GROWMARK Reports 2009 Financial Results

October 25, 2009 07:00 PM
 

GROWMARK officials reported results for the fiscal year that ended August 31. Senior Vice President of Finance Jeff Solberg announced sales of $6.1 billion for the 2008-09 fiscal year; GROWMARK net income is $96.9 million. More than $82 million in patronage refunds will be returned to GROWMARK member cooperatives.
 
The Energy Division posted strong income again in 2009. Investments continue to be made in infrastructure with biodiesel blending capabilities at the Menard County, Ill. terminal and at Madison Service Company's Roxana, Ill. bulk plant.
 
GROWMARK received more than $50 million in patronage from the National Cooperative Refinery Association (NCRA). The cooperative owns nearly 19 percent of the refinery operation located in McPherson, Kan.
 
GROWMARK Seed Division sales totaled $240 million, a 23 percent increase over last year. An increase in FS seed corn volume helped lead the sales increase.
 
An 18 percent sales increase was achieved by the Crop Protection Division. GROWMARK recently reorganized field-level personnel to support crop specialists in creating and delivering whole-farm cropping plans through FS Green Plan Solutions.
Plant food operations resulted in a loss for the year due to a very difficult declining price environment throughout the year. The worldwide economic downturn created significant demand destruction and oversupply of fertilizer, resulting in a huge drop in fertilizer prices after inventories at GROWMARK were in place for fall application.
 
The cooperative's Facility Planning and Supply Division posted increases in sales and gross income for the fourth consecutive year. Contributing to this success was the construction of commercial grain storage facilities and programs with equipment manufacturers as FS member cooperatives invested in application equipment and rolling stock.
 
In addition to grain partnering efforts with local FS member cooperatives in Illinois and Ontario, Canada, the GROWMARK System is adding storage capacity and connecting farmers with more end-use markets through a partnership with Central States Enterprises.
MID-CO Commodities had $1 million in income this year and will return $250,000 in cash patronage.
 
AgriVisor, LLC, a joint venture between GROWMARK and Illinois Farm Bureau, continues to bring a broad spectrum of products and services which help producers develop and implement risk management strategies tailored to their operations.
 
 

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