ANOTHER YEAR OF SUCCESSFUL CO-OPERATIVE ACTIVITY: ANNUAL REPORT OF N.Z. PIG MARKETING ASSN.

Bay of Plenty Beacon, Volume 12, Issue 78, 6 August 1948, Page 6

ANOTHER YEAR OF SUCCESSFUL CO-OPERATIVE ACTIVITY: ANNUAL REPORT OF N.Z. PIG MARKETING ASSN.

“In presenting this report on the operations of - your Association for the season ended 31st May 1948, the sixteenth 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 Co-operative Pig Marketing Association Limited held at Milne and Choyce’s Reception Room, Auckland, on Wednesday. Over 350 shareholder-dele-gates representing every district in the North and South Islands, attended the meeting.

“Turnover in all departments has reached new levels and amounted to £1,373,000, a record,” continued the chairman. “When added to that of our subsidiary Companies, we have a combined total of over two million pounds turnover for the year.” Mr Phillips revealed that pig killings numbered 100,942 for the season, an increase of 4875 over last year and they all came in on consignment, a clear endorsement of the co-operative consignment principle for which the P.M.A. has stood for so many years.

Higher Bobby Calf Turnover “Seventy-eight Bobby Calf Pools entrusted -the marketing of their products and the administration of their affairs to your Association,” Mr Phillips said. “This season 372,052 calves were handled, an increase of 10,436 over last year, whilst the turnover amounted to £596,761, 66 per cent higher than last year. Your Association is well placed to handle a large number of Bobby Calf Pools particularly since the season for calves is the off-season for pig killings, thus affording the Company a valuable spread of its administration expenses which is of the utmost importance to suppliers’ nett return.” More Cattle Handled Continuing the chairman said “The total of 12,272 head of cattle handled this year represents an increase of 3,699 over last season. Summarising our operations in pigs, bobby calves and cattle our total collections were approximately 503,301 head, with an aggregate hooks weight of over 291million pounds in' weight. “Steady progress has been made during the sixteen years of operations and today we have reached a stage where an ever increasing proportion of the total meat and dairy products of the farmers of New Zealand is being handled through their own co-operative marketing organisations and they are therefore afforded the best possible protection as regards the' price received and the security of their market. Even those farmers -who are not willing to support actively their co-opera-tive marketing organisations must realise that they too benefit by -the price that we are continually forcing the proprietory companies to pay.” Mr Phillips went on to say that the Trading Department continued to offer a good service to suppliers but unfortunately still in a limited capacity. Pig foods were in short supply and bacon and ham carefully rationed but it was hoped that when supplies became plentiful, Trading Department activities would expand by the consistent support of suppliers. It was reported last year that arrangements had been entered into with the Hawkes Bay and Gisborne Farm Products Companies to handle grass seed, orders on behalf of suppliers and this year’s orders amounted to £2,400. A further increase was possible when more P.M.A. suppliers entrusted their grass seed orders to their own Association and associated Companies. Turnover of the Trading Department amounted to £15,595 against £9,526 last season, a step up of £6,069.

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 31st May in freezer, " New Zealand amounted to £1,373,538,” said the chairman. “Slaughtering and freezing charges, collecting costs, insurances and administration expenses absorbed £139,208, leaving a gross excess of income of £1,234,330. Payments already made for bobby calves, cattle and pigs total £1,169,394 leaving a surplus of £64,936.” “Under our Articles of Association the Directors have set aside an appropriation of l/16d per lb. on all pigs supplied on consignment for crediting to' suppliers’ share accounts. ' This comes to £3,474 and after transferring £IO,OOO to General Reserve there is a net surplus available for final payments on pigs and cattle of £51,462.” “Subscribed capital is £106,475. Since 31st May, however, a further 6,142 shares have been allotted bringing the total of subscribed Capital to £112,617 at the time of making this report. Paid up capital is £80,280 and there is a Special Capital Reserve of £19,685.”

Subsidiary Bacon Companies Commenting on the successful functioning of the Association’s three bacon factories at Longburn, Auckland and Christchurch, Mr Phillips said they had once again proved of tremendous strength to the parent Company. The whole of the shares in these subsidiaries were owned entirely by the P.M.A. which meant that Shareholders collectively were the sole owners of the three factories. In the formation of the P.M.A. farmers co-operated for their protection and at the same time forced pig prices to their real value, so the acquisition and control of the Bacon Factories had further strengthened their marketing outlets to a point where today it constituted a very vital factor in the influence of the price paid to farmers. At the Longburn plant 40,006 pigs were killed by the Bacon Company’s staff at a' substantial saving on the rates they were called upon to pay for killing and dressing pigs at any other freezing works in New Zealand. This number was exceeded by only three other freezing works in New Zealand during the past year. Reference was made by the chairman to the P.M.A.’s association with the Associated Farm Products Cooperative Distributing Companies. “Your Directors .are extremely proud to be associated with these •organisations and wish to congratulate them upon their continued successful operations. It 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.” In concluding the report, Mr Phillips stated: “So much has been achieved for the benefit of the producer and even more would be possible, if those farmers enjoying the protective influence of the JP.M.A. and associated co-operative companies, would come into the organisation with their, active support andsupply of stock.”