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Dairylea s PR manager comments on program
By DIETER KRIEG public relations for Dairylea enacted capitalization
PEARL RIVER, N.Y. Cooperative, Inc,, says his program was two years in
Bruce Snow, manager of cooperative’s recently the making and will give the
70-year old organization
financial stability.
In a telephone con
versation with Lancaster
Farming this week, Snow
admitted that no business
organization could exist on
the type of financing that
was previously practiced at
the Pearl River-based
cooperative. Up until
recently, all of Dairylea’s
certificates were of the in
terest-bearing, 10-year
rotation variety which kept
the organization in constant
debt.
The old Certificates of
Indebtedness are now being
turned into- equity cer
tificates. Members of the
cooperative have three
alternatives to gain that
equity in the financial
structure of Dairylea. .1.
They 'may purchase cer
tificates at 55 cents to the
dollar; 2. They may take
deductions from their milk
checks at 20 cents per
hundredweight for the first
50 per cent of their required
equity, and 3. They may
continue deductions at 11
cents per hundredweight for
equity payments beyond the
50 per cent level.
A member’s contribution
towards the equity plan was
incaster Farming, Saturday, December 2,1978
calculated by taking his 1977
annual milk production and
multiplying it by $1.20 per
hundredweight. A farmer
with 70 cows, for example,
and a production of 1 million
pounds of milk for the year,
would be obligated to pur
chase $12,000 worth of
equity. He may do so at a
rate of 55 cents on the dollar
because the old Certificate of
Indebtedness were pur
chased by Dairylea from
previous owners at 53 cents
on the dollar. The two cents
difference goes to pay for
costs involved with the
transactions.
“It doesn’t solve all our
problems but it does put a
foundation under us to give
us the ability to solve
problems that come up,”
commented Snow.
“There was a certasin
amount of apprehension
about it at first, but overall,
we’ve seen a tremendous
amount of enthusiam
coming from our members,”
the PR man continued. He,
like many others, gives
much of the credit to the co
op’s new general manager
and executive vice
president, Robert Maerz.
Noting that the milk
marketing situation in the
Northeast is very volatile
and complex. Snow said
Dairylea is now stressing
sales of consumer products.
He pointed out that the
marketing situation has
become so competitive that
Sealtest and Borden have
both left,, the area, leaving
only Dairylea of the original
“big three.”
Snow points out that there
are presently 121 milk
dealers in Federal Order 2.
Ten of those handlers handle
61 per cent of the available
milk while the other 111
compete for the remaining
39 per cent. Dairylea has
seven fluid milk plants and
five manufacturing plants.
Snow says that the vast
majority of Dairylea
members decided to stay
with the cooperative because
they recognize the security
of marketing that a
cooperative offers. He ad
mits, however, that the show
of confidence wasn’t without
reservations.
“Our members have noted
that they won’t pick 19 the
Hunting
Calendar
HARRISBURG - Below is
a calendar for the coining
hunting seasons.
December 9 - Dud:, sea
duck, coot, merganser
season closes.
December 9 - Antlered deer
season closes.
December 9 - Antlered &
antlerless season doses,
special regulations area,
southeastern Penn
sylvania.
December 11 - 6-Day an
terless deer season opens,
in - southeastern Penn-.,
sylvania.
December 14 - One-Day
antlerless deer hunt,
special deer management
(, Allegheny National
Forest) area.
December 15 - Antlerless
deer season opens.
December 16 - Antlerless
. _deerseason closes.
tab for bad decisions and
anything less than effective,
aggressive marketing,” he
said, adding that “our
members shouldn’t have to
pick up that tab.”
“Milk right now is in short
supply. Memories are also
short,” Snow continued,
referring to the hectic
marketing conditions ex
perienced by all Northeast
dairies last Spring. Some
farmers have forgotten
about that and they continue
to reflect optimism in
marketing no matter what.
The Dairylea mem
bership, Snow speculates, is
aware of tire--volatile
marketing situations that
can arise and is therefore
willing to invest in some
security for future sales,
According to latest
available figures, 57 per cent
of the Dairylea membership
has already met 100 per cent
of its equity committment.
Another 16 per cent of the
membership is at the 50 per
cent stage.
Snow points out that the
offer of certificates to
members at a rate of 55
cents per dollar was
discontinued as of November
20. A somewhat higher
asking price is in effect now,
and after December IS the
discount offer will be
discontinued. A subsidiary of
Dairylea, Dairy League
Cooperative Cor-
poration, will purchase the
remaining certificates.
Dairylea, which registered
sales of $365 million in 1977,
is accepting new members,
Snow says. They, too, will be
required to take part in the
equity program. Dues are
currently nine cents per
hundredweight.
Deer to
be dressed
HARRISBURG - Suc
cessful deer hunters in
Pennsylvania are urged by
the Game Commission not to
dress out deer along roads.
The task should be per
formed back in the woods,
where entrails will not be
unsightly and offensive to
motorists and landowners.
December 16 - 6-Day An
tierless deer season
closes, in southeastern
Pennsylvania.
December 16 - Snipe &
woodcock season closes.
December 19 - Goose season
closes.
December 26 - Muzzleloader
4r archery deer and
winter small game
seasons open.
December 26 - Canada goose
season opens, in
southeastern Pa.
December 26 - Snowshoe
-hare season opens.
January 1 - Mink & muskrat
trapping season closes.
January 1 - Snowshow hare
season closes.
January 5 - Crow season
opens.
' January 13 - Muzzleloader &
archery deer, winter
small game and Canada
goose seasons dose.
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