GROWMARK, Inc.
With the busy growing season of 2010 in progress and the last of the FS Co-operative’s 2009 annual meetings complete, it is a time to take a good look at year-end results. And from all reports, it is safe to say, that even despite the economic unrest in 2009, it proved to be a very good year for Ontario agriculture co-ops.
“It is a good time for agriculture,” says Claude Gauthier, Ontario region manager for GROWMARK. “The success of these co-ops ultimately transcribes into the success of its farmer-customers.”
“Each co-operative shares its success with its members in the form of patronage refunds or by enhancing its operation, therefore, making the local farmer and community the real heart and backbone behind the co-op.”
The history of ag co-ops in Ontario dates back more than 95 years and over those nine decades has evolved and re-identified itself through ownership, acquisitions, mergers and branding, but the one thing that stays constant is the strong network of innovators, experts and loyal co-operators that drive the sector forward. This remains evident with the Ontario FS System reporting record profits for 2009.
“The richness of this culture not only relates to sales numbers, but also in co-operative spirit that involves community support through youth programs, local events and charities,” says Gauthier.
Here are some examples of reported success within the FS System in Ontario:
North Wellington Co-operative Services Inc.
On sales of just over $24 million and net income coming in comparable to last year of just under half a million dollars, North Wellington Co-operative Services returned $124,000 in cash patronage to members compared to $60,000 in 2008 and returned $135,000 in member loan interest in 2009.
North Wellington Co-operative also reported that its general reserve has reached an all time high of $4.3 million which is a very healthy indicator of core strength and sustainability for the co-operative.
In 2009, North Wellington Co-operative celebrated its 65th anniversary and invested in a new central feed warehouse that is large enough to serve all four branches and customers of the co-operative. Its board of directors led by President Eric Rae of Harriston, remains unchanged.
John Turvey, general manager
Wanstead Farmers Co-operative Co.
A new record for pre-tax profit of $1.018 million derived from $35 million in sales was the positive message given to members of Wanstead Farmers Co-operative. Its farmer-members received $235,000 in cash patronage and the co-op spent $400,000 on equipment upgrades and also reported that its membership is solid with almost 80 per cent of its business conducted through its membership.Wanstead Farmers Co-op received two GROWMARK Top 20% Improvement Awards recognizing substantial sales increases and credit management success. Tony Straatman of Petrolia was newly elected as president for Wanstead Farmers Co-operative.
Vineland Growers Co-operative Ltd.
The fresh fruit region of Niagara is home to Vineland Growers Co-operative, the oldest agricultural co-operative in Ontario with its 100th anniversary approaching in three years.
Vineland Growers Co-operative President Phil Tregunno reported that the co-operative returned just under $1.2 million in patronage-rebates and produced $33.5 million in sales and has seen steady growth in returned earnings over the past five years amounting to over $1 million.
This year was especially rewarding when Vineland Growers Co-operative received the Chamber of Commerce (Town of Lincoln) Most Outstanding Business Achievement Award in the large business category.
AGRIS Co-operative Ltd.
AGRIS Co-operative boasted sales of $70 million and $175 million in sales for its grain business partnership with GROWMARK, Great Lakes Grain.
Pre tax income for AGRIS resulted in twice as much as last year of $2.73 million and its members also saw their patronage rebates double from 2008 to half a million dollars in 2009. AGRIS received The GROWMARK Top 20% Improvement Award for increased sales volume. In 2011, AGRIS Co-operative will have reached its 90th year anniversary.
Recently AGRIS Co-operative ventured into the solar energy business and created a new farmer-owned company called AGRIS Solar Co-operative that gives its members the opportunity to invest and participate in the development of renewable energy within their local communities.
David Malott of Muirkirk is president of AGRIS Co-operative as well as AGRIS Solar Co-operative.
Allan Scott, general manager
Lucknow District Co-operative Inc.
Lucknow District Co-operative reported excellent financial results for 2009, and was very focused on its investment strengths.
