A22-Lancaster Farming, Saturday, March IS, 1986 Lehigh directors questioned closely on API sale LANCASTER Despite reporting an unaudited net margin of $2.68 million, Lehigh Valley farmers elected and appointed officials found themselves defending the sale of assets of an auxiliary organization at their sixth annual meeting here Wed nesday. The focus of the 20 minute question-and-answer period was Atlantic Processing, Inc. (API), a federation of dairy cooperatives Lehigh, Dairylea, Mr. Joy, Cumberland Valley and Capitol Milk. Effective February 28, the API Board of Directors sold the organization’s assets, the “bricks and mortar,” to John Labatt, a Canadian food conglomerate, Lehigh President Alpheus Ruth told the 700 assembled farmer owners and guests. Labatt recently purchased Johanna Farms, a New Jersey-based dairy processor with markets for citrus and other juices, milk and yogurt throughout the Northeast. « According to management consultant James Compton, the assets were sold “at book value,” estimated at $l7 million after in tense farmer questioning. The ice cream, cultured products and fluid processing plants are now operating a Lehigh Valley Dairies, Inc., a subsidiary of Johanna. Johanna. Compton estimated that the average Lehigh farmer, producing 700,000 pounds per year, would reap $8,893 over a five-year-period, should the API board approve the revolving capital plan outlined to the farmer-owners Wednesday. This figure includes five-year savings resulting from eliminating the 10-cent capital retain ($3,500), repayment of past capital retains over a three-year period ($3,866) and five years of estimated dividends from API operations ($1,527). However,'farmers must have a minimum level of equity before they can discontinue their 10-cent capital retain. Danuser Workhorse Log Splitters Danuserqualityatacompetitivepnce l Heavy-duty postholediggmgusmga Category 120 to 40 h p tractor Five year Limited Warranty on gear box The F-8 Digger " 4 Industrial strength Fits most tractors with ASAE 3-pomt hitch with power ■ take-off in Category I or II 4"-30" augers Regardless of the financial picture presented, some member owners continued to question the decision. One farmer said that Lehigh farmer-owners are “no longer responsible for what we are producing. We have become, in a sense, one more milk pooler.” The comment was greeted with scattered applause. Ruth, a Fleetwood dairy farmer, responded that the board felt it should “return to the producer the most dollars and cents,” com menting that pride in owning bricks and motar is not enough. Ruth said the sale was unanimously approved by the API Board, of which he is the chair man. Moreover, he explained that API would not be dessolved. In stead, its staff will be trimmed to four people, with new manager Roy Seifert. API remains a federation of dairy cooperatives with long-term supply contracts with Johanna and Beatrice Foods, which owns the Allentown-based cheese plant once a part of API, Ruth said. API has a six-year contract with Beatrice to supply 33 million pounds of raw milk per month, with a provision for shipping more when necessary for balancing supplies, Compton said. The 10- year contract with Johanna- Labatt’s is 70 million pounds per month. Ruth said that he hoped “not too many Lehigh Valley Farmers leave dairying (a reference to the whole-herd buy-out) because Lehigh needs more milk.” He reminded producers that more milk shipped equals more equity in API. In justifying the sale to Labatt’s Ruth said the Canadian firm has sales of $3 billion, 11,000 em ployees, and 63 manufacturing and processing facilities. They are the world’s largest grain processor, he said, and Canada’s leading dairy company. “I don’t think we should be ex cited that they also own a brewing company,” he said, noting that one el, drop i 25 blows/ ■d PTO or hydraulic Distributed By [AMILTON EQUIPMENT, INC. CFJJS 567 South Reading Road, P.O. Box 478 Ephrata, PA 17522 T Telephone (717) 733-7951 Plate Conitef Ut Pot Your Hares! Paler j of the first questions he heard was just that. “The important thing is they are a diversified company that happens to own a brewing company. They don’t have all their eggs in one basket.” Ruth alluded to the loss of a major customer in early 1985, an unfavorable labor relations decision and the proposed ex pansion of Federal Orders 2 and 4 as factors influencing the decision to sell. The labor relations problem dealt with truck drivers at the Lansdale plant, he said. An effort to trim labor costs backfired with the arbitrator’s decision to re instate the $40,000 per year drivers and award back pay, Ruth said. “The main objective of the Federal Order expansion was to capture APl’s Schulykill-Haven plant’s profits,” he said. The ex pansion would cost API $2 million a year, he said. ____ Split logs m lengths of 20", 28" and 48" Models tractor-mounted 3-pomt hitch; 16 h p trailer, or self contained electric General Manager William Stout said the expansion is “in a holding pattern.” After November’s in junction, briefs were scheduled to be filed by March 1. A decision should be reached by summer, he said. What position will Johanna take now that it owns the facility? The question was not asked, but the answer could be interesting, as Johanna has supported order expansion. Treasurer Robert Gehman presented the unaudited financial statements, highlighting the $2.68 million in net margin. The 954 million pounds of Lehigh milk is comparable to 10 percent of the total Pennsylvania production. Stout thanked the farmers who had voluntarily earmarked six cents per hundredweight for Lehigh Valley Farmers branded products, noting that the brand advertising program has now been fttlfto Featuring: Counter Rotation or Regular Rotation all by fust a flip of the lever ■ 4 Rear Tine Models From 5 H.P. 18” to 8 H.P. 22” at up to $3OO less than the competition ■ Front tine models w/twice till tines up to $3.00 • ' less than the competition Sold only through servicing dealers listed below DIALERS LEBAI ISYLVANIA BEDFORD CO. JOHN M. EMERICK Hyndman, Pa. Ph.(814)842-3480 BERKS CO. A.C. BERNET, INC. Birdsboro, Pa. Ph. (215)582-8103 CHESTER CO. STOLTZFUS FARM SERVICE Cochranville, Pa. Ph.(215)593-2407 PAULSHOVER, INC. Carlisle, Pa. Ph. (717)243-2686 DAUPHIN CO. JIM’S LAWN MOWER MAURER’SJNOWER SERVICE SALES & SERVICE Harrisburg, Pa. Allentown, Pa. Ph. (717) 545-5114 Ph. (215) 437-0452 JETER’S SALES LYCOMjNQ CO, I senna kb. anam, me. Ph.(717)362-8501 Ph.(/l7)3Zb ZB/4 FRANKLIN CO. A.A.A. LAWN SERVICE Chambersburg, Pa. Ph. (717)369-5111 LANCASTER CO. A. AN. EQUIP. Narvon, Pa. Ph. (717)768-3227 GOOD’S LAWN A GARDEN East Earl, Pa Ph (717)354-0076 LAWN CARE OF PA. Martindale, Pa. Ph. (215)445-4541 LIMEVILLE SALES A SERVICE Gap. Pa. Ph. (717)442-9304 ROMAN MUSSER Rothsville, Pa Ph (717)626-6363 discontinued. A series of district meetings will be held in the next two weeks to report to farmers who were unable to attend Wednesday’s session, according to a news release distributed at the meeting. ■iimu’ciiwn martin's pro hwo, 5 HWU - Richfield, Pa. ‘ « EQUIP. Ph. (717) 694-3220 Newmanstown, Pa. caucdcct ca Ph, (717) 949-6817 SWOPE & BASHORE, EQUIP., INC. , u « Addison, Pa. „ ■ Ph. (814) 395-3521 Myerstown, Pa. , __ Ph.(717)933-4138 UNION gQ. lcu „ unn MARTIN’S SMALL ENGINE REPAIR DAVE’S LAWN Mifflinburg. Pa. A GARDEN Ph (717) 966-2545 Orefield, Pa. Ph.(215)395-1202 HERMIT KISTLER Lynnport, Pa. Ph.(215)298-2011 MIFFLIN CO. PEACHEY'S SAW SHOP Belleville, Pa. Ph. (717)935-2833 MONROE CO. WEST END ENGINE SERVICE Gilbert, Pa. Ph. (215)681-5419 MONTGOMERY CO. A.F. LEIDYHWD., INC. Schwenksville, Pa. Ph.(215)287-8121 NORTHUMBERLAND CO mOntandon equip. SALES A SERVICE Milton, Pa. Ph. (717) 524-2473 PERRY CO. R.E. DAVIDSON A SON Millersburg, Pa. Ph (717)444-3670 Selinsgrove, Pa (Snyder Co.) Ph.(717)374-8590 A hukt Til Tintt Q \ IERCO. OVERDORFF NURSERY LAWN ft GARDEN Mt. Pleasant, Pa. Ph.(412)423-6288 YORK CO. CHARLIES SALES ft SERVICE Brogue, Pa. Ph. (717)927-6500 RAFFENSBERGER’S SERVICE CENTER CENTER Dallastown, Pa. Ph.(717)244-7941 • W.L. STERNER Hanover, Pa. Ph. (717)637-2159 MARYLAND CARROLL CO. RAINBOW FARMS SERVICE Taneytown, Md. Ph.(301)751-1500 MONTGOMERY CO HARRINGTON A SONS Germantown, Md. Ph.(301)253-1125 WASHINGTON CO BAER'S LAWN A GARDEN EQUIP., INC. Hagerstown, Md Ph. (301) 733-8229 NEW JERSEY RIVERVIEW NURSERIES Flemington, NJ Ph.(201)526-3162
Significant historical Pennsylvania newspapers