H.—3OA

The sales of cheese for military purposes, particularly in the Pacific area, have shown a considerable increase, and during the year quantities of tinned processed cheese packed in 10 lb. tins were submitted for trial. After several shipments the military authorities ordered a considerable portion of their requirements in this form. Since, however, there is only one manufacturing plant of any size in New Zealand, and because it is situated in Auckland, it was thought dangerous to have almost the whole of our requirements drawn from this source. However, the New Zealand Co-operative Rennet Co., Eltham, with facilities available, including an up-to-date laboratory and a staff of industrial chcmists, agreed to install a cheese-tinning plant, provided that quantities required were sufficient to justify their expense. The plant has been established and has produced an excellent quality of processed cheese. Indications are that orders will exceed the capacity available, and the Rennet Co.'s help to the war effort in this direction is much appreciated. The sales within New Zealand of processed cheese have been limited by the requirements of the Pacific and Great Britain and by lack of the tinfoil previously used for the \ lb. packings. Some manufacturers are, however, putting up 12 ox. tins, which are appreciated by the public for overseas parcels. These come out of the quota for local sales and will therefore make no difference to the amount of cheese available for Great Britain. Last year's Price Order which fixed the price of cheese of up to four months' maturity has worked out fairly satisfactorily. Beyond that stage the price is not controlled. Prohibition of tinning loaf and medium cheese for sale within New Zealand is still maintained, and only a small quantity comes on the market, having been tinned for military requirements but 110 longer suitable for shipment. Smaller quantities of Cheddar 10 lb. cheese are tinned for military requirements, since this size is now being packed in processed variety. During the year, by arrangement with the New Zealand Dairy Board, the cheese-manufacturing companies were asked to supply monthly particulars of manufacture and disposal, somewhat similar to those required for butter. This was necessary for two reasons. Firstly, the figures previously available for cheese graded for export to Great Britain, plus the normal requirements of the local market, used to be a sufficient indication of the total output of cheese-factories month by month, but with quantities being used for military purposes in the Pacific, Middle East, and in New Zealand, the figures of cheese graded for export no longer indicated the total manufacture. Therefore, returns from all avenues of distribution were needed. Secondly, the Division is from time to time called upon, particularly in the late autumn and winter, to supply quantities of medium cheese for military needs, and unless some schedule of quantities is available within New Zealand it is almost impossible to fill these orders at the time of year when manufacture is not taking place. The Division on previous occasions has had to call on individual factories for fairly large quantities and has taken cheese which factories had reserved for their normal retail clients. The present returns will make it possible to divide such calls fairly among factories. In view of the reasons for the returns, factory executive officers have co-operated whole-heartedly in making them available, and most have done so with reasonable regularity. The good will of the great majority and their help in supplying cheese as required for urgent military and other purposes has been greatly appreciated. These factories, which have incurred additional work and expense to provide single crated cheese for military purposes, have rendered great help both to the Services and the Division. The Schedule attached hereto sets out the local market position. The increase in consumption is entirely due to military requirements having been placed on a local market basis, and this account has paid the full subsidy made to dairy-producers in relation to cheese-production. Dry Butterfat The factory at Auckland operated during the year under the Dry Butterfat Processing Committee. Butter to be dry-fatted was received from the Export Division and processed under arrangements made with them. Now that the British authorities have decided to take whey-butter directly in that form, the plant will not be called upon to work to any degree unless the war situation or the necessities of Great Britian should call for a further alteration. Accordingly, in the year under review, the plant worked only for the first six weeks on a one-shift basis. From then on only 12 tons (approximately) of dry butterfat have been processed every three months for the National Patriotic Fund Board to supply the Middle East and Pacific Forces. In addition, deteriorated butter which would otherwise have been a complete loss—e.g., that made from cream in the vats when the Waitoa Butter-factory was destroyed by fire, and some tinned butter which had deteriorated in the Pacific under poor storage— was also processed and returned thither to be used in place of ghee. Though not up to British quality, this utilized the food and assisted the War Expenses Account. Receipts of butter (for dehydration):— Boxes. Tons. First grade creamery .. .. .. .. 1,544. 38§ Second grade creamery, ex Waitoa - .. .. .. 240 6 Whey ..' .. .. .. .. 11,382 284| Tinned butter returned by Army .. .. .. .. 22} Value, £42,840 16s. 10d., sterling 351f Output in dry butterfat— Cases. Tons. Victory (first creamery) .. .. .. .. 893 31 [ Vita (second creamery and whey) .. .. .. 7,444- 259} Value, £47,902 14s. 7d. 8,337 290| The factory at Frankton, arranged for at the request of the Imperial authorities, is being erected, and although it is now doubtful whether it will be required owing to the improved shipping position, yet it might have been essential had butter transport been impossible. This factory may, in fact, be looked upon as an insurance premium, and it is, of course, still possible that it may be required. The Auckland factory is also recovering butter from paper stripped at the tinning and patting plants, this providing both a material and financial saving of a product otherwise wasted. The whole future of dry fat is indefinite, and it is possible that the savings already made, which have more than justified the original installation, will be the major service the plants will render. Meanwhile they are available as or when required.

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