Canada’s top co-op continues to break its own records year after year, with 2005 sales totals of $4.78 billion for Federated Co-operatives Ltd.
That’s up from $4.17 billion last year for the 286 western Canadian outlets that have returned more than $800 million in dividends to their members over the last decade.
“That’s $800 million those communities can use to enhance the life of those communities,” Glen Tully, chair of the FCL board, said in an interview during FCL’s 77th annual conference in Saskatoon Feb. 26-28.
Patronage allocations were $266 million in 2005, up from $231 million in 2004.
Read Also
European wheat production makes big recovery
EU crop prospects are vastly improved, which could mean fewer canola and durum imports from Canada.
Tully noted how co-operatives are important in many rural economies, with co-ops thriving in businesses that private operators were not willing to take on.
“(Co-ops) are about people working together to create a better service to their community,” he said.
“Those who are involved and feel an ownership to the co-op also support it,” he said. “You don’t have the same ownership in the private sector.”
FCL saw gains in most sectors in 2005, particularly in agricultural services. Tully cited gains made in fertilizer and chemical sales and additions of agrology services and custom applications. Crop supply sales jumped to $223 million last year from $206 million in 2004.
Food stores, often the only such business in a small town, continue to add increased varieties of fresh produce and other lines comparable to city grocers, said Tully.
Gains were also made in petroleum, where sales grew to $2.2 billion from $1.6 billion last year.
Declines were noted in the feed sector, which fell to $56 million from $69 million in sales, and in forest products that fell to $85 million from $89 million the previous year. NewGrade Energy Inc. sales were $341 million, down from $351 million.
For the future, Tully said smaller co-ops will need to find ways to work together to address challenges they face.
Tully also said there is a need for greater education and promotion of the benefits of co-operatives.
“I see young people not understanding why they were created and why it’s important to support them,” he said.
There are programs in place to communicate that message, but local co-operatives can also play a role, he said.
“We need to shout a little louder and push a little harder.”
In Tully’s address to members, he said co-ops have been too modest for too long.
“It is time to step out and ask for more of our members’ support. It is time to get the members excited about co-operatives.”
Tully also asked delegates to focus on what they do well, remove costs from their operations to return more in membership benefits and take advantage of opportunities to ensure a strong future for FCL.
More than 500 delegates and visitors participated in the three-day annual conference in Saskatoon.
