FarwinfcSitwday, 1... 30,1979. _ member8 > contributions Eastern’s equity fund over $1.25 million By DIETER KRIEG SYRACUSE, N.Y. Howard McDonald, general manager of Eastern Milk Producers Cooperative, says “Eastern’s net worth has never been better in history.” He made the glowing remark at last month’s annual meeting, here, at the Hotel Syracuse. He empasized that the 4500-member dairy farmers’ cooperative has been able to reduce its financial costs considerably through the collection of “a number of long-standing debts and by taking strong efficient measures.” Another factor in the improved picture is the operation of two cheese plants acquired by Eastern within the past year and leased to Leprino Foods. Eastern’s president, Arden Tewksbury of Meshoppen, Pa., says the two plants, located at Horse Heads and Waverly, N.Y., “have turned around the surplus milk problem. To prove his point, Tewksbury cites marketing figures of March 1978 and March 1979. “Eastern’s members had to make up $475,000 in ex cess marketing costs in March of last year, compared to $70,000 this past March,” he says. For the entire fiscal year, Eastern milked its membership for an estimated $3.5 million to cover marketing costs, the cooperative president has revealed. All of that is part of a dark past for the Syracuse based milk marketing organization which once boasted a membership of 10,000. “But I feel if we don’t understand the past, then how can we possibly accept the present and how can we prepare for the future?” Tewksbury asked delegates at the annual meeting. “I’m mighty proud of many of the ac complishments made during those years,” he continued, making the remark in reference to the early years of Eastern. He recalled how the cooperative was operating with 1-cent dues and guaran teeing every member a market. “It wasn’t hard to obtain new members at that time,” hequipped. But conditions changed when handlers withdrew from the market and in some cases even ceased business completely. That left cooperatives without markets and even non-payments for milk that had already gone to market. “Eastern was not START WITH THE BEST! POURED CONRETE WALLS Solid Concrete For: Manure Pit Walls Hog House Walls Barnyard Walls ' Chicken House Wall.s Retaining Walls MO 4V/J i fcf=l • STRONGER... Than Block • Fewer Cracks • Reinforced Steel • SOLID... Dense all the way through • More Water Tight • Lower Maintenance Our concrete walls are formed with some of thte finest aluminum forms in the business As a result, we can offer a good solid wall at a LOW PRICE If You’re Thinking of Building - Call us Now! Balmer Bros, 410 Main st. Akron, Pa. 17501 CONCRETE WORK, INC. (717) 859-2074 or (717) 733-9196 Howard McDonald sufficiently ready for the market con ditions that developed in 1976-78,” the co op chief admitted. “But you know we were not alone,” he added. “Since December of 1976 this cooperative has gone through enough turmoil to last for a lifetime,” he said. “The marketing years 1977 and 1978 almost proved to be a disaster for your co op,” he told the delegates at the June 6 annual meeting. He praised the mem bership for their support. “You are to be complimented, not condemned for your actions,” he assured. Eastern has come under considerable attack from both members, bystanders, and some members of the farm press. Fifty-two dairy farmers who are members of Eastern are 17 directors, former directors, and officers to court for alleged wrongdoings. Charges include mismanagement, the overstepping of authority, and misleading accounting procedures. Eastern is seeking to clear itself of the challenges. As for an internal house cleaning - some of that’s going on too, according to spokesmen at Eastern’s Syracuse headquarters. • House Foundation Walls • Silage Pit Walls • Cistern Walls , • Concrete Decks • Concrete Pit Tops • SMOOTHER... Architectural finish • Easily Roller Painted • FLEXIBLE... Made to your Design • SERVICE... Complete, Experienced and Professional A financial manager was hired two years ago. He is Herbert Dom. Last March, a controller was added to the staff. He is Robert Zom. “We have taken steps to improve the efficiency of cur accounting department,” says Tewksbury. The cooperative, however, did not have audited financial statements at its annual meeting in June. The fiscal year had ended on March 31. Tewksbury is aware of criticism for providing fmancial in formation too slowly, he says. The unaudited version of Eastern’s money sheet says nearly $300,000 in profits were realized during the last fiscal year. Tewksbury hints that keeping track of accounts in milk marketing is no easy task, especially when many handlers are involved. He’s happy that the Leprino Foods arrangement will limit the scope of the accounting demands. more muscle fora strong favorite. ALLIS-CHALMERS 7045. One of the biggest favorites in the Rising Power Family Now this proven reliability has a new 146-horses worth* of muscle Turbo-charged work power that runs cool with oil-cooled pistons, alternated intake and exhaust valves, big flow cooling systems, all which add life to the engine And more The quiet comfort of Acousta Cab II Standard 20-speed Power Director XX Transmission . with 14-speed selections below 10 mph, 8 in the critical 2 5 RnngPower in taming A ALLIS-CHALMERS AGRONOMICS, INC. RD2, Factoryville, PA 717-945-3933 L H. BRUBAKER, INC. Lancaster, PA 717-397-5179 C. J. WONSIDLER BROS. Rt. 309 & 100 R 2 New Tripoli, PA 18066 215-767-7611 BHM FARM EQUIPMENT, INC. Annville, ROl, PA 717-867-2211 ROY H. BUCK, INC. Ephrata, RD 2 717-859-2441 CJ. WONSIDLER BROS. RDI, Quakertown, PA 18951 215-536-1935 215-536-7523 WERTZ GARAGE Lineboro. MD 301-374-2672 Elaborating on McDonald’s rosy statement about Eastern’s net worth, Tewksbury revealed that the cooperative’s total equity stands at $1.25 million and is growing. The equity is the result of a special equity fund that was initiated IV2 years ago. Members are assessed five cents per hundredweight of milk shipped. And to keep its operations solvent, Eastern is using a $lO million line of credit through Walter Heller and Associates. The cooperative’s director of member and public relations, Lisle Dutton, says bet ween $1.5 million and $3 million are borrowed by Eastern each month. It’s paid back the following month. It’s necessary to borrow the money because milk suppliers have to wait 30 or even more days before handler pay them. Most of the interest charges are passed on to the handlers. 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