CRI Posts Record Earnings
SHAWANO, Wis. - Agricultural holding cooperative Cooperative Resources International (CRI) reported its highest earnings levels in history to the members of its AgSource Cooperative Services and Genex Cooperative, Inc. subsidiaries at the March 21 annual meeting.
"In 2011, the agricultural economy, with higher milk price levels, permitted producers to reach profitability and continue repairing their balance sheets," said Larry Romuald, Chief Financial Officer. "Ranchers benefitted from strong beef prices, and grain producers continued to recognize excellent performance and place renewed emphasis on ‘precision ag' to control input costs."
Romuald continued, explaining how this robust agricultural economy affected the cooperative, "An expanding world dairy and beef economy exhibited strong demand for U.S. dairy and beef products. This led to increased market demand for CRI's products and services within the domestic market as well as worldwide."
The CRI consolidated operating statement verified 2011 as a record year. Consolidated income reported increased to $159,577,169, a 12.2 percent increase from 2010. Net savings from operations was $9,577,169, a six percent return before income tax and minority interest. Net savings after the provision for income taxes was $7,954,091, five percent of reported revenue.
The 2011 results complete a decade of impressive cooperative growth. "In 2002, CRI was just short of $100 million and this year we report to the membership income of $159 million. This is a testament to commitment to product development and diversification. Correspondingly, profits and cash flow have permitted this growth," noted Romuald.
CRI Chairman John Ruedinger expanded on CRI's long-term pattern of growth. "CRI has developed into a premier multifaceted business representing quality programs around the world. CRI has grown to become a world leader in all aspects of agriculture. We have also grown outside our core businesses and have accepted the challenge to be an early innovator in new technologies.
AgSource Cooperative Service
In 2011, all four AgSource business enterprises - DHI, agronomy, food and environmental, and Northwest - made positive contributions to the cooperative's bottom line leading to a 10 percent growth in overall revenue. Traditional DHI testing declined slightly, reversing a trend of six straight years of DHI growth. The release of new DHI products included the Genetic Selection Guide and the Herd Report Card, the Herd Report Card being the cooperative's most successful new DHI option release in the past decade. The agronomy business achieved record soil testing volumes at the five AgSource soil laboratories, solidifying AgSource's position as the largest soil testing company in North America. The Food and Environmental Laboratory Division increased revenue by 3.3 percent, led by an increase in water testing volumes. The Northwest Division, with laboratories in Idaho and Oregon, increased total revenue by 3.9 percent over 2010 levels.
Genex Cooperative, Inc.
Genex experienced a 10.9 percent increase in total revenue year over year. Domestic dairy semen units sold remained strong with Genex increasing market share. Beef semen sales increased 27 percent, reflecting the strong macro-environment of the beef industry. The CRI International Division, which markets dairy and beef genetics through a 60+ country distributor network, had an excellent year generating 25.8 percent more income over 2010. The Farm Systems Division expanded marketing territory into Michigan and Ohio, and earned national recognition from Harvestore product supplier CST Storage. 2011 saw the first full year of livestock marketing company Central Livestock Association, LLC as a wholly-owned company of Genex. Central Livestock surpassed budget and marketed over 620,000 head of livestock.
For more information on CRI, visit www.crinet.com.
CRI, a member-owned holding cooperative, is comprised of two subsidiaries: AgSource and Genex. The CRI mission statement summarizes the goal of CRI: "To provide products and services as effectively as possible to maximize the profitability of members and customers worldwide while maintaining a strong cooperative."