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to be retained and the quality of our butter improved to the extent that it will more than hold its own in competition with other countries. Moreover, realizing that butter can only be as good as the cream from which it is made, the importance of a sound grading standard cannot be too strongly emphasized. Milking-machines and Separators During the year 1,165 new and 917 used milking-machines, making a total of 2,082 machines, were installed. In addition, 82 permits were issued for the installation of farm separators. With regard to this last figure, however, it should be mentioned that the arrangement requiring a permit from an authorized officer of the Division prior to the installation of a separator was withdrawn during the year because of the improved supply position. The figure given, therefore, cannot be accepted as indicative of the number of new farm separators installed. Check-testing of Milk and Cream Samples This work was continued as part of the routine duties of Dairy Instructors and Special Instructors. During the year these officers checked the factory testing at 482 visits, and during these visits checked 2,980 samples. The work appeared to be carried out accurately and conscientiously in the great majority of cases, though there were some instances where it was found necessary to issue a warning in regard to compliance with the regulations. Control op Supply For the fifth season in succession it has been necessary to exercise some control over the supply of milk and cream to dairy factories in order to meet the wishes of the British Ministry of Food regarding the quantities of butter and cheese required to meet the rationing of butter and cheese in the United Kingdom. As it was indicated that butter-production must take priority over cheese, the Dairy Supply Control Order 1945, was made, which permitted cheese-suppliers to change over to butter, but tied butter-suppliers to a creamery. The revocation of the Transport Control Regulations, however, now permits a change of supply from one creamery to another in the normal winter period, providing there are no restrictions under the heading of " zoning of supply " by the Executive Commission of Agriculture. The great majority of the suppliers affected accepted the general direction tying them to butter, but some had to be personally directed to do so. Legal action was successfully taken against one supplier to ensure compliance with the Order, and four Others are still pending. Redundant Cheese Plant The list value of cheese plant rendered redundant at the time of the reversion to butter in 1942 was £64,000. The original basis of sale was a reduction of per cent, on the list price, but more recently it has been found necessary to lower selling prices to a much greater extent, which will result in a substantial loss on a number of items, particularly those for which the demand is less active. The list value of plant sold during the year totalled £12,400, and the value of unsold plant at 31st March was £16,700. Net realizations to date indicate a loss of approximately £16,000. To give greater publicity to this plant, arrangements were recently made with the National Dairy Association, the principal selling agents, to circulate a printed list of unsold plant among all dairy-factory managers in the Dominion. Inspection op New Zealand Dairy-produce in Britain Mr. F. H. Taylor, stationed in London, and his assistant, Mr. G. V. Were, stationed in Liverpool, have continued to carry out the inspection of New Zealand dairy-produce in Britain, and also to perform many other duties connected with the marketing, distribution, and technical aspects of the dairy industry as affecting this Dominion. During the war the London officers of the Dairy Division have been actively associated with the

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