Decisions On Thai Dairy Factory

Press, Volume CII, Issue 30233, 11 September 1963, Page 16

Decisions On Thai Dairy Factory

(New Zealand Press Association)

WELLINGTON Sept 10. Decßions on construction of the factory and the purchase of plant and equipment would be made at meetings oi the directors of P.OJ* Dairy Products, Ltd., in Bangkok this week, said the chairman of the Dairy Board (Mr A. Linton) today. The board and a group of Thai busjieeemen are partners m the firm, which was set up to manufacture condensed milk from New Zealand milk solids. Mr Linton said the industry was allying itself with men who knew the Ttiai market thoroughly. Today’s meeting was arttended by Mr H. M Caselberg and Mr A L Friis, members of the board, Mr P. B. Marshall, general manager (marketing), Mr T. P. J. Twomey, technical director, and by the principals of the Thai interests with which the board was associated who were led by Mr Rachai TertiaphunphoL The company had obtained the important dispensation from the Thai Government known as “pioneer status." which meant it was approved as a venture which would assist the Thai economy, said Mr Linton Thu ta us gave the company eertarn tax concessions and other advantages which would be of asssance in the initial stages The company expected to begin operation next year

“I should sound a warning at this stage against undue ootimism among well-wishers of our venture." said Mr Linton. "We are entering a business in which competition is strong, and are under no delusions that success will be quick ..nd easy.” Thailand at present imported condensed milk at the rate of about <5,000 tons a year, chiefly from European

countries, which had the trade because of manufacturing and shipping advantages, and in most cases because these exporters obtained Government subsidies.

Apart from condensed milk, Thailand’s purchases of dairy products were small, said Mr Linton. Butter imports, raither less than 200 tons a year, were largely supplied by Australia. Cheese imports were around 50 tons a year He said the board was hopeful its condensed milk project would 'ead to the growth of exports to Thailand to the point which would encourage one of the shipping companies to establish a direct service from New Zealand, At present delivery of goods had to be effected by transhipment through Singapore or another intermediate port, and this was costly and slow.