TRADE WITH EAST INDIES

Hawera Star, Volume L, 15 January 1931, Page 8

TRADE WITH EAST INDIES

NEW ZEALAND’S PROSPECTS

HOPE OF PARTICIPATION

Following upon the recent arinuonceinent by the Minister of industries and Guinmerc-e that it was itended to send an •official representative' of the Dominion to the Dutch East Indies for the purpose of ascertaining the prospects of establishing and developing markets for New Zealand's staple products, tile Department of Industries and Commerce has issued a bulletin relative to trade in that part- of the world and the prospects of greater participation by local merchants. It is pointed out in the bulletin that the population of the East Indies is approximately 50,000,000 natives Chinese and Europeans. Java, Sumatra, Borneo and the hundreds of smaller islands- which stretch across the equatoi* and make up the archipelago constitute one of the richest agricultural regions in the world. The natives are primarily small agriculturists or plantation labourers, while the Chinese are primarily merchants having practically a monopoly of the wholesale and retail trade of the country. )>m',oArts' into the Indies cover a wide range of all classes of goods in which motor-cars, artificial fertilisers, tobacco and cigarettes, motor tyres, flour and foodstuffs of various kinds figure prominently. In addition there is a large market for biscuits, chocolates. ill 1 1 k: products meats, fruits and jams. Many of these goods could he exportml from. New Zealand. The trade of the country is. large!} in the hands of the Chinese In none of the native markets which serve the daily needs of the I cejilo ran a single imported article of food be found. If a native wants a tin of sardines or an apple lie has to go to a Chinese shop before lie will cveiii find it offered for sale.

DAIRY PRODUCE MARKET

The Chinese and Europeans wlio administer the country live mainly on imported foodstuffs. Meat bulks large ly in the Chinese and European diet and although much is produced locally a good deal chines from abroad. Frozen meats jure already imported: flour Australia, and New Zealand and there -is also a market for preserved meats;- Dairy products' for consumption by the Chinese and Europeans are practically all imported, as there is no production- of butter or- cheese in the Indies and practically no production of milk. Imports of canned milk are large and there is also a demand for condensed: milk. At present butter is imported almost exclusively from Australia.

At the present time New Zealand’s imports from the Dutch East Indies for exceed her exports to that quarter. In 1925 the Dominion's exports were valued at £BOI6 and her imports at £610,685. In 1929 exports had risen to £19,191, but imports had reached the large total of £1,152,705. The principal exports are butter, which is the largest item, which was valued at only £BBOB in 1929, casein, dried and preserved milk and cream, cheese, blinker coal and (milker fuel oil. The principal items imported Are mineral oils, (paraffin max, sugar, tea and kapok. It is of interest that Australia exported butter valued at £521,253 to the Indies in 1929 and dried milk arid cream valued at £208.202 AW: gene

PROSPECTS FOR THE FUTURE.

If is pointed out by the department that a serious slump has occurred in almost all agricultural produce- in which the native is interested. This condition was certain to reflect itself in bis buying power and the consumption for some time to come. “Nevertheless,” the bulleiu says, “it is anticipated that this condition is only temporary, and despite low prices for the export confmodities of the Netherland Mast Indies, and a consequent general reduction in purchasing power, the. information available points to the jasumption that there are fairly reasonable prospects for the' development of our export trade in that direction, provided that exporters pay careful atLehtich to- the particular requirements of the market.

“With Jiii increase in the purchasing power of the native—and such an increase is inevitable with improved methods of cultivation and a return to normal prices for agricultural produce the trade of the Dutch East Indies must continue to grow, and New Zeabind may reasonably be efpected to increase her share. Further and more detailed information obtained firsthand by a representative will, it j IS anticipated, bear but this assumption.”