First Fifty Years, The – Farm Products 1937-1987

1937   The First Fifty Years

Farmproducts
CO-OPERATIVE (H.B.) LIMITED  1987

page one

FARM PRODUCTS CO-OPERATIVE (HAWKE’S BAY) LTD.

1937 – 1987

Chairman of Directors
D.R. Stephenson

Deputy Chairman
R.D. Keighley

Directors
R.L.E. Barry  S.J. Charmley
L. Clay  A. Hunt

General Manager
A.M. Schultze

Company Secretary
J.B. Grove, A.C.A; A.C.I.S.

Bankers
National Bank of New Zealand Ltd.

Auditors
Deloitte Haskins and Sells

Solicitors
Bramwell Grossman and Partners

“June 1987”

page two

FOREWORD BY THE CHAIRMAN OF DIRECTORS

As the years roll by it is important that history be recorded while there are still people about who remember. To that end Farm Products Co-op (H.B.) Ltd. have asked Mr Frank H. Smith, ex General Manager for 19 years to record people and events that make up the history of this company over the last fifty years.

Farm Products Co-op (H.B.) Ltd., from its inception has been the major distribution company in H.B. for dairy, poultry and P.M.A. products. The foundation and concept of Farm Products Companies were established by the late Mr Dan Begley and Mr Wendell Phillips and successive Directors and General Managers have served the primary producers and shareholders of the region well.

The skills needed today to run a successful distribution company are quite different from fifty years ago. The multitude of products, promotions and discounts demand a very competent office accounting system. The High Tech equipment and skills we have and are acquiring should greatly enhance our ability and competence in accounting and stock control. These together with the planned expansion of our feed mill are all interesting and exciting projects that together with the enthusiasm of our staff strengthen our confidence in the future.

Farm Products Co-op (H.B.) Ltd.
DR Stephenson
Donald R. Stephenson
Chairman of Directors.  June 1987

page three

COMPANY ADMINISTRATORS
1937 – 1987

JOHN GROVE
Company Secretary – 1968-

ARTHUR SCHULTZE
General Manager – 1987-

HERMAN VON DADELSZEN
Company Secretary – 1937-38

FRANK SMITH
Company Secretary – 1961-68
General Manager – 1968-87

DANIEL BEGLEY
Company Founder and General Manager – 1937-60

MATTHEW PARKHILL
Company Secretary – 1938-60
General Manager – 1960-68

page four

LIST OF EMPLOYEES – JUNE 1987

General Manager
Arthur M. Schultze

Company Secretary
John B. Grove*

Office
Paul Rogers, Manager
Janet Clarke
Lee-anne Davies
Dianne Hollis
Christine Kippax
Joanne Langley
Jayne Lindsay
Freida Morris
Maurine McLaren
Sharon Robinson

Egg Floor
Cecil Pattison,* Manager
Anne Devlin
Madge Green*
Linda Jensen
Zane Jones
Julie Mitchell
Cynthia Pattison*
David Smith
Trevor Taylor
Kevin Walters

Distribution
Graham Burns, Manager
Michael Alexander
Peter Carston*
John Elliott
Robert Ferrier
Colin Flynn
Gary Gradwell
Stephen Hannah*
Darryll Hosking
David Little
Graeme Mason
Deloy Southon

Feed Mill
Terry Husband, Manager
Stacey Burt
Clinton Holman

Cold Store-Chiller
Trevor Walsh,* Manager
Terry Sandilands*

Sales
Terry Wotherspoon* Manager
Deborah Frost

Display Centre
Stuart Gunn, Manager
Stephen Kale

Cold Store-Freezer
Kevin Sellwood,* Manager

Workshop
Ray Perry

Cafeteria
Gaynor Richardson

*indicates more than 10 years’ service.

page five

BACKGROUND TO THE FORMATION OF THE COMPANY

In January 1930 the Wellington-Hawke’s Bay Dairy Companies Federation was formed in an attempt to better organise the marketing of butter in the southern part of the North Island. At the time there were 32 manufacturing companies in the district and they received dream from 10,000 suppliers, the butter they produced was handled by 31 merchant firms.

