Times Advocate, 1994-10-19, Page 19U.S.
group
taking
over
UCO
New control of the
money-losing
parent co-op won't
affect the Hensall
and District Co-op
too much, agrees
local management
By Adrian Harte
T -A Editor
MISSISSAUGA - An Amer-
ican co-operative has announced
its intent to acquire the assets of
the United Co-operatives of On-
tario.
Thursday, the announcement
came that a letter of intent has
been signed between Growmark
Inc. and the UCO. The Bloom-
ington, Illinois based company
would also purchase the UCO's
50 percent share in UCO Pe-
troleum Inc.. which is a joint
venture between the UCO and
Sunoco Inc.
Terms of the purchase have
not been revealed.
Growmark is a regional farm
supply and grain marketing co-
operative, retailing through
more than 90 local member co-
operatives with several hundred
locations in Illinois, Iowa, and
Wisconsin.
Growmark's plans to acquire
UCO includes a letter of intent
to enter into co-operative re-
lationships with the member co-
ops that previously owned UCO,
now under bank control. Grow -
mark's representatives say they
plan to retain most UCO em-
ployees to run a regional office
and facilities in Ontario.
The announcement comes af-
ter several years of financial
losses for UCO, even though the
largest farm supply and mar-
keting co-operative in Ontario
predicts sales this year will total
$179 million, plus another $200
million from the petroleum divi-
sion.
"UCO members and leaders
have been searching for a solu-
tion to provide exceptional ser-
vice to the province's farmers,
and maintain the longevity and
financial strength of the ag-
ricultural co-op system in On-
tario," said UCO chief executive
officer Gordon Cummings. "By
working with Growmark Inc.,
Ontario's agricultural co-ops
will remain firmly fixed in
grass-roots Ontario but have
greater global influence and fi-
nancial security."
Earl Wagner, manager of the
Hensall and District Co -Op said
he expects few changes to the
local operation with the change
of hands of the parent organiza-
tion.
"Basically, we don't see it af-
fecting us at all," said Wagner.
The Hensall Co -Op wrote off
some $400,000 in UCO shares
last year, when they became
worthless, capping what Wagner
described as a decade-long poor
financial history for the UCO.
Wagner said the UCO's mis-
fortunes were a "combination of
things that weren't working for
them". The Windsor Grain Ter-
minal purchase proved a bad in-
vestment, in hindsight, and cor-
porate overhead remained high.
Wagner said Growmark, on
the other hand, is a "strong fi-
nancial business" that he under-
stands will "take on UCO, busi-
ness as usual" with few changes
for member co-ops.
He said he expects the Hensall
and District Co -Op will begin to
accumulate dividends under the
new Growmark system.
"Hopefully, they'll be worth
something this time," said Wag-
ner.
I'I\t,i\l
A New
Spirit of
Giving
A national provers giving
and vollineierieg
EARMJIPDATE
Cattlemen converge in Hensall
Times -Advocate, October 19, 1994
Page 19
The sales arena was busy as buyers and sellers look for the best deals
Story and photos
by Fred Groves
T -A staff
HENSALL - It's 11:30 a.m. and slowly the anticipation
builds.
Dozens of cattlemen (and some women) from across South-
western Ontario pace the manure -bottomed stalls, looking
for something only their experienced eye can spot.
An hour -and -a -half later they remove themselves from the
stalls and take their seat in the bidding bleachers.
The fruits of their intense labour begins to harvest as they
see what they want and bid on it.
October is the time of year when the Hensall Livestock
Sales Arena comes alive. Buyers and dealers alike try and
get the best value for their buck.
On Saturday, Lucan's Bob Tindall and his son Rob came
to sell some of their cattle. They weren't in a buying mood
but were very curious to the days proceedings.
"We're selling and we're looking for the best price we can
get. Your whole years work is gone in 25 minutes," said
Bob Tindall.
The two have been coming to the Hensall Sales for five
years and as they sat in the stands awaiting the cattle to be
brought into the auction pen, were optimistic about re-
ceiving a good price for their livestock.
"We feel it's going to be off but we're optimistic. One
thing about an auction, you sell to the highest bidder."
The owner -manager of the Hensall Livestock Sales Arena
is Barry Miller and prior to the sale he was taking buyers
through the pens to get a close up look at the over 800 cat-
tle.
