—Lancaster Farming, Saturday, November 11,1978
34
Eastern Milk
of proposed
By SALLY BAIR
Staff Writer
NEW HOLLAND --
After more than a year of
serious financial woes,
members of Eastern Milk
Producers Cooperative got
some good news at the an
nual fall meeting of the New
Holland local held Wed
nesday night. Eastern
General Manager Howard
McDonald assured the
members that there would
be no assessment of mem
bers to help pay the cost of
construction and operation
of the proposed cheese
plants, which are a major
part of their plan to reach
financial stability.
The mood of the meeting
was forthright and op
timistic. While
acknowledging that serious
decisions still must be made,
officials of the Cooperative
made it clear that they feel
the Cooperative has reached
a turning point in their
financial difficulties.
McDonald said, “What
Eastern has been able to
accomplish in the last year
and a half is due to the
membership, who poured a
lot of money into it.” He
called their problems, “A
burden you’ve had to bear.
The financial picture is still
not great, and we have a long
way to go, but some of the
things we have ac
complished are amazing.”
He pointed out that in
December of 1977 there was
an accumulated deficit of
$BOO,OOO. By March 31, 1979,
that deficit will be com
pletely wiped out. The net
worth of the Cooperative one
year ago, according to
McDonald, was “zero.” He
said the net worth now is
$BOO,OOO and at the end of this
fiscal year it will be
$1,300,000. “A lot of people
put a lot of work into it to
make it work,” he said. He
noted that the Cooperative is
now operating on a “pay as
you go policy, on a fiscal
year basis.”
McDonald explained that
the financing of the proposed
cheese operations will cost
“a lot of money,” probably
between $l3 million and $l5
million Investments are
being made with the help of
an investment placing firm
which is working with the
Farmers Home Ad
ministration so that it,
hopefully, will guarantee 90
per cent of the total finan
cing We don’t have the
final commitment from
FmHA to guarantee
financing, but everything
seems to be in a ‘go’
position,” he remarked
Even if this proposal does
not come through, McDonald
stressed that other options
are being investigated to
acquire the money. “The
money will come totally
from outside Eastern Milk
Producers - members will
not be asked to contribute ”
Financing of the plants
will be for twenty years, and
Eastern will own the
facilities and the equipment
Lease payments will be
made by Cheese
Company of Denver to
Eastern, <n.i at the end of
the twenty >ears Eastern
will have $6 8 million in
At annual banquet
equity m the cheese plant.
He added, “A lot of things
could go wrong, but we don’t
see anything to change the
picture drastically.”
It was point out that
Leprino is the largest smgle
manufacturer of mozzarella
cheese in the world, and they
are the sole supplier for the
Pizza Hut restaurant chain.
The manufacturing and
merchandising of the
finished product will be
completely m the hands of
Leprino, with Eastern
supplying the milk and the
equipment for processing it.
McDonald noted that the
contract with Leprmo takes
into account the seasonality
of milk, and allows for larger
amounts to be used in the
manufacturing when there is
a surplus in the Spring.
While cheese operations are
faced with the problem of
idle times, McDonald said
that Leprino is the only
cheese operator in the
country which has perfected
the freezing of cheese to
retain its quality, and
therefore can even out its
production.
He was not surprised when
questions were asked about
possible links between
Leprmo and organized
crime. McDonald said that
while it has been shown that
organized crime is involved
in the Italian cheese
business, an article which
listed companies and in
dividuals involved did not
mention Leprmo. He said
further that banks involved
in the financing venture did
“an exhaustive study” and
found that Leprino “came up
clean.”
The first cheese plant has
just undergone trial
operations and is scheduled
to go into production this
week. Eastern acquired the
former powder milk plant
from Dairylea in February,
1978, and at the end of June
began preparations for the
overhaul which made it into
a mozzarella cheese
manufacturing plant
The location of a second
proposed plant is still in
question, with several sites
under consideration, ac
cording to McDonald. The
second plant is being
planned for larger volume
than the first
McDonald noted that one
of the prime reasons for
moving into the manufac
turing business is to be able
to handle manufacturing
excess milk, without being
“at the mercy” of other
people Last Sprmg in the
surplus season, Eastern
suffered enormous losses
“when we had other people
do the manufacturing.”
