LaVergne, Tenn.-The Tennessee Farmers Cooperative (TFC) recently reported a huge drop in earnings for fiscal 2009, which ended July 30, 2009, to only $147,000 versus the $31.3 million for the prior year, when TFC had record profitability. Gross margins were $31.4 million on sales of $562 million, down from the prior year’s $66.6 million and $713 million. As a result of the minimal net profit, TFC said it would not pay patronage for the year. For the prior year, it returned some $8.5 million to members as patronage. TFC attributed the downturn to a significant write-down of inventory values in fertilizer, feed ingredients, and glyphosate. TFC said feed and hardware sales were also thin due to declining beef and dairy industries in the state. While most TFC departments saw declines in gross margins, TFC said its fuel and home, lawn, and specialty businesses were exceptions. TFC’s two Stockdale retail stores were cited as having significant growth during the year, and another is planned for 2010. TFC emphasized the strength of its diverse businesses, and said that its net worth is more than four times what it owes in debt. It also noted that its recent acquisitions of Agriliance LLC retail outlets (GM Aug. 10, 2009) should add $30 million to sales.
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