PIG MARKETING ASSOCIATION

Press, Volume XC, Issue 27463, 24 September 1954, Page 4

PIG MARKETING ASSOCIATION

Chairman Reviews Year STEADY PROGRESS MAINTAINED “Your co-operative organisation has now completed 22 years of service on behalf of the primary producers of New Zealand and this report clearly demonstrates the expansion and consolidation made for the permanent protection of the producers’ markets for pigs and other dairy farm livestock,” said Mr W. A. Phillips. Chairman of Directors of The New’ Zealand Co-operative Pig Marketing Association, Ltd., addressing the Annual Meeting held in the Orange Hall. Auckland yesterday. Four hundred shareholder-delegates from all ‘over the Dominion attended this meeting. Mr Phillips had just returned from a six months’ trip abroad during which he visited England, the Continent, America and Canada to study marketing conditions of pig meats and bobby calf products. He also' concluded arrangements for future marketing with the return this month of freedom to trade on the export market. v ’'Turnover, including that of our wholly owned subsidiary comnanies, reached a new record of £4,300.000,” declared the Chairman. ‘‘Backed by your continual loyal support it is confidently anticipated that further steady

progress will continue in the year ahead.”

Mr Phillies revealed that pig killings totalled 149,687. ’Although down by only 1369 pigs compared with last season, porker collections were up by some 18,000 with a corresponding decrease in baconers. Although this trend was serious as far as supplies to the P.M.A.’s Bacon Factories was concerned it was certain that the position would be adjusted, given a normal season and the return of’free

marketing on September 30. Record Return for Bobby Calves Eighty Bobby Calf Pool Committees entrusted the marketing of their calves and the administration of their affairs

to the P.M.A. Although the number of calves killed, 461,189, showed a decrease on the previous season’s collections, turnover amounted to £980,856. This was a substantial increase over the previous year’s then record figure and reflected the in-

creased values obtained. The realisations over all pool areas in both the North and South Islands showed an average increase of 5s 5d per calf over last season. “The number of cattle handled this year shows an increase and totalled 14,001,” said Mr Phillips. “Once again the principle has been followed of working in three pools, the first from June 1 to September 30; the second from October 1 to January 31 and the third from February 1 to 3l. The final returns in each pool have shown a more than competitive payment with the average ruling schedule for all grades. It is gratifying to see producers gain further protection arid more stable returns by the co-opera-tive marketing of their cattle.” “Stimmarising operations in pigs, bobby calves and cattle total collec-

tions were approximately 625,000 head with an aggregate hooks weight of 36.000,000 pounds.” Continuing, the Chairman said that the Trading Department had again rendered good service to P.M.A. suppliers and turnover had advanced by £4568 to £34,046. Some lines were

still in short supply but every effort was being made to meet the needs of individual suppliers. Although increased supplies of meals had been procured, the demand still exceeded the supply and the Trading Department was doing its utmost to improve the position. Income and Expenditure

Mr Phillips revealed that total sales of pork, beef, veal,* skins, hides and offal, together with the estimated realisations of stocks on hand at May 31 in freezer, New Zealand, amounted to £2,742,574. Slaughtering and freezing charges, collecting costs, insurances and. administration expenses amounted to £293,9971 directors’ fees absorbed £5OO and this left a gross excess of income which amounted to £2,448.077. Payments already made totalled £2,240.229 and the surplus therefore was £207.848. “Under the Articles of Association,” said Mr Phillips, “the Directors have set aside an appropriation of jd per lb on all pigs supplied on consignment for crediting the suppliers’ share accounts. This comes to £17,304 and after transferring £30,000 to General Reserve and £25,006 to Final Payment Equalisation Reserve Account there is a net surplus of £135.538 available for cash distribution to suppliers.” Subscribed Capital was £307.732, an increase of £39.330 over last balance date. Since May 31 further shares had been allotted to qualify supply for the 1953-54 season which brought the total subscribed capital at this date to £332,652. Suppliers paid-up capital account amounted to £135,845, special capital reserve £40.435. general reserve £ 180,000 and final payment equalisation reserve account £91.436. The Consolidated Balance Sheet of the P.M.A. and its subsidiary Companies showed assets totalled £989.219 which clearly indicated the size and Importance of P.M.A. resources and those of its subsidiary Bacon Companies. Net shareholders funds were over £555,000. all of which belonged solely to producer shareholders. Subsidiary Companies

Mr Phillips referred to the three Kiwi Bacon Companies at Auckland, Palmerston North and Christchurch and Hitchon’s, Ltd., at Milton, Otago, which had been successfully developed over the years and which during the last 12 months had shown a turnover of £1.553.000, representing a substantial percentage of the bacon, ham and siriall goods sold in New Zealand. All the shares were owned by the P.M.A., which meant that all benefits from these bacon companies were returned to supplier shareholders. “Your Directors are proud of your Company’s association with the enterprising and well-managed Associated Farm Products Distribution Company.” said the Chairman. “These successful producer co-operatives have again enjoyed another record year. From their activities in the wholesale distribution service of their own product by the replacement of merchant interests, producers have effected a saving this year of over £90.000.” In other words, as a direct result of his own enterprise and initiative in promoting these wholesale distributing companies, the producer has increased his net return by over £90.000.” In conclusion Mr Phillips said the Company today stood on the threshold of a new era of freedom to trade on the export market. It faced the future with confidence, confidence based on the knowledge that the principle for which the P.M.A. was founded and had been built over the last 22 years, was fundamentally sound. It would continue to play a vital role in the protection of the dairy farm livestock markets of primary producers of the Dominion. . P.B.A.