H.—3o.

188. Average Grading Returns : The following table shows average grading returns for produce exported during each of the dairying seasons ended 31st July since, 1927 : —

189. Need for Greater Care in Milk and Cream Production : Many witnesses called attention to the need for greater care in the production and treatment of of milk and cream on dairy-farms, and all have agreed that it is desirable to raise the quality of the raw material delivered to dairy factories for manufacture into butter and cheese. Too much importance cannot be attached to this aim, for it is obviously unsound to attempt to manufacture finest-quality dairy-products from low-quality raw material. It is unfortunately not recognized by those farmers who send second-grade milk and cream to dairy factories that their supplies, if mixed with good milk and cream, may reduce the quality of the whole supply, or if treated separately may make produce so poor in quality that it endangers the prestige of our butter and cheese in the world's markets. While there is ample evidence to show that a distinct improvement in the quality of cream and milk sent to factories has followed the introduction of cream and milk grading, it is clear that too much lowgrade material continues to be supplied. Most witnesses agree that only from 10 to 15 per cent, of the suppliers constantly give serious trouble in this respect, but the evidence was conclusive on the point that a small proportion of bad supply can seriously affect the general level of quality production. For example, " non-acid " milk in cheese-factories has given rise to considerable trouble in cases where only one supplier was at fault. 190. Dominion Farm-dairy Instruction : witnesses stressed the necessity for a Dominion scheme of farm-dairy instruction as a means of improving the quality of milk and cream supply. They pointed out that the care taken by the farmer is the most important factor in the production of finest-grade milk and cream, and that competent instruction on farms is the quickest method of improving the quality of raw products delivered to factories. It is claimed that instruction is particularly important in New Zealand, because over two-thirds of the dairy cows are milked by machinery, and 97 per cent, of the butter is manufactured from home-separated cream. Many milking-machines and separators in districts where there no instructors are reported to be in an unsatisfactory state ; and hand-drawn milk is not always satisfactory. The conditions on farms supervised by farm-dairy instructors are reported to be more satisfactory. It is further claimed by many that a system of farm instruction would be of value from an advertising point of view, as it would be part of a comprehensive system of official supervision throughout the processes of production and manufacture. At the present time a voluntary scheme of farm-dairy instruction is in operation. On request from one or more dairy companies, the Department of Agriculture appoints an instructor and pays his salary, half of the salary so paid as well as all of the travelling-expenses incurred being refunded to the Department by the company or companies concerned. The officer in each district works in close co-operation with factory-managers, and gives first attention to suppliers who supply low-grade milk or cream. About 50 per cent, of the farms producing cream and 30 per cent, of those supplying milk to cheese-factories have instructors. These instructors visit only the suppliers of the company or companies to which they are attached, and the scheme is therefore incomplete in its scope and often excludes farms in districts where instruction is most urgently needed. Objections to the present scheme were based on the grounds that some of the instructors are required to supervise too many farms, and that some farmers resent the inspection of their plant when others in the same district are not included in the scheme. A few witnesses stated that farm-dairy instruction is not essential if strict grading standards are observed. The industry, at successive National Conferences since 1929, has passed resolutions emphasizing the need for instituting a system f of universal farm-dairy instruction. It is plain that a Dominion-wide scheme of farm-dairy instruction would have many advantages. In such a scheme the Dominion would be divided into areas, each controlled by an officer who would be employed by a central body such as the Dairy-produce Control Board. The extent of each area would be determined by the number of suppliers whom one officer could supervise, and would vary from district to district according to the particular conditions prevailing. Estimates of the number of suppliers whom one instructor could efficiently supervise have varied from four hundred to nine hundred. When the scheme is in full operation, it is probable that the supervision of six hundred milking-sheds would on the average be a

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Butter. Cheese. Season. ' Finest. First. J Under First. Finest. First. Under First. 1927 .. .. 75-85 21-75 2-40 55-62 41-37 3-01 1928 .. .. 69-77 27-72 2-50 30-55 66-96 2-48 1929 .. .. 70-24 27-47 2-28 29-31 68-86 1-82 1930 .. .. 76-30 22-33 1-37 23-61 74-46 1-93 1931 .. .. 76-01 22-84 1-15 17-28 80-04 2-68 1932 .. .. 78-54 20-42 1-04 22-95 75-14 1-91 1933 .. .. 79-32 19-74 0-94 17-29 80-50 2-21 1934 .. .. 78-00 20-75 1-25 26-04 72-06 1-90 (