .. .. 719,391 January .. .. .. 641,376 May .. .. .. .. 928,171 February .. .. .. 672,569 June .. .. .. .. 775,533 March .. .. .. .. 693,320 July 654,167 August .. .. .. .. 548,836 8,265,921 September .. .. .. .. 583,983 October .. .. .. .. 720,871 November .. .. .. .. 659,732 December .. .. .. .. 667,972 DRIED BUTTERFAT. For many years New Zealand, as well as other countries, has spasmodically experimented with the drying of butterfat with a view to conserving refrigerated space and of reconstituting the fat at the points of delivery. The war, of course, has given an impetus to such work, and the Dairy Research Institute has been working very hard to bring experimental knowledge to a point of commercial practicability. A plant was erected at Massey College, Palmerston North, which successfully processed many tons of butter which was well received in Britain. The British Ministry of Food asked for further quantities, and thus a solution to New Zealand's surplus whey problem was presented to us. The initial order to Massey College was for 600 tons of fat, which was manufactured from first- and second-grade creamery and whey butters. A departmental committee was set up to consider the best means of providing a permanent plant. The following Departments were represented : Marketing Department, Export and Internal Divisions ; Agriculture ; Scientific and Industrial Research ; Treasury; Dairy Research Institute and the New Zealand Dairy Board for the industry. It was decided to recommend the erection of a plant at Auckland under the control of the Division, with the Dairy Research Institute giving full technical assistance. Plans were drawn for a singleunit plant capable of expansion to a double unit at short notice. This double unit is now being installed to provide further drying of fat. The plant was erected at the premises of the Auckland Farmers' Freezing Co., Ltd., at King's Wharf in the rooms recently occupied by the Division patting department. Space is not excessive, but by a judicious use of all temporarily available facilities sufficient room is available to carry on the work successfully. The plant commenced commercial production in August and is now working three shifts per day, five days a week. The workers were drawn from the dairy industry and trained at the Dairy Research Institute's plant at Palmerston North. The capacity of the plant working as above is 12,000 tons to 15,000 tons of butterfat annually. A further plant of similar capacity would provide a very adequate insurance against rcduced refrigerated shipping-space, and the Division is now, at the suggestion of the British Ministry of Food, providing a further shadow factory and plant to commence drying more butter in the event of a sudden need. The plant is also making a limited quantity of 13 oz. and 26 oz. tins equalling 1 lb. and 2 lb. butter for overseas parcels, prisoners of war, &,c. The appreciation of the Division and of the Government is expressed to dairy factories, who have loaned separators to the plant pending the arrival of new unite from America. It may be necessary to

2

Creamery. Whey. Total. 1941. lb. lb.' lb. April .. .. .. .. 5,576,310 123,309 5,699,619 May .. .. .. .. 5,375,774 130,080 5,505,854 June .. .. .. .. 5,293,389 104,349 5,397,738 July .. .. .. .. 5,616,913 72,053 5,688,966 August .. .. .. .. 5,206,595 75,229 5,281,824 September .. .. .. 5,400,867 120,180 5,521,047 October .. .. .. .. 5,418,137 212,415 5,630,552 November .. .. .. .. 4,854,119 263,790 5,117,909 December .. .. .. .. 5,634,242 323,885 5,958,127 1942. January .. .. .. .. 4,883,404 221,681 5,105,085 February .. .. .. .. 4,938,621 223,668 5,162,289 March .. .. .. .. 5,720,046 287,207 6,007,253 63,918,417 2,157,846 66,076,263