Buttermilk Drying Project

Northland Age, Volume XVII, Issue 70, 4 June 1948, Page 5

Buttermilk Drying Project

Trading Department Extensions Reconsidered Reconsidering their former decision to extend trading department operations to retailing groceries in the premises now occupied by Wallace Supplies, suppliers of the Kaitaia Dairy Company on Wednesday released the Board of Directors from its obligation to undertake this project when the time was considered opportune. • Since the decision was made, Board members have been considering the extension of the Company’s activities in the sphere of its primary function, and on Wednesday submitted for suppliers’ consideration, the nucleus of a concrete scheme fo r drying buttermilk. As the fulfilment of such a project would entail a capital outlay between £14,000 and £20,000, the Board was of the opinion that it should be released from its obligation to expend other large amounts on the expansion of the trading department. Reviewing the material gains which would be made by the institution of a scheme as suggested, theChairman (Mr. E. R. Bird), said that at a conservative estimate, the nett return would be about £3OOO per an num compared with the present return of £3OO to £350 per annum, derived from the disposal of butter-

milk to a neighbouring pig farmer. As regards marketing the product, reports to the effect that overseas markets are wide open and that Great

Britain Is prepared to enter into a 5-year contract, have been received. The contract or contracts, it was stated, would embrace dried buttermilk, skim-milk o r whole milk, and it was suggested that if a plant were installed, the original plan might be profitably extended to cover the production of the two additional foodstuffs.

Approving the Directors’ recommendation for the drying of the Company’s output of buttermilk, suppliers realised the need to place an immediate order for the plant which must be shipped from England.