Problems For Dairy Board

Press, Volume CVI, Issue 31094, 24 June 1966, Page 15

Problems For Dairy Board

(N.Z. Press Association)

WELLINGTON, June 23. The British seamen’s strike, the future of the United Kingdom butter quota system and the possible terms of British entry into the Common Market were the three great problems facing the dairy industry, the chairman of the Dairy Board (Sir Andrew Linton) said today. He told the 64 delegates to the Dominion dairy conference that shipping had been arranged up to the end of July, but that difficulties would arise in August because of the strike. If it continued much longer, the position could be desperate. Storage in New Zealand would be taxed to the utmost, costs would be increased because ships would have to come out in balast to load in New Zealand as quickly [as possible, and failure to meet contracts and to maintain continuity of supply could jeopardise some markets. “It is doubly unfortunate that this strike should co-incide with the shipping freight rate negotiations scheduled to take place in London next week. Whilst the extra costs of the strike are the responsibility of the United Kingdom industry, the climate of our negotiations

will undoubtedly be affected," he said. New Markets The Dairy Board estimates that between 25 and 28 per cent by value of its exports went to markets outside the United Kingdom in 1965-66, compared with 20 per cent in the previous season. Sir Andrew Linton said that although the steady increase in sales to markets outside the United Kingdom was most encouraging, it emphasised the industry’s dependence on the British markets. New Zealand had taken every possible advantage of new outlets offering for dairy products, but growth was slow and markets simply did not exist for quantities which New Zealand shipped to Britain. The board had made sales for the first time in 10 countries during the year ended May 31. In addition, new avenues of sale had been opened up in existing markets. New business had also been done through the development of new products. These included sodium caseinate, cream, lactalbumin and other milk protein products. Resources Strained

The need to expand manufacturing capacity was straining the financial resources of the dairy industry to the utmost, Sir Andrew Linton said.

As a result exports of dairy products might not expand as rapidly as they could if cap-

ital was more readily available, he said. There was great scope for increasing the manufacture of such products as milk powders and casein if capital was available for fihancing increased tanker collection and new manufacturing units. Condensed Milk

The expansion of condensed milk manufacture in Asian, South American and other developing areas was providing the New Zealand dairy industry with a valuable outlet for its increased production, Sir Andrew Linton said.

The New Zealand dairy industry had never been able to compete on an equal basis with the subsidised condensed milk exporters of Europe, but a way had been found to gain entry to the expanding condensed milk business through new technical developments.

These had enabled manufacturers in the countries where condensed milk was consumed in large quantities to produce it from imported milk solids. In most cases they were buying their raw materials, which were milk fat and skim milk powder, from the board.