Solid volume growth in GROWMARK business units produced record sales for the cooperative for the 2014 fiscal year, as numbers reported last week at the annual shareholders meeting in Chicago reveal.
Retiring GROWMARK CEO Jeff Solberg reported estimated sales of $10.2 billion, with pretax income estimated at $180 million, which once again exceeds the key financial target of 12 percent return on capital. An estimated $90 million in patronage refunds will be returned to GROWMARK member cooperatives and farmer-owners. “The GROWMARK System has spent the year strengthening the foundation of excellent products and services that the FS brand is known for: taking care of business but also Building on the Best and Bringing You What’s Next,” said Solberg.
The Seed Division had an excellent year with 3.5 million units of corn and soybeans shipped, thanks in part to a well-managed program called “Member Millions,” which has brought a lot of attention not just to selling seed but ensuring an adequate supply and providing timely delivery.
Plant Food also had a very good spring season as position and risk management captured income opportunities, along with higher volume movement. In the GROWMARK Retail Grain business segment, volumes recovered from the drought of 2012, but markets did not provide the opportunity to meet expected profitability. In spite of this, grain recorded sales volume of 200 million bushels and pretax income of $5 million. GROWMARK’s commitment to the grain business works to ensure there is a farmer-owned grain marketing system in our GROWMARK territory.