TRADE WITH WEST INDIES

Taranaki Daily News, 15 January 1931, Page 9

TRADE WITH WEST INDIES

PROSPECTS FOR NEW ZEALAND.

OFFICIAL INQUIRY PROJECTED.

Following upon the recent announcement by the Minister of Industries and Commerce that it was intended to send an official representative of the Dominion to the Dutch East Indies for the purpose of ascertaining the prospects of establishing and developing markets foi New Zealand’s staple products, the Department of Industries and Commerce has issued a bulletin relative to trade in that part of the world and the prospects of .greater participation by local merchants. It is pointed out in the bulletin that the population of the East Indies is approximately 50,000,000 natives, Chinese and Europeans. Java, Sumatra, Borneo and the hundreds of smaller islands which stretch across the equator and make up the archipelago constitute one of the richest agricultural regions in the world. The natives are primarily small agriculturalists or plantation labourers, while the Chinese are primarily merchants having practically a monopoly of the wholesale and retail trade of the country. Imports into the Indies cover a wide range of all classes of goods in which motor-cars, artificial. fertilisers, tobacco and cigarettes, motor tyres, flour and foodstuffs of various kinds figure prominently. In addition, there is a large market for biscuits, chocolates, milk 'products, meats, fruits and jams. Many of these goods could be exported from New Zealand. The trade of the country is largely in the hands of the Chinese. In none of the native markets which serve the daily needs of the people can a single imported article of food be found. If a native wants a tin of sardines or an apple he has to go to a Chinese shop before he will even find it offered for sale.

The Chinese and the Europeans who administer the country, live mainly on imported foodstuffs. Meat bulks largely in the Chinese and European diet, and although much is produced locally a good deal comes from abroad. Frozen meats are already imported from Australia and New Zealand, and there is also a market for preserved meats. Dairy products for consumption by the Chinese and Europeans are practically all imported, as there is no production of butter or cheese in the Indies and practically no production of milk. Imports of canned milk are large, and there is also a demand for condensed milk. At present butter is imported almost exclusively from Australia. At the present time New Zealand’s imports from the Dutch East Indies far exceed her exports to that quarter. In 1925 the Dominion’s exports were valued at £BOl6 and her imports at £610,685. In 1929 exports had risen to £19,191, but imports had reached the large total of £1,152,705. The principal exports are butter, which is the largest item, but which was valued at only £BBOB in 1929, casein, dried and preserved milk, and cream, cheese, bunker coal and bunker fuel oil. The principal items imported are mineral oils, paraffin, wax, sugar,’ tea and kapok. It is of interest that Australia exported butter valued at £521,253 to the Indies in 1929, and dried milk and cream valued at £208,202.

It is pointed out by the department that a serious slump has occurred in almost all agricultural produce in which the native is interested. This condition was certain to reflect itself in his buying power and the consumption for some time to come. “Nevertheless,” the bulletin says, “it is anticipated that this condition is only temporary, and despite low prices for the export commodities of the Netheriand East Indies, and a consequent general reduction in purchasing power,' the information available points to the assumption that there are fairly reasonable prospects for the development of our export trade in that direction, provided that exporters pay careful attention to the particular requirements of the market. “With an increase in the purchasing power of the native—and such an increase is inevitable with improved methods of cultivation, and a return to normal prices , for agricultural produce—the trade of the Dutch East Indies must continue to grow, and New Zealand may reasonably be expected to increase her share. Further and more detailed information obtained first-hand by a representative will, it is anticipated, bear out this assumption.”