Information about NCMC membership

Northern Co-operative Meat Company Ltd
Producer Membership Information

Northern Co-operative Meat Company Ltd (NCMC) is a Co-operative registered under the N.S.W. Co-operatives Act 1992. The Co-operative operates a bovine service abattoir and a wet-blue tannery at its Casino establishment and operates a porcine service abattoir at Booyong. Producers are able to become members of the Co-operative by purchasing 250 stock units in the Co-operative at $1 per stock unit.

Membership Requirements

The two main criteria for the Co-operative to operate under the laws of the N.S.W. Co-operation Act are that:-

 (i)   Members must maintain “Active Membership”; and
 (ii)  Members are paid rebates and or direct consignment incentives based on business done.

Accordingly, the Co-operative maintains a system of recording “business done” by way of a “Property Identification Code (PIC) Weight Recording System.” The system assesses both a Member’s “Active” status during the year and records the weights of all veal, cattle and pigs identified by the producer of those animals. The system works on the basis that for every carcase, the PIC is recorded with the respective Hot Standard Carcase (dressed) Weight.

The financial year for both the collection of Hot Standard Carcase Weight (HSCW) and payment of rebates and dividends is from 1st July to 30th June each year. Members are invited to attend the Annual General Meeting in early November each year to discuss the Co-operative’s Annual Report and other matters, and any Special Meeting that may be held from time to time.

Active Membership

The “Active Membership” provisions of the Act as defined in the Co-operative’s Rule 15 states among other things the following:-

 In accordance with Part 6 of the Act:

 The slaughter of livestock (including without limitation to obtain hides, offal and by-products) is a primary activity of the Co-operative; and
 
a member shall:

• hold at least two hundred and fifty shares

• in the case of a producer, provide for slaughter, directly or indirectly through a licensed operator or other arrangement considered acceptable to the board, the equivalent hot carcase weight of 1,000 kilograms during the previous two financial years or 500 kilograms during the preceding financial year in order to establish active membership of the Co-operative.

 

 

Rebates and Dividends.

After the completion of each financial year, the Board of Directors may recommend a rebate and dividend be paid to Members for that year. This recommendation is considered and voted on by Members present at the Annual General Meeting in November.

The dividend declared is based on an amount for each $1.00 stock unit held. In 2007 the dividend was paid at 20 cents per stock unit, with the majority of Members now holding 250 stock units.

The rebate declared is based on Members hot standard carcase weight provided for slaughter to the Co-operative at Casino or to Cassino RSM Processing at Booyong. Rebates are based on the records kept by the Co-operative during the year.

The rebate recommended and paid to producer members since the commencement of this form of incentive in 1988, has ranged from zero cents to 7.0 cents per kilogram, subject to profits of the year. It should be noted that rebates and dividends are only recommended by Directors once the audited profit results are finalised for that year.

Incentive Payment

The Directors like to encourage all members to consign their cattle or veal directly to the NCMC abattoir. To encourage this the Board recommended that as from 1 January 2001 until further notice a quarterly incentive payment will be made to all producer members who consign cattle or veal directly to NCMC for processing. The Board has set the incentive payment for the current quarter of this financial year at 2 cents per kilogram HSCW.

Points to Note.

The following points should be noted:

1. The incentive payment is only available for livestock consigned directly to the Casino abattoir. Not all saleyard purchases reach this abattoir.

2. The rebate and incentive weights only accrue from the date the Directors have approved your Membership.

3. If you sell your property and no longer produce cattle or pigs, simply write to the Chief Financial Officer at PO Box 379 Casino NSW 2470, with a request for the Co-operative to repurchase your stock units. Your shares will usually be repurchased within the next 30 days.

4. Should a Member not reach “Active” status in the current year, (i.e. 500 kg this year or 1000 kg this year plus last year), this would simply mean that this Member would be unable to vote on matters such as the Directors Ballot, the Annual Meeting or a Special Meeting (if any). The Member still receives any rebate / incentive and or dividend payments approved for that year.

A member who is not “Active” for 2 full consecutive financial years would in accordance with the Act, be given 1 month’s notice and would forfeit their stock units. In this case the Co-operative would repurchase the stock units for their $1 value each.
 
General.

Directors encourage producers to visit either the Casino or Booyong plant whenever their livestock is being slaughtered and / or boned to assist with the development of their business / livestock. Following the livestock through the process may help you gain valuable knowledge of the carcase side of your business. Following weighing of the carcase, weight sheets and dressing details will be made available at our offices. Arrangements for your visit can be made through your Operator.

Upon return of your membership application form, written agreement to facilitate the creation of recipient created tax invoice form and $250 payment for 250 stock units your application will be presented at Directors next monthly Board meeting.

We trust that the above information is of assistance, and we are only too pleased to provide any information or answer any queries as they may arise. Should you have any queries concerning your membership please phone (02) 66600772 or (02) 66622444, send a fax to (02) 66622391, email us at jmckinnon@cassino.com.au or write to:-

Members Co-ordinator
Northern Co-operative Meat Company Limited
P.O. Box 379
CASINO  NSW  2470