DRIED MILK INDUSTRY

Southland Times, Issue 17877, 5 September 1918, Page 4

DRIED MILK INDUSTRY

PROSPECTS DISCUSSED. DECLINE IN PRICE PREDICTED. The prospects of the dried milk industry in New Zealand were the subject of comment by Mr H. E. Pacey at the annual meeting of the New Zealand Dairy Association at Hamilton on Friday last. He said that during his absence in Queensland in June and July the whole of New Zealand and parts of Australia were in a frenzy of excitement in expectation of extraordinary payments for butter-fat for the manufacture of dried skim milk. At present, however, the Dominion was adjusting its perspective. Personally, he never had confidence in the expectation of regular returns of from 3/6 to 4/ : per lb butter-fat from the manufacture of dried skim milk. Prior to the war, skim-milk powder was worth from £l6 to £4O a ton. When war influences had passed prices might range for a time at about the latter figure, but would gradually recede to a normal average. Over-production in the interval would hasten the decline in values. The normal prices of the product would be quite useless in the Dominion, as they would not equal the returns derivable from feeding the skim milk to calves and pigs, or having it manufactured into casein. During the war period, owing to special and temporary causes, dried milk prices which would return about 3/6 per lb butter-fat had been reached. Even under war conditions, and with a free market, these values could not be regularly realised. He had communicated with Mr Massey in London regarding the shipping prospects, and the possibility of free markets for dried milk. Mr Massey’s reply was discouraging. He had definitely indicated that the market would be controlled, and that New Zealand producers wAild only have a chance in the business if the quality of the product was approved and the price made low enough. The Dairy Association, added Mr Pacey, was the largest manufacturer of dried milk in New Zealand, the output last, season from its factories at Matamata and M.atangi being 3,550,441ib. The contract for the disposal of the output was satisfactory to both the directors and the suppliers.