MCMP
(Continued from Page Al)
marketing activities and are
financially strong'.”
“Functions which can best be
handled at the corporate level will
be handled in Louisville, and
matters best handled on a local
level will be dealt with in
Baltimore,” noted MCMP general
manager Ralph Strock.
Dairymen, Inc., follows the
policy of centralized direction, but
decentralized operations within
each division. Thus, MCMP will
continue to maintain its own
division board of directors and
management team.
In the final moments before the
last two or three ballots were
collected from the raptly attentive
audience, manager Strock again
outlined the months of study that
had brought the cooperative to this
history-making meeting.
He said the cooperative had
looked in several directions,
seeking a partnership where they
would be best equipped for the
changing demands of the dairy
industry. Strock predicted milk
volume handling by farmer-owned
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cooperatives will continue to in
crease; buyers will become larger
nationwide or regional customers,
requiring large volume suppliers;
and successful suppliers will be
those with the foresight to increase
their scale of operations to new
market needs.
The manager also predicted
that, following this pattern of ever
larger marketing organizations, in
the future the nation’s supply of
milk is likely to be handled by
perhaps 13 to 15 large, regional
cooperatives.
“Maryland Cooperative is an
organization that believes like we
do,” Said P.L. Robinson, president
of Dairymen, Inc. “The
cooperative’s biggest responsibil
ity is to guarantee established
markets for members.”
Expanding on that theme was
Ben F. Morgan, Jr., Dairymen’s
chief executive officer.
“Our purpose is to serve the
dairy farmer in the marketplace
and give some meaningful in
fluence,” said Morgan. “Dairy
farmers should make the rules, not
by playing ‘catch-up’.”
During a pre-ballot tabulation
question-answer session, Morgan
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fielded one query on how milk
would continue to be handled
within the Baltimore market area.
He indicated that if bottling
plants in the area would come up
for sale, Dairymen would evaluate
their possible acquisition in a
“strictly businesslike way.” If the
operation of such facilities would
be deemed profitable, the
cooperative would then consider
such purchases.
Flav-O-Rich, the processing
sales arm of Dairymen, Inc., is a
wholly-owned subsidiary of the
members, operating 20 bottling
plants. Last year, Flav-O-Rich
earned $5.6 million on operations,
and is projected this year to $6
million. Management of
Dairymen, Inc. speculates
someday the processing business
may completely fund the operating
costs of running the large
cooperative.
According to James W. Mc-
Dowell, Jr., vice president of
operations for Dairymen, roughly
97 cents of every dollar of milk
handled through the cooperative
returns to producers. That tran
slates, he says, to about 40 cents
per hunderedweight in operating
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One as yet unsettled issue , the
method of raising milk promotion
funds, emerged during the
member question-answer period
proceeding the vote counting.,
Maryland Cooperative members
have been contributing 13 cents per
hundredweight, but funds were
subject to “ask-out” by those not
wishing to support the Federal
Order 4 promotion program.
For the past two years.
Dairyman, Inc, has operated their
own cooperative promotion
program, based on board
philosophy and policy aimed at
long-term goals of marketing milk.
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“We develop a game plan, as to
our objectives, and put our dollars
there,” explained McDowell.
That funding amounted to a
mandatory 8.1 cents per hun
dredweight, with no “ask-outs”
permitted.
McDowell assured MCMP
producers the workability of the
Order 4 program will be carefully
analyzed and a decision made only
after intense study.
With the approval of MCMP
members to merge, Dairymen,
Inc., now encompasses 8,000
farmer-members operating in 17
states.
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