DRY MILK INDUSTRY.

Taranaki Daily News, 29 June 1918, Page 2

DRY MILK INDUSTRY.

MEETINGS IN THE THAMES VALLEY. FAVOR ESTABLISHING OF FACTORIES. A meeting of the Thames Valley Dairy Company was held on Monday of last week to consider steps lo be taken in connection with the Dry Milk Industry. Sir. G. Buchanan, chairman of the company, who presided, said enquiry had shown that at Home there was an unlimited demand for milk* powder at £9O per ton. The price had risen to £l6O per ton, and there was still au unsatisfied demand. Messrs Dixon, Petersen and Shirley, the working managers of the Thames Valley, Cambridge and Waikato Dalyr Companies had been sent to America, and had reported having obtained very full information. Ho was glad to be able to announce that Mr. Petersen waa present at the meeting, expressly to assist in placing befroe the suppliers the fullest informal)" 1 possible. Mr. Dixon, the Thames Valley npany's representative, waa at present i America making further inquiry, but letters : ,i htm fully bore cut the information Mr. Petersen would place before them. Mr. Petersen said the delegates' investigations proved entirely that the milk powder industry haa come to stay, and it was considered a very suitable industry to establish In this Doiainion, where true co-operation was so wide-spread In the dairy industry. Co-opera-tion, said Mr. Petersen, is very backward .in the United States dairy industry. Proprietary concerns had hold of most of the industry, and this was very noticeable in the milk powder enterprise. It was reliably reported that 3 dol. 52 cents per lOOlbs of milk was paid, equal to 4s 2d per lb butter-fat, but during April the proprietary concerns had only" paid 3s 2d. Under co-operation the industry would undoubtedly pay better prices. Milk powder was very largely used in America by bakeries at present, but there was a growing demand for its use for ordinary household purposes. It will retain its freshness for a long time, hence its preference to other forms of milk products. Milk powder, made by the spray process—the system proposed for use in the Dominion —was immeasurably superior to that manufactured under the roller process. Mr. Petersen then explained the method of converting milk powder and butter into milk by means of an eraulslfier. Several plants for emulsifying hil lecently been Installed In the United States hospital ships. There wore at present over thirty-five factories on the ipray system, and *only 11 or 12 on the roller principle. Fully 75 per cent of the milk powder in the States was manufactured by the spray process, which requires 100- degrees more heat for evaporation than the roller system, and thus it retains the natural milk flavor. The American factories were not run on the co-operative system, yet the suppliers to the dried milk, establishments got very high returns as already stated. The speaker exhibited a few samples of milk powder, explaining that the finer quality was the product from the spray system, The feature aimed for in making the powder saleable was its solubility, and hence the finer quality had a distinct advantage. The tests made had revealed that the spray process powder when dissolved and allowed to stand, left no sediment at the bottom of the receptacle. The great feature, as a Tesult of not overheating the milk, was that the dissolved powder retained the natural milk flavor. This was important as for town milk supplies a machine known as an emulslfler was coming into use. Unsalted butter and spray powder wero put through this process and natural quality milk became available in the towns.

