H.—29,

DAIRY DIVISION. REPORT OF W. M. SINGLETON, DIRECTOR. Production. Notwithstanding the fact that climatic conditions during the year have not been altogether favourable to a high production of dairy-produce, the quantity of butter received for grading in any one year exceeded the 100,000-ton mark for the first time in the history of the industry in New Zealand. During the year ended 31st March, 1932, 102,087 tons butter and 85,258 tons cheese came forward for grading, as compared with 95,981 and 92,527 tons respectively for the previous year. This represents an increase of 6,106 tons butter, equal to 6-36 per cent., and a decrease of cheese of 7,279 tons, equal to 7-83 per cent. Reduced to butterfat equivalent there is an increase of 2,696 tons, or 2-34 per cent. Creamery Butter. Notwithstanding the record production, the high standard of quality attained by our butter has been well maintained, the average grade for the year being 93-068. Butters scoring finest totalled 77-508 per cent. ; first grade, 21-3 ; and under first, 1-15 per cent. Whey Butter. Whey butter shows a slight increase of 97 tons, the quantity branded being 1,455 tons, as compared with 1,358 tons during the previous year. The quality, however, shows little improvement. More care and attention between'the time of separation and churning, and a more frequent delivery of the whey cream from the cheese to butter factories, would facilitate the productiou of a butter of higher quality. Cheese. During the earlier months of the year—i.e., April to July inclusive—cheese branded " Cheddar " as well as Full Cream, were being manufactured, the former being a standardized article providing for a minimum milk-fat content of 54 per cent, in the dry matter. This class of cheese, however, did not prove acceptable to the trade in Britain, and at the request of dairy companies a regulation was gazetted prohibiting the manufacture of other than full-cream cheese as from Ist August, 1931. It is the general consensus of opinion that the quality of this season's make of full-cream cheese has shown considerable improvement. Of the full-cream cheese graded, 22-47 per cent, was Finest and of the total " Cheddar " and Full Cream 21-57 per cent, were placed in this grade, as compared with 17-53 per cent, for the previous year. Percentages of First and Under First of all cheese graded were 76-28 and 2-14, as compared with 79-80 and 2-65 for the previous year. Openness of texture has been the most prominent defect, which has prevented a great quantity of the cheese being classed as Finest. Body of most cheese has shown improvement, being nice and meaty, and showing the right amount of acid. Some cases of discoloration came under notice, and this trouble is being actively investigated with a view to eliminating it. The regulation providing that cheese manufactured in August and September should be held on curing-room shelves for not less than twenty-one days before being packed or coated with wax, and the raising of the curing-room temperature to not less than 55° F. has resulted in this cheese being marketed in a more mature condition. Reports from Britain indicate that the general quality ha*s been more acceptable to the trade. During the year approximately 87 per cent, of the cheese graded was made from pasteurized milk and approximately 83 per cent, was wax-coated.

Quantities of Butter and Cheese forwarded to Grade Stores for Years ended 31st March, 1932, and 31st March, 1931.

Value of Exports. Prices for dairy-produce have during the year reached a very low level, and, despite the increased production of butterfat, aggregate values for the year were lower by £2,748,084. According to the Customs figures of export, values of butter, cheese, dried milk, casein, condensed milk and cream, and milk-sugar totalled £14,187,059, as compared with £16,935,143 for the previous year.

21

1931-32. 1930-31. Port. — j Butter. Cheese. Butter. Cheese. . I . I I Cwt. Cwt. Cwt, Cwt Auckland .. .. .. 1,372,589 304,081 1,298,483 354,252 Gisborne .. .. .. 32,532 1,296 29,506 260 Napier .. .. .. 46,564 2,002 34,781 3,597 New Plymouth .. .. 162,755 345,387 156,687 359,368 Patea .. .. .. 41,811 383,283 44,186 397,834 Wanganui .. .. .. 61,873 49,729 56,394 77,684 Wellington.. .. .. 240,122 295,037 229,760 327^280 Lyttelton .. .. .. 48,477 18,720 42,731 22,543 Timaru .. .. .. 5,346 15,220 8,249 19^275 Dunedin .. .. .. 18,061 44,708 13,521 48^374 Bluff •• •• 11,619 245,716 5,337 24o'o88 Totals .. .. 2,041,749 1,705,179 j 1,919,635~ j l,850~55fT~