H.—29.

Brassicarseed Production.—The scheme of brassiea-seed production introduced shortly after the outbreak of war is fulfilling an extremely useful purpose, and to-day this country is entirely independent of seed-supplies from overseas sources. The quality of the seed being produced is good, and it is considered that, with careful supervision it will be possible to establish a permanent industry in most, if not all, of the various seeds now being produced. Linen Flax.—Supervision of the growing of linen flax in the South Island has been undertaken again by the Fields Division, a total of 22,000 acres being contracted for. With the experience gained by farmers in the growing of this crop, the results achieved are still more successful, and it would seem from the growing side at least that many areas in the South Island are ideally suited for the production of this valuable crop. Medicinal Plants.—The'acreage devoted to the production of dried medicinal plant leaf has been increased to approximately 36 acres, and very successful crops of green leaf are being produced under the auspices of the Patriotic Committee of the Hastings Borough Council. The leaf is being dried by this Division, and in addition to supplies made available for local use, considerable quantities have also been exported to England. No report of the English opinion of this dried leaf is yet to hand. Seed-testing Station Increased use continues to be made of the services of the Seed-testing Station, and over and above the work carried out for firms in the seed trade, the number of lines entered for certification shows a significant increase.

DAIRY DIVISION REPORT OF W. M. SINGLETON, DIRECTOR Quantities graded for Export.—Creamery butter received for grading for export during the year amounted to 110,542 tons and cheese to 109,955 tons, as compared with 109,707 tons butter and 148,331 tons cheese for the year ending 31st March, 1942, an increase of 835 tons butter, or 076 per cent., and a decrease of 38,376 tons cheese, or 25-87 per cent. In terms of butterfat, the decrease is 15,353 tons, or 10-26 per cent. The decrease is due to several causes. The season now drawing to a close has been, climatically, not altogether favourable to production, while there have been fewer cows milked. Requirements of the armed forces have been responsible for a largely-increased demand for liquid milk, butter, cheese, and other dairy-products. Added to these are the requirements for the United Nations' forces in the South Pacific. Reduction ill fertilizer and farm labour are also factors. _ _ . The reduction in the quantity of cheese graded for export_ is due principally to the change back to butter-manufacture at the request of the British Ministry of Pood for greater quantities of butter and less of cheese. Most cheese-factories are now back to pre-war outputs. Export Values.—The total value, for Customs purposes, of all dairy-produce exported from the Dominion wa,s £29,093,760, an increase of £3,629,109 over the 1941—42 value of £25,464,651. Butter, cheese, casein, dried milk, milk sugar, "and condensed milk and cream are included under this heading. Taking butter and cheese separately, butter exported during- the year was valued at £17,196,926 and cheese at £11,135,851. Diversion from Cheese to Butter Production.—The manufacture of 153,000 tons of cheese during the 1941-42 season necessitated the transfer from cream to milk of the supply from 4,300 dairies. As this transfer was made; on the understanding that the additional supplies of cheese would be required for the duration of the war and one year thereafter, the return of this supply to butter after, in many cases, less than one season's operations in cheese-manufacture placed a very heavy burden on the dairy-farmers concerned. A wonderfully good response, however, was made, with the result that over 95 per cent, of the supply transferred to cheese in the 1940-41 and 1941-42 seasons have now reverted to butter-manufacture. Twenty-one cheese-factories which reopened for the purpose of increased cheeseproduction have now been closed, and the disposal of the redundant plant in these and some of the existing cheese-factories is under action. Arrangements have been made with the National Dairy Association for the dismantling, conditioning, and sale of all redundant cheese plant in the North Island, with the exception of that held by the New Zealand Co-operative Dairy Co., Ltd. Storage accommodation for such plant has been obtained in various centres. Some sales have already been made, but it is likely to bo some time before the whole of this plant is disposed of. The action of the Government has, however, relieved the dairy companies concerned of what might have been, in some instances, a considerable financial loss. Creamery Butter.—The quality of creamery butter over the Dominion as a whole has been barely maintained, much of the butter produced in the Taranaki and Auckland Provinces having evidenced feed taint for a longer period than usual. Butter graded at the Port of "Wellington, however, was of a very satisfactory quality. The average grade of butter graded for export during the year under review was 93173 points, as compared with 93-335 points for 1941-42. Of the 110,542 tons received for grading, 86,082 tons, or 77-87 per cent., was classed as finest grade; 23,944 tons, or 21-66 per cent., as first grade; and 516 tons, or 046 per cent., as under first grade. PIT Testing of Butter.—This is a test for discovering the addition of excessive neutralizer to cream, the number of tests made during the year at the various grading stores being: Auckland, 1,289; New Plymouth, 572; Wanganui, 382; Wellington, 644; Lyttelton, 103; a total of 2,990, as compared with 4,026 for the previous year.

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