On a further positive note,
McDonald said that Order 2
prices are now the highest in
history and will remain high.
He said that in the next six
months, prices will average
$l.OO higher than for the
same months last year, and
in some months it will be
$1.25 higher For the coming
12 months, McDonald said
prices will probably average
$ll 00/hundredweight Along
with better prices and an
unproved financial picture,
McDonald concluded, “It
should be a good year to be
an Eastern member ”
Co-op tells
cheese plant
Franklin Wagner, left, district director and
Howard McDonald, general manager at Eastern,
were both part of the program at the New Holland
local meeting Wednesday night.
District Eight Director
Franklin Wagner, Hum
melstown R 2, spoke on a
hopeful note too, telling the
members that “Eastern is
an on-going business.” While
Eastern was considered m
banking circles to be “un
bankable” one year ago,
with the changes currently
taking place the position is
turning around. Wagner
said, “Credit goes to the
manager and his staff and to
the Board of Directors, but
the large amount of credit
belongs with you - your
loyalty to Eastern has
brought us to this point. We
will face real problems, but
we are establishing a good
relationship with other co
ops and businesses.” He
emphasized that the cheese
venture will be good not only
for Eastern members, but
for the dairy industry as a
whole.
Wagner urged members to
handle rumors carefully,
and check out the truth with
Cooperative authorities.
Ivan Redcay, fieldman and
inspector, also urged
members to call with rumors
and leam the truth. He said,
4-H Council meets
YORK - The November
meeting of the York Co. 4-H
Council was held at the 4 H
center, near Bair. Reports
were given
Members who wore
costumes were judged and
“The going has been tough,
but now it is going the other
way.” He reminded mem
bers to handle antibiotics
with care.
Paul Bruckhart, Manheim
R 5, delegate for the local,
echoed the positive sen
timents of the other
speakers. “Things are gomg
to work out great. We will be
able to take care of all the
milk being, produced, put it
to good use and make a
profit.” He reminded
members, “It behooves all of
us to have clean, quality
milk, properly cooled so it
will be of good quahty to
those who consume it.”
Bruckhart said that while
Eastern lost 430 members
(over 200 through herd
sales), 340 new members
have been signed up over the
year. “Let us look forward
together that we may stay
strong. Things have really
improved financially, and I
am proud to be a member of
Eastern.”
Local president Robert
Martin conducted the
meetmg which was attended
by 125 members
prizes were given. Af
terwards a Halloween Dance
was held.
The next meeting will be
December 6, at the 4-H
center The program will be
a Christmas party
ADAMS CO.
O.C. RICE, INC
Biglerville, PA
717-677-8135
YINGLING’S IMPLEMENT
RDI Gettysburg, PA
717-359-4848
BERKS CO.
N H. FLICKERS SONS, INC.
Maxatawny
215-683-7252
STANLEY A KLOPP, INC,
Bernville, PA
215-488-1500
MILLER EQUIPMENT
Bechtelsville, PA
215-845 2911
SHARTELSVILLE
FARM SERVICE
RD 1, Hamburg, PA
215-488 1025
H. Daniel Wenger, Prop.
ZIMMERMAN'S
FARM SERVICE
Bethel, PA
717-933-4114
BRADFOR
ALLIS HOLLOW EQUIP,
RDI,
Rome, PA
717-247-2601
CARLL PIERCE
RD2,
Columbia Cross Roads, PA
717-297-3513
WYNNE’S GARAGE
Canton, PA
717-673-8456
BUCKS CO.
CJ WONSIDLER BROS
Trumbauersville Road
Quakertown, PA 18951
215-536-1935
PAULHISTANDCO., INC
397 North Mam Street
Doylestown, PA
215-348-9041
CHESTER CO.
