DRIED MILK INDUSTRY.

Taranaki Daily News, 27 June 1918, Page 5

DRIED MILK INDUSTRY.

UPHEAVAL IN THE DAIRYING WORLD. BECOED PRICES ASSURED. A good deal of interest lias been manifested in the dried milk industry since it became known that as a result of a trip to America representatives of the three leading Auckland companies had reported in favor of the establishment of the dried milk industry and the prices to be obtained for milk supplies. Seemingly the dried milk industry has come to stay, as is evident from the following statement made by Mr. Goodfellow recently at the annual suppliers' dinner of the Waikato Co-operative Dairy Company. Ho said:—

All kinds of rumors were going the rounds re dried milk, canned malk, sugar of milk, Swiss chocolate, etc., with probable payments of from 3s to 5s per lb butter-fat. Such rumors have electrified the whole farming community of the South Auckland Province. Although the position has been exaggerated somewhat, yet it must be quite evident to all thinking people that the dairy industry was in a transition stage at the present time. Great changes might bo expected shortly. The scattered districts would continue to separate, and would benefit by the new conditions owing to the shortage of all young stock. Realising the position, the company's directors, along with the directors of the Thames Valley and Cambridge Co-operative Dairy Companies, about three months ago decided to send Messrs' Shirley, Dixon and PetcrEon, the respective managers, to the United States of America to investigate dried milk and the dairy industry generally. They were to negotiate for the best machine procurable, and it was pleasing to know that their mission had been successful. The representatives had practically completed negotiations for the sole New Zealand agency for a machine to manufacture dried milk powder by a process more up-to-date than, and superior to, tho roller system bow in use in this country. It would probably be six months before the first factory was erected in the vicinity .of Matamata by the Waikato Co-operative Dairy Company, iJtd. The Cambridge Co. operative Dairv Company, Ltd., would go ahead at Hautapu, and the Thames Valley Co-operative Dairy Company, Ltd., in the vicinity of Te Aroha. Dealing with the history of dried milk in New Zealand, Mr. Goodfellow stated that Messrs Joseph Nathan and Co.. Bunnvthorpe, had manufactured in quite a small way for many years past, and the industry was in practically an experimental stacc until quite recently. The statement that the patent rights for the manufacture of dried milk were held by one company had been completed'exploded. All tner could lay claim'to was a trade name. In 1914 in the United States th«rc were 20 plants in operation, whereas to-day there were over 100—all proprietary concerns—and had been nearly ill paid for, besides districting from 3s Cd to 4s 'lb butter-fat to suppliers. Three cream powder, half-cream powder, and products were manufactured: Full-ekim-milk powder. The milk was first of all separated, and then cream added as required. It was understood that New Zealand milk powder contains approximated 2.6 fat. The bulk of the powder exported from here would probably be skim-milk powder, and consequently there need be no anxiety in regard to the future production of butter As an illustration, the speaker stated that 1 cwt of New Zealand butter in London would return 190 a, whereas had the milk from which this butter was made been converted into skimmilk powder and butter, a return of 510s would be received. Skim-milk powder was to-day worth ICOs per cwt in London. It must be quite evident that the manufacture of dried milk was a verv profitable business. Apparently on a co-operative basis durinf the coming season it would be possible to pay out 3s 6d per lb butterfat However, in order to finance this scheme it would probably be found advisable to pav out approximately 3s and write off the plant in two years. Factories would be erected in suitable centres where the milk supply from 3000 cows would be available twice daily. It was estimated that plant and buildings would cost from £15,000 to £20,000 each. No doubt the dried milk business had come to stay, and from information received from London and other sources Mr. Goodfellow had no hesitation in saying thai the dried milk industry would be a permanent one. Already there Was an unsatisfied demand in F.UTOpe, and it is quite evident that in the near future this product would be exported to Africa and Asia. In India alone there weTC <reat opportunities. Some were under 'the impression that London prices would fall rapidly after the* war, but this was unlikely, and suppliers must remember that they would have to receive bigger payments for their produce in future than when working under pre-war conditions, owing to the greatly decreased purchasing power of the I sovereign. Few people realised that j prices for meat, butter and cheese m New Zealand, to-day were lower than in any other part of'the world.

THE GLAXO PROPOSITION. Referring to Glaxo, the speaker stated that the proposition had in the first instance been placed before his company and turned down. Subsequently a contract had been made by Messrs Joseph Nathan and Co., Ltd., the proprietors, with the New Zealand Dairy Association and another co-operative institution were spending £60,000 at> Matangi, had spent something lkc £30,. 000 at Matamata, and were now arranging for other factories in suitable centres. Wtuihou Valley Co-operative Dairy Company had also probably spent from £20.000 to £25,000. As far as could be ascertained the milk was purchased from farmers imder contract, Nathans guaranteeing to pay not less [than Is 3d per lb for 10 yeaTS, and fur■ftfcjto pay out Id per lb more than as an alternative, 2d per lb each season. Nathans property and plant, depreciation. Under theresuppliers do The a ib.

eian present kindly calculate the percentage of profit. Messrs Joseph Nathan and Co. were not to be blamed. They were very capable, shrewd business people, and stated quite frankly when they came to the Waikato that tiicy were not philanthropists. Nevertheless, it was obvious that such a rapid accumulation of capital would be a serious menace to co-operation and the dairy industry. It was the full knowledge of the seriousness of the position that prompted the three dairy companies to send then best brains to the United States to investigate. In conclusion, the speaker stated that it would be recognised in years to come that this prompt and united action of the Waikato Co-operative Dairy Company, Ltd., the Thames Valley Cooperative Dairy Co., Ltd., and the Cambridge Co-operative Dairy Co., Ltd., had saved co-operation in the dairy industry for the South Auckland Province.

WHAT'S WRONG WITH TARANAKI?

Referring to the above, Mr. W. R. Wright, of Rahotu, writes to the editor:—As the dried milk business has come to stay and the prospect of 3s 6d to 5s per lb B.F. is so eueiting the Waikato, that unheard of prices are being given for cows there, I enclose you the very latest on the subject, which I hope you will find space for. It is to be regretted that we have no live men 'in Taranaki to have given us a lead. But what can be expected? Cow cockies want all their publie business to be done for nothing and good men will not work under such an arrangement. The result is that Taranaki is getting "left" and cheese suppliers are already squeaking.