In 2009, Lucknow Co-operative invested in new equipment and renovations and has budgeted approximately $900,000 for 2010 on capital additions that will provide added value for its farmer-members and their operations.
Sunderland Co-operative Inc.
Sunderland Co-operative is celebrating its 60th anniversary this year and is noted for the most consistency with a perfect track record of success in providing patronage to its members since it began in 1950. Sunderland Co-operative President Doug Johnson of Keswick reported 2009 sales results of $46.5 million with member returns of $550,000 in patronage.
Sunderland Co-op received The GROWMARK Top 20% Improvement Award recognizing substantial increases in sales.
Clare Hayes, general manager of Sunderland Co-operative has been nominated by the board of directors for the 2010 Ontario Co-operative Association’s Distinguished Co-operator Award. Hayes announced his plans to retire at the end of this year after nearly 42 years of service to his co-operative.
Thunder Bay Co-operative Farm Supplies
Thunder Bay Co-operative Farm Supplies President Fritz Jasper reported its best year ever in its 57 year history. Members were rewarded with a four per cent dividend this year and for the past four years prior. They reported sales of $3.5 million and returned $52,000 in patronage to members.
Thunder Bay Co-operative has expanded by purchasing a small feed company this year which will add to their product offering and additional growth.
Huron Bay Co-operative Inc.
Huron Bay Co-operative reported profits of just under $130,000 in 2009 on sales of almost $35 million in sales. The co-operative has served local area farmers since 1951 and now has a membership base of approximately 1,500.
The co-operative recently elected Allan Smith of Tara as president and three new directors: David Kuntz of Walkerton, Sam Luckhardt of Owen Sound and Doug Jeffray of Wroxeter.
Co-opérative Régionale de Nipissing Sudbury Ltd.
Co-opérative Régionale de Nipissing Sudbury showed great strength in acquisitions in 2009 with the purchase of a feed business called Northern Feed Supplies in New Liskeard and the heating, farming and commercial fuels business from Norstar Petroleum located in Azilda. It also operates a fertilizer blender and grain handling facility in the Temiskaming region.
The co-operative’s President Raymond Brouillette of Verner reported sales of $47.6 million and returned $373,000 to its members in patronage.
Nipissing-Sudbury Co-operative was especially flattered to have GROWMARK’s President Dan Kelley attend their annual meeting. “Having Mr. Kelley attend our annual meeting was a very special highlight and an honour for our employees and our members,” says Savage.
La Co-opérative Agricole d’Embrun Ltée
La Co-opérative Agricole d’Embrun showed great success in its sales numbers but also in its investments. At a cost of $1.3 million, two new grain storage bins were erected that hold an additional 5,800 metric tons of grain, two new trucks for petroleum and fertilizer along with some new feed equipment was invested back into the co-operative. The new grain bins were filled to capacity almost immediately maximizing Embrun Co-ops total holding capacity of 15,000 tonnes of corn.
The president of Embrun Co-operative, Robert Gratton of Casselman, reported annual sales of $68.5 million and returns to members in the form of patronage of $125,000 as well as member loan interest of $116,000 was paid out to members.
Embrun Co-operative received a Top 20% Award from GROWMARK recognizing substantial sales increase.
FS PARTNERS
FS PARTNERS, a retail division of GROWMARK that manages 13 FS locations also was successful in its first year as a GROWMARK division and met its financial targets and objectives set for 2009. FS PARTNERS underwent a large restructuring during the spring of 2009 that resulted in a transfer of ownership of four member co-operatives it managed to become a division of GROWMARK.
Alex Elliott, general manager
Great Lakes Grain
In 2009, the grain sites owned by GROWMARK within the FS PARTNERS retail division joined with AGRIS Co-operative to form a larger Great Lakes Grain that represents close to 18 million bushels of storage capacity with total marketing in excess of 30 million bushels serving more than 30 locations throughout south western and central Ontario.Together—the FS Co-operative System in Ontario finished 2009 with exceptional year-end results providing patronage refunds to farmers of almost $3.2 million! This is not only good for co-operatives, but most importantly for the farmer-members and for the communities they serve.
