FARMERS IN MEAT MARKETING CO-OP

Press, 1 December 1978, Page 8

FARMERS IN MEAT MARKETING CO-OP

Another example of armer co-operation, a fully co-operative company has been set up under the Cooperative Companies Act to market meat to the best advantage of its members. It is Fort Export, Ltd, with headquarters in Christchurch, and most of its present 64 members are Canterbury fanners, including some of the leaders in the industry in the province. It has an authorised capital of $200,000. The impetus for the establishment of. the new co-operative has come from a private company, whose seven shareholders are all farmers, Cattle Services, Ltd. It was formed in 1971 to facilitate intensive beef production by its farming shareholders and with the downturn in the beef market in 1974 it diversified to survive and is today involved in the production and marketing of beef and also in sheep and deer farming and forestry. Its expertise and experience in marketing beef on the local market and overseas is being used by the new separate co-operative company, which is also using its administrative services so that its overheads as far as administration is concerned will be kept to a minimum. The company will, of course, be enjoying the considerable taxation benefit associated with a co-operative. The new group made its initial entry into the field

at the end of the last export killing scene. This season it expects to handle about 150,000 to 200,000 lambs and has in view a maximum turnover of about 300,000 lambs. It will handle all types of meat on behalf of its members. A member of the cooperative is allotted 2000 $1 shares and on allotment he or she is required to pay 50c per share or a total of $lOOO. The size of this contribution has helped to provide a base for the financing of its marketing operation, for which it has received extremely good co-operation from its bank. Fort is dealing directly with major outlets for meat in the United Kingdom in particular and its aim is to develop as many outlets as possible overseas getting as close as it can to the consumer. The new group has been encouraged by the start it has made. Already wellestablished marketing organisations, both within New Zealand and overseas, have inquired for its produce at attractive prices, and it is gratified at the very strong demand for New Zealand lamb, particularly in the United Kingdom but also in other markets throughout the world. The killing of the stock of Fort members is being done at all freezing works in Canterbury and meat companies have assured the co-operative that space

for its fanner members will in no way be affected by a farmer’s decision to market his stock through the coop. In fact, the companies have been very' helpful. All drafting is being handled by farmers’ normal works drafters, who also make space arrangements. The initial payment for stock is calculated on the basis of 90 per cent of schedule and at the end of the season, depending on marketing results, full schedule or a premium above that level will be paid. One of the aims of the company is to keep its shareholders well informed on market trends and conditions and at a recent general meeting there was an attendance of 40 shareholders. The chairman of Fort Export is Mr- R. M. Jessep, of Methven, and directors also include Messrs M. V. Poff and B. E. Jessep, also of Methven. Dr J. J. Brownlee (Te Pirita) and Messrs J. H. Cooke (Rakaia Gorge), C. J. C. Wright (Dunsandel). and G. D. Rountree (Alford Forest). The appointment of two other directors is expected to be made known shortly. Mr G. A. Thompson, of Christchurch, is general manager.