NEW VENTURE

Hauraki Plains Gazette, Volume 58, Issue 4174, 17 August 1949, Page 7

NEW VENTURE

VALLEY DAIRY COMPANY MAKE MILK POWDER DIVERSIFYING PRODUCTS Following the installation of a large roller-drier at the factory of the Te Aroha-Thames Valley Dairy Company at Te Aroha, the company expects to commence the manufacture of skim milk powder on October 1. Production in the initial stages will amount to about 600 tons per annum, and it is anticipated that suppliers to tips section will be paid about Sd pbr . pound butterfat more than the price at present paid by the company to cream suppliers. The decision to change part of the company’s production to skim milk powder was taken at a special meeting of suppliers in close proximity to the factory recently. The company has had the diversification of its products under consideration for some time, and about four years ago gave a lead io New Zealand when it commenced' the manufacture of buttermilk powder as a sideline to buttermaking. The venture proved a most successful one and now, though still small compared with the butter production of the company, is a profitable £6OOO per annum business. Little Extra Outlay

Installations necessary at the factory to commence the skim milk powder manufacture amount to little more than the cost of the new roller for d/ying, but the company will have to employ about another six men and present drying plant will have to be operated 24 hours a day. About 50 suppliers with some 3000 cows will be affected. To handle the extra quantity of produce actually taken to the factory about five trucks will be necessary, while suppliers will of course have to carry out slight alterations to their milking sheds and procure more milk cans when the change-over from cream to whole milk supply# takes place. The actual cost of production of the powder was difficult to assess, said Mr H. A. Bradley, company secretary, when discussing the scheme with a Press representative. At present, he said, there was no other company in New Zealand manufacturing skim milk powder by the roller process.

Market in India When outlining the scheme to the annual meeting of suppliers at the Masonic hall, Te Aroha, the chairman of directors of the company, Mr D. Courtney, said that investigations were being made into a possible market for the product in India. At present it appeared that there was an assured market for up to 600 tons yearly for the next two years at a price of about £65 per ton, Mr Courtney said. At this rate the Cost of extra plant would be covered in that period. Should the market prove stable and should the inducements be sufficient, consideration would be given to extending plant and production. Mr Courtney revealed that the company had tentatively come to an agree-, ment with an English firm willing to accept this product at up to 2500 to •3000 tons per annum for a minimum of’ ten years at a rate which would allow that the company pay its suppliers not less than fourpence per pound more than the rate for butter. The English firm had also tentatively undertaken to find the money necessary for erection of a plant at a minimum rate of interest. Payment to the company as well as allowing for the previously mentioned payout to suppliers would also allow for a write-off of 10 per cent, yearly on all equipment. Could these arrangements have been finalised the company would have been converting the product of 20,000 cows .into skim milk powder, Mr Courtney said. Some twelve years ago, however, the leaders of the dairy industry had decided that no proprietary interests would be allowed in the industry.