PIG INDUSTRY

Bay of Plenty Beacon, Volume 7, Issue 2, 27 August 1943, Page 3

PIG INDUSTRY

F.M.A.'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. Philliipsj, chairman of directors, at the annual meeting of the N.Z. Co-operative Pig Marketing Association, Ltd. There Mas. 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 reached 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 £891 to £19,500, plus reserves. Turnover had risen from £149,000 to £1,888,000, payments to suppliers had expanded from £97,000 to £010,000, and stock had been handled valued at over £5,000,000. '10-day* -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 px-oduction, the major problem to-day was to secure sufficient production of all classes of pigmeat, and baconers irx 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 , ixxonths. Future Outlook Bright "As production is not sufficient to meet forward demands and to ensure eqixal sacrifice, the Government, through the Food Controller, lxas temporarily suspended the sale of fresh pork in New Zealand and since June 1 controlled the voluxnc 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 l'xxture demand and outloo'k been brighter, and it is hoped that problems facing the farmer can be overcoxne. We * l'cel confident there will be the. necessary response on his part to this call for px-oduction." A total of 84,097 pigs were col-

lected by the companj- 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 bacoxier carcases or their equivalent in Wiltshire sides, bringing' the total handled to more than 129,000, or 22,000 in excess of last year. 01 Hie pigs handled through normal channels a record of 90 per cent Avere sent in on consignment, indicating the confidence of the producer in his own association. Altogether Go bobby calf pools appointed the P.M. A. their marketing agents and another successful season ended with the handling of 819,,527 calves. The strength in the collective marketing of 819,.000 calves together with the company's knowledge and experience enabled it to return to all producers in ail 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 5908 last yeftr, and with greater 'killing accommodation available there would havo been a larger volume of business. Total collections of pigs, bobby calves and cull cattle were 110,019 head. Sales Exceed £750,000 Mr Phillips said total sales, wer-i £750,180, works charges and other expenses came to £101,178. Gross income was £645,507, and payments already made were £611,942. The directors had appropriated l-8d per lb on all pigs supplied on consignment, amounting to £4882, 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 £1200 less 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, and within P.M.A. itself our costs are spread over our trading department, bobby calves, and 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-8d per lb on all pork supplied on consignment was increased from 1-16 d 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 sup pliers share accounts was more ar addition to a very competitive casu

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 Avould, be paid on the whole season's consignment supply. Widespread Interests Mr Phillips then referred to the following co-operative organisations in which the company had shares : Hawke s Bay Co-op. Farm Products, Manawatu Co-op. Farm Products, and Westland Co-op. Producers, Ltd. These companies completed the chain in production, manufacture and distribution of • farm products J)3 r the producer on sound, co-opera-tive lines, fn addition, tlic 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 000. ''The producers have created, for themselves a national eo-opcrativc marketing organisation, and by their consistent, and loyal support have, shown dearly the wisdom and strength of handling" their own affairs on sound, co-operative lines," added Mr Phillips, in conclusion. Concluding, Mr Phillips stated that lie had just received advice concerning a substantial measure of stabilisation 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 a minimum including the current season, also the top weight, for bacon pigs ol" 1701b. Payment for porkers •will continue for the summer during the period on the bjvsls of head-on weight, while, the cost of pig foods will also be maintained at current rates. These measures have been recommended by the Minister to the. Stabilisation Commission and are expected to become effective.