PIG INDUSTRY

Dominion, Volume 36, Issue 269, 9 August 1943, Page 6

PIG INDUSTRY

Marketing Association’s Record Year VALUE OF CO-OPERATION

A remarkable record of development during the 11 years it has operated on a national scale was reviewed by Mr. W. A. Phillips, chairman of directors, at the annual meeting held on July 28, 1943 of the N.Z. Co-operative Pig Marketing Association, Ltd. There was a large attendance of shareholders, including some 250 delegates, from all over the Dominion. While New Zealand production of pigs is less by about 150,000 compared with the previous year, the company’s turnover in all departments has readied new record figures, and the results of the year’s trading have been most successful. Incidentally, the substantial contribution of the company to the war effort was effectively demonstrated. In the past 11 years, said Mr. Phillips, paid capital had grown from £391 to £19,500, plus reserves. Turnover had risen from £149,000 to £1,338,000, payments to suppliers had expanded from £97,000 to £610,000, and stock bad been handled valued at over £5,000,000. Today the association owned three bacon factories whose combined activities controlled almost 25 per cent, of the local market for bacon. Commenting on the industry generally’, he pointed out that while two years ago it was concerned over the disposal of production, the major problem today was to secure sufficient production of all classes of pigmeat, and baconers in particular, to meet war and domestic requirements. Despite many difficulties, all the season’s production of baconers with a carryover from last season would be processed within the next three months.

Future Outlook Bright.

“As production is not sufficient to meet forward demands and to ensure equal sacrifice, the Government, through the Food Controller, has temporarily suspended the sale of fresh pork in New Zealand and since June 1 controlled the volume of bacon and ham that can be cured and sold for civilian consumption,” said the chairman. “While because of manpower and other difficulties the fall in pig production was understandable, never has the future demand ami outlook been brighter, and it is hoped that problems facing the farmer can be overcome. We feel confident there will be the necessary response on his part to this call for production.” A total of 84,097 pigs were collected by the company through normal channels, in addition to which, to satisfy the requirements of the bacon factories, it was necessary to purchase from export competitors and other sources some 45,000 baconer careases or their equivalent iu Wiltshire sides, bringing the total handled to more than 129,000, or 22,000 in excess of last year. Of the pigs handled through normal channels a record of 90 per cent, were sent in on consignment, indicating the confidence of the producer in his own association. Altogether 65 bobby calf pools appointed the P.M.A. their marketing agents, and another successful season ended with the handling of 319,527 calves. The strength in the collective marketing of 319,000 calves together with the company’s knowledge and experience enabled it to return to all producers in all districts net payments equal or in excess of those secured by other individual or group of pools. In regard to cull cattle, 7295 head were dealt with, against 5903 last year, and with greater killing accommodation available there would have been a larger volume of business. Total collections of pigs, bobby calves and cull cattle were 410,019 head.

Sales Exceed £750,000.

Dlr. Phillips said total sales were £750,180, works charges and other ex penses came to £104,173. Gross income was £645,507. and payments already made were £611,942. The directors had appropriated l-Bd. per lb. onall pigs supplied on consignment, amounting to £4382, leaving a net surplus for cash distribution of £29,182. Despite the general trend of increased costs, total administration costs borne by the pig operations were £l2OO Jess than last year.

“Through our centralised administration and office facilities in Auckland we are able to combine the administration and management of P.M.A, and its subsidiary bacon factories, anti within P.M.A. itself our costs are spread over our trading department, bobby calves, aud cull cattle activities,” he continued. “This should emphasise the beneficial effect on our pig operations through the support given by shareholders and suppliers to our other departments.” Mr. Phillips said the appropriation of l-Bd. per lb. on all pork supplied on consignment was increased from l-16d. per lb., struck last year for two important reasons. Firstly, it had had the effect of increasing the amount of paid-up capital- to keep it more in pace with the great expansion in activities, and. secondly, this credit to suppliers’ share accounts was an addition to a very competitive cash return rather than an appropriation out of cash available to shareholders. In addition to the final payments, a further cash shareholders’ bonus of l-8d per lb. would bo paid on the whole season’s consignment supply. Widespread Interests. Mr. Phillips then referred to the following co-operative organizations in which the company had shares: — Hawke’s Bay Co-op. Farm Product)?, Manawatu Co-op. Farm Products, and Westland Co-op. Producers, Ltd. These companies completed the chain in production, manufacture and distribution of farm products by the producer on sound, co-operative lines. In addition, the company was interested in Canterbury Co-op. Distributors, Ltd. The three bacon factories owned by the company had reached the stage where last year’s requirements were in excess of 77,000 baconers and their combined turnover £550,000. “Tho producers have created for themselves a national co-operative marketing organization, and by their consistent and loyal support have shown clearly the wisdom and strength of handling their own affairs on sound, co-ciperative lines,” added Mr. Phillips. Concluding, Mr. Phillips stated that lie bad just received advice concerning a substantial measure of stabilization affecting the pig industry from the Minister of Agriculture. During the next three years the summer and winter schedules for pigs will be maintained, as n minimum including tlie current season, also the top weight for bacon pigs of 1701 b. Payment for porkers will continue for the summer during the period on tlie basis of headon weight, while the cost of pig foods will also be maintained at current rales. These measures have been recommended by the Minister to tlie Stabilization Commission, and are expected to become effective. —P.B.A