PIG MARKETING

Bay of Plenty Times, Volume LXXV, Issue 14430, 31 July 1947, Page 5

PIG MARKETING

RECORD TURNOVER 15 YEARS’ CO-OPERATIVE EFFORT “In presenting this report on the operations of your Association for the season ended 31st May, 1947, the ■ fifteenth year that the P.M.A. has been operating on a national basis, it is to report yet another year of successful co-opera-tive activity,” said Mr W. A. Phillips, Chairman of Directors in presenting the Directors’ report to the annual meeting of the New Zealand Co-operative Pig Marketing Association held at Milne and Choyce’s Reception Room, Auckland, on Wednesday, 30th July. Over 350 Shareholder-delegates representing every district in the North and, South Islands, attended the meeting. “In line- with the further fall in National Pig Killings this season, our own collections fell to 96,067 pigs ■ — a drop of 8545 on last year,” continued the chairman- “No fewer than 94,914 pigs, these weighing 12,680,000 lbs. came in on consignment, this representing 98.8% of our total supply. It is gratifying to see that, a high level of our collections have been maintained on consign; ment, a clear indication of the producers’ confidence in the co-opera-tive consignment principle.” . More Bobby Calves Handled

Mr Phillips revealed that 88 Bobby Calf Pools entrusted jfie marketing of their products and administration of their affairs to the P.M.A. The number of calves handled, 361,616, reached a new record while the turnover of £359,434, also created a new precedent. Compared with last season this showed an increase of 49,737 calves and £95,615 in turnover. j “It -has been stressed in past years and it may be stressed again that we are admirably placed to handle a large volume of business,” said the chairman, “particularly since the season for calves is ah offseason for pig killings, thus affording the Association a very valuable spread of its administration, expenses, which is of the utmost importance to suppliers’ nett return for pigs. , Decline In Cattle Killings “This . season we handled 8,573 head of cattle, a decrease of 1845 on last year,” Mr Phillips said, “During the latter part of this season the killing of cattle at the Freezing Works in the Auckland area was seriously interrupted by strikes and a ‘go-slow’ policy by the beefkilling staff and in consequence the works were not able to handle the same number of cattle as in previous years. It. is hoped that these difficulties will be overcome during the coming season when we will be able to handle again an increased volume’ of business in this department. ■' : “Summarising operations in Pigs, Bobby Calves and Cattle, total collections were approximately 400,066 head with an aggregate hooks weight of 27,000,000 pounds. This year the turnover of the P.M.A. for the first tiriie, exceeded the million mark and together with that of its subsidiaries reached £1,700,000. To-day, an ever-increasing percentage of the total meat and dairy products of New Zealand farmers is marketed through their own co-operative organisations and they are, therefore, afforded the best possible protectionregarding the price received for their products.” Mr Phillips went on to say that the Trading Deoartrtient continued to operate in a limited capacity and tvhile it was unfortunate that sup-; plies of hig foods and concentrate:: were in short supply and that bacon and hams were carefully rationed it was felt that this Department offered a very real service to P.M.A., shareholders'. ' During the latter part of the season grass seed orders were handled on behalf of suppliers this being possible through their associated co-operatives the Gisborne and Hawke’s Bay Farm Product Companies and it was felt that increased' business could be gained in this new venture. • Income And Expenditure Continuing, the Chairman said “Total value of sales of pork, beef, veal, skins, hides and offal together with estimated realisations of stocks on hand at 31st May in freezer, N.Z., amounted to £1,067,311. Slaughtering and freezing, charges, collecting costs, insurance and administration expenses absoibed £121,344, and directors’ fees £SOO. leaving a gross excess of incpme of £945,467. Payments already made for bobby calves, pigs and cattle totalled £891,815, leaving a surplus of £53,625. Under the Articles of Association an appropriation of l/16d. per lb. on all pigs supplied on consignment has been set aside for crediting to suppliers’ share accounts. This came to £3,246 and after transferring £IO,OOO to general reserve there is a nett surplus available for cash distribution of £40,406. Subscribed capital is £99,941. In October last year fully .;paid bonus shares, were issued on the basis of supply during the four seasons ending 31st May, 1946 and these amounted to £38,979. Following this bonus share issue your Directors deemed, it advisable Ito alter the basis of Shareholding from one share for every 5001bs of pork to one. share for every 250 lbs. As the bonus , shares, issued had in the main doubled the shares, held by each shareholder'the position of past consistent suppliers is in .no way altered by this change. All new applications for shares will now He made on one share for every 250 lbs. of pig meats supplied. 6356 shares have been allotted since the publication of our Balance Sheet so that actually our subscribed capital today is £106,297. Paid up capital is £79,895 and there is a special capital reserve of £18,946 representing the provision made each year for appropriation to share capital in accordance with the Articles of Association, but which has not been credited to Shareholders’ Share .accounts. The general reserve account now stands at £20,000.” Subsidiary Bacon Companies

In commenting on the successful functioning of the Associations’ three bacon factories, Mr Phillips said that more than 65,000 baconer carcases were processed but as the industry is still strictly controlled under ‘ quota regulations, this had limited the amount of bacon and ham available for the local market. The whole of the shares in these Companies were owned by the P.M.A. which meant that the Shareholders collectively were the sole owners of the three factories. Just as the formation of the P.M.A. had forced pig prices to their real value so had the acquisition and control of the bacon factories further strengthened marketing outlets to a point where it constituted a. very real factor in the influence of the price paid to farmers. Reference was made by the chairman to the Company’s association, with the co-operative Distributing Organisations. “It is not necessarv to reiterate here the benefits which have accrued to producers by effectively controlling their products

from the .farm to the retailers and it is sincerely hoped that these Companies will continue to flourish and their influence spread to other parts of the _ Dominion., The P.M.A. has a nominal shareholding in the Farm Products .Company in Hawke’s, Bay, Mariawatu; Gisborne, Wanganui. Wellington, Nelson and Westland and also has a large shareholding in the Canterbury Co-on. Distributors Ltd., Christchurch. Your Directors will continue ’ to support wholeheartedly any extension of the cooperative principle, irrespective of what section of the producers this mav benefit.” concluded Air, Phillips.—P.B.A.