PIG MARKETING

Bay of Plenty Beacon, Volume 11, Issue 61, 1 August 1947, Page 6

PIG MARKETING

RECORD TURNOVER 15 YEARS’ CO-OPERATIVE EFFORT “In presenting this report on the operations of your Association for the season ended Cxsc May, 1847, cha fifteenth year that the P.M.A. has been operating on a national basis, it is pleasing to report yet another year of successful co-operative activity,” said Mr W. A. Phillips, Chairman of Directors in presenting the Directors’ report to the annual meeting of the New Zealand Cooperative Pig Marketing Association held at Milne and Choyce’s Reception Room, Auckland, on Wednesday, 30th July. Over 350 share-holder-delegates representing every district in the North and South Islands, attended the meeting.

“In line with the further fall in National Pig Killings this season, our own collections fell to 96,067 pigs—a drop of 8545 on last year,” continued the Chairman. “No fewer than 94,914 pigs, these weighing 12,680,0001b5. came in on consignment, this representing 98.8 per cent., of our total supply. It is gratifying to see that a high level of our collections have been maintained on consignment, a clear indication of die producers' confidence in me cooperative consignment principle.”

More Bobby Calves Bandied

Mr Phillips revealed that 88 Bobby Calf Pools entrusted the marketing of their products and administration of their affairs to the P.M.A. The number of calves handled, 361,616, reached a new record while the turnover of £359,434, also created a new precedent. Compared with last season this showed an increase of 49,737 calves and £95,615 in turnover.

“It has been stressed in past years and it may be stressed again that we are admirably placed to handle a large voume of business,” said the chairman, “particularly since the season for calves is an off-season for pig killings, thus affording the Association a very valuable spread of its administration expenses which is of the utmost importance to suppliers’ nett return for pigs.”

Decline in Cattle Killing's

“This season we handled 8,573head of cattle, a decrease of 1845 on last year,” Mr Phillips said. “During the latter part of this season the killing of cattle at the Freezing Works in the Auckland area was seriously interrupted by strikes ancl a “go-slow” policy by the beef-kill-ing staff and in consequence the works were not able to handle the same number of cattle as in previous years. It is hoped that these difficulties will be overcome during the coming season when we will be able to handle again an increased volume of business in this department.”

“Summarising operatiqns in Pigs, Bobby Calves and Cattle, total colections were approximately 400,066 head with an aggregate hooks weight of 27,000,000 pounds. This year the turnover of the P.M.A., for the first time, exceeded the million mark and together with that of its subsidiaries reached £1,700,000. Today, an ever-increasing percentage of the total meat and dairy products of New Zealand farmers is marketed through their own co-operative organisations and they are, therefore, afforded the best possible protection regarding the price received for their products.” Mr Phillips went on to say that the Trading Department continued to operate in a limited capacity and while it was unfortunate that supplies of pig foods and concentrates were in short supply and that bacon and hams were carefully rationed it was felt that this Department offered a very real service to P.M.A. shareholders. During the latter part of the season grass seed orders were handled on behalf of suppliers this being possible through their associated co-operatives the Gisborne and Hawke’s Bay Farm Product Companies and it was felt that increased business could be gained in this new venture. Income And Expenditure Continuing, the Chairman said “Total value of sales of pork, beef, veal, skins, hides and offal together with estimated realisations of stocks on hand at 31st May in freezer, N.Z., amounted to £1,067,311. Slaughtering and freezing charges, collecting costs, insurance and administration expenses absorbed £121,344 and directors fees £SOO leaving a gross excess of income of £945,467. Payments already made for bobby calves, pigs and cattle totalled £891,815 leaving a surplus of £53,625. Under the Articles of Association an appropriation of l/16d. per lb. on all pigs supplied on consignment has been set aside for crediting to

suppliers’ share accounts. This came to £3,246 and after transferring £IO,OOO to general reserve there is a nett surplus available for cash distribution of £40,406. Subscribed capital is £99,941. In October last year fully paid bonus shares were issued on the basis of supply during the four seasons ending 31st May, 194.6 and these amounted to £33,973. Following this bonus share issue your Directors deemed it advisable to alter the basis of shareholding from one share for every SOOibs. of pork to one share for every 250ibs. As the bonus 'share issued had in the main doubled the shares held by each shareholder the position of past consistent suppliers is in no way altered by this change. All new applications for shares will now be made on one share for every 2501b5. of pig meats supplied. 6356 shares have been allotted since the publication of our Balance Sheet so that actually our subscribed capital today is £106,297. Paid up capital is £79,895 and there is a special capital reserve of £18,946 representing the provision made each year for appropriation to share capital in accordance with the Articles of Association, but which has not been credited to Shareholders’ share accounts. The general reserve account now stands at £20,000.” Subsidiary Bacon Companies In commenting on the successful functioning of the Association’s three bacon factories, Mr Phillips

v • UPjUuu WulUuui carcases were processed but as the industry is still strictly controlled under quota regulations, this had limited the amount of bacon ana nuni available for the local market. The whole of the shares in these Companies were owned by P.M.A. which meant that the Shareholders collectively were the sole owners of the three factories. Just as the formation of the P.M.A. had forced pig prices to their real value so had the acquisition and control of the bacon factories further strengthened marketing outlets to a point where today it constituted a very real factor in the influence of the price paid to farmers.

Reference was made by the chairman to the Company’s association with the co-operative Distributing Organisations. “It is not necessary to reiterate here the benefits which have accrued to producers by effectively controlling their products from the farm to the retailers and it is sincerely hoped that these Companies will continue to flourish and their influence spread to other parts of the Dominion. The P.M.A. •has a nominal shareholding in the Farm Products Company in Hawke’s Bay, Manawatu, Gisborne, Wanganui, Wellington, Nelson and Westland and also has a large shareholding in the Canterbury Co-op. Distributors Ltd., Christchurch. Your Directors will continue to support wholeheartedly any extension of the co-operative principle, irrespective of what section of the producers this may benefit,” concluded Mr Phillips.—P.B.A.