Newsletter Archive

Defining Service, Commitment, Excellence by Jim Magnuson, General Manager

Heart to Heart, October 2009 Connections

The progress of your cooperative through the first six months following the merger continues to be good.  Operating and financial results are ahead of plan and position the company very well for the future. The eight month fiscal year ended September 30, 2009. In the coming weeks, the accounting staff will get the books ready for the year end audit with final results expected by mid to late November. 
Annual meetings will be held in both the NW and SE Regions in January 2010. Terms for Directors Kevin Baldus and Terry Leonard, and Associate Directors Dave Hill and Nick Bunse expire in January 2010. An election will be held for two directors, reducing the board from fourteen to twelve members. The board will then be at its long term size with ten voting directors (five from each region) and two associate directors (one from each region). All four directors are eligible to be candidates for the two three year terms. Any Class A voting member who has an interest in serving on the Board of Directors is encouraged to contact a member of the Board of Directors by early November.

The Board of Directors has approved the installation of a new grain dryer at the Zearing location. Zearing did not previously have a grain dryer limiting receiving of wet grain. The new dryer is scheduled for delivery on October 12 and to be in operation shortly thereafter. The need for additional drying capacity in the NW Region was identified as a priority at the 2009 Board Planning Session. We were fortunate to secure equipment and a contractor for 2009 construction rather than waiting until 2010 as originally planned. A bonus feature of the plan provides for future installation of a second receiving pit.

The Board of Directors and Management Staff met in August to evaluate your cooperative’s progress and begin to chart a course for 2010 and beyond. Looking ahead was a challenging task, especially considering the extreme volatility of the past two years. Unfortunately, wild market moves and high risk may be the new “normal.” The lessons learned should help us deal effectively with this new reality. With this challenging business environment in mind, the Directors re-affirmed the direction and priorities of your cooperative.   The principles of Service, Commitment and Excellence will continue as our primary mission and promise to members and customers. 
 

Service is defined as meeting the genuine needs of customer/members while mutually benefiting the customer and the cooperative. Commitment is defined as dedicating our resources and talents to enhance member benefits; using sound, long term business and risk management principles; operating with integrity and transparency; and protecting and enhancing the equity investment of members. Excellence is defined as providing highly skilled personnel; continuously striving for improvement; continuous improvement in capacity and efficiency; and consistent, superior financial results.
 

During the past two years and continuing into the foreseeable future, access to needed debt capital will require higher levels of annual profit and a strong financial position. The recent financial crisis and continued restrictions in bank lending make it very clear only the best companies will be able to access adequate capital in the future. Banks will make their decisions based on the profit performance of the business. As a cooperative, we will seek to balance this strong business approach and the needs of our member owners.  It is in this balance that we will find long term success and build a cooperative that will stand the test of time.