OTHER PRODUCTS

Waikato Times, Volume 121, Issue 20276, 19 August 1937, Page 11

OTHER PRODUCTS

EXCELLENT FROSPECTS,

LARGE POWDER BUSINESS. CONTRACTS WITH JAPAN. In regard to milkpowder. casein and evaporated milk, he stated that since the formation of the Skim-milk Powder Manufacturers’ Association in London in June of last year, prices had advanced from £22 to £35 a ton. The company’s powder business was the largest in the United Kingdom, and prospects for the coming season were I particularly good. Stocks were low and there was every probability of prices being maintained. The total annual imports of skimpowder into the United Kingdom amounted to 12,000 tons, of which the New Zealand Co-operalive Dairy Company sup- j plied last yenr 5276 tons, and In addi- ! Lon 431 tons was disposed of In other j export markets. Referring to casein, he stated that | the demand for the company's casein ! had In recent years been transferred ; from Germany to Japan, which was ‘ now the world's largest buyer or high- f grade casein. Prices had throughout ; the, pa*?t year been very satisfactory, , and contracts had already been made j for a substantial portion of the coming i season's production at very attractive j prices. He Indicated, however, that j much would depend on the ability of 1 the Japanese to pay for the casein on order. Mr Goodfellow took the oppor- | tunlty of warning suppliers not to rush j Into casein production because prices j were so attractive, If considerable 1 capital expenditure were required. Over I a long period of years it had been | proved that casein was liable to violent fluctuations in price. Industry Well Established. Dealing with evaporated milk, he stated that the exports amounted to 90,000 cases, practically the whole of which was forxvarded to the British market. Reports Indicated that this new Industry was now well established. that the quality was excellent, and that satisfactory prices had been obtained. Unfortunately, said Mr Goodfellow, the cost of producing evaporated milk in New Zealand today is too high to compete with our rivals in the United States, our principal competitor in foreign countries, and in consequence our expansion is limited to the requirements of the United Kingdom an-1 those Empire countries which give New Zealand a substantial preference under the Ottawa Agreement. This was a concrete example of the necessity of keeping down costs in a country dependent almost entirely upon export markets. He stated that the New Zealand Cooperative Dairy Company’s patting plant In South London continued to operate -successfully. During the year sales amounted to £425,000 and tho net profit was £4449. It was pointed out that the company’s patting plant In the United Kingdom kept the namo of “Anchor” brand prominently before the British public, and In the event of tho discontinuance of the Government purchase plan the goodwill of the brand would thus be retained by the company. In the meantime, said Mr ioodfellow, the Government has the financial advantage of the “Anchor” goodwill, which has been build up over a long period of years and maintained by the sale of “Anchor” pats throughout Great Britain. The value of this goodwill, he ventured to say, was far In excess of what some people might Imagine. This advantage, and the value of Amalgamated Dairies’ efficient sales organisation in the United Kingdom, had now passed over to the marketing department for the benefit of New Zealand producers in general. Pacific Trade. Referring to markets other than the United Kingdom. Mr Goodfellow stated that although sales had been actively pushed throughout the Pacific ami the Orient, the total sales of dairy produce, including butter, cheese, casein and evaporated milk, only amounted to £338,000. During the year under review a Dutch company had established direct shipping service with the Eastern ports, and It was anticipated that this would result in a substantial reduction of freights and some increase in business. He pointed out, however, that any increase in sales In Eastern countries must necessarily be slow, duo to the extremely low purchasing poxver of the bulk of the people. Australian Eastern trade was mainly In flour and wheat, and In lowgrade tinned butter, which did not Interest us.