Message from Glenn
Glenn Lutteke, General Manager
The mission and vision statements developed by our employees and management were approved by our board of directors at their December meeting. The board of directors were very impressed with the work and effort of our employees to put the statements together. Having something where all employees had input in creating is impressive. You will see these more often within the co-op going forward beginning with our website, employee newsletter and the Co-operative Link. The goal now is for all employees to practice daily what we put into these statements.
Our board of directors also approved a 401(k) profit share of 1.75% for 2018 at the December meeting. I ask that all employees please thank a board member for this contribution when you have the opportunity. Let’s show our appreciation.
Here is an update on All American Co-op’s fiscal 2019 through the first 5 months:
- Through November the grain department is down in margin (earnings) from fiscal 2018. We are also behind budget for the year by $297,000. The biggest factor in this is drying revenue was down $546,000 from last year, and lower than expected in the budget. Operating expenses were up $155,000. Depreciation and interest expense were up $108,000. How much the basis narrows going forward and the willingness of farmers to sell their stored grain will be big factors in the grain department’s local margin moving forward.
- The feed department is slightly ahead of budget. The biggest factor going forward for the feed department is decreased cow numbers. Our feed tons were down 2,011 tons through November compared to one year ago. Keys for the feed department moving forward will be our ