CRI Finishes 15th Year with Solid Results
Cooperative Resources International's subsidiary delegates and guests celebrated the completion of the cooperative's 15th business year at the annual meetings in Stevens Point, Wis., Bloomington, Minn., Albany, N.Y., and Harrisburg, Pa. The anniversary was highlighted by a year of rock solid results as CRI continued its positive earnings trend.
"CRI has grown significantly since its formation in 1993, and is well positioned for the future," stated Doug Wilson, Chief Executive Officer, CRI. "The cooperative's growth in revenue is commendable. Although the entire purpose of creating CRI was growth through an efficient structure, we have likely surpassed our founders' expectations."
The 2007 financial report, presented at the annual meetings, indicated a consolidated pre-tax income of $4,079,209, a 3.3 percent return on total revenue of $125,017,483. The results included the consolidated earnings and assets of the three CRI subsidiaries - AgSource Cooperative Services, Central Livestock Association and Genex Cooperative, Inc. - and the International Division.
"I look with pride upon the accomplishments of the cooperatives," declared David Hileman, Chairman of CRI. "Active delegate participation in governing this organization will ensure this cooperative will serve the next generation of livestock producers."
AgSource Cooperative Services
In 2007, all three major lines of business - Agronomy, DHI, and Food and Environmental - made positive contributions to the subsidiaries total revenue of $14,786,425.
DHI operations recorded increases in all aspects of service - field, laboratory and records processing. A total of 646,820 active cows were on test as of December 31, 2007, the cooperative's highest number in over six years. Single milk recordings increased by over 264,000 recordings, which is 2.5 times the 2006 increase. The AgSource DHI Division also released upgraded Udder Health Management reports and the Profit Opportunity Analyzer. Both represent new and innovative tools for DHI producers across the United States.
The Food and Environmental Division, with facilities in Stratford and Menomonie, Wis., increased revenue by 7.7 percent with over 800,000 patron samples tested.
Revenues increased by 5.1 percent within the Soil and Forage Division, which includes forage, plant tissue and manure sampling. The Division also initiated a new service in writing nutrient management plans.
Central Livestock Association
Throughout 2007, Central Livestock continued plans for the closing of the South St. Paul, Minn., market. With the market closing on April 11, expanded sale schedules are planned for the nearby Zumbrota and Albany, Minn., markets. These markets will continue to provide members with the quality livestock marketing services they have come to expect from Central Livestock.
The benefits of TEAM, the real-time Internet auction, have been recognized across the country as more livestock producers are registering to buy and sell through the online TEAM system.
In total, well over 1.2 million head of livestock marketed through Central Livestock's five market locations in 2007.
Genex Cooperative, Inc.
For the cattle genetics subsidiary, the year was highlighted by increases in both semen sales and service. Semen sales grew by over 820,000 units, which includes a 20 percent increase in Jersey units. Genex employees achieved an all-time high in arm service by breeding 5,367 cows every day of the year.
Genex also introduced several new products and programs. In May, the cooperative introduced GenChoiceTM sexed semen and expanded the GenChoice dairy and beef sire lineups throughout the remainder of the year. Reproductive Profit ManagerTM, AchieveTM and ResultsTM, a trio of highly sophisticated programs aimed to improve dairy producer profitability were developed, tested and introduced on a national level.
The Genex Farm Systems division began the year by constructing and opening a new office and warehouse in Melrose, Minn. The Division also built its first VMS robotic milking parlor and led the industry in sales of several product lines.
International Division
The International Division claimed the highest international revenue to date with significant growth in Jersey and beef semen sales. First-time shipments of bovine semen to Russia, Ukraine, Kazakhstan, India and Tunisia added to the growth.
2007 was also the first full year of operation for CRI Genética in Brazil, a distributorship which was purchased in 2006. CRI Genética had exceptional results with a 33% growth.