Widespread dissatisfaction with returns led to the setting up of an Organisation Committee comprising Messrs J.W. McConnon, H.E. Pacey, J.W. Rodden and P.B. Desmond.

Their report on orderly butter marketing resulted in the formation of The Dominion Producers Co-op Agency Ltd; generally known as D.P.A. The company was registered on 12 April, 1932 with all 32 butter manufacturing companies as shareholders, and a paid up capital of £56.

The work of D.P.A. was superseded by the Butter Marketing Regulations 1937 and the company went into recess for 7 years. The company was reconstructed in 1946 to acquire for producers sole distributing rights for butter and eggs in the City of Wellington.

THE DOMINION PRODUCERS CO-OPERATIVE AGENCY LTD.
Organisation Committee – 1931-1934

P.B. Desmond, J.W. McConnon, J.W. Rodden, Absent:- H.E. Pacey.

page six

LIST OF DIRECTORS

Name   Company   From   To

E. Harding **United Dairy Co. 1937   1956
A.H. Hansen   **Tamaki Dairy Co.  1937  1964
W. Jenkins   Norsewood Dairy Co.  1937   1938
D.G. Begley   Heretaunga Dairy Co.  1937   1939
W.A. Phillips   Pig Marketing Association   1937   1984
A.T. Carroll (later Sir Turi)   Wairoa Dairy Co.  1937   1949
H.A. Olsen   Norsewood Dairy Co.  1938   1950
A.L. Malcolm   Heretaunga Dairy Co.   1939   1957
L.J. Nathan   H.B. Poultry Producers   1948   1950
A.L. Andersen   Norsewood Dairy Co.   1950   1962
M. S. Mitchell   *H.B. Poultry Producers 1951 1983
G.W. Powdrell   Wairoa Dairy Co.   1949   1960
D.T. Mabey   United Dairy Co.   1956   1962
G.W. Lange   **Heretaunga Dairy Co.    1957   1968
L.E. Oldham   Wairoa Dairy Co.   1960   1972
T.C. Jackson   Heretaunga Dairy Co.   1962   1974
W. Galloway   **Ruahine Dairy Co. 1962   1973
A.H. Omundsen   **Ruahine Dairy Co.   1964   1974
E.K. Iggulden   Heretaunga Dairy Co.   1969   1973
G. Severinsen   Ruahine Dairy Co. 1970   1981
A. A. Speers   H.B. Poultry Producers 1970   1980
S.P. Steele   Wairoa Dairy Co.   1972   1977
R. Gordon   Heretaunga Dairy Co. 1973   1974
F.H. Simmons    **Tui Dairy Co.   1973   1983
D.R. Stephenson   **Tui Dairy Co.   1974  –
B.H. Jarden   Wairoa Dairy Co.   1977   1978
G.H. Friis   *H.B. Poultry Producers   1980   1986
S.J. Charmley   Tui Dairy Co.   1981  –
R.E. Winks   Pig Marketing Association    1981  1986
P.V. Stephens   Tui Dairy Co.   1983   1985
G.E. Velvin   H.B  Poultry Producers   1983   1986

page seven

A. Hunt   Tui Dairy Co. 1985  –
A.J. Koenders   H.B. Poultry Producers   1985  1986
R.D. Keighley   *H.B. Poultry Producers   1986 –
L. Clay   H.B. Poultry Producers 1986  –
R.L.E. Barry   Pig Marketing Association   1987  –

**indicates Chairman  *indicates Deputy Chairman

THE EARLY YEARS

While D.P.A. was in recess butter companies in Hawke’s Bay became dissatisfied with the distribution of their produce by competitive merchant interests. Under the leadership of Mr D.G. Begley, Chairman of the Heretaunga Co-op Dairy Co. Ltd; the 5 butter companies in the area decided to form their own co-operative marketing company.

From the outset pig producers were involved through the New Zealand Co-op Pig Marketing Association Ltd; which already had close links with the butter companies and became an initial shareholder.

In 1941 the company was approached by local poultry producers to undertake the grading, packing and distribution of eggs. They were encouraged to form their own co-operative which in turn acquired shares in Farm Products resulting in increased activity in the form of egg pulp and stock feed manufacture.

