Joint stand against Kraft take-over

Press, Volume CXIII, Issue 33382, 14 November 1973, Page 18

Joint stand against Kraft take-over

Trade union and dairy processing interests yesterday made a joint stand against the proposed take-over by the American corporation, Kraft, of New Zealand Cheese, Ltd. the manufacturer of “Chesdale” cheese.

The Government has already approved “in principle” the take-over of the Butland Industries subsidiary, and this has brought strong criticism from the trade union movement and from the industry, but yesterday’s joint statement was the first co-operative move. It came from the president of the Canterbury Trades Council (Mr W. R. Cameron) and a Dunedin businessman. Mr W. W. Mundy, who is; both managing director of the Co-Operative Dairy Company of Otago, Ltd. and the chairman of directors of: Mainland Products, Ltd, the packers and distributors of 'Mainland” and “Southern Farms” cheeses. The statement, released in Christchurch last evening, said there was no reason for Kraft to get a “quasi-; monopoly” of the New Zealand market for processed cheese. “If Butlands wish to sell, they can sell out to local[ dairy factories — which are interested in such a take-over and are in a position to develop export markets in co-operation with the Dairy Board,” it said.

“There is no assurance by Kraft that they can substantially increase New Zealand processed cheese exports. “The opposition by farmers, and the lack of enthusiasm on the part of the New Zealand Dairy Board, whose members are the best informed on marketing aspects, show there is no need for this takeover." the statement said. “Whatever arrangements »he New Zealand Government has made with Kraft Foods, Ltd, will sooner or later be amended when Kraft will tell

a future Government to get; the Dairy Board off its back.' Whatever guarantees have [been made as of now have ino application to the long term. > “The crux of the matter is that our dairy food processing industry should not go I the same way as our biscuit and confectionery industry has gone—nearly completely overseas controlled."