In the Butter Factory.

The United Kingdom purchases the great bulk of Australian butter—about 88 per cent.—but considerable quantities also go to Canada, Ceylon, China, the Dutch East Indies, Egypt, Hongkong, the Islands of the Pacific, Japan, Philippine Islands, the Straits Settlements and South Africa.

Besides the co-operative factories there are many proprietary concerns, and the farmer is benefited by the keen competition between them. The establishments in the Commonwealth where the manufacture of butter, cheese, and condensed milk is carried on number several hundreds. They are distributed throughout all the States, but they are larger and more numerous in New South Wales, Victoria, and Queensland.

In the Cheese Factory.

Cream separation and butter-making are often carried on together under the co-operative system. The creation of large central butter factories, supplied by numerous separating establishments or "creameries," has resulted in a considerable reduction in the cost of manufacture, since improved appliances, such as refrigerators, may be profitably worked at the larger establishments. The product is also of a more uniform quality. The number of farmers who adhere to hand processes is rapidly diminishing. Formerly the average quantity of milk used per lb. of hand-made butter was about 3 gallons, but separator butter requires only about 2.6 gallons.


State Supervision.

Each of the State Agricultural Departments exercises considerable supervision in regard to the industry. Dairy experts are employed to give instruction in approved methods of production, to examine animals, to inspect the buildings used for milking, separating and butter-making, and to examine the marketable produce. A high standard of dairy hygiene, cleanliness of personnel and materiel and purity of produce have also been insisted upon under State laws. Financial assistance has been given to facilitate the economic handling of dairy products, and much benefit has resulted, the advances having generally been promptly repaid.