A26—Lancaster Farming, Saturday, Juna 13,1981
SYRACUSE, N.Y. - Growth
through use of a positive approach
permeated the General Manager
of Eastern Milk Producers’ Annual
Report by Michael H. Donovan
during the cooperative’s Annual
Meeting this week.
Donovan stated that the
cooperative, one of the East’s
largest, has successfully
weathered some sevei e storms
and is in the process of building
membership and financial
strength, even in the face of
marketing problems caused by an
over-supply of milk and rising
costs.
First priority for Eastern’s new
General Manager, who took over
the cooperative’s top management
position this past February, was to
reverse Eastern’s declining
membership.
“We have taken positive steps m
this direction,” he noted, “by
establishing dear cut goals which
have resulted in our securing 62
new contracts in March, 71 in
April, 81 in May, and an overall
total of 237 new members joining
the Eastern family since mid-
February.”
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Eastern manager reports on growth
Another critical area was
finance. Donovan stressed that the
financial position of Eastern Milk
Producers improved substantially
during the past twelve months with
the cooperative’s net worth being
increased by $660,000 to a total net
worth in excess of $2.7 million.
Substantial reductions in actual
bad debt write-offs during this past
year compared to those of the
previous year, and the constant
monthly reduction in the average
daily balance associated with
Eastern’s $8 million line of credit
has allowed the co-op to sub
Block announces shift
PARIS, France U.S.
Agriculture Secretary John R.
Block said in Europe the United
States will no longer tolerate
protectionist trade policies by
other exporting nations. He also
said the United States does not
expect to continue shouldering the
responsibility of maintaining a
reserve for the world.
Speaking before the World Food
Council in Yugoslavia, Block
JUST
ARRIVED!
stantially reduce the monthly
interest expense it currently bears,
according to Donovan.
Due to Eastern’s growing
financial strength, Donovan stated
that he did not anticipate any need
for a membership assessment in
1981.
Another promising area is the
growth of Eastern’s dairy products
sales program which has improved
and strengthened this valuable
distribution service to both the
cooperative’s membership and
that of the Pennsylvania Grange,
observed Donovan.
emphasized the need for developed
and developing countries to begin
creating their own food reserves.
He said the United States has taken
the lead on a reserve policy, but it
cannot continue to carry the
burden alone.
In Brussels and London, Block
warned of U.S. determination to
resist Common Market trade
policies that he considered unfair,
illegal or contrary to earlier
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He also commented on the up
coming installation of a new
computer system in Eastern’s
Syracuse office which is designed
to considerably improve the ability
to effectively control and manage
Eastern’s operations.
The co-op leader promised a
balance budget for fiscal year 1981-
1982, and set a goal to eliminate all
excess marketing costs within the.
next eighteen to twenty months.
He pointed out that the ex
pansion .of Eastern’s Grover, Pa.,
manufacturing facility and ap :
proval by the U.S. Department of
in U.S. trade policy
agreements. He specifically
mentioned the European Com
munity’s export subsidies on wheat
and other products, plus the
Community’s effort to tax
vegetable oils or restrict imports
of non-gram feed ingredients (com
gluten).
“My message to these nations
was firm, but not unreasonable,’’
Block said after arriving in Paris.
“It was a signal to the world that
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Agriculture to produce both
government grade power and
butter there has resulted in sub
stantial savings in marketing costs
to the cooperative’s membership
this spring.
In conclusion, Donovan
acknolwedged that in order for
Eastern to grow and prosper in the
future, its members must receive
services and marketing
representation commensurate
with their contributions. He in
dicated that he fully intended to
see that this was accomplished.
under this administration, the
United States is shifting toward
greater reliance on the market and
on individual responsibility among
nations.”
While in Brussels, Block also
received assurance that the
European Community would honor
the U.S. right to suply 10,000 tons of
high quality beef duty-free to that
market. U.S. officials hqd been
Concerned that the Community
might not honor this right.
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