A32—Lancaster Fanning, Saturday, May 28,1983
SYRACUSE, N.Y.
Korona, president of Eastern Milk
Producers Cooperative, today
announced that effective April 7,
Northern Farms Cooperative, of
Montpelier, Vt. became affiliated
members of Eastern. Korona
noted the public anouncement was
delayed pending the response of a
second Vermont cooperative
which had been offered a nearly
identical affiliation. The other
cooperative, however, decided on a
full merger with a different
organization.
Under the affiliation Northern
Farms Cooperative will retain its
-identity as one of the oldest and
most respected dairy
organizations in 'Vermont. Its
members gain important benefits
as affiliated Eastern members
while keeping their own
cooperative structure and state
office intact. Northern Farms
personnel continue to service the
membership from Montpelier.
Northern President, Arthur
Huestis, said, “Northern members
wanted to keep the tradition and
identity of the cooperative alive.
Although we needed the marketing
clout Eastern would provide, we
didn’t want to be lost in a larger
organization. Northern was for
tunate to negotiate an affiliation
which accomplishes both goals.”
He added, “We have a long term
contract, voting representation on
the Eastern Board, delegates at
policy meetings, service charges
identical to other Eastern mem
bers - and yet Northern Farms
keeps its identity.
Eastern is pleased with the af
filiation, according to General
Manager Michael Donovan. “The
agreement proves the fun
damental commitment we have
made to milk marketing in Ver
mont. Including previous Eastern
members, we are now responsible
for marketing the production of
about 250 Vermont dairymen”,
Donovan said.
Eastern agrees to guarantee the
milk market for Northern
produce”*, and to guarantee
payrntn. for milk shipped by all
member dairy farmers. Ad
ditionally, Northern farmers are
eligible to participate in Eastern
group insurance plans and other
member services. Among these
services is the Dairy Products
Distribution Program, with annual
sales of $5 million, which discounts
quality cheeses, dairy products
and other foods and supplies to
members.
The initial affiliation contract is
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Northern Farms Co-op affiliates with Eastern
Stanley
18 months, followed by automatic
renewal terms of one year.
Leaders of both Eastern and
Northern, expect the affiliation to
continue many years into the
future because of the benefits to
both parties. Eastern gains
marketing strength and flexibility;
Northern gains market protection
for the lowest possible cost.
Korona explained that Northern
affiliates will pay regular Eastern
dues and equity. “Eastern equity
is only 5 cents per hundred pounds,
on a pay-as-you-ship basis. We do
not require large equity con
tributions ‘up front’, as do some
other dairy cooperatives”, Korona
noted. “The Eastern board and
management are sensitive to the
financial pressure dairy fanners
are experiencing, so our policy has
been to keep equity levels as low as
possible.”
The recently concluded af
filiation agreement has roots
extending to past turmoil in New
England milk marketing. Huestis
said, “Eastern was a major factor
in helping our cooperative recover
from the Deary Brothers
bankruptcy last year. They offered
to market the production of our
affected members and have been
doing so successfully since that
time. Our Board was impressed at
Eastern’s market savvy and their
ability to operate with such ef
ficiency.” Huestis believes af
filiation discussions were a natural
outgrowth of the fine relationship
which developed between the two
cooperatives.
Northern President Huestis
already has been seated on the
Eastern Board of Directors. Leo
Connor, Sr., of Bridport, contmues
as director of Eastern District #5.
Maurice Castagner, Executive
Secretary of Northern, said, “The
last several years have been dif
ficult for cooperative in Vermont -
HARRISBURG Sen. Edward
W. Helfrick (R-27th) introduced
legislation this week which will
benefit the agribusiness com
munities throughout Penn
sylvania. On Monday, the chair
man of the Senate Agriculture and
Rural Affairs Committee
presented an amendment to the
legislature which will modify the
Fuel Use Tax Act.
Senate Bill 762, explains
Helfrick, will exclude diesel
powered bulk feed vehicles from
paying the fuel use tax. Earlier
this year, Helfrick introduced
similar legislation, SB 379, which
provides the same tax exclusion
for gasoline-powered bulk feed
trucks. SB 379 was referred to the
Senate Finance Committee on
Feb. 24.
Pennsylvania’s eight cent excise
tax is not imposed on fuel used by,
sold or delivered for use in farm
machinery or equipment that is
engaged in the production or
harvesting of farm or agricultural
products. This applies to equip
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it has been a time of uncertainty.
Our members now express greater
confidence in the future - a positive
change 1 believe has resulted from
this affiliation.”
Eastern Milk Producers is the
largest dairy cooperative in the
Northeast, with more than 4,000
Farm fuel bill cited
ment used within a ten-mile radius
of the farm homestead.
The fuel use tax exemption, if
this legislation is passed, would be
expanded to include diesel
powered bulk feed trucks
“designed and used to deliver
animal feed in bulk when used off
highways for actual production
and dissemination of bulk feed
products.” These sales and
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Phone: 717-394-3047
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members in Pennsylvania, New
York, Vermont, and Delaware.
The cooperative annually markets
approximately 2 billion pounds of
milk to manufacturing and fluid
milk customers. These marketings
have a value of about |24U million
dollars.
deliveries must be supported by
satisfactory documents.
SB 762 has been referred to the
Senate Finance Committee which is
chaired by Sen. Edward L. Howard
(R-lOth). Cosponsors of this
legislation include: Noah W.
Wenger, R-36; David J. Brightbill,
R-48; James E. Ross, D 47;
Michael A. O’Pake, D-ll; and Tim
Shaffer, R-21.
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