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The Wingham Advance-Times, 1984-03-21, Page 46The Farm Edition, Week of March 21, 1984 - 15 Over 300 delegates attend UCO'S 36th annum meeting The 300 plus delegates at the 36th annual meeting of United Co-operatives of Ontario, (UCO) gave a resounding vote of confidence to UCO's Board and Management, for their activities this past year, in leading the. agricultural co-operative through major structural changes. The show of support came after a day long meeting in which the delegates, who repres- ent the 48,600 shareholders in the Co-opera- tive, heard both good news and bad news. They heard that UCO had lost $7.8 million in fiscal '83 but that this loss is tempered by the sale of assets and by actions finalized in the third quarter, taken to eliminate losing operations, thus producing the best fourth quarter results since 1979. Also, the positive fourth quarter trend continues into the new fiscal year with profit of over one-half million dollars in the first two months. "We've gone through a yearlike no other, in a marketplace with abnormal weather set backs and intense, almost irrational compe- tition in all of our commodity businesses," Albert Plant, chief executive officer, told the meeting. "We may be abit shell shocked, but we are proud of our tenacity, flexibility and dedication to the co-operative spirit, that I feel is just waiting to fire up." In fiscal '83; UCO sales increased to $501,000,000, a one per cent increase over the previous year - a significant increase, however, when considered that the whole farm market in Ontario declined by two per cent. Gross margins declined by about $9.5 million and member equity dropped to 15.2 per cent of total assets. As part of UCO's three year Renewal Plan a number of negative assets were sold, in fiscal '83, including the poultry processing business, a car and truck fleet and the head office building in Mississauga, both of the latter being leased back. UCO also terminat- ed its boat charter. There are extensive re -organization of the retail structure, a 'back to basics' program with delegates, directors and members, and a reduction of employee numbers by about 500. "We can see that these activities, along with others, began to have a positive impact in the last quarter, when they were first implemented," said Ron Wilson, vice president, Planning and Control, while presenting the financial statement. "I feel we have also eliminated potential losses for next year of about $14 million. We can now look forward, and be confident that the worst is behind us and that we can forecast at least a break even for 1984 and a profitable 1985." During this past year, UCO's feed division made gains and market penetration in dairy, beef and swine supplements, with successful new products such as the Flaked Calf Grower and Supreme 19 per cent Pig Starter. Crop division also had successes this past year, for UCO was the only company in Ontario receiving licenses for six new corn hybrids. In petroleum sales on the farm, UCO took market share and in grain marketing, profits began to exceed costs in the last part of the fiscal year. In the sale of home products, htere was a 19 per cent sales increase and an increase of 53 per cent in the sale of lumber and building supply products. Bob Down, UCO President, in his speech, reinforced to the delegates that a great deal had occurred tis past year to give a sounder financial base to the Co-operative. "It's now up to us (elected representatives) to tell our members about it," he added. "Everybody wants to be on the winning team. Today, that's us. We have to spread the word, against all the rumors, misconceptions, and misinformation. The future of .our business is very much brighter today than it was a year ago." UCO is the largest farm supply and marketing co-operative in Ontario. It provid- es a complete line of farm inputs, including feed, seed, fertilizer, petroleum and hard- ware through about 100 Co-op Sales and Service centres across the province. It also markets livestock and grain. UCO is owned by 48,600 individual members and 46 member co-operatives representing an addi- tional 39,000 members. Propane can be a big money saver for farmers Converting farm vehicles from gasoline to propane can be a big money saver for farmers. David Culver, an energy economist with Agriculture Canada says not only is propane cheaper than gasoline, but conversion will also reduce maintenance costs and extend engine life since propane is a cleaner burning fuel than gasoline. Conversion of diesel powered equipment is still too costly to be considered a viable alternative for the farmer. "The cost of converting varies a great deal depending on the situation," Mr. Culver says. When itcomes to converting on farm eep�+apme at i4 . l say: rlie cost depends on refueling facilities. If the farmer already has propane storage on the farm for beating or grain drying, then the addition of a $50.06 hand pump will be the only additional expense. If not, then he faces an outlay of about 52,500 for a storage tank and pump. "Where a farmer can refuel his truck at a local refueling centre, the only expense is the actual conversion cost - about $1,600 - which is partially offset by a $400 grant from the federal propane grant program," Mr. Culver says. According to Mr. Culver, farmers con- sidering converting should estimate the cost of converting and the amount of energy used on the farm. "Three years is a reasonable pay back period. If the farmer can't recover his conversion costs within three years, then he should not consider c" . sr Assuming a price difference between gasoline and propane of 25 cents a litre, Mr. Culver found that it would be uneconomical for any farmer using less than 1,000 litres of fuel to consider conversion 'of his truck. An annual consumption of 2,500 litres would make conversion economical as long as the price difference was 20 cents a litre or better. And conversion would be economical for the farmer who uses 4,000 litres or more even if the price difference was only 10 cents a litre. Conversion of on farm equipment is worthwhile for the farmer who already has on farm propane storage when his fuel use is 3,000 litres or more and the price difference between gasoline and propane is at least 20 cents a litre. If he burns 6,500 litres or more, then it is profitable if the price difference is as_io a_Ld cents a litre,— For farmers who have to make the additional cost outlay to install propane FARMING Headquarters Lucknow Grain Buggie ALSO • Lucknow Mixer Feeders ° Lucknow Snow Blowers • Steel storage facilities, the farmer needs to be consuming 6,500 litres a year to make the conversion economical at a 25 cent a litre price difference, or 10,000 litres to make it worth his while at 15 cent a litre difference. Propane powered vehicles require a stronger tank than gasoline vehicles and it must be larger to provide for the same distance driven. But Transport Canada tests have found that propane does not increase the risk of explosion or fire if a vehicle is involved in an accident. The use of alternative fuels by the farm sector would help by reducing the ned for oil imports. Propane is made primarily from natural gas, of which Canada has a large surplus. Canadian farmers own some 936,000 gasoline powered vehicles. Each farmer buys an average of86 litres of gasoline and 7,800 litres of diesel fuel every year. Bulk Feed Tanks ° Stationery Mixers • General Fabrication HELM WELDING LTD. W CKNOW SZ9-7647