MAIZE PROCESS PLANT JUDGED TO BE UNECONOMIC

Gisborne Herald, Volume LXXVI, Issue 23021, 11 August 1949, Page 4

MAIZE PROCESS PLANT JUDGED TO BE UNECONOMIC

Recent correspondence from Herald readers concerning the possibility of establishing a maize-processing plant in this district included suggestions that Federated Farmers should take up this matter with a view to benefiting the maize-growers. In defence of Federated Farmers, Mr- C. H. Cooper, Patutahi, states that a number of members of the federation were prepared in 1946 to invest finance in a proposition of this kind if it could be shown to be economically practicable. Investigation showed, however, that there were several insuperable obstacles. Acting for the potential investors, Mr. Cooper gathered information which was distinctly discouraging. A visit to Auckland disclosed that a concern which had been engaged during the war in extracting dextrose and other by-products from maize, on contract to American _ consumers, had dropped the processing work as soon as their contract ran out. This firm had machinery available which it was prepared to sell to a Gisborne syndicate, and was also prepared to provide certain information from its in-dustrial-chemical experience. Maize at Half Present Cost

Availability of a plentiful watersupply and of coal for generating steam were scheduled as absolute necessities in the processing of maize, and both these factors represented serious problems so far as Gisborne was concerned.

Most significant, however, was the information that to conduct processing on an economic basis the syndicate would have to handle practically the whole of the annual output of Gisborne district maize-growing, and the product would have to be purchased at about half the price at which maize can now be sold on a restricted market.

In the face of these obstacles the syndicate had no difficulty in reaching a decision to abandon their project, said Mr. Cooper.