H.—3o.

316. Consumption of Milk and Cream generally : Regarding the consumption of milk and cream generally, a number of witnesses discussed the high prices charged in cities and towns, as compared with the prices received by suppliers to cheese and butter factories. In the case of the City of Wellington, we had the opportunity of obtaining very full statements from representatives of the City Council's Milk Department and of private associations of producers and producer-vendors. We came to the conclusion that, owing to the costs of transport, handling, treatment, bottling, and distribution, the prices charged by the City Council to consumers could not be materially reduced, as long as the prices paid to producers remained unaltered. We were, however, impressed with the inability of the private producer-vendors, most of whose land is unsuitable for dairying, to operate on an economic basis, even at the prices charged by the City Council for a more efficient service to the consumer. In our opinion, the solution to the problem of providing supplies of milk and cream at low prices to urban consumers lies —(a) In the extension of the system of registration of dairy-farms to cover producers for factories as well as producers for urban supplies, so as to enable supplies to be drawn from larger areas; and (b) the concentration of distribution in fewer hands, with, where necessary, the introduction of a block system. With special reference to cream, an extension of the system of registration, with a daily delivery of cream to butter-factories, as elsewhere recommended, would certainly enable supplies of fresh cream for sale in cities and towns to be obtained through butter-factories at lower rates than are at present possible. There is, however, evidence that reductions in the prices of milk and cream are not always followed by corresponding increases in consumption. It appears to be necessary to take steps, by means of propaganda and instructive articles, to educate the people of New Zealand to realize the value of milk and cream as foods. In the United States of America the per capita consumption of milk and cream is considerably greater than in New Zealand. Hotels, restaurants, and milk-bars supply and popularize many kinds of palatable milk beverages, and it is probable that these beverages could easily be made popular in this country. 317. Milk and Cream used in Manufacture of Foods : Milk is used in the manufacture of bread, and milk and cream are used in the manufacture of icecream, and there are possibilities of utilizing larger quantities than are used at present. In the case of bread, there is no official prescription of the minimum milk content in bread that is sold as " milk bread." The proteins of milk have special properties and definitely increase the nutritive value of bread. Further, flour is deficient in calcium, phosphorus, and other minerals, of which a considerable quantity is contained in milk. Hence the addition of milk in the manufacture of bread is a very desirable method of improving its value as a food. The public in New Zealand has never been systematically taught to appreciate the real value of milk in bread. A certain amount of advertising has been undertaken by individual bakers, but there is as yet no general realization by the public of the superiority in quality and value of a milk-made loaf as compared with an ordinary flour-and-water loaf. The public is not altogether to blame, for milk bread has no legal standing. A loaf of bread sold as milk bread may contain 50 per cent, or more of milk or milk equivalents in the liquid used for mixing the dough, or it may contain barely sufficient to enable the baker to say that it contains milk. It is possible to use milk in its liquid state, dried milk, or condensed milk, in the manufacture of bread. The additional cost of manufacture due to the use of milk is offset, wholly or in part, by the increased number of loaves obtainable from a sack of flour. The explanation of this circumstance is that the addition of milk-products increases the absorbent properties of the developing gluten, and consequently enables a smaller quantity of flour to produce a dough of the required consistency. The increase in the weight of dough obtained from a unit quantity of flour is of course reflected in an increase of bread weight. 318. Recommendation as to Milk Bread : We have recommended elsewhere in this report that the Dairy-produce Control Board be given authority to apply its funds in advertising milk and cream, and we think that, if provision were made by law for the gazetting of the requirements to be complied with in respect of bread sold" as full milk bread or milk bread, the Board might with advantage advertise the value of milk as a constituent of bread. We recommend that a " full-milk bread " should be defined as bread that contains milk solids, other than fat, equivalent to the milk solids that it would contain if all the liquid used for doughing were milk ; and that a " milk bread " should be defined as bread that contains the equivalent of two pounds of milk solids to each sack of flour used in its manufacture. 319. Recommendations as to Ice-cream : This commodity was formerly regarded as a luxury item of diet, but it is now accorded fuller recognition on account of its food-value. Regulation 61 made under the Sale of Food and Drugs Act requires that ice-cream shall contain 10 per cent, of milk-fat. In the United States of America, the minimum requirements are 14 per cent, of milk-fat in plain ice-cream and 12 per cent, in ice-cream blended with fruits or nuts. We recommend that, in order to increase the food-value of ice-cream and to provide an additional outlet for surplus cream the regulation regarding the constitution of icecream be amended to require a minimum milk-fat content of per cent. A number of ice-cream manufacturers asked for the removal of the sales tax in respect of ice-cream products. We are of the opinion, however, that the low prices ruling for milk and cream afford sufficient justification for requiring a higher percentage of milk-fat to be used, without making any concessions of this nature. It is open to the manufacturers to make representations to the Government for any relief that may for other reasons be desired.

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