N.Z. Giving Milk Plant To Ceylon

Press, Volume CIII, Issue 30562, 3 October 1964, Page 3

N.Z. Giving Milk Plant To Ceylon

(New Zealand Press Association)

WELLINGTON, October 2.

New Zealand is to provide plant and equipment worth £lOO,OOO for a milk condensery in Ceylon. The aid will be given under the Colombo Plan and will be financed from New Zealand’s annual contribution of £1 million.

This was announced today by the Prime Minister (Mr Holyoake). who said Ceylon at present imported about 9000 tons of sweetened condensed milk every year, almost all of it from Europe. In 1961 the Ceylon National Milk Board decided to set up • condensery to replace these expensive imports, using imported dried milk power and milk fat as raw materials until Ceylon’s own milk production could catch up with the demand. The Ceylon board had made an agreement with the New Zealand Dairy Board under which the New Zealand board would provide technical assistance for the project and in return the Ceylon board would buy from New Zealand all the dried milk powder and milk fat required by the condensery for 10 years. Useful Market More recently, the Government of Ceylon asked whether New Zealand would be willing to provide under the Colombo Plan the plant and equipment required to set up the condensery. The Government had agreed to meet the request

Mr Holyoake said about two-thirds of the equipment to be provided would come from New Zealand itself. In addition, New Zealand would gain a useful and assured market for dried milk powder and milk fat in an area where it was trying to build up trade. Since 1951 New Zealand had given Ceylon over £1,200,000 worth of assistance under the Colombo Plan, including £500,000 for an agricultural research project.