DRIED MILK FACTS.

Waipa Post, Volume XIX, Issue 1103, 9 June 1921, Page 4

DRIED MILK FACTS.

THE TE AWAMUTU FACTORY. MR GOODFELLOW'S VIEWS. The particulars as to the dried milk industry, which had not arrived from Mr Goodfellow in time for Mr Sinclair's meeting last evening, have since come to hand. For the inform- 1 ation of Te Awamutu suppliers Mr Sinclair now states as follows: " Owing to lack of previous experience we have had' a great deal of trouble at Waharoa during' the past season. For ' instance, the plant should have been electrified in the first instance, which would have given us effectual control over the various sections of the plant necessary ;to make a high-grade powder. Further, the second-hand steam engine which we purchased proved a failure, and as a result the plant was hung up on numerous occasions, resulting inconsiderable loss of skim milk. However, steps have been taken to rectify these defects, and an electrical engine is now being installed similar to the one at Te Awamutu and Waitoa, and we say without hesitation that there is every reason to believe that Waharoa will get through the coming season without any serious trouble, and as a result of our Waharoa experience our Te Awamutu friends may expect their plant to run satisfactorily from \the commencement. In other words, Te Awamutu will benefit very considerably from the experience and experimental work carried out at Waharoa during the past twelve months; '< " The most serious defect, however, in connection with operations at Waharoa has been the packing of the powder. In America milk powder is packed in 2001 b parchment-lined barrels. We figured that if the powder would carry satisfactorily in barrels it would be equally satisfactory in boxes and further a rectangular package would be much more economical from a freight point of view than the barrel. We therefore imported specially prepared parchment liners aim-, ilar to those used in America and arranged for the manufacture of rectangular boxes to hold 1401 b. nett weight. Owing to the fact that the powder from New Zealand had to pass through the Tropics we found that the timber in the boxes shrank and further that the damp tropical atmosphere penetrated the powder which resulted in caking causing a substantially lower price than otherwise would have been the case. Unfortunately owing to delays in shipping and to the fact that our first shipment was destroyed by fire and water wt> did not receive a report from the agents requesting us to pack in tin lined cases until the season was practically finished. The price of tin plates has now fallen to pre-war figure and arrangements are being made to set up a tin making plant at Frankton Junction which will be capable of manufacturing tins similar to the benzine tin only with a press .top. These will be packed two in a case similar to the benzine package. Each tin will contain / 251bs. of powder. The World's Markets.

Dried milk is in the same boat as casein, hides, tallow, flax and meat which owing to the financial stringency and trade depressions are today selling at very low prices. For instance during the past few months the price of casein has fallen from £9O to £SO per ton and dried milk from £l2O to £7O per ton. However, we are not pessimistic regarding the ultimate result, for we know perfectly wall that no other, country in the world can produce by-products at a lower cost than New Zealand and our cos-s will be further substantially reduced just as soon as the company's own coal is available.

We believe that butter will be a good proposition and that butter'fat plus all remaining solids in the milk must give a highpr return than any other proposition.' Local Sales.

A considerable quantity of powder is now being sold in New Zealand. This is being sold to householders in 21b. cans under the name of Kine and to bakers and confectioners in 140 lb. boxes under the name of Snowflake. The present consumption-in New Zealand will exceed 100 tons per annum and is steadily increasing. We hope ultimately to be able to sell 4/500 tons per annum in the Dominion. The very pleasing feature of the New Zealand business has been the fact that almost without exception those who have purchased skim oni'lk powder have become permanent users. " The capital cost of the Te Awamutu factory is very considerably less than Waitoa and Waharoa, and with anything 'like normal trade conditions in the near future we,have no hesitation in saying that the venture will prove an unqualified success. " Mr Goodfellow is leaving for England on 14th July, and immediately upon his arrival there will investigate the dried milk prospects for the immediate future."