PIG MARKETING

Dominion, Volume 37, Issue 260, 31 July 1944, Page 6

PIG MARKETING

Company’s Record CO-OPERATIVE PROGRESS As an outstanding example of the progress possible under a system of well-managed, co-operative enterprise, the New Zealand Co-operative Pi? Marketing Association has -just completed a record year. Delegates attended the annual meeting held on Wednesday, July 26 from all parts of the country, and were told by the chairman of directors, Mr. W. A. Phillips. that while total production of pigs in New Zealand showed a further decline of some 69,000 carcases on the low level reached last year, the company's year was in most respects one of record results. A total of 116,259 pigs was handled, an increase of 32,000 on last year’s collections. No fewer than 104,000 of them, weighing 131 million pounds, were sent in on consignment—a record number and a record weight. “Because our collections exceeded the average percentage handled by the P.M.A. during the basic years, namely, lhe three years ending September 30, 1942. we have during the season Men called upon to transfer some 16.500 pigs from our collections for killing on account of various other proprietary operators,” said Mr. Phillips, in the directors’ report submitted to the meeting. Bobby Calf Operations. “Altogether, 71 bobby calf pools appointed the P.M.A. to market tbeir calves and administrate their affairs. This season we handled 322,000 bobby calves —an increase of 4000, and the turnover in this department reached the record figure of £249,000. Our average ‘at works’ realization of bobby calves in all districts was 14/1 per calf, and after meeting charges for cartage, railage, skin levy, trucking and administration costs, the producers received an average net price at the gate over all classes of 11/11 per calf. Again these figures show the powerful strength of collectively marketing some 322,000 calves (one-third of the New Zealand total), which has enabled us to secure returns in most cases well in excess of other pools. Apart altogether from the favourable returns, the spread of field and administration costs in the off season for pigs is always of utmost importance to producers in our pig activities.” Collections Over 444,000 Head. Mr. Phillips said there had. been a general' fall of some 40 per cent, in the total killings of cull cattle throughout New Zealand this year, and while this had made the securing of works killing space easier, it was natural that the association’s collections would decline. This year they handled 5826 cattle —a reduction of 1300 on last year’s handling. When they entered into these activities five years ago a large proportion .of the cull cattle were passing through dealers’ hands at a considerable loss to the producer, whereas today, largely because of the spread of the association’s activities, very few producers bad to rely on dealers for a . market. Summarizing operations, the. otal collections of pigs, bobby calves, and cull cattle exceeded 444,000 head, with an aggregate hooks weight in excess of 22j million pounds, “We have reached the stage today where a very large percentage of the total meats produced by dairy farmers throughout New Zealand is being marketed through their own cooperative association and their prices accordingly protected.” Low Unit Cost Achieved. Regarding administration costs, a record low unit cost had been achieved due to the increased volume of turnover and the excellent spread of these costs over the various departments. The directors again decided io appropriate id-. per lb., the maximum amount allowed, on all pork supplied on consignment, amounting to £14,145. This sum was available and would be credited to suppliers’?share accounts. After making full provision for shareholders’ benefits there was a net surplus .in the income and expenditure account available for final payments on pigs supplied last season of £33,122. Gross excess of income over expenditure was £765,991. The return -to non-shareholder suppliers was brought up to the maximum schedule prices allowed under the stabilization order.

Subscribed capital, added Mr. Phillips, stood at £44,862, and showed an increase of £2507, being the nominal value of shares applied for by suppliers and allotted in respect of the 1042-13 season. Tn addition further applications for 6SOO £1 shares had been made, and with their allotment the total of share capital would amount to £51,662. Bacon Factories Controlled-.

“Today you completely own and control three factories, whose output has been developed to the stage where their last year’s requiremnts of bacpn pigs exceeded 75,000 carcases,” said Mr. Phillips. “The results through these channels have justified the wisdom and sound judgment which prompted your directors so early iu our development to .seek and consolidate the control of bacon factories under their sole OAvnership, so as to be in a position to actually manufacture and market bacon pigs on behalf of producers. For the second year there has been no export of frozen baconers or Wiltshire sides from New Zealand, and the whole of the Dominion's production has been cured either for civilian consumption or for the armed forces. So as to increase the volume of bacon and hams that can be made available to the forces, food control regulations have limited the quantity of bacon and ham which any curer can release for civilian consumption each month, and all factories are strictly licensed. “The Government records show that our bacon companies are the largest of any operating in New Zealand, and while some hundred factories ■are licensed to cure bacon and hams, our turnover for the current season represented approximately 23 i>er cent, of the total bacon and bam cured for civilians throughout the North anti South Islands, while in addition to this huge local trade they have cured about .17 ]x>r cent, of the total bacon and ham Avliich lias been supplied to the forces. At our Longburn plant we lease the pig killing section of tin? works from the Co-operative Wholesale Society, Ltd., and approximately 33.000 pigs wore killed .and dressed. by our own staff at. a substantial saving on the rates which wo are called upon to pay for killing and dressing pigs at any oilier freezing works in New Zealand. It has lieon a most strenuous year at all three factories to maintain a maximum throughout, and the directors are proud of tlie way these plants have been organized.” A resolution was passed increasing the nominal capital from £50,000 to £75,000. in order to accommodate the allotment and issue of all shares applied for.—(Published by Arrangement.) ________