IN TEN YEARS

Auckland Star, Volume LXXIII, Issue 178, 30 July 1942, Page 3

IN TEN YEARS

EXPANSION OF P.M.A.

DOMINION-WIDE ACTIVITY

With a turnover, including that of subsidiaries, nearing £1,000,000, and a record of 10 years' vigorous growth behind it, the New Zealand Cooperative Pig Marketing Association, whose headquarters are now in Auckland, held its annual meeting to-day in the presence of a large attendance of shareholders. Figures were given showing that in the past 10 years paid capital had expanded from £391 to £17.000. turnover from £49,000 to nearly £1,000,000. and payments to suppliers from £97,000 to over £500.000, while in that period the association had handled 1,200,000 pigs, 1,600,000 calves and 14.000 cull cattle, valued at about £4.000.000.

In his address, Mr. W. A. Phillips, chairman of directors, said 106.764 pigs were dealt with durinc the season, a decrease of only 3392 on the record figure the previous season, which was due to the national decline of 95,000 in the number killed for export. However, the association handled at least the same share of pigs as previously, and in all respects had had a most successful year. The fact that 85 per cent of pig collections were on consignment denoted the growing confidence of the producer in his own association.

Dealing with the industry generally, Mr. Phillips said prospects were much better than a year ago when it faced the possibility of only a lpcal market for baeoners and a very limited tonnage for export porkers. Stocks of bacon pigs in the freezers were probably no more than sufficient to cover local curing requirements until next season's production commences, and owing to expected increases in local consumption there should be no Surplus problem with baeoners. With the switch back to butter, it was hoped that other farm problems could be overcome and the industry would see increased production this season.

Bobby Calf Collections

"Sixty-three bobby calf pools entrusted the association with the marketing and administration of their calves, and, judged by comparative payments in areas linked to other organisations, our results were highly satisfactory," Mr. Phillips continued. "Our knowledge of the industry and strength in the collective marketing of 311,374 calves on behalf of producers enabled us to secure for them net returns to all the producers which, on the average, were in excess of those secured by individual and other grouped pools." Operations in cull cattle had always been limited by ability to secure adequate works space, added the chairman, and last year the acute shortage of freezing space limited the number of collections. This year, while space was available, the position was restricted by staff available for boning. Collections totalled 5903 head, against 4394 last year, an increase of 1509. Altogether the association handled a total of 424,000 head of pigs, calves and cull cattle with an aggregate hook weight of 24,000,0001b throughout New Zealand.

Bacon Factories' Assistance

Touching on the finances, Mr. Phillips said gross turnover was £559,157, and the debit of £259,254 comprised: Eobby calf and cull cow purchases, plus charges, £205,148; killing and freezing charges on pigs, £35.299; pig collecting costs, £9894; stock insurances, £570; administration expenses, £8345. Collecting costs on pigs were 2d per pig lower than last year, but when spread over the reduced weight of pigmeat handled represented about the same cost per lb. Despite the trend towards increased costs, the total amount borne by pig operations showed a slight reduction on last year.

The wholehearted support of shareholders and suppliers to the trading department, calf and cull cattle activities, and the support given the products of the bacon factories had played an important part in reducing operating costs on pig activities, and consequently directly increased the final return to suppliers. After deducting all expenses from gross realisations and providing share capital reserve on pork, £296,873 was available for distribu tion on pigs, of which £272,905 had been distributed in advance payments. The latter averaged 5.46 d per lb. The surplus of £20,608 for bonus and final payments was approximately the same as last year. Through careful management" and control, the subsidiary bacon companies had secured returns on baconers above those available if the association had had to rely on Government export values and pay processing charges.

Concluding, the chairman analysed balance-sheet items, and mentioned that the association's bacon factories had cured this year a record number of 2556 pigs on account of individual owners; in addition a considerable volume of bacon and hams from the factories had been distributed to suppliers. The combined baconer requirements of the association's three factories were about onequarter of the local market. Combined turnover of these subsidiaries in the last year was 344,000. —(P.8.A.)