The people who run North East Terminal Ltd. can probably be forgiven for patting themselves on the back.
The Wadena, Sask. grain company handled 84 percent more grain last year and recorded a 262 percent increase in net earnings.
And company chair Garry Petrie made no secret about where he thinks the credit lies.
“Our aggressive handling targets were exceeded due to hard work and good decisions of the management and employee team at NET,” he said in a press release announcing 1996-97 results.
But company officials must also give some of the credit to last year’s difficult harvest. Farmers took off a lot of tough, damp and wet grain in 1996, and NET’s ability to dry grain gave it a competitive edge.
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Last winter’s much publicized grain transportation problems also worked to the company’ advantage, as grain industry regulators directed more cars to high throughput facilities like the 25,600-tonne capacity terminal.
When all was said and done, it added up to record volumes and profits.
Grain volumes were up 84 percent to 155,000 tonnes, while net earnings were $645,610, on sales and revenue of $30.2 million. That’s a dramatic turnaround from the previous year’s loss of $399,285 on sales and revenue of $19.7 million.
“We will look back at this past year as a turning point in NET history,” company president Dwayne Anderson told nearly 200 shareholders attending the terminal’s annual meeting last week in Wadena.
NET was formed in 1992 as a farmer-owned inland terminal. The ownership structure consists of about 700 individual shareholders and Cargill Ltd., which has a 20 percent ownership stake. Cargill markets the terminal’s Canadian Wheat Board grains and has first right of refusal on non-board deliveries, and has two members on the 11-member board of directors.
Gerry Clark, vice-president of operations, said while last year’s record-setting performance provides satisfaction, it also revealed some problems that must be dealt with if the terminal is to continue to operate at such a high capacity.
He said the company will be looking for ways to provide quicker settlements for farmers and to solve problems of long lineups during busy times.
The company will also triple its grain drying capacity by building a new dryer for a cost of $450,000. Clark said the terminal ran its grain dryer every day but three during 1996-97 and this year, even with a good harvest, it has done 20 days of drying since Sept. 1.
NET is also planning to get more involved in the farm input business, selling seed, chemical and fertilizer. Construction of a platform scale is being considered to help the farm supply business and speed up peak-season deliveries.
Clark said the company is off to a good start this year and could surpass the record 1996-97 results.
“We think we’re headed for an excellent year,” he said.
