PIG MARKETING ASSOCIATION’S SUCCESSFUL SEVENTEENTH YEAR OF DOMINION-WIDE OPERATIONS

Bay of Plenty Beacon, Volume 14, Issue 18, 29 July 1949, Page 8

PIG MARKETING ASSOCIATION’S SUCCESSFUL SEVENTEENTH YEAR OF DOMINION-WIDE OPERATIONS

“The year ending May 31, 1949, concluded the seventeenth year of operations of your Company on a national basis and it is felt that you can be proud of the results achieved by the P.M.A. in ( ' its co-operative marketing on behalf of primary producers,” said Mr W. A. Phillips, Chairman of Directors of the New Zealand Co-operative Pig Marketing Association Limited, at the annual meeting held in the Orange Hall, Auckland, on Wednesday, July 27. Over 350 delegates and shareholders from all parts of the Dominion attended the meeting.

“Turnover in all departments this year has again increased and reached a total of £1,416,781,” the cl airman continued. “When added to the turnover of our subsidiary bacon companies we have a combined turnover in excess of 2 1-3 million pounds, a considerable increase from the humble beginnings of the Company since its inception seventeen years ago.” Mr Phillips revealed that pig killings numbered 105,061 for the season, an increase over last year of 4119 and they all came in on consignment, a clear endorsement of the co-operative principle for wl.ich the P.M.A. had stood throughout the years. Over 400,000 Bobby Calves Handled “Altogether 79 Bobby Calf Pools entrusted the marketing ,of their

and the Company also paid a subsidy on these savings by the staff according to their length of service. Subsidiary Bacon Companies Commenting on the operations of the Association’s three bacon factories at Longburn, Auckland and Christchurch, Mr Phillips said their “Kiwi” brand products were favourably known and distributed to retailers throughout the North Island and most parts of the South Island. “As you know,” the Chairman said, “all the shares in these companies are owned and controlled entirely by the P.M.A. which means that the whole of the' benefits from all these factories are returned to our supplier-shareholders. With the successive fall in pig production over the last 8 years, and a large increase in the consumption of bacon in New Zealand compared with pre-war years, we have reached the stage where over 80 per cent of last year’s baconer pigs were required for New Zealand consumption. You will appreciate, therefore, just how vital it' is to your Company, as a co-operative marketing organisation, to have under its control these three successful bacon companies 'as a direct outlet for bacon pigs, particularly in recent years when we have secured returns in excess of prices available from export channels.

products and the administration of their affairs to your Association,” * Mr Phillips said. “This season the number of calves handled, for the first time exceeded 400,000 shows an increase of 11,069 over last year’s total of 390,087 calves. Turnover in this department amounted to £522,186. “Handling as it does over onethird of the total calves killed in New Zealand, the P.M.A. is able to effectively bargain with the killing of calves to obtain the highest nett return possible for producers, thus benefiting all other producers who cannot or will not market their calves co-operatively.” Continuing the Chairman said that 11,954 head of cattle were handled during the year, a small decrease of 318 compared with the previous season. Summarising operations in pigs, bobby calves and cattle, total collections were ap- - proximately 518,000 head with ah aggregate hooks weight of over 30 million pounds. Steady progress had been made during the past seventeen years and it was pleasing to see that the confidence of the early pioneers of the Co-operative movement was well justified for they had reached a stage , now where an ever increasing proportion of the meat and dairy products of the farmers of New Zealand was being handled through their own co-operative marketing organisations. Mr Phillips went, on to say that the Trading Department still continued to offer good service to P.M.A. suppliers and showed a further increase in overall sales for the year. Turnover amounted to £18,789 compared with £15,595 last season. It was hoped that as suppliers become more plentiful the Trading # Department would continue to grow by the sustained support of all suppliers. The sales of grass seed had again shown a substantial increase and suppliers had expressed complete satisfaction with the seed purchased. Income i\nd Expenditure “Total value of sales of pork, beef, veal, skins, hides and offal, together with the estimated realisations of stocks on hand at May 31, in freezer, New Zealand, amounted . to £1,416,781,” said the Chairman. “Slaughtering and freezing charges,. collecting costs, insurance and administration expenses for the year absorbed £151,560 while Directors honoraria amounted to £SOO leaving a gross excess of income totalb ig £1,264,721.

“At our Longburn plant at Palmerston North, 45,000 pigs were killed and dressed by our own staff during 'the season.” Reference was made by the Chairman to the P.M.A.’s associate pn with the Associated Farm Products Co-operative Distributing Companies. “Your Directors are extremely proud to be associated with these Co-operative Producer Associations and congratulate them on their continued successful tions,” he said. “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 and it is sincerely hoped that these companies will continue their good work on behalf of producers and their influence spread.” 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 P.M.A. and associated co-operative companies, would come into the organisation with their active support and supply of stock.”

“Payments already made for pigs, bobby calves and cattle came to £1,185,835 which leaves a surplus; of £78,886,” continued Mr Phillips. “Under the Articles of Association the Directors have, set aside an appropriation of Id per lb on all pigs supplied on consignment for crediting to suppliers’ share accounts. This comes to £14,652 and after transferring £IO,OOO to General Reserve there is a net surplus available for cash distribution of £54,234.” Subscribed capital was £113,710. Since May 31,. however, a further 58,328 shares had been allotted bringing the total of subscribed capital to £172,038 at the present

time. Suppliers capital account amounted to £80,702. Staff Superannuation Scheme

was made by the Chairman to the Staff Superannuation Scheme which was now operating for P.M.A. employees and for the staffs of the subsidiary bacon companies. The basic principle of the scheme provided for half-yearly bonuses, graduated according to each employee’s length of service, the whole of which was invested in a trust fund and available to each member on retirement. In addition, most of the staff by a small weekly contribution from salary added to the amounts put into the trust fund