ORIGINAL SHAREHOLDERS

£1 Shares
Heretaunga Co-op Dairy Co. Ltd   2,357
Wairoa Co-op Dairy Co. Ltd.   748
Tamaki Co-op Dairy Co. Ltd.   920
United Co-op Dairy Co. Ltd.   575
Norsewood Co-op Dairy Co. Ltd.   1,150
N.Z. Co-op Pig Marketing Association Ltd.   250
Authorised Capital = £6,000

page eight

FROM THE MINUTES 1937 – 40

8-6-1937   Special meeting of shareholders of H.B. Co-op Farm Products held in the office of the Heretaunga Co-op Dairy Co. Ltd. at 10.30a.m.

In attendance E. Harding – United (Chairman), D.G. Begley – Heretaunga, A.T. Carroll – Wairoa, A.H. Hansen and G. Paterson – Tamaki, W. Jenkins – Norsewood and W.A. Phillips – Pig Marketing Association.

Memorandum and Articles of Association prepared and the company registered as a co-operative organisation.

The following appointments made –
Mr D.G. Begley   Managing Director
Mr H.R. von Dadelszen   Secretary
Carlile McLean Scannell and Wood   Solicitors
National Bank of New Zealand Ltd   Bankers
Rainbow Hobbs and Nesbitt   Auditors

Quarter acre section in Plunket Street purchased from Estate E. Newbigin at cost of £90.

1-12-1938   Decision made to locate offices adjacent to store in Plunket Street; authority given to purchase additional land for £25.

4-4-1939   First directors’ meeting held in new office.

7-9-1939   The Chairman makes reference to the declaration of war between Great Britain and Nazi Germany on 3-9-1939.

Resolved that a letter be sent to Mr F.R. Picot, Director of Internal Marketing, conveying the wholehearted support of this company with the actions of the government in relation to recent events overseas. That he be informed of our fullest co-operation to fall in line with any of his proposals regarding the distribution of foodstuffs in this area should such an emergency arise.

page nine

FROM THE MINUTES 1941 – 50

29-5-1941   Management authorised to negotiate with poultry producers with a view to finalising arrangements for orderly marketing of eggs.

7-8-1941   Egg floor ready and grading machine installed. Location-311W Heretaunga Street.

10-10-1946   Resolved that H.B. Co-op Poultry Producers Ltd. be allocated 4,500 – £1 shares. The shares to be held in trust by the five shareholding butter companies and transferred as funds permit.

28-5-1947   Special resolution passed to change name from H.B. Co-op Farm Products Ltd. to Farm Products Co-op (H.B.) Ltd.

15-9-1949   Building extensions completed and egg floor operations transferred to Plunket Street.

FROM THE MINUTES 1951 – 60

15-7-1955   Two adjoining quarter acre sections in Maraekakaho Road acquired from Stortford Lodge Hotel – cost £2,300.

Meal and pellet plant now operating but continuing concern over shortages of bran and pollard.

1-8-1958   Twenty-first anniversary celebrations held at Cabaret Cabana, Napier.

15-10-1958   Grasmere property purchased from local orchardists – cost £3,300.

2-9-1959   Company registered as a co-operative under the Co-operative Companies Act, 1956.

page ten

THE BOARD OF DIRECTORS AND MANAGEMENT, 1956.

Standing: G.W. Powdrell, M.S. Mitchell, A.L. Andersen
Seated: A.L. Malcolm, D.G. Begley (General Manager), A.H. Hansen (Chairman), M. Parkhill (Secretary), D.T. Mabey. Absent: W.A. Phillips.

POULTRY MASH AND PELLET PRODUCTION, 1957.

page eleven

TOTAL ASSETS EMPLOYED AND SHAREHOLDERS FUNDS

1962 – 1987

SHAREHOLDERS’ FUNDS

TOTAL ASSETS

FROM THE MINUTES 1961 – 70

20-7-1961   Contract let to Mr P.J. Bridgeman for erection of Maraekakaho Road grain store of 10,000 square feet – cost £10,722.

