Page 5 Advertisements Column 3

Otago Daily Times, Issue 15788, 12 June 1913, Page 5

Cost of Raw Material to this 1 Company sufficient to manu- ! facture 1 ton Sugajr of Milk... £2 0 0 , G'osl of manufacture 1 ton Sugar I of Milk • .... . 20 0 Oj Total cost of finished article im- ! cased at factory ... £22 0 0' It will be noticed that the Continental Manufacturer pays £18 6s per ton for his raw material as against £2 per ton paid , by this Company. A saving of £16 6s per ton shows the fortunate positiou the Company will be in for selling its product on the London Market. THE COMPANY'S POSSIBILITIES. ! Sugar of Milk during 1912 averaged £65 1 per tonjon, the London Market, though at the end of 1911 it touched. £100. Taking i an average for the last 10 years, a safe, price would bo £56 per ton. According j to Mr Pedersen it costs the Continental; Manufacturer £38 bs to produce 1 ton of j Sugar of Milk. To this must be added : £6 per ton for casing and freight, and , from £10 to £12 per ton profit to pay ■ interest on capital invested, and other j charges such as depreciation, etc.

In allowing £50 per ton, that is to say more than 10 per cent, below present rates, it will be seen that this is the lowest price that the Company can possibly realise, and from all indications there is very little possibility of it dropping much below £56. The following statement shows at a glancc the possibilities of the Company:— By sale of 375 tons of Refined

-Sugar of Milk at £50 per ton ; ..: £18,700 By sale of 200 tons of Albumen. and' Residual Milk Sugar- at £5, as animal 'food ....... 1000 To Casing,. Freight, . and - other charges to England... £2800 To cost of: production—37s - tons at £20 per ton 7500 To cost- of Raw Material— 375 tons at £2 per'ton ... 750 To cost of Depreciation and Reserves-- 375 tons at £2 .per ton ... ... ... 750 To Contingencies—37s tons at £2 per ton ' 750 TO BALANCE - NETT PROFIT ... ... 7150 £19,700 19,700 £7150 less. £715 (being 10 per cent. Royalty to supplying Dairy Companies) is £6435, which is over 30 ner cent. NETT PROFIT on the Capital issued—£l9,ooo.

. The , prices for; Animal Foods in New Zealand range from.£s to £20 per fdn, and it is. expected.that the Company will work up a profitable trade is these commodities. '.

Besides this there will be also the profits from the manufacture of Casein during the three winter months.

The estimated cost of manufacture, £20 per ton, includes management and office expenses, and is one which careful management should be able to reduce owing to the following advantages which will obtain, to the Company-

The Most Modern Machinery. Large Quantities of Raw Material. Cheap Coal. Hood Roads and Railway Siding. Process for the rapid treatment of mother liquids. The opportunity of carting coal, etc., to the j)airy Factories. (This would save the Company's waggon going back empty, and would '.materially reduce the cost of cartage.) Tho Vendors .have under consideration ; a process for the separation of the Al- ' humen in the Whey which will recover this substance in a valuable marketable condition. The value of this secondary product will be a source of considerable extra revenue to the Company. LOCATION.

The Vendors have visited and carefully examined all the cheese districts in New Zealand, and have found that the Edea> dalcAVvndliam District is by far the most favourably situated for the establishment of Works for the manufacture of Sugar of Milk. The Edendale-Wyndham District has such a combination of railways, cheap coal, good roads, and largo quantities of cheap raw material a? does not obtain elsewhere, either in New Zealand, or, as far as they are aware, in any other part of the world. WORKS.

Suitable works have been designed in England by expert Engineers, and they will be modern in every resncct.

. The Company will use all the latest ideas .in Factory Installation. The machinery will be constructed and arranged so as to economise labour and fuel, and the most recent improvements in steam generation will be adopted. Starting as it will with the most modern machinery, it is reasonable to anticipate the Company will be in a much better position to manufacture Sugar of Milk than any of its competitors. The site for the Works at Edendale being on level ground and within a few feet of the Edendale Co.'s Separators, a considerable saving in coal and cartage will be effected, as the whey from the Separators will bo delivered by pipe to the Works in a heated condition. COST OF WORKS.

■ ■'■■Various quotations have been received from which it is estimated that an up-to-date Sugar- of Milk Refinery, capable of treating an average quantity of 14,000 gallons per day, comprising machinery, plant, buildings, etc., will cost between £9000 and £10,000. This plant will also be able to deal with the manufacture of Casein without any additional expense, as it has been designed to that end. OUTPUT. The quantity of Sugar of Milk which car/ be extracted from the amoiint of raw material (whey) given above is at least 375 tons per annum. INCREASED OUTPUT. 'Jl'jfi has boon allowed for in designing the Works, ajid with a small amount of