NEW MARKETS

Nelson Evening Mail, Volume LXIV, 17 January 1931, Page 4

NEW MARKETS

DUTCH EAST INDIES BRIGHT PROSPECTS In view of the intention of the Department of Industries and .Commerce to send an official representative of the Dominion to the Dutch East Indies to ascertain the prospects of establishing and developing markets for New Zealand products, it is jnteresting to note that the Department has issued a bulletin containing a preliminary survey of, the prospects. _ . It is pointed out in the bulletin that the population of the East. Indies is approximately 50,000,000 natives. Chinese, and Europeans. Java, Sumatra, Bor neo, and the hundreds of smaller islands which stretch across the Equator and make up the archipelago constitute < ue of the richest agricultural regions ux the world. Tlie natives are primarily smad agriculturists or plantation labourers, while the Chinese are primarily mer ; chants having practically a monopoly othe wholesale and retail trade of ■ io country. Imports into the Indies cover a wide range of all classes of goods in which tnotor-cars, artificial fertilisers, tobacco and cigarettes, motor tires, flour and foodstuffs of various kinds figure nr l minently. In addition, there is a large market for biscuits, chocolates, milk ;-reducts, meats, fruits, and jams. Many of these goods could be exported irom New Zealand. The trade of the country is largely in the hands of the Chinese. In none) of the native markets which serve the daily needs of the people can a, single imported article of. food tie found. If a native wants a tin of saidines or an apple he lias to go to a Chinese shop before he will even find it offered for sale. The Chinese and the Europeans who administer the country live mainly on imported foodstuffs. Meat hulks largely in the Chinese and European diet, and although much is produced locally a good deal comes from abroad. Frozen meats are already imported from Australia and New Zealand, and there is also a market for preserved meats. Dairy products for consumption by the Chinese and Europeans are practically all imported, as there is no production of butter or cheese in the Indies and practically no production of milk. Imports of canned milk are large, and there is also a demand for condensed milk. At present butter is imported almost exclusively from Australia. ■.At the present time New Zealand s imports from the Dutch East Indies far exceed her exports to that quarter. In 1925 the Dominion’s'exports were valued at £BOI6, and her imports at £610,685. In 1929 exports had risen to £19,191, but imports had reached the large total of £1,152,705. The principal exports are butter, which is the largest item, hut which was valued at only £BBOB in 1929, casein, dried and preserved milk and cream! cheese, hunker coal and bunker fuel oil. The principal items imported are mineral oils, paraffin wax, sugar, tea, and kapok. It is of interest that Australia exported butter valued at £521,253 to the Indies in 1929 and dried milk and cream valued at £208,202.

PROSPECTS FOR THE FUTURE It is pointed out by the Department that a serious slump has occurred .in almost all '.agricultural produce m which the native is interested., This condition was certain to reflect itself in his buying power and the consumption for soine time to come. .“Nevertheless,” the bulletin • says, “it is > "anticipated that this condition; is .'only-;temporary, and despite low prices for the export commodities of the Netherland East Indies, and a consequent general reduction in purchasing power, the information available points to the assumption that there are fairly reasonable prospects for the development of our export trade in this direction, provided that exporters pay careful attention to the particular requirements of the market.” With an increase in the purchasing power of the native —and such au increase is inevitable with improved methods of cultivation and a return to normal prices for agricultural produce—tKo trade of the Dutch East Jndies must continue to grow, and New Zealand may reasonably he expected to increase her share. Further and more detailed information obtained first-hand by a representative will, it ; is anticipated, hear out this assumption)