1-10-1961   Staff Superannuation Scheme established to provide retirement benefits for long-term employees.

16-4-1964   Mr P.J. Bridgeman’s tender of £12,561 for office extensions, cool room and egg chiller accepted.

15-4-1965   Andrews and Beaven Ltd. tender of £31,705 for erection of four grain silos and modification of plant for bulk stock feed delivery is accepted.

10-7-1967   New Zealand converts to decimal currency £1 becomes $2.

16-7-1968   4.5 h land situated on corner of Omahu Road and Kirkwood Road purchased from Mr R.S. Nowell-Usticke – cost $13,907.

page twelve

FROM THE MINUTES 1971 – 80

15-7-1975   Adjoining section in Plunket Street with house and garages purchased from Tui Co-op Dairy Co. Ltd. – cost $30,000.

New feed mill and silo complex opened by Hon. C.J. Moyle, Minister of Agriculture and Fisheries – cost $482,752.

Celebration dinner held at Mayfair Hotel.

17-6-1977   N.C.R. 3991-6K computer installed – cost $19,000.

22-7-1977   H.B. Co-op Stockfoods Ltd. acquires 1,000 – $2 shares from Tui Co-op Dairy Co. Ltd.

17-11-1977   40th Anniversary celebrated with dinner at H.B. Farmers Tearooms.

7-8-1978   Diamond Page PA70 automatic egg packer installed at cost of $102,000 – capacity 1,800 dozen eggs per hour.

DIAMOND PAGE PA 70
AUTOMATIC EGG PACKER, 1978.

FEED MILL AND SILO COMPLEX, OMAHU ROAD, 1975.

page thirteen

EMPLOYEES WITH MORE THAN 20 YEARS’ SERVICE

Name   Department   From   To

Daniel Begley   Administration   1937   1960
Claude Bond   Feed Mill   1957   1981
Isobel Brown   Administration   1963   1986
Derek Douglas   Feed Mill   1956   1987
John Grove   Administration   1968  –
Roy Nicoll   Egg Floor   1950  –  1975
Matthew Parkhill   Administration   1938   1968
Cynthia Pattison   Egg Floor   1964  –
Terry Sandilands   Distribution   1956  –
Kevin Sellwood   Distribution   1962  –
Frank Smith   Administration   1961   1987
Trevor Walsh   Distribution   1958  –
Tom Wrenn   Distribution   1942   1978

FROM THE MINUTES 1981 – 87

1-9-1982   Altos computer installed – cost $48,340.

16-3-1984   Decision made to acquire assets of Bay Foods (H.B.) Ltd Lipton Place, Onekawa – cost $150,000 plus stock at valuation.

17-12-1984   Contract awarded to Hopkins Construction Ltd for construction of Kirkwood Road cold store – $705,336.

26-7-1985   Lipton Place premises sold for $95,274.

1-4-1986   Government moves to abolish controls on the marketing of eggs.

8-6-1987   Farm Products Co-op (H.B.) Ltd completes 50 years’ of trading with record turnover of $16,161,812 for year.

page fourteen

THE FIRST FIFTY YEARS

Initial sales were made up in the main with butter and “Kiwi” products, shortly to be followed at the request of poultry producers, by eggs and stock feed. The range of products was gradually extended with the passage of time as sales were spread into related products sought by the grocery trade.

From the mid 1970’s Hawke’s Bay province experienced little population growth and new avenues of trade were sought in order to sustain growth in sales. The obvious extension was into frozen food and with this in mind the company acquired Bay Foods (H.B.) Ltd with agencies in ice cream, frozen vegetables and bakery products.

Successful distribution of frozen food enabled the company to relocate freezer activities at Kirkwood Road, adjacent to the feed mill. Shifting of all activities to this site has become a realistic prospect with the development of the City of Hastings to the west, and renewed interest in the Paki Paki – Napier motorway.

COLD STORE FACILITIES, KIRKWOOD ROAD, 1985.

page fifteen

BOARD OF DIRECTORS AND MANAGEMENT, 1987.

