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The Rural Voice, 2001-01, Page 43a Gay Lea declares dividend again More than 400 members and guests attending the Zone 1 annual meeting in Brussels, December 4 heard that Gay Lea Foods Co-operative Limited has declared a membership dividend for the 24th straight year. Though net earnings for the year were down to $2,344,000 in 2000 from $3,402,000 in 1999, the co-op will still pay a $788,500 membership dividend and $477,500 patronage dividend. Membership equity in the company also increased by 10.5 per cent this year and some 125 people were honoured for joining the 100 -share club, adding $1.4 million to the shareholder equity of the co-op. With the increase in both equity and retained earnings, the company now has 58 per cent of its $75 million assets in shareholder investment, said Tom McGee, outgoing chairman of the board of directors. The company's sales increased to. $232,286,000 for the year but higher expenses for utilities and transportation brought about by increased energy costs, plus absorption of some one-time costs associated with a move to an expanded warehouse in Weston, reduced the profit level. The shortage of butter fat increased the amount of butter solids the company had to purchase to maintain Gay Lea's first place position in butter sales and this cut margins. A shortage of milk, due to a 1.6 per cent decline in Ontario's milk production, also hurt powdered milk production at the company's Guelph plant. Cottage cheese sales increased from 10.8 to 11.3 million kilos and the company's Nordica brand is far and away the number one brand, said Paul McGowan, vice-president of production. Sour cream saw a huge increase in sales from 6.7 to 11.1 million litres. Gay Lea has also recorded strong sales as far away as California for its non-dairy whipped topping, sold in Canada and the U.S. under the brand names of various retail chains. News The company plans on spending $39 million in building a new milk - drying plant in Guelph on the site of the former Growmark feed mill next to the current Gay Lea facility. Company president Charles McDaid said members would be asked to take part in that investment, though he couldn't say at this point how much member investment would be sought and in what form. John Ellison of Listowel was re- elected as a director of the co-op by acclamation. Acclaimed as delegates to the convention were Roger Harrop, Don Moddison, Hugo Rentsch and Morley Trask from District 1; Eldon Bowman, Robert Martin and Larry Pletsch from District 2 and Margaret Hern, Fred Meier Jr., Margaret Hern, and Rowena Wallace from District 3.0 Farmers can meet medicated feed regulations Will farmers be able to continue to farm -mix medicated feed under controversial new Medicated Feed Regulations? Yes, says Martin Clunies of Grand Valley Fortifiers. Clunies told pork producers at a conference in Shakespeare, November 29, that it will require some additional paperwork and putting policies in place, but farm mills can meet the regulations by the deadline, April 2003 to 2004, depending on the kind of medication farmers use. "You'll have to say what you do and document it, and do what you say and prove it," Clunies said. Farm feed manufacturers will have to have written procedures related to how they manufacture medicated feeds, Clunies explained. The idea is that if the person who regularly makes the feed isn't available for some reason, someone else can step in and have precise instructions of how to do the job. Farmers will have to keep records to verify that these procedures have been adhered to. They'll have to keep records of daily feed production. Regulators will "hone in" on exactly how you handle medication in the feed, he said. Farmers will also need corrective action plans: if you put the wrong medication in a feed, what do you do to deal with it. "You have to set in place some sort of instructions," he said. As well as the paperwork, the key to proper proportions of medication in the feed will be the accuracy of measuring equipment, Clunies said. All scales should be calibrated at the time of installation and at least once annually or as frequently as necessary to ensure proper functioning. New scales must be within one per cent accuracy while older scales will be allowed two per cent variation. For each scale there must be a written set of procedures for validation and checking for accuracy. For metering devices and volumetric proportional mills, calibration should be done as often as needed to ensure the mill is consistently producing feeds accurately. The mixing process is a critical point in the manufacture of medicated feeds because poor mixing uniformity will result in variability of the drug in the final feed, Clunies explained. Mixer validations should include a mixer evaluation test to determine the variability of the final feed produced. Mixers should be validated when installed and at least once annually as well as after any major change such as changing a mixer paddle or an auger in a proportion mill. All medicated feeds made by a licensed manufacturer must be produced in a predetermined sequential order to reduce the risk of drug cross -contamination, Clunies advised. Small quantities of feed from a previous batch of medicated feed can, if left in the mill, contaminate non -medicated feed intended for market pigs. Sulfamethazine from pig starter diets can contaminate hog finisher rations and can result in the condemnation of hog carcasses for sulfa residues. Because of those dangers, Clunies advised adopting the following schedule: JANUARY 2001 39