CHAS. J. McCOMSEY
&SONS
Hickory Hill, PA
215-932-2615
STOLTZFUS FARM SERVICE
Cochranvitle, PA
215-593-5280
M.S. YEARSLEY & SONS
West Chester, PA
215-696 2990
CLINTON CO
DUNKLE&GRIEB
Mill Hall, PA
717-726-3115
COLUMBIA CO.
ORANGEVILLE
FARM EQUIPMENT
Orangeville, PA
717-683-5311
WILLIAM F. WELLIVER
Jerseytown, PA
717-437-2430
CUMBERLAND CO.
ERNESTSHOVER
FARM EQUIPMENT
19 West South St
Carlisle, PA
717-249-2239
DAUPHIN CO
SWEIGARD BROS
RD 3, Halifax, PA
717 896 3414
FRANKLIN CO.
CHAMBERSBURG
FARM SERVICE, INC
975 S Main St
Chambersburg, PA
717 264-3533
MEYERS
IMPLEMENTS, INC
Greencastle, PA
717 597-2176
LEBANON CO.
HEISEY
FARM EQUIP!, INC
RD 1, Jonestown, PA
717 865 4526
UMBERGERS MILL
RD 4, Lebanon (Fontana), PA
717 867 5161
LOOK FOR
LANCASTER CO.
ROY H. BUCK. INC.
Ephrata. RO2.PA
717-859-2441
A.B C. GROFF, INC.
New Holland, PA
717-354-4191
A.L. HERRS BRO.
Quarryville, PA
717 786-3521
LANDIS BROS., INC,
Lancaster, PA
717 393-3906
LONGENECKER
FARM SUPPLY
Rheems, PA
717-367 3590'
N G HERSHEY & SON
Manheim, PA
717-665 2271
LEHIGH CO.
C J. WONSIDLER BROS.
Jet Rt 309 and 100
Pleasant Corners, PA
215 767 7611
LYCOMING CO.
RICE FARM SUPPLY, INC.
Jersey Shore, PA
717 398 1391
MONTGOMERY CO.
WENTZ FARM SUPPLIES
Route 29
Palm, PA
215 679-7164
NORTHAMPTON CO.
GEORGE V. SEIPLE & SON
Easton, PA
215 258-7146
lORTHI
MECKLEY’S LIMESTONE
PRODUCTS, INC
Herndon, PA
717-758-3915
SCHUYLKILL CO
L.L ECKROTH
FARM EQUIP , INC.
New Ringgold, PA
717 943-2367
STANLEY'S FARM SERVICE
RD, Klmgerstown, PA
717-648-2088
SNYDER CO.
ROYER’S FARM SERVICE
ROI. Winfield, Pfi
New Berlin-Middleburg Hwy
717-837-3201
TIOGA CO.
CANYON IMPLEMENT, INC
Mansfield, PA
717-724 2731
WAYNE CO.
MARSHALL MACHINERY
Honesdale, PA
717-729-7117
WYOMING CO
ACE-JURISTA, INC
Tunkhannock, PA
717-836 2610
YORK CO
AIRVILLE FARM SERVICE
Airville, PA
717-862-3358
GEORGE N. GROSS, INC
RD 2. Dover, PA
717-292-1673
M&R EQUIPMENT, INC.
New Park, PA
717 993 2511
CARROLL CO.. MD
WERTZ GARAGE, INC
4132 E. Mam St
Lmboro, MD
301 374 2672
CECIL CO. MD
AG INDUSTRIAL
EQUIPMENT CO
Rising Sun, MD
301-658 5568
FREDERICK CO.. MD
KNOTT N. GEISBERT, INC
RD2, Frederick, MD
301-662 3800
HARFORD CO . MD
WALTER G COALE, INC
Churchville, MO 21028
301 734 7722
ENFIELD EQUIPMENT. INC
Whiteford, MD 21160
301-452 5252
301-838 0480
IMBERLAND