Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1917-01-16
FARMERS COOPERATIVE
PACKING COMPANY
From The Wisconsin Farmer)


ty, has, now been III operation almost
a year. It's success has been watched
very closely by those interested in
such enterprises, as they affect the
farmer, and all the more since similar
plants are now under construction in
Madison, Dane county, and New Rich
mond, st. Croix county.
There has always existed more or
less doubt whether such cooperative
enterprises. with the big packers as
competition. can succeed. The Wau-
sau group of farmers are rie second
group in Wisconsin to So organize.
Two years ago farmers near Lacrosse
co-operated to this end and bought
private packing plant, but its opera
ton has met with many ups and downs
and at the present time it is closed
with the hope of reopening during the
coming months. So with new plants
at Madison and New Richmond soon
to begin operations, the natural ques-
ton is what is the plant at Wausau do
ing, and is it returning to its farmer
patrons better price han could have
been secured had these patrons
shipped their stock to Chicago or other
markets. In answer, It can be said
that the Wausau plant meets the mar
ket quotations and there is certainly
saving in freight, shrinkage, ETC., on
the shorter haul to Wausau than on
the longer hauls to the outside market.
There also remains the opportunity for
the stockholders in the company to
share in the dividend if the company
makes a profit.
The Wausau company is capitalized
at $250,000 and the first killing was
done on last January 18th. Its plant
was built at cost of $1S0,000, and an
editor of The Wisconsin Farmer ac-
knowledges with pleasure the courtesy
extended to him recently on visit to
the plant. 1t is model of convenience
and cleanliness and has been built
along the most advanced lines in pack
| ing plant construction. 1t has its own
refrigeration system, it's own house
| for icing cars of dressed meats. The
building is of fire-proof construction,
| four stories high and 11SxS7 feet in
size. 1t has cold storage capacity to
| take care of from $4,000 to 10000
pounds of dressed meats and it is con-
| tended that such a plant, to be eco
| nomically operated must be able to
carry this much meat in storage.
| These are details that must all be
| worked out in management and con-
| Germ the farmer little so long as the
| plant is operated at a profit and that
he is getting good prices for his stock.
The functions of packing plant are
! twofold-to dress and then to sell. The
business has been recognized as high
ly speculative If the stock comes in
so fast that the plant soon becomes
overstocked and cannot sell its prod
1
essential is to receive just enough
stock daily to keep the plant working
nicely and not to stock the stock
rooms with dressed meats so heavily
that it cannot be readily sold and
! moved.
If every one of the stockholders, of
which there 1000, shippedto the Wau-
sau plant in the same week, it would
have more than it could care for and
probably for two or three weeks would
have nothing. So the first plan follow
ing organization was to divide the
Wausau territory into shipping dis
tricts and by the organization of local
shipping societies regulate the ship
ment of stock to meet the daily needs
of the plant There are now thirty
four of these local associations with
a manager at each shipping point, and
in this way the company at Wausau
can notify when to ship and when not
to ship. The practice during the kill
ing season is for each association to
ship once every two weeks, and this,
it has been found, provides a steady
plant working normally and not over
stock its yards and tying up it's money
in that way.
Mr.. L. C. Hoopman, manager, be-
lieves that the shipping association
plan is the ideal one for cooperative
plants of this kind None but stock
holders are permitted to ship unless
there is shortage, when outsiders
may ship to the plant, but without
these organizations, Mr. Hoopman says
the yards would be oyeriiowing and
| empty the next
Farmers at some particular shipping
point organize local association and
the company appoints a manager
whose pay comes from an assessment
of cents per hundred on stock ship
ped. He receives, marks and ships
the stock, makes up the records and
the company pays the manager on the
basis of the Wausau weight. The
manager furnishes the assistants
needed, marking equipment, feed, bed
| ding, ice, ETC., so that the charges
against the farmer are very small and,
therefore, his income the maximum.
These associations also establish a
] sinking fund, raised by an assessment
| of cents per hundred. which is used
to meet unusual expenses such as
losses in transit, etc. Some animals
may be crippled or may die en- route
and the owner is reimbursed out of
this sinking fund. When the stock