Firm breaks ground in East on N.Z. produce

Press, 2 December 1978, Page 23

Firm breaks ground in East on N.Z. produce

rFrom NZPA staff correspondent BRUCE KOHN

In the industrial suburb of Jurong, in Singapore, New Zealand Milk Products (Pty), Ltd, is breaking new ground in the sale of dairy produce. Its success, or failure, may set the pattern for a fresh marketing approach by the New Zealand Dairy Board towards selling in developing markets. The company’s freedom to trade in a variety of items is what makes it different from the other companies about the globe with which the Dairy Board is associated.

Using New Zealand powders as its base, the company turns out a variety of products and con-

tracts out the manufacture of milk-based items it cannot process but is able to find markets tor.

Its Own staff design the lettering and backdrop on tins in which New Zealand produce will be pack’ ed. Wellington executives no longer impose packaging styles; they let “the locals” come up with what they believe has most appeal to local people.

The company also acts as agent for some New Zealand suppliers of specialty food products, as well, it has taken on the marketing of products not connected with the dairy industry when its own business activities have led to a recognition of other sales opportun.ties. An example of this came when the company

recently arranged shipments of dried peas to India.

It is heavily involved in the Singapore and Malaysian stock-feed markets. It sells stock-food milk powder and acts as broker for sales of extraction meal, rice bran, extract meals, and brown nuts. The company has a commodity broker on its staff. The Dairy Board’s regional representative and a resident director of the company, Mr Alister Betts, said in an inter* view that the Singapore company was to some extent acting as a general trading company. “But we only deal in opportunities outside the dairy business which we come across in the course of our everyday work. You couldn’t do this everywhere. It works here because Singapore is such an entrepot city-state.” Mr Bretts holds what he calls “on location” responsibility for Dairy Board marketing. His area of business includes Hong Kong, India and Bangladesh. With two Dairy Board members and the board’s general manager for marketing he recently completed a month-long tour of the area reviewing business “with a view to future development.” The visit was part of “ongoing studies to expand outlets,” Mr Betts said. New, or expanded, markets for milk fat products and cheese were urgently needed because of access limitations on sales to Britain and Western Europe. Mr Betts rejected assertions that Asian people

will not eat large quantities of cheese. “They will,” he said, “but the key to building up their consumption of it lies in promotion and packaging which appeals to their desires for better quality foods.”

Forty per cent of the company’s income arose from the re-export of products. Indicative of its booming business were turnover and staff expansion. In 1976 the company had a staff of two New Zealanders and six Singaporeans. Sales totalled sSingllM. This year its adminstrative staff consists of one New Zealander and 25 Singaporeans. It also employs 12 factory hands. Turnover this year is likely to top sSing4oM. The company has expanded its facilities at Jurong bv installing modern New Zealand-made pro* cessing equipment, adding a capacity to pack containers on the spot, and is now installing a laboratory to test its products. Mr Betts said he is concentrating heavily on expanding opportunities to sell New Zealand branded products. In some cases it was possible through the use of different, types of consumer packs to fit New Zealand branded products into both top and lower-end markets.

“We’ve got to create new markets and hold our share once we get in. By re-processing some of our products it is possible to increase net returns On the bulk products of the New Zealand dairy industry.”