For the past 35 years, the Sales Arena has been an outlet for
farmers to buy and self not only cattle but on Tuesdays it is
pork which is on the auction block.
Miller explained that the arena basically had five types of
cattle on Saturday - Charolais, Limousin, Hereford, Angus
and Blondes. A year ago, the price was about $1.40 a pound
but that is slipping down to $1.20.
"Yearlings and calves are $15 to $20 cheaper than they
were last year," said Miller.
An experienced cattleman himself, Miller said that a year-
ling would conte in at about 700-950 pounds while calves
were 400-650 pounds.
While the pens in the back of the arena had various num-
bers and breeds, Miller said he and his staff have to separate
them so the buyers in the arena can buy them in lots.
"They are sorted into bunches of 10 to 20 by quality and
breed."
Stocker sales are held in both the spring and the fall and
anyone wishing to sell cattle at the sale, contacts Miller and
he has them picked up and trucked to Hensall where they are
usually all in by Friday night.
"They arc picked up at the farm from a 50 -mile radius."
Some cattle farmers will have calves born on their own
farm and raise them all the way up and then sell them. Oth-
ers, like those who participated in Saturday's sale, buy them
from others and raise them up to where they will be sold.
"These are all stockers, they all go back to feed on the
farm," said Miller.
Curious spectator: The arena was filled with over 100
Demo Days in Hensall
Hyde Brothers of Hensel! offered a "demo days" event on a
field just north of Exeter on Friday. Here Mike Crunican
(left) checks out a new Agco Allis tractor with the help of
Agco area representative Mark Jeffries.
`Healthy calf'
workshop returns
to Tavistock
TAVISTOCK - Veal producers
will learn to identify and treat dis-
ease in calves, combat shipping
stress and formulate good starter ra-
tions at the 1994 Healthy Calf
Workshop: Tavistock Dairy Sales,
Thursday, November 3 at 8:00 p.m.
The Ontario Veal Association
and the Tavistock Dairy Sales arc
hosting the Healthy Calf Workshop
following the success of the BVD
awareness program held last fall.
Sponsored by Sanofi, Shur Gain
and SmithKline Beecham, the calf
health theme will give producers
the opportunity to learn good health
practices for young stock.
The two-hour program will fea-
ture demonstrations of proper vac-
cination and esophagael tube feed-
ing. Good housing and ventilation,
disease protection in the dairy herd,
parasite control and the role of calf
feeds and growth promotants round
out the program.
Cost of the Healthy Calf Work-
shop is $5, free to all kVA mem-
bers. A Tight lunch wilt served.
Contact the Ontario Veal Associ-
ation for more information at (519)
824-2942.
buyers and sellers and there were even some curious onlook-
ers who just wanted to keep a close tab on the cattle market.
One of those was Vama's Dean Aldwinckle who doesn't
buy stockers but, rather raises them right from calves. On
Saturday he was keeping an eye the prices. A cattle man for
40 years, he knows what the buyers were looking for.
"You are looking for conditioning. Some of them will have
no stomachs and they bring more money," said Aldwinckle.
What he was referring to was when the cattle are brought
in the night before, they are not fed and therefore empty out
their systems. Buyers won't buy bloated cattle which just ate,
they can tell the difference.
When he arrived, Aldwinckle was surprised that the arena
was not very full even 15 minutes before the 1 p.m. start. But
as he was speaking to his colleagues, dozens more arrived.
"I've never seen 1 o'clock come and you were able to get a
seat. I know it's good weather. These guys will get some bar-
gains out of here."
Farming is, and always has been a gamble. That not only
includes cash crop operations but, as Aldwinckle will admit
to, even after 40 years, cattle farming is a risk.
"We finish out," he said of his operation. "We fatten every-
thing we raise. In Denfield (another sales arena) we got less
than a dollar a pound. That's the lowest its been this year."
"We have lots of problems we had a cow that had twins.
She didn't know she had twins and killed them both."
At the end of the day, Miller said calves averaged about
$1.20 per pound while the yearlings went for about 92 cents
per pound.
There were 800
cattle up for sale
on Saturday at
the stocker
sales. Above,
one of the lots in
the pens behind
the arena. At
right, buyers and
sellers get a
close look
during the
auction.
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