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An additional benefit of amalgamation is tliat it has enabled milk work to be decentralized. The general case for decentralization of administrative responsibility has been stated in recent reports of the Public Service Commission. In the administration of the National Town Milk Scheme this general case is reinforced by the need to maintain close contact with local interests. The intention is that ultimately the milk scheme will be largely managed by local authorities, and a necessary first step towards this devolution of authority is to decentralize milk activities. By itself the Milk Division was not large enough to take this step, but the amalgamation makes it possible for the Marketing Department to transfer part of the responsibility for the milk scheme to each of its branches at Auckland, Hastings, Gisborne, Nelsoii, Christchurch, and Dunedin. An interesting advantage which has also accrued from the change is in the sphere of higher administration. With the close relationship between the operations of the Marketing Department and the Stabilization Commission it was found possible and advantageous to vest the two positions of Director of Marketing and Director of Stabilization in the one person, with an Assistant Director of Marketing to conduct the normal day-to-day activities of marketing. The relationship of the Department to producer organizations is also developing along the lines of increasing the producer participation in marketing responsibility. In regard to dairy-produce, the Dairy Products Marketing Commission, already referred to, has taken over the duties in respect of butter and cheese. This body is a producerGovernment organization. In the same way the day-to-day functions relating to the export of meat and payments to producers have been taken over by the New Zealand Meat Producers' Board, while the policy functions continue to be carried out by the Department and the Minister. In the pip-fruit industry the Apple and Pear Marketing Act, 1948, created the independent New Zealand Apple and Pear Marketing Board, which is composed of grower representatives and Government nominees, and is responsible for the marketing of all apples and pears in New Zealand. BOBBY CALF POOL OPERATIONS The bobby-calf industry is now an integral part of the economy of the dairy industry, having reached a highly-developed state and covering the dairy-farming areas of the whole Dominion. With the establishment of Dairy Products Marketing Commission bobby-calf-pool operations are the only marketing function of the dairy industry still outside the control of the Commission. While the pool system of bobby-calf marketing was intended to assist the dairy-farmer dispose of his calves in an efficient and economic manner, it is also of considerable value to the freezing industry. The Department has encouraged more pools to be formed during the year, and the last large dairying area —that of Otago —was brought within the scope of the regulations by the formation of three pool areas. Further redefinition of existing pool areas was also carried out, particularly in the Waikato districts, and it is anticipated that this will be of considerable assistance in the recognition of the boundaries between the various pools. The opportunity is also taken when boundary redefinitions are carried out to include any adjacent dairying areas which have come into production since the pools were originally gazetted.During the year amendments to the regulations were introduced, providing for adjustments in the veil-prices and for the control of the sale of calves in saleyards., The new veil-prices payable by the New Zealand Co-operative Rennet Co. for the next two years was increased to Is. per veil for all veils in excess of the local requirements (500,000), which are taken at a lower rate of s|d. per veil. The bobby-calf industry also agreed, during the year, to a grant of £5OO being made from the industry accounts to the Rennet

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