Standing: L. Clay, R.L.E. Barry, S.J. Charmley
Seated: J.B. Grove (Company Secretary), A.M. Schultze (General Manager), D.R. Stephenson (Chairman), R.D. Keighley (Deputy Chairman), A. Hunt.

THE NEXT FIFTY YEARS

The beginning of the next 50 years is already proving to be a challenge and for us to succeed in a period of testing market trends the company must broaden its base to allow growth.

We are a company with a strong asset base which in turn gives us opportunity to play long-term strategy.

Staff are always a key facet in the success of any operation and it is extremely pleasing to be in a position to be able to promote and utilize existing personnel.

Along with the key resources and modern technology available we can approach the coming years with some confidence.

For myself and my team the challenges ahead are exciting especially in today’s changing economic climate.

As already mentioned changes have taken place and others are planned in the near future to help strengthen the existing infrastructure which is going to help us move into the next 50 years on a very positive note.

A.M. Schultze

General Manager.

page sixteen

GROWTH OF ANNUAL SALES 1962 – 1987

A decision was taken by the company to upgrade our feedmill to meet the demand of the live sheep export industry for pelleted product.

Equipment installed has given us the ability to produce a high fibre content product which is of the utmost importance in preparing the stock on the feed-lot at Maraekakaho prior to their sea journey to the Middle East.

The introduction of the high fibre product along with our existing range of feeds now allows us to offer to the poultry and livestock industry an extensive range of quality products in Hawke’s Bay.

Photo captions –

Production of high fibre pellets used for feeding stock held in feed lots prior to shipment from the port of Napier.

Load out of high fibre pellets destined for feed lots in Hawke’s Bay.

 

 

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Description

Surnames in this booklet –
Alexander, Andersen, Barry, Begley, Bond, Bridgeman, Brown, Burns, Burt, Carroll, Carston, Charmley, Clarke, Clay, Davies, Desmond, Devlin, Douglas, Elliott, Ferrier, Flynn, Friis, Frost, Galloway, Gordon, Gradwell, Green, Grove, Gunn, Hannah, Hansen, Harding, Hollis, Holman, Hosking, Hunt, Husband, Iggulden, Jackson, Jarden, Jenkins, Jones, Kale, Keighley, Kippax, Koenders, Lange, Langley, Lindsay, Little, Mabey, Malcolm, Mason, McConnon, McLaren, Mitchell, Morris, Moyle, Nathan, Newbigin, Nicoll, Nowell-Usticke, Oldham, Olsen, Omundsen, Pacey, Parkhill, Paterson, Pattison, Perry, Phillips, Picot, Powdrell, Richardson, Robinson, Rodden, Rogers, Sandilands, Schultze, Sellwood, Severinsen, Simmons, Smith, Southon, Speers, Steele, Stephens, Stephenson, Taylor, Velvin, von Dadelszen, Walsh, Walters, Winks, Wotherspoon, Wrenn

Note to booklet from Douglas Begley –

“The Knowledge Bank have received an archive of material from Mr D [Douglas] G Begley on the creation and later the Silver and Golden Jubilee celebrations of the national co-operative businesses marketing of dairy products, poultry and pig meat and by-products.

Started in 1930, these organisations came from a realisation by farm producers that the then disorganised way dairy products and other primary produce was being sold was not in the best interests of the producers, and ultimately the consumers. Hawke’s Bay and Wellington butter producers were the first to propose a co-operative organisation to handle the collection, manufacture and retailing of butter, cheese and other dairy products.

The movement became New Zealand-wide and spread to include producers of egg and pig products. These booklets tell the story of how the co-operative movement grew out of a disreputable selling practice including free gifts to shoppers, unlabelled butter wrapping, and no fall-back plan for the days when the hens go ‘off the lay’.

The photographs show the ‘latest’ equipment (in 1952) for egg pulping, butter patting and loading eggs into aircraft for air-freight to Wellington from Oamaru.

This collection particularly records the pioneering efforts of Mr D [Daniel] G Begley who is described as ‘intrepid’ in his efforts to establish the co-operative marketing practice.”

Business / Organisation

Farm Products Co-operative (HB) Limited

Accession number

545928

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