WAHAROA FACTORY.

Putaruru Press, Volume II, Issue 35, 12 June 1924, Page 4

WAHAROA FACTORY.

DRIED MILK PROSPECTS. Manufacture to be Continued. A meeting of the suppliers to the Waharoa dried milk factory was held on Tuesday, when Mi*. W. Goodfellow, managing director, and Mr. A. J. Sinclair, assistant manager, g*ave addresses on the past season’s working and future prospects. There was a good attendance of suppliers and keen interest was displayed throughout the meeting. Mr. Goodfellow reviewed the position, stating that the four-year supply agreement would expire at the close of the season. The question now to be decided was whether or not the dried milk proposition was sufficiently attractive to warrant the running* of the factory. during tlie next season. The speaker stated that the company had experienced considerable difficulty in the past in marketing skim-milk powder abroad, owing to the economic position in Europe. The season before last the company’s three factories exported ISOO tons of powder. Last year the output was increased to over 3000 tons, but notwithstanding* this fact the company’s own sales organisation in Europe had been developed to such an extent that the whole of this powder had now been disposed of, and a start had been made on the present season’s make. Mr. Wright had' stated in answer to an inquiry from New Zealand that he anticipated selling skim-milk powder in the United Kingdom alone at the rate of 250 tons per month, which would provide a market for 3000 tons during 1924. In addition, it was confidently expected that considerable quantities would be disposed of on the Continent ,mainly in Germany, Austria and Czecho-Slovakia. Agents had been appointed throughout the East, and although the business was small it showed signs of a satisfactory development. In New Zealand something like 150 tons of powder pci* year was now consumed, and the opinion that the demand for a .spray opinion that the demand for a spray process skim-milk powder would continue to expand as its food value became better recognised by the public. The biggest demand for the powder came from the bakers of the United Kingdom. During the year approximately 250 tons of full cream powder had been manufactured, and the whole of this was made to fulfil contracts. Continuing, Mr. Goodfellow stated that it was of the utmost importance that the cost of manufacture should be reduced to the lowest possible point in order to enable the company to retain its premier position in connection with its supply of milk powder to the United Kingdom.

REDUCTION OF COSTS. During the year a substantial reduction in the manufacturing and marketing costs had taken place. The wages costs per ton had been i*o duced. The cost of fuel also showed a substantial reduction. Further, the overseas freights had come down considerably. He believed a further reduction could be made in labour costs, a reduction also in local railway freights was long overdue. Shipments of powder had been made to the United Kingdom during the present season at the cost of 35s per ton. This figure was less than the cost of railage from the factory to the port. He was pleased to say that there was every possibility of a reduction in the local railway freight, which obviously was ridiculously high, especially when it , 3 was remembered that skim-milk powder was a byproduct, and thereby entitled to special consideration. Dealing with the output at Waharoa, Mr. Goodfellow stated that the quantity of powder manufactured during* the past 12 months was 947 tons, compared with 919 tons the previous year. The total share capital subscribed was 79,765 £1 shares, and l the amount paid up to May 31 would be approximately £44,000. He congratulated the suppliers on these results, and stated that now the supply agreement had expired the company intended to reduce the share deduction. The past year’s working was very satisfactory, and although the final figures were not yet available, the total returns from the skim-milk powder would at Waharoa approximate 4d per pound butterfat over and above the price received for butter, i.e., 2d for capital, Id in cash and full cartage. After a number of questions had been satisfactorily answered a resolution in favour of continuing the factory was carried by 41 votes to 4. The meeting terminated with’ the usual votes of thanks.