PROPOSED WAIKATO FARMERS’ CO-OPERATIVE BACON COMPANY.

Waipa Post, Volume I, Issue 31, 1 August 1911, Page 4

PROPOSED WAIKATO FARMERS’ CO-OPERATIVE BACON COMPANY.

We are in receipt of the following circular which we publish for the information of our readers: The farmers of Waikato and surrounding districts are endeavouring to establish a Co-operative Bacon Company with a factory at Frankton Junction. The present project, which is the outcome of lengthy investigation by a committee of farmers, and was approved at a public meeting held at Hamilton on July 13th, is to form a limited liability company, with a capital of £20,000, in 20,000 shares of £l each, of which 10s per share will be called up as follows: 2s 6d per share on application, 2s 6d on allotment, and the balance in two calls of 2s 6d each at intervals of 6 months —for the purpose of taking over the existing works and business of the Waikato Bacon Co., at Frankton, and by extending it. in the direction of additional cool chambers, also a railway siding into the works, make it one of the most up-to-date bacon factories in the North Island.

The proprietors of the Waikato Bacon Co. are prepared to transfer the land and works at bare valuation, no'charge being made for goodwill, the total, price for five acres of land adjoining the Frankton railway station, together with all buildings (including manager’s cottage of five rooms), machinery, and plant, being £4970.

Of this amount the vendors are willing to leave £2OOO at 5 per cent interest, also taking up 1500 fully'paid shares, thus showing their confidence in the future success of the company, and requiring only £1470 to be paid in cash by the farmers when taking over the property. The new company will also have the benefit of Mr Geo. Watt, Junr., as manager, his long experience and well-known ability being placed at the disposal of the company at a moderate salary. The objects aimed at by the promoters of the company are, briefly, to pay a moderate rate of interest, which will be restricted to 6 percent, and give the highest possible returns to farmers for their fat pigs. To effect this, the nett profits, after meeting all disbursements, including interest and deprecation upon buildings and machinery, will be paid to pig supplying shareholders in proportion to the weight of pork supplied.

To carry this out successfully it will be necessary to provide ample cold storage for a large number of pigs, and hold them until winter and spring, when the demand for bacon is good and the prices are firm, also to develop the export trade in bacon pigs and porkers. Advantage will be taken of every favourable opportunity offering in outside markets to lessen the pressure of local supplies and keep prices firm. In this branch of the business the company will work in conjunction with the Auckland Farmers’ Freezing Co., the directors of which are willing to assist as far as possible, and have already done much to help forward the present movement. As a further proof that the proposed company will be thoroughly co-operative, the first directors are farmers residing in various parts of the Waikato and surrounding districts, thus the company will have active representatives in most of the dairying centres, while farmers in those , localities will, through their local directors, be kept in touch with the company’s business and be able to make their views and requirements known without delay. Under these circumstances which can only be very briefly put before you, we hope that your influence will be freely given to the promotion of the Farmers’ Co-operative Bacon Co. When matters are further advanced some of the directors will visit your district when all details will be fully gone into. E. C. Shepherd, Provisional Secretary.