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Out of 100 samples of raw milk, 48% were found to contain lipolytic, psychrotrophic, spore forming bacilli. The lipase activity of 59 selected isolates ranged from 8.5 to 42 units/ml. Forty one per cent of the total isolates exhibited enzyme activity in the range of 21–25 units/ml. On the basis of morphological and biochemical characteristics, the 59 lipolytic isolates were identified as Bacillus cereus (19), Bpolymyxa (12), B licheniformis (10), B circulans (7), B subtilis (5), B laterosporus (4) and B coagulans (2). B cereus (32.2%) was found to be the predominant organism.