Kraft drops bid for N.Z. cheese

Press, Volume CXIV, Issue 33671, 22 October 1974, Page 3

Kraft drops bid for N.Z. cheese

(New Zealand Press Association) WELLINGTON. October 21. The decision of the Kraft Corporation of the United States not to resubmit its application for (Government approx al of a joint venture in Auckland with New Zealand Cheese, Ltd. would remove a divisive influence in the New Zealand dairy industry, the chairman of the Dairy Board (Mr A. 1.. Friis) said today.

The announcement was made in Washington by the president of Kraft’s international division (Mr H. M. Connelly), who said: “We no longer seek any equity in New Zealand Cheese, Ltd, which is wholly owned by Rutland Industries.”

The company held talks! I earlier this month with Mr Friis and other representa-j tives of the Dairy Board. i Early this year Kraft sub-! mitted to the Government a; proposal seeking a majority I shareholding in New Zealand; Cheese. The move was opposed by trade unions and farming organisations. In April, Kraft withdrew the application, but‘ indicated that it might be submitted again. CO-OPERATION Mr Connelly said the established association between Kraft and Butland Industries would continue. “Kraft obtains processed cheese from Butland for export to certain markets. It is our plan to maintain and expand this relationship, so that, in co-operation with the Dairy Board, processed cheese produced in New Zealand can be made available to other export markets being served by Kraft.” Mr Connelly said earlier in the year that Kraft believed that New Zealand could increase its exports of processed cheese to Japan, other countries in South-East Asia, and nations in the Middle East.

| It already buys processed cheese from New Zealand I Cheese for export to Pacific i and Asian markets, and large j i quantities of unprocessed! I New Zealand cheese for pro-' I cessing at the company’s fac-I ; tories in the United States. TOLD IN ADVANCE Mr Friis said Mr Connelly had told him of Kraft’s deci- | sion before he made the announcement. Mr Friis assured Mr Coni nelly that the decision would 'be well received. He said i that the board, for a number iof years, had made cheese iavailable for processing for jexport through Kraft. | The dominant position of; i Kraft as a distributor in jmany export markets should | - lead to the expansion of suchl jopportunities, and the board; I would welcome the increase' Sin trade envisaged by Mr I ! Connelly, Mr Friis said.