Growmark positive despite fert results

Bloomington, Ill.-Driven by a strong performance from its Energy, Seed, and Crop Protection divisions, Growmark Inc. reported sales of $6.1 billion and net income of $96.9 million for the fiscal year ending Aug. 31. Spurred by an increase in FS seed corn volume, Growmark Seed Division sales totaled $240 million, a 23 percent increase over last year. An 18 percent sales increase was achieved by the Crop Protection Division, and the cooperative’s Energy Division continued to see investments in infrastructure with biodiesel blending capabilities at the Menard County, Ill., terminal and at Madison Service Company’s Roxana, Ill., bulk plant. Growmark owns nearly 19 percent of the refinery operation located in McPherson, Kan., and said it received more than $50 million in patronage from the National Cooperative Refinery Association (NCRA). Plant food operations for the co-op, however, resulted in a loss due to a declining price environment throughout the year. The worldwide economic downturn created significant demand destruction and oversupply of fertilizer, the cooperative said, resulting in a huge drop in fertilizer prices after inventories at Growmark were in place for fall application. Growmark’s Facility Planning and Supply Division posted increases in sales and gross income for the fourth consecutive year. Contributing to this success, Growmark noted, 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, Growmark said it is adding storage capacity and connecting farmers with more end-use markets through a partnership with Central States Enterprises, a grain and feed company based in Lake City, Fla. More than $82 million in patronage refunds will be returned to Growmark member cooperatives, the company announced. MID-CO Commodities, a subsidiary of Growmark, had $1 million in income this year and will return $250,000 in cash patronage.