DRIED MILK INDUSTRY.

Pukekohe & Waiuku Times, Volume 7, Issue 384, 18 June 1918, Page 1

DRIED MILK INDUSTRY.

Meeting at Aka Aka. In anticipation of explanations of the proposal by the Waikato Cooperative Dairy Company, Limited, to adopt the manufacture of dried milk the Public Hall at Aka Aka was well filled with suppliers and farmors from far and near on Friday evening last when Mr W. Goodfellow, Managing Director of the Waikato Dairy Company Limited delivered an address on the future prospects of the dairy industry with special reference to the manufacture of dried milk.

Mr. R Walters, chairman of the Aka Aka Dairy Factory presided. Mr. Goodfellow, who on rising to speak, Y aß greeted with applause, gave some interesting figures with regard to butter and cheese payments For the 1916-17 season butter consigned to the United Kingdom, he said, the company paid out for butter fat supplied 22 45d. Dealing with the i't>pi?al of bu ter for the coming season the price to be expected for the sale to the New Zealand Government was 196s fob. equal to Is 9d lb. In this connection Mr Goodfellow said that the sale had been made to the Imperial Government plus half profit share to the pro ducers and while it was difficult to say what the producers would ultimately receive he thought they would get an additional 2d per lb as their share in the profits. Negotiations through the Government of New Zealand had not been altogether satisfactory, said Mr Goodfellow, owing to the " pooling " of butter in London and arrangements had now been made through the National Dairy Association's representative in London (Mr Ellison) to deal direct with the Imperial Government. With regard to the payment for cheese such was Is lOd to 2s lb. according to the size of thefactory and he anticipate! t hat next year the price obtained would enable them to pay out 29 lb.

DRIED MILK. Referring to the manufacture of dried milk Mr Qoodfeilow said the dairying industry was more or lesa in a stage of transition and as huge profits had been made in the manufacture of dried milk the Dairy Companies in the Waikato conferred together with the result that they had sent three representatives to America to investigate the proposition with a view to their companies embarking in that project. Mr Goodfellow then explained that there were three qualities of milk powder : (1) Full cream powder; (2) half cream powder ; and (3) skim milk powder. Of these three qualities after careful consideration of their respective merits they had decided to take up the skim milk powder as it contained no fat whatsoever so that the production of butter would remain at its proper standard. Taking a given quantity of milk and with butter in London worth 190s and regarding the skim-milk powder as 820 a—twice as much in value as that of butter-fat—a return of 510s for butter and milk powder would be received. At that price on a cooperative system suppliers would receive a payment of 3s 6d per lb. Allowing for sufficient reserve it was proposed to deduct 6d per lb. for the cost of the plant and buildings and in this way it was calculated the capital expenditure wou'd be paid for in two years. Mr Goodfellow mentioned that the Waikato Dairy Company had secured the sole rights for a milk powder machine superior to the roller machine used by Messrs Nathan and Co. Dried milk, he said, was first introduced in 1858 by an Engli>hman and the speaker pointed out somewhat emphatically that there was no such thing as a patent for the dried milk powder. Continuing, Mr Goodfellow said that after inspecting different machines they had mude arrangements to acquire the lest machine on tho market worked on the "hot air" process, such as would produce a powder mora soluble in water ilian any other powder. He was hoping to get thn plant for tho production of the milk powder erected at fiflatamata in six months That would be their lii'M start.

Speaking of the scheme before conside.ing the erection of any factory Mr Goodfellow mention* d that thoy would require a guarant e for the supply twice a day from .'JOOO cows and he estimated the cost of a suitable factory fr< m £20,000 to £25,000. To convert the Aka ika chee e factory into sm h a tackling for the purpose would cost appioximatoiy i' 20.000.

As to the fu'ure, Mr Go idfelh w claimed that theio was a big demand for the powiier and fiom rro-i:t cables rrc- ived the produce could he disjosed of at £8 per cwt. There was uo likelihood of the prices of fi.od products falling tor s> veial years after the war. The consumption of milk powder in the I'nited Kingd mi was 10011 tons v'fklv while the total export from New Zeal ilid was 'JOOO tons per amum. Therefore, New Zealand contributed on'y two jercent of the milk powder cnfumed in the United Kingdom. There was an un i ati.-fie<) demand for the [iowder in Europe and in the near future he predicted n. large

export trade would be done with India, Asia, and Africa. One groat advantage of the product was that no cold storage accommodation was needed. That in a great measure would solve their transportation difficulties. He was confident that the manufacture of the skim milk powder was likely to prove an immense success

THE GLAXO DEAL Alluding to the manufacture of glaxo Mr Goodfellow said that Messrs Joseph Natlian and Co, the proprietors of thai pa'euUd article, made arrangements to purchase mi'k for manufacture into glaxo under contract with ths) N Z Dairy Association a minimum and a maximum price being guaranteed. Messrs Nathan, said Mr Goodfellow, leased the properties and p'ants erected for which they paid onlyinterest. Thus they found no capital wha'ever There was nothing co-operative about the concern The supplier found the money, the suppliers did jhe work, and the profits were Messrs N tfcan's. It was estimated that with a supply of 10,000 cows on a basis of Is per lb the net profits obtained by Messrs Nuthau for the past season would amount to £IOO,OOO. The Waikato Dairy Company, with others, recognised that they must wipe out such a proprietary business and they had decided to erect the first factory at Matamata. When that factory was erected the profits would not go to any proprietary concern but would be on a co-operative basis so that the producers would get all the benefits (Applause).

TRUE CO OPERATION. Mr J. Clark, a director of the Waikato Dairy Company then addressed the gathering. He stated that threatened by competition they realized that they had to be activa in eating for themselves. He also stated that they had spent years to build up a truly co-operative business and they decided with all the power they possessed to see that cooperative principles should be upheld (applause). Co-operation was yet in its infancy and it behoved them to see that they did all they could to maintain its principles and to use whatever labour and capital they possessed for their own business. It was labour and capital combined that constituted true cooperation. He asked them to support the principal by which they would ultimately triumph. Paying a high tribute to Mr Goodfellow, who he felt sure would do his utmost foT the men who w*re linked up with him as suppliers, Mr J. Clark urged everyone to do all they could to uphold the Company and with it the true principles of co-oper-ation.

QUESTIONS Mr J. Paine asked Mr GoodMluw to explain how it was much more could be obtained for skim milk powder than for glaxo which contained more solids. Replying to the question as raised ir. the load- r which appeared in the " Pukekohe Times " of that dny, Mr Goo 1 fellow said that as uiiik powder contiifie l no fat and was made of skim milk all the value in the butterfrtt was left Butter priced at 190s and skim milk bftiuir regarded as worth double that of butterfat, namely 3205, would account for the value of the butter and skim milk combined being 1 310s. As to the statement in the " Times''' that glaxo contained 3 7 butterfat. ho questioned that. In the rase of milk powder the farmer got the full value of the butt«rfat whereas with glaxo Messrs Nathan secured two thirds of it. Alluding to the statement als > in the " Times " that glaxo was sold by contract to tlie Imperial Government, that shipping facilities were thereby obtained, and that dried milk woul I be probably commandeered in the same way as butter and cheese, Mr Goodfellow mentioned that a preferential advantage had lnuri taken by Messrs Nathan who should b> paying 3s arid imt 'J- per !h Re had consulted Massev on the subject and had asked that (he Waikato Dairy Co as producers should similarly be givtn lieenruf-s to tho London market.

1,01 "A I. MANri'Ai"! I'HK K.X'.'ATHTU Mr J. J J ain<* suggested that thev should ''get to I'll-:!!!'«i' and should start tho manufacture of dried mill;. The chairman remarked that lie took Mr I'aino's suggestion as a proposal that it was the wish of tun meeting that the suppliers should make arrangements for the marm-

facture of dried milk and on this being put to the meeting it was carried unanimr*ily. Mr Goodfellow intimated that after a guarantee for the milk supply from 3000 cows had been secured a committee should be appointed representing the various districts. This guarantee was regarded as readily obtainable and the following were elected as the committee, viz.: Messrs R. T. Reid (Waiuku), R. Fult< n (Puni), li Walters, Crouch, A. Kidd, W. Hvland, Sedgwick, and Paine. Mr Mclntyre enquired if those holding shares in the local cheese factory would be required to take up fresh shares in the uew f ctory. Mr Goodfellow replied iri the affirmative adding that everything would be on a fair and equitable basis and that credit would be given for shares already held. Replying to an erquiry as to when it would be possible tor the proposed factory to b>i erected, Mr Goodfellow said possibly next seas >n but tl • Metadata factory would be the first.

A hearty vote of thanks to Messrs Goodfellow and Clark for their addresses and a vote of thanks to the chairman for presiding, closed a mo t enthusiastic meeting.