DRIED MILK PROSPECTS.

Otaki Mail, Volume 26, 29 September 1919, Page 4

DRIED MILK PROSPECTS.

meeting at rongotea. With the object of hearing addresses on dried-'inilk by Mr Pacey (late managing director of the New Zealand Dairy Association, Ltd., and now managing director of Messrs J. Nathan and Co.’s Glaxo manufacturing department),~and Mr J. Murray (general manager for the same firm at Palmerston) a very representative gathering numbering nearly 100 assembled at the Coronation Hall, Rongotea, recently. In the course of his address Mr .Pacey said he had been connected with * the New Zealand Daily Association, Ltd., for 31 years, but had now .taken over the managing directorship of Messrs Joseph Nathan and Co.’s Glaxo manufacturing department He put before the gathering both sides of the question, so that they could decide what they should do. The manufacture of dried milk had been going on in a number of older countries for several decades, but not until the commencement of the war had there been any great demand for it. He described the difference between the “whole” died milk and “skim” dried milt In Belgium the manuf.act.uro of dried milk had practically'ceased with the commencement of hostilities, while the difficulties of transport accounted for Holland’s decrease. Thus a shortage prevailed during the war period and naturally New Zealand was given an increased opportunity. Prices went up considerably and reached as high as KiUs per cwt. He outlined the incidents leading up to the establishment 0 f the Glaxo factories in the Auckland district, and said that, the report of the delegates to America had given rise tc expectations of as much as 3s 6d to 4s t pound to suppliers. The manufacture of skim milk powder soon started. Ii

the course of a year or two six more dried skim milk factories would be put into operation. Six factories could put out 4000 tons of died skim milk per annum —probably more than the British consumption in pre-war days. The speaker emphasised the fact that there was a. real danger in over-production. That, of course, was a fact which should be taken into consideration by th e local people when deciding what they would do. If this occurred, there would be a natural decrease in the price. Mr Pacey described the various processes of manufacture. One was by the hot-roller and the other by a vacuum process. Messrs Nathan and Co. employed the hot-rollor system. Besides being less costly, the resultant powder would remain good for a much more lengthy period. Two and threepence a pound for butter-fat had been gained, and this represented the highwater mark in tlio dairying industry in New Zealand. Mr Murray said there were two things which concerned the dairyman of to-day and to-morrow: the amount of butter-fat he could produce, and secondly, the amount of payment for that butter-fat. He stated that if a dried milk factory was to be established at. Rongotea, a place so far from the railwav, they would have to take into consideration the matter of a- central position for the factory. A largo amount of coal would be required, as it took three tons of coal to evaporate one ton of milk powder. Again, there was the cartage of packing for the finished article, and other goods. He considered if the factory were established the milk supplied would he about 20,000 gallons. Touching the basis of pavmcnt, he said the fat basis of payment was the ouly real method of paying out, because the more butter-fat there was in the milk the more butter would be made. If the scheme were taken up in the district the suppliers would have to shoulder the while of the responsibility themselves and the returns would be in accordance with the milk value at home. They would give assistance to the settlers of their expert advice, etc., for the manufacture of an article second to none. There was to be no guarantee on Nathan and Co.’s part. Mr Faeev said he had already indicated there' was a big risk attached to the starting of a dried milk factory, as the markets could not be depended upon. At the same- time, they had tried to put both -sides of the question impartially. What the position of the market was going to be under postwar conditions was a hazard, and it was for the settlers to decide whether they take that hazard or not. Mr Murray pointed out that there was great scope for dried milk in India and also Japan and China.