Good Year For Pig Marketing

Northern Advocate, 29 July 1949, Page 7

Good Year For Pig Marketing

RECORD TURNOVER. ''The year ended May 31. 1949, concluded the 17th year of operations of your company on a national basis and it is felt that you can be proud of the results achieved by the P.M.A. in its cooperative marketing on behalf of primary producers,” said Mr W. A. Phillips, chairman of directors of the New Zealand Cooperative Pig Marketing Association Ltd., at the annual meeting held In tlie Orange Hall. Auckland, on Wednesday, July 27. Over 350 delegates and shareholders from all parts of tire Dominion attended the meeting. “Turnover in all departments this year has again increased and readied a total of £1,41(5.781.” the chairman continued. "When added to the turnover of our subsidiary bacon companies we have a combined turnover in excess of 2 1-3 million pounds, a considerable increase from the humble beginnings of the company since its inception 17 years ago.” Mr Phillips revealed that pig killings numbered 105,061 for the season, an increase over last year of 4119 and they all came in on consignment, a clear endoi’sement 'of the cooperative principle for which the P.M.A. has stood throughout the years. OVER 400,000, BOBBY CALVES.

“Altogether 79 bobby calf pools entrusted the marketing of their products and the administration of their affairs to your association." Mr Phillips said. “This season the number of calves handled, for the first time exceeded 400.000 and shows an increase of 11,069 over last year’s total of 390,087 calves. Turnover in this department amounted to £522.186’

“Handling as it does over one-third of the total calves killed in New Zealand the P.M.A. is able to effectively bargain with the killing of calves to obtain the highest net return possible for producers, thus benefiting all other producers who cannot or will not market their calves cooperatively." Continuing, the chairman said that 11.954 head of cattle were handled during the year, a small decrease of 318 compared with tlie previous season. Summarising operations in pigs, bobby calves and cattle, total collections were approximately 518.000 head, with an aggregate hook ' weight of over 30 million pounds. Steady progress had been made during the past 17 years and it was pleasing to see that the confidence of the early pioneers of the cooperative movement was well justified, for they had reached a stage now where an ever-increasing proportion of the meat and dairy products of the farmers of New Zealand was being handled through their own cooperative marketing organisations. Mr Phillips went on to say that the trading department still continued to offer good service to P.M.A. suppliers and showed a further increase in overall sales for the year. Turnover amounted to £18,789 compared with £15.595 last season. It was hoped that as suppliers become more plentiful the trading department would continue to grow by the sustained support of all suppliers. The sales of grass seed had again shown a substantial increase and suppliers had expressed complete satisfaction with the seed purchased . INCOME AND EXPENDITURE.

“Total value of sales of pork, beef, veal, skins, hides and offal, together with the estimated realisations of stocks on hand at May 31. in frepzer. New Zealand, amounted to £1,416,781," said the chairman. “Slaughtering and freezing charges, collecting costs, insurances and administration expenses for the year absorbed £151,560, while directors’ honoraria amounted to £SOO. leaving a gross excess of income totalling £1,264,721." "Payments already made for pigs, bobby calves and cattle came to £1,185,835, which leaves a surplus of £78.886,” continued Mr Phillips. “Under the articles of association the Directors have set aside an appropriation of id per lb. on all pigs supplied on consignment for crediting to suppliers’ share accounts. This comes to £14,652 and after transferring £IO.OOO to general reserve there is a lie) surplus available for cash distribution of £54.234."

Subscribed capital was £113.710. Since May 31. however, a further 53.328 shares had been allotted, bringing the total of subscribed capital to £172,038 at the present time. Suppliers’ capital account amounted to £80,702. STAFF SUPERANNUATION SCHEME. Reference was made by the chairmen to tiro staff superannuation scheme which was now operating for P.M.A. employees and for the stairs of the subsidiary bacon companies. The basic principle of the scheme provided for half-yearly bonuses, graduated according to each employee's length of service, the whole of which was invested in a trust fund and available to each member on retirement. In addition, most of the staff by a small weekly contribution from salary added to tlie amounts put into the trust fund and tiie company also paid a subsidy on these savings by the staff according to their length of service. •SUHSIDIARY BACON COMPANIES.

Commenting on the operations of the association’s three bacon factories at T.oneburn, Auckland and Christchurch, Mr Phillips said their "Kiwi” brand products were favourably known and distributed to retailers throughout Ihc North Island and most parts of the South Island. "A-- you know.” the chairman said, “all the shares in these companies arc owned and controlled entirely by the P.M.A. which means that the whole of the benefits from all these factories arc returned to our supplier-shareholders. With the successive fall in pig production over the last eight years, and a large increase in Pm consumption of bacon in New Zealand compared with pre-war years, we have reached the stage where over 80 per cent of last year’s baconer pigs v.-o-e reo 'ired for Now Zealand consumption. You will appreciate, therefore, iurt how vital it is to your company, as a cooperative marketing organisation, to have under its control these t’’"ce suc-eec-.r..! bacon companies as a direct out* let for bacon pigs, particularly in recent years w'wn we have secured returns in "excess o r prices available from export channels.” “At our I.ongburn plant, at Palmerston North. 4 r > O'JO pigs were lulled and dressed by our own staff during tlie season." Reference was made by the chairman to flic P.M.A. - s association with the Associated Farm Products Cooperative Distributing Companies. “Your directors are extremely proud to he associated with these cooperative producer associations and congratulate them on their continued successful operations." he said. “If is not necessary to reiterate here the benefits which have accrued to the producer by effectively controlling his products from the farm to the retail market and it is sineerely hoped that these companies will continue their good work on behalf of producers and their influence spread.” In concluding the report. Mr Phillips stated: "So much has been achieved for the benefit of tbe producer and even more would be .possible if those farm°rs enjoying the protective influence of the F.M A. and associated cooperative companies would come into the organisation with their active support and. supply of stock.”—(P.B A. i