PROFIT PROM DRIED MILK.

NZ Truth, Issue 889, 9 December 1922, Page 13

PROFIT PROM DRIED MILK.

Dear "Truth".-— For some time past the dried milk industry, more especially as applied to this part of New Zealand, has been an all-absorbing topic. Many now settlers are quite at a loss to understand why this district ever went m for such an Industry, where the remuneration is certainly a long way from commensurate with the great cost of the factories whore this exceedingly low-priced product is manufactured. I say low value because it Is only an undue optimist who could ever expect skim milk, oven when dried, to be worth big prices except m war time. Newcomers also express surprise that farmers were ever led to go m for such a miserably poor paying proposition, especially when they had to undertake a liability only warranted* by profits of a more decided nature than have yet become accomplished facts. Some light on how we came to have dried milk factories can be gleaned from the following Illuminating and very interesting report I have just come across in' an old district paper. Some of the statements are, m the light of present results, amusing and highly ludicrous, and doubtless many who warmly applauded the more than optimistic statements will doubtless read of the then visions of untold wealth with feelings the reverse of pleasurable. Here is the gem referred to. It is headed: "Profit From Dried Milk," and quotes from a speech at the Hamilton Town Hall on the future of the dried milk Industry. "All kinds of rumors were going the rounds re dried milk, canned iniik, augur of milk. Swiss chocolate etc., with probable payments of 3s to 5s per ll> butterrat. Such rumors have electrified the whole fanning community of South Auckland province. Althougn the position hus been exaggerated somewhat, yet It might be quite evident to all thinking people that the dnlry Industry Is In a transition stage at the present time. Great changes mlyht be expected whorUy. Tha ' scattered districts would continue to separate, and would beneilt by the raw conditions, owing to the shortage of young stock. . . In I'JM In tho United States there woro 20 plants In operation, whereas to-day there are over 100, all proprietary concerns, and they hud all been nearly paid for besides distributing fr6m 3s 6d to 4s per lb buttcrfat to suppliers. The bulk of tho powder exported from hero would probably bo .skttn milk powder, and conaoquently there need be no anxiety In rogard to the future production of butter. A8 an illustration the speaker stated that one hundredweight of New Zealand butter m London would return 190 b. whereaa had the milk from which this butter was mado tot-on converted Into »klm milk powdor and butter a' return of 610a would bo rocelvcd. Skim milk powdor wait to-day worth JOQu per cwt. i It muHt bo quite evident that tho manufacture of dried milk wan a profitable business*. Apparently on a co-operative basin during th« coming ■canon it would bo possible to pay out 3» Cd per lb buttcrfrtt, However, m order to finance the scheme it would probably be found advisable to pay out

approximately 3s and pay on me piant m TWO YEARS. Factories would be erected m suitable centres Tvhere milk supply from 3000 cows would be available twice daily. It was estimated that plant and buildings would cost from £15,000 to £20,000 eacfi. No doubt the dried milk business had come to stay, and from received from London and other sources, the speaker had no hesitation m saying that the dried milk industry would be a permanent one. Already there was an unsatisfied demand m Europe, and it is quite evident that m the near future this product would be exported to Africa and Asia. In India alone ve.e great opportunities. Some were under the impression that London prices would fall rapidly after the war, but this was unlikely and suppliers must remember that they would have to receive oigger' payment for their produce m future owing to the greatly decreased purchasing power of tile sovereign. It was a full knowledge of the present position with regard to the manufacture of dried milk. m New Zealand that prompted the three dairy companies to send their best brains to the United States of America to investigate-" The speaker resumed his seat amidst applause. — I ami etc, G. F. DOWDBN, Te Aroha West.