2009 Annual Report - Letter to the Shareholders
“There
are no secrets to success. It is the result of preparation,
hard work, and learning from failure.” That’s what former
Secretary of State Colin Powell says, and he’s right. It is
the planning of strategy, the preparation, the determined
and decisive action, that produces the result.
When the people of the GROWMARK System were asked to name
“top of mind” words about strategy, more often than not the
words plans, goals, guidebook, and
roadmap were spoken.
In addition to providing direction and guidance for future
endeavors, strategy sustains a company during volatile,
uncertain times. Farm Bureau members were strategic when
they formed the early cooperatives that today make up the
core GROWMARK System. Their strategy was simple: form
organizations owned and controlled by local farmers to
ensure a reliable supply of fuel and other products at a
fair price. As our business grew in size and scope, our
strategies moved us forward – to position us as a leader in
the marketplace and improve the profitability of our
member-owners.
Today, five strategic directions guide our System endeavors.
They are:
- Foster a strong member system.
- Seek opportunities to grow and expand from our core
businesses.
- Expand our marketing territory.
- Foster vertical integration opportunities where
economic conditions are favorable.
- Pursue mergers, acquisitions, and joint ventures
that will benefit our entire System.
These strategies for success serve as answers to the
questions: “How will we accomplish our vision to be the best
agricultural cooperative system in North America?” and “How
will we achieve our mission to improve the long-term
profitability of our member owners?”
GROWMARK’s 2009 fiscal year has been challenging for many
farmers as they attempted to plant a crop with extremely
volatile pricing for fuel, fertilizer, and grain. It was
challenging for FS member cooperatives and for GROWMARK as
we attempted to have sufficient inventories to meet expected
demand and then felt the results of worldwide demand
destruction and plummeting prices. Our financial results are
not at the significant levels of the last two years, but
this is still the third highest income in
our history. We are proud of what our farmer-owners, our
members, and our employees have been able to accomplish
under these challenging circumstances and proud that we have
built and maintained a balance sheet that is as strong as it
has ever been.
Our strategies provide the framework for our strength,
growth, and expansion, creating competitive advantages and
new relationships. Yet, strategy has little value without
the cooperation and collaboration of everyone in the System.
We can accomplish more, together. We are successful,
together. The strength of our System can be seen in the
network of people – the best of the best.
Together, we are strong. We are skilled, we are ready, we
are committed.
Together, we are the GROWMARK System.
Year in Review
Financial Report
Report Summary
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