DFC reports strong performance
DFC Board President Dan Vetter called the meeting to order at 7 p.m. There were 87 patrons in attendance, including representatives from Logan, Emmons and McIntosh County Farmers Union and members of the Board of Directors of South Central Grain.
Tim Rath read and received approval of the prior year minutes.
Unfinished business included notice that no changes will be made to equity retirements. There was no new business.
General Manager Nick Breidenbach shared the yearend financial results as follow:
Sales Revenues: $44,305,450 compared to $31,436,237 last year, an increase of 41 percent.
Local Net Savings: $1,745,835 compared to $1,160,872 last year, an increase of 50 percent.
Total Net Savings: $4,432,370 compared to $1,949,090 last year, an increase of 112 percent.
Working Capital: $3,414,457 compared to $2,219,571 an increase of $1,194,884.
Patronage rate of return for Fiscal Year 2013: 9.3 percent (40 percent distributed in cash and 60 percent distributed in equity with a target revolvement of 14 years).
Breidenbach’s business review included an analysis of the strength of the cooperative’s financial position and equity security along with a summary of cooperative activities to facilitate future growth, profits and sustainability.
“The ability of the cooperative to provide acceptable rates of return like this year depend in large part to the participation by its members in utilizing our products and services along with DFC’s ability to continue our strategy of calculated growth and expense control,” Breidenbach said.
He continued by explaining the value of the cooperative business model saying, “Your co-op, the company you own, is here to provide products and services to you at the lowest net cost. We continue to be able to do that because more and more of our customer owners see value in doing business with us which in turn gives us more leverage in the market and allows us to increase our returns.”
Breidenbach concluded his report with an update on the merger/acquisition of AgVantage Cooperative in New Salem.
President Vetter closed the evening by thanking both the patrons and employees of DFC for their contributions to the cooperative’s success.