Growmark Inc., Bloomington, Ill., reported net income of $99 million on sales of $6.1 billion for the fiscal year ending Aug. 31, 2010.
“The strength of our operating results and our balance sheet is due to a system of member cooperatives that are very well managed,” said Jeff Solberg, Growmark senior vice president of finance. “The six highest years of income in company history have occurred in the last six years.” Patronage refunds in the amount of $70 million will be returned to Growmark member owners in the plant food, crop protection, seed, energy, facility planning & supply, and retail supplies business units.
While revenues were in line with the fiscal year ending Aug. 31, 2009, at $6.1 billion, prior year income and patronage were higher, at $96.9 million and $82 million, respectively.
Also last week, Growmark announced that it is constructing a fertilizer storage facility at Casey, Ill., to help two of its local FS member cooperatives – Effingham-Clay Service Co., headquartered in Effingham, Ill., and Illini FS, headquartered in Urbana, Ill. – serve their customers throughout east central Illinois. The dry and liquid plant food facility will have storage capacity of 24,000 st of dry fertilizer and 10,000 st of liquid fertilizer.
“Serving our customers, with the products they demand, is our primary goal. This new facility enhances our efficiency to get products to customers at a very competitive price,” said Roger Read, Illini FS general manager. “The liquid fertilizer terminal will feature 24/7 access to liquid fertilizer loading,” said Randy Handel, Effingham-Clay Service Co. manager. “Agriculture is not a 9-5 business. Having round-the-clock access to liquid fertilizer provides an opportunity for customers to get the product exactly when they need it.”
The dry fertilizer operation features access to unit train shipments, allowing the cooperatives to capture shipping price efficiencies, which can translate into competitive product pricing for customers. Onsite blending of dry fertilizer will also be available, meaning dealers can take the product directly from the terminal to the farm.
Effingham-Clay, founded in 1944, provides inputs in Clay, Coles, Cumberland, Effingham, Marion, Moultrie, and Shelby Counties. Illini serves Champaign, Clark, Douglas, Edgar, and Vermillion Counties.
In other news, Growmark and Magellan Pipeline Company L.P. have entered into an agreement in which Growmark will acquire the refined fuels terminal near Ft. Dodge, Iowa. Terms of the acquisition were not disclosed. Growmark says the deal will enable it to ensure continued supply of refined fuels and solidify the cooperative’s commitment to the energy business and to North Central Iowa.