Inter-State to begin 10-cent, 5-year deduction
By DICK AN6LESTEIN
BLUE BALL The current
financial woes of dairy
cooperatives were brought home to
members of District 6, Inter-State
Milk Producers’ Cooperative, on
'Tuesday night at their annual
meeting in the Blue Ball Fire Hall.
Robert B. McSparran, Rl, Peach
Bottom, president of Inter-State
outlined the co-op’s new "Capital
Retaining Program,” through
which each member will pay 10
cents per hundredweight for at
least the next five years.
After explaining the purchase' of
the Holly plant, McSparran said
the 10-cent assessment was needed
to "broaden Inter-State’s financial
base.”
McSparran also cited the plight
of another co-op, NEDCO, which,
he said, has just instituted a 20-
cent per hundredweight retention
plan for 1980 production.
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"They tNEDCOJ need three
million dollars right now,” Mc-
Sparran said.
The Inter-State 10-cent
assessment plan, which will
continue at least five years and
possibly seven, is being termed a
revolving plan. -it begins
November 1.
in the revolving plan, members
would still pay into the plan in the
sixth year, but would receive the
money they paid in during the first
year and so on. Of course, mem
bers’ production will undoubtedly
be higher six years from now and
payments ip would exceed
payments out.
"We also went to the revolving
plan to keep it equal for the
younger farmer starting out,”
McSparran explained.
McSparran also said he has
made it emphatic to management
that he is not m favor of any excess
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deductions again next spring when
the surplus luis.
"We don’t want to suffer losses
next year like we did last year,”
McSparran said.
McSparran also explained how
co-ops are getting together more in
moving the milk around.
"We’re shipping some 24 million
lbs. a month to Lehigh at Lan
sdale,” he said.
"But we’re being cautious.”
McSparran now sits on the API
board and expects that IMPCO
may have a second member it the
affiliation continues.
McSparran also gave a lengthy
explanation of the buy-out of the
Holly plant from Maryland Milk
Producers Cooperative, which
merged with Dairymen, Inc.
He outlined some of the history
of the plant and the internal talks
and haggling that went on leading
up to the purchase.
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Speakers at annual meeting of District 6, Inter-State Milk
Producers’ Cooperative, were Roy H. Book, left; director; and
Robert B. McSparran, co-op president.
¥ T
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Lancaster Farming, Saturday, October 3,1981—A17
;V
Inter-State paid s4.# million for
the plant, but each partner had $1.6
million ui it in preferred stock. DI
will be holding this stock for one
year and Inter-State will pay in
terest on the $1.6 million worth.
But at the end of the year, IM
PCO will be obligated to pay the
$1.6 million.
McSparran explained further
that Holly is closed down now for
repairs and corrections.
Previously, it had been running
about 45 million lbs. a month. It is
hoped that operations can get
closer to its design capacity of 2
million lbs. a day.
Also, speaking at the annual
session of the Gap, New Holland-
Leola and Paradise Locals, which
comprise one of the biggest
districts, was director Roy H.
Book.
Book told the members that anti
biotics and birth inhibitors were
the top problems of the past year.
"Work with your vets par
ticularly on dry cow treatment,”
he recommended. "And use sterile
products.”
Last year, 65 tank trucks and 36
members were found to have anti
biotics in milk.
Some 767,000 lbs. were dumped
at the farm at a cost of $52,000 to
the co-op, which pays half of the
value.
The three locals also held
elections. A brief report was given
by Young Cooperator Jere C.
Skiles.
Extertamment included a film
and slide program by Randy Good,
of New Holland, on his more than
five-year stay in Rhodesia.
Twin Valley FFA
ELVERSON - During this
weekend of homecoming, the Twin
Valley FFA will hold an
agricultural fair tor the
surrounding community.
Entries tor the fair, will be
judged on today, Saturday, Oct. 3,
and entries can be removed alter 4
p.m.
Care will be taken not to damage
any exhibits, but the FFA will not
be responsible tor any damage or
losses. All exhibits must have been
grown, produced or made in the
district. Ribbons will be awarded
tor tirst, second, and third place
with no monetary prizes. In cases
where there is no competition, the
judges will give awards such as
they teel the exhibit should
receive.
Classes tor exhibits mciude eggs,
held crops and hay, vegetables,
fruits and nuts, home and dairy
products, Christmas trees, tloral
exhibits, and honey.
fair today