PIG MARKETING

Bay of Plenty Beacon, Volume 10, Issue 6, 2 August 1946, Page 8

PIG MARKETING

STEADY EXPANSION 14 YEARS’ CO-OPERATIVE EFFORT “This is the fourteenth year that the P.M.A. has been operating on a national basis and it is pleasing to report yet another season which has shown satisfactory results.” These were the opening remarks of the Chairman of Directors, Mr W. A. Phillips, in presenting the directors’ report to the annual meeting of the New Zealand Co-operative Pig Marketing Association held at Milne and Choyce’s Reception Room, Auckland on Wednesday 31st July. Over 350 shareholder-delegates representing every district in the North and South Islands attended the meeting..

Continuing his address to the delegates the chairman said: “A total of 104,612 pigs were handled, a decrease of 1,922 on last season but it is worth noting that at 31st March before the full effect of the drought conditions had been felt, collections were up some 9,500 on last season. 100,044 pigs weighing over 12£ million pounds came in on consignment. When the Pig Quota Regulations were cancelled we lifted the restrictions on our No. 2 A/c Collections and it is gratifying that although our agents were able to accept pigs on No. 2 A/c, 95 per cent, of the supply came in on consignment, a clear indication of the confidence that the producers place in the co-operative consignment principle.”

Bobby Calves

Mr Phillips revealed that 77 Bobby Calf Pools entrusted the marketing of their products and the administration of their affairs to the P.M.A. 311,879 calves were handled for a turnover of £263,819. The average at-works realisations on calves collected from all districts was 15/0-2. per calf compared with 14/6 last year and 14/1 the year before that. After meeting all charges of cartage, railage, skin levy, committees expenses, trucking and administration costs, producers received an average at “farm-gate” of 12/5 per calf, this figure of course- being the Dominion average over all the pools. Once against this showed the powerful strength of collectively marketing 311,879 calves (approximately one-third of the Dominion’s total) which had enabled the P.M.A. to secure returns on the average substantially better than those of other pools. Cull Cattle Increase

“This season we handled 10,418 cattle, an increase of 4,355 representing a rise of approximately 72 per cent. These results speak for themselves” said Mr Phillips, “and it is hoped that this new record will be only a milestone in the further expansion in this field of our activities. Summarising operations in Pigs, Bobby Calves and Cull Cattle, total collections were approximately 427,000 head with an aggregate hooks weight of approximately 26 million pounds. We have reached a stage today where an ever increasing percentage of the total meat and dairy produce of New Zealand farmers is being marketed through their own Co-operative Association and they were therefore afforded the best possible protection regarding the price received for their products.” Trading Department Difficulties Mr Phillips went on to say that this Department of the P.M.A. still continued to operate in a limited capacity and while it was unfortunate that supplies of pig foods and concentrate were severely limited and that bacon and ham were carefully rationed it was felt that the Trading Department did provide a service to shareholders., Turnover showed a small increase on last year and amounted to £7,439. In line with trend of costs today the gross figures for general administration expenses showed an increase on last year but owing to the excellent spread of these costs over the various departments and the benefits received from subsidiary bacon companies, the unit cost of administration expenses still remained at a low figure—much lower than would be possible if the P.M.A. were operating as a collecting and marketing organisation for pigs alone. This emphasised the importance of shareholders and suppliers of pigs giving their full support to, all activities of the Company. Subscribed Capital This stood at £58,403 on 31st May 1946 but with the addition of shares allotted since then amounting to £3133 the Company’s subscribed capital totalled £61,536. Paid up capital was £37,026 as at 31st May and here again additional amounts since then had been credited to suppliers share accounts in respect of the past season’s supply, totalling £9,939 so that at the present time paid up capital was £46,965. There

was a Special Capital Reserve of £26,048 representing the provision made each year for an appropriation to share capital in accordance with the Articles of Association but which had not been applied for by shareholders desiring to qualify their supply. Transfers were made out of this account to the individual share accounts of suppliers in proportion to the weight of meats supplied. It was decided this year to create a General Reserve of £IO,OOO as a means of further consolidating the financial position of the Company. Subsidiary Bacon Companies

In commenting on the successful functioning of the Asociation’s three bacon factories, Mr Phillips pointed out that the whole of the shares in these companies was owned entirely by the P.M.A. which meant that the shareholders collectively were the sole owners of the three factories. More than 80,000 baconer carcases were processed, but as the industry was still strictly controlled under quota regulations only a limited percentage of the bacon and ham produced had been available for the local mai’ket. The cancellation of the Armed Forces contract last October was responsible in showing a reduced gross turnover of the companies, but this in no way reduced their effective value to the parent company. Successful Marketing by Producers Reference was made by Mr Phillips to the Company’s association with the Co-operative Producer Distributing Organisations. “It is not necessary to reiterate the benefits which have accrued to the producer by effectively controlling his products from the farm to the retail market,” remarked Mr Phillips. “The P.M.A. has nominal shareholding together with the right of representation on the Directorate of the Farm Products Companies in Hawke’s Bay, Manawatu, Gisborne, Wanganui, Wellington, Nelson and Westland and is also a major shareholder in Canterbury Co-operative Distributors Ltd. Your Directors have and will continue to support wholehearted any extension of the development of the co-operative principle, irrespective of what section of producers this may benefit.” concluded Mr Phillips. 15