A26-Lancaster Farming, Saturday, November 22,1986
Inter-State Reports Record Net Margin and Equity
LANCASTER - Inter-State Milk
Producers Cooperative recorded
the most successful financial year
in its history attaining a new high
in net margin and member equity,
Robert McSparran announced at
the cooperative’s 69th annual
meeting Nov. 20 to 21.
Speaking to the cooperative’s 500
members and guests, McSparran,
noted Inter-State’s consolidated
net margin exceeded $2.5 million in
fiscal 1986.
Changes and improvements in
operations, increased milk
production and sales and member
investment in equity programs
were all cited as factors con
tributing to the cooperative’s
(Continued from Page AI)
membership in Inter-State or
Lehigh Valley. This move amounts
to a 10 cents per hundredweight
savings for the dairymen. Mem
bers will receive previously in
vested capital retain at an ac
celerated rate of return when the
new co-op begins operations in
February.
Atlantic Dairy Cooperative will
be comprised of an estimated 4,264
members producing 3.5 billion
pounds of milk annually. This
production will rank the new
cooperative as the sixth largest
milk co-op in the nation. The
merger will increase the market
share for Atlantic to over 50 per
cent of Federal Order 4, Robert
Dever, assistant general manager
of Inter-State, explained.
Stout noted the new organization
expects to grow. “Together we can
Crow’s Hi-Lysine Hybrids
because you have more than
Only Crow's has a complete lineup of I-i Hi-lvsme
hjhnds ITiey’re backed by 20 years of continuous Hi
lysine research and they've been proven by hundreds
of corn growers and livestock producers (ust like you
Ask your Crow’s dealer for the details about his Hi
l.y sine hy bnds soon
Crow's Hybrid Corn Company
Milford, It.
Nevada, IA
Greenville, OH
1935
Write To:
financial success.
Due to its strong equity position,
Inter-State will return its first
payment from the capital retain
program on Feb. 1, 1987, a year
earlier than expected, McSparran
said. Over |1.6 million will be paid
out to members.
“We are pleased that the
progress we made will enable us to
start revolving the capital retain a
year earlier than planned,” he
said.
Also contributing to the
cooperative’s current income
position were positive factors
present in the dairy industry, said
Paul Hand, general manager.
Merger
be more aggressive and com
petitive,” he said.
“Over 40 percent of the total
Atlantic volume will be sold to the
Atlantic Processing Inc. federation
or to Holly Milk, the two customers
that are owned, directly or in
directly, by the members of
Atlantic,” Dever said.
The new co-op will be located at
Inter-State’s building in
Southampton. Holly Milk and QC
Inc. will continue as subsidiaries of
Atlantic.
The new co-op will be guided by
Paul Hand as general manager.
William Stout will step into a
managerial position under Hand.
He wiU focus on transportation and
market coordination. The board of
directors will vote on president.
Both co-ops will elect a vice
president for the initial three years
of Atlantic.
one battle to win!
s g [e3
for fifty years 1985
Distributed By
TOKEN, INC.
P.O. Box 521
Somerset, VA 22972
Overall, sales of dairy products,
particularly fluid milk, butter,
cheese and non-fat dry milk, have
seen substantial increases. Farm
prices have strengthened, a trend
that Hand attributes to the whole
herd buyout program*
“During the last fiscal year the
Inter-State members produced
more milk than they have at any
time in their history. From Aug. 1,
1985 to July 31, 1986 over 2.5 billion
pounds came from the farm to be
marketed, an increase of 3.4
percent over the previous year and
an increase of just about 50 percent
over what was produced 10 years
ago,” explained Robert Dever,
assistant general manager.
This increase was realized
through an increase in average
production per member, not in
creased membership, Dever said.
Inter-State also purchased over
300 million pounds from other
cooperatives and milk dealers
under contractual arrangements.
The cooperative marketed a total
of 2.85 billion pounds of milk.
Inter-State continued to supply
the majority of milk sold to Class I
processors servicing the
Philadelphia and Southeastern
Pennsylvania areas, Dever said.
The balance of Inter-State’s supply
went to Class 2 manufacturers,
including its own Holly Milk plant
in Cumberland County.
“With over 600 million pounds
processed, the Holly plant lived up
to the expectations that we have
always believed it had,” Dever
said. Holly produced a profit for
f/
1/
anbqlv'
It’s a time of brotherhood, am 1
to give thanks for ail our blessings % M
true meaning of Thanksgiving.
May this special day be filled with health and happiness... the joy of
giving and receiving... as we celebrate this occasion with friends and
loved ones. ■r— ■■«
Swine & Poultry Systems Specialists
PARMER BOY AG.
INC.
410 EAST LINCOLN AVE. MYERSTOWN, PA 17067 PH: 717-866-7565
BEST IN DESIGN, PRICE AND EXPERIENCE
the cooperative by meshing its
balancing function with the in
crease manufacture of com
mercial and government products.
The Abbotts bankruptcy con
tinues to move through the courts.
Dever offered no estimate of a
settlement, noting that it will
continue to drag on for years to
come. He said, “When the Abbotts’
bankruptcy is settled there will be
monies available for the Inter-
State members.”
QClnc.
QC Inc. contributed to the
financial success of Inter-State’s
recent fiscal year. “Income before
taxes at QC exceeded $700,000 this
year compared to $335,000 last
year,” Inter-State treasurer Evan
Fineman said.
Allan Schopbach, president, said
QC recorded profits of $668,000
before taxes. Celebrating its 10th
anniversary as a subsidiary of
Inter-State, QC reported gross
sales totaling $3.6 million, a 20
percent increase over 1985.
Since Inter-State purchased QC
in 1976, the laboratory has
“become a dominant force in
quality testing work.” What was
once primarily a dairy testing
facility, QC has expanded its work
into the food and environmental
industries, which compose over SO
percent of gross receipts.
“The environmental department
continues to provide the greatest
area of growth,” said Schopach,
who attributes this to increased
sales, the obtaining of municipal
contracts and the expansion of
work with environmental
engineers.
RCMA
Inter-State, Maryland and
Virginia Milk Producers and
Dairymen, Inc. have formed the
Mid-Atlantic Cooperative Milk
Marketing Agency Inc. to achieve
a better price for their members’
milk, Hand stated. The formation
of the agency permits the
cooperatives to work along the
same lines as the Regional
Cooperative Marketing Agency.
Hand explained the three ob
stacles to obtaining over-order
prices: lack of cooperative
strength, the presence of surplus
milk and the presence of a large
independent milk supply. He urged
members to rally the independents
to join a cooperative. “As long as
there is surplus milk and a large
independent supply, there will be
great difficulty in obtaining any so
called premiums.” He also
addressed “the need for a Political
Action Committee by dairy far
mers to protect their interests in
the modern political world.”
Funded by voluntary con
tributions with a contribution limit
of $5,000 for a single contributor,
PAC funds are administered by a
group selected by the contributors.
PACs are also governed by a set of
by-laws, Hand explained.
“A properly administered PAC
can be a useful tool for the fur
therance of legislative goals to
improve conditions for farmers,”
he said.
(Turn to PageA37)
\
s
time of peace and a time
... as we reflect upon the
\
i **
I i
1 >