I H—3O.

SALES OF BUTTER AND CHEESE TO MARKETS OTHER THAN THE UNITED KINGDOM. Shipments of butter from New Zealand to countries outside the United Kingdom have in total increased in the season 1940-41 over the previous two seasons, although shipments to some points have decreased. Shipments to China have materially declined due to war conditions, and shipments to India have also declined on account of shipping difficultues. A gratifying development has been substantial increases in shipments to the British West Indies, where direct shipments from New Zealand have replaced shipments which formerly were transhipped at London. Cheese shipments have remained at the low level ruling for a number of years, and in view of the demand from the United Kingdom sales outside the United Kingdom have been discouraged rather than encouraged. The following table shows the quantities of butter and cheese shipped from New Zealand to markets other than the United Kingdom : —

ALTERNATIVE PROCESSING METHODS AND METHODS OP SAVING SHIPPING SPACE. Experiments are being conducted in the conversion of butter into pure butterfat for shipment in non-refrigerated shipping space. The United Kingdom Ministry of Food has shown an interest in these experiments and a desire to assist. To this end the Ministry is taking a 25-ton trial consignment of pure butterfat, following the receipt of small samples of the product. It is hoped that the pure butterfat will be acceptable to manufacturers in the United Kingdom. The experiments in the preparation of this pure butterfat are being conducted by the Dairy Research Institute with assistance from research officers in the United Kingdom and with the co-operation of the Dairy Division of the Department of Agriculture. It is hoped that by this means New Zealand's difficulty in respect of whey butter and second-grade butter (which may not now be shipped to the United Kingdom) may be overcome. Much experimentation has been made in regard to the sending of butter in boxes, which take up less space than does the standard butter-box. The greatest space saving would accrue from the use of fibre-board or fiberite boxes. It is considered that if this box can be used it will weigh about 2 lb., against 8 lb. for the standard box, thus saving 12 lb. net weight per hundredweight, or 10 per cent, on the weight of our present butter exports. In total figures this would represent about 9,000 tons space for extra butter, meat, or cheese. In addition, this type of box would occupy over 10 per cent, less space in stores and in ships. A trial shipment of 3,000 boxes of butter in fibre-board boxes is being made. A number of shipments of cheese have been made in non-refrigerated space under varying conditions. Cheese shipped in our regular steamers was stowed in 'tween deck general cargo space. This cheese comprised full-cream and standardized cheese, and in the case of both, quantities were packed in ordinary crates and in boxes with sawdust. It was considered that the standardized cheese was of poorer quality on arrival, and it certainly showed no advantages over the full-cream cheese. The full-cream cheese arrived in quite good condition, and was pronounced by those present at the inspection as of very good quality. The full-cream cheese packed in boxes with sawdust disclosed no advantages in condition or quality to justify the additional cost of the boxes and the loss of space through the more bulky package. As a result of the success of these trial shipments the Ministry of Food has asked for further and increased quantities. SHIPPING. It is undesirable under war conditions that the shipping situation during the past season should be the subject of the customary full review. The aim of the Department, in conjunction with the Overseas Shipowners' Allotment Committee, has continued to be to reduce the number of ports of loading to the minimum, in order to give the quickest " turn-round " for overseas vessels. The carrying-out of this policy has been greatly assisted by the use of the two feeder vessels made available to New Zealand by the United Kingdom Ministry of Shipping, and by the New Zealand Railways Department, which has given its full co-operation and has provided special rail facilities for main port loadings of overseas vessels.

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Butter (Boxes). Cheese (Crates). Destination. 1037-38. 1938-30. 1939-40. 1940-41. 1037-38. 1938-39. 1039-40. ' 1940-41. Japan .. .. 720 (i China .. .. 14,089 13,123 6,170 2,(330 350 75 60 20 French Cochin China .. 1,153 1,576 1,893 345 Thailand .. .. .. 45 Philippine Islands .. 4,920 2,225 5,090 4,700 Straits Settlements .. 9,425 11,016 12,328 11,276 Dutch East Indies .. 83 98 277 213 .. .. .. 42 India .. .. 7,946 9,131 10,730 8,548 3 131 127 369 Hawaii .. .. 17,247 11,435 11,884 10,933 United States of America 5,283 3,400 1,448 Canada .. .. 58,550 .. .. 4,880 565 150 1,166 800 Panama Canal Zone .. 27,590 16,200 15,400 16,000 100 British West Indies .. 16,410 11,179 17,171 38,238 208 60 Falkland Islands .. 91 80 South Africa .. .. 9,000 2,200 Others .. .. .. .. .. 92 163,507 88,509 84,591 97,855 1,226 416 1,353 1,231