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The Dairy Division is concerned with the licensing of these establishments, pursuant to the Dairy Factories (Licensing) Regulations, their registration from the viewpoint of suitability of the premises and plants, instruction in manufacture, and quality and analytical grading of powders, particularly those produced under the roller process. The instructional work has been of material assistance, especially as so many plant operatives are as yet relatively inexperienced in powder manufacture, and has helped in building design and plant layout. The responsibility for quality control has necessitated the establishment of proper laboratory facilities with adequate analytical staff and has also imposed an additional burden on the grading staffs at those ports through which milk powder is shipped. The experience during the year has demonstrated very clearly the need for the Division's control over quality and composition. Those engaged in the manufacture of milk powder have responded well in the effort to make good products, and reports received from the United Kingdom show a reasonably satisfactory outturn. The proportion of powders graded under First Grade has in some instances been rather high, but it is considered that with the benefit of the experience and knowledge now available the next year's results will be much improved. It is generally recognized by the industry that the future of these products, particularly buttermilk powder for human consumption, depends to a very large degree on quality. Cheshire-type Cheese The experimental manufacture of Cheshire-type cheese has been continued at two factories, Hautapu, Cambridge Dairy Co., and Dalefield Dairy Co. Several years' experience with this cheese has shown that a reasonably satisfactory article can be made, but owing to the long distance from the Home market and the fact that this higher-moisture type of cheese must inevitably show a more variable outturn than is the case with our standard Cheddar make, the results from Britain have not been as good as is considered necessary to create a demand. This applies particularly at present, when the British make of Cheshire has been stepped up considerably, with the result that the New Zealand product has had to compete with the Home-produced article, which can be marketed after selection of the quicker-maturing lots. A further difficulty facing New Zealand is that under the present system of bulk distribution in Britain it has not been possible for the Ministry of Food to market our Cheshire cheese according to its maturity, thus involving selection from each shipment, and in accordance with normal demand in any particular locality. The United Kingdom Ministry of Food has co-operated well with New Zealand and in fact has borne some losses in marketing. In view of these various circumstances the Dairy Products Marketing Commission in collaboration with the Dairy Division, has arranged for the cessation of the manufacture of Cheshire-type cheese in the meantime. The experience gained over the past four years has been well worth while and will be of value if and when it is considered desirable to take up manufacture at any time in the future. The financial responsibility of the trials has at all times been accepted by the Dairy Products Marketing Commission, again in collaboration with the Dairy Division. Overseas Visit During August and September, 1949, the Director of the Division travelled to Europe primarily to attend the 12th International Dairy Congress, held in Stockholm, Sweden.

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