Mr. Buchanan thanked Mr. Petersen for his most Interesting information, and said the spray process seemed to be out on its own. This process was now making butter-milk powder which was bringing almost tho same price as skim milk powder made by the Toller process. There was a great demand for milk powder in America, and If tho demand in England was limited {which ho doubted) then there was a ready market In America. The Thames Valley directors lie.d decided last Thursday that tho time was opportune to commence operations, and it was decided that the first factory should be established at Waltoa, where there is the largest supply of whole milk readily obtainable. Probably It would bo found advisable to amalgamate with the Te Arohn Dairy Company, thus giving the supply from about 8,000 to 10,000 COW 3 in the near vicinity. An amalgamation would make a very strong company. The prices quoted by Mr. Petersen were for proprietary concerns, which he understood had closed up, by a process of squeezing in many cases, many small co-operative concerns. Mr Petersen had obtained very full Information as to the profits of proprietary concerns, and these had been placed before the directorate He pointed out that butter-milk powder ni not taken into consideration in the American prices quoted. This by-product would add about 25 per cent to tho prices quoted. Sir Buchanan said it would take from four to six months to obtain the necessary machinery, and perhaps another two months to instal'lt. The number of shares to be taken up would at first glance seem startling, but really such was not the case, considering the value of the shares and the safety of t*o business. The cost of the plant was so great that the company would require this basis of shareholding. The manufacture of butter would be greatly Increased, and the residue (butter-m*lk) would bo turned into milk powder. The company would deduct from factory cheques about ,3d peT lb of butterfat to repay the cost of ; installation. It was anticipated that this deduction would pay the whole cost easily within the term of the agreement. The company required promissory notes to the amount of unpaid shares or else the suppliers would have to sign a joint and several. The former method waa preferable and decidedly more equitabJlr. F. TV. Walters naked did the delegates go to different factories and farms while in the United States and Canada?— Yes. Mr Walters: What distance do they convey the milk, and how?—Up to about 18 miles by horsed waggons and motors. Tilts was principally over tarred roads. Mr A A. WagstafT asked would the company guarantee to cart milk over good roads a distance of say ten miles—Mr, Buchanan ■—: we would arrange for traction and collection, but not for the maintenance of roads. Mr. Darlington asked would the basis of £2 per share for butter equal £8 for the dried milk proposition?— Mr. Buchanan answered in the affirmative, but said he was not sure that existing cheese factories would be taken over by tho new undertaking. It might be advisable to leave tho cheese plants meantime. Mr Judd asked was it proposed to pay.aitreront prices to those suppliers carting their own milk to the factory?— Mr. Buchanan said it was only fair to pav the same price, less a deduction for milk collected by the Arm's lorries. Mr F W. Walters asked would any preservative bo used at. distant collecting stations?— Mr Petersen said preservatives ore absolutely barred in the United States and Canada. He suggested that water-cooling would solve the problem of conveying milk considerable dis- " Queries as to the prospects for cheese and butter 011 tho Home markets now led Mr. Buchanan to say that tlio prospects for cheese are very much brighter. Last year lOd was paid: this year about I0»4d. But the cost of production would probably make Die price practicallv the same as paid last. year. Referring to the butter, Mr. Buchanan said Australia had offered its output to the Imperial Covernment at 380s; last vear it sold at 151s and half profits New Zealand expects to receive 19s per (rat as its half of tho profits on tho same arrangement as Australia received. This would enable them to pay out Is 7d per lb This vear New Zealand butter companies had do- ; cided to ask for lOCS, and as New Zealand butter is worth about f.s ner cwt more than Australian, the latter would probably be paid lMs. The Imperial Government bad paid 43 4d per lb for Danish butter last year, so surely New Zealand could ask for 19Gs per cwt. New Zealand is helping to win the war; Denmark .s neutral. Mr. Buchanan also mentioned that it cost about I!Ms to land New Zealand butter in England, and the Imperial Government was sol - ing it at 2245; tho companies were getting half the difference. Mr Darrall stated that at a very large meeting of dairvmen in Palmerston lately it had been decided to ask the Government to take aetion in protecting cheese interests against dried milk interests—Mr. Buchanan said he had a full knowlcV l '- of the position, and there i wns no chance " '"eminent taking the action desired by tl.o chMse neople. The Government could not stop any industry that Is of benefit to the people; it must supnort the new industry. Glaxo was not sent Ilomo on open consignment, hut under contract between the Imperial Government and the p»o----prlptarv concern manufacturing it, Mr. F. C. Hansen confirmed this, and sni l the Hon. J). . Guthrie hnrl told him last week Hint the Government would not *ake slops tn ft* the price of milk powder unless f he Imperial Government' requested it to commandeer it a,i. Mr. Darrall explained that Mr. Goodfer.ow hart stated a milk powder factory could be nn profitably with a total of 2000 cows. Mr Semplc asked must milk bo supplied ;wiT daily*—Mr. Buchanan said milk would ha*o n he supplied twice daily for part of the season. The milk must he delivered in flrst-closs condition. otherwise it is no use. Mr. Petersen said milk for converting ni'o milk powder must he absolutely free from | flavor, nor must it be heated. Ho advocate water cooling. The Americans use Ice in ilwater, reducing the temperature of the milk tn 40 degrees. Mr. Buchanan expressed the opinion th.>t proprietary concerns in America were w'operating in districts where there was a v--liirtre supply. Thus tbc payments wevo —Mr. Buchanan solflflthls, and said if • prietary successfully, co-operative Mr. BucluuflH^^H^^^Hß^" ; I skni M

Monday night's meeting at Morrinsvllie attracted the largest gathering of farmers ever seen in Morrinsville, the liall being packed. It was resolved to set up a committee- to discuss business with representatives of respective l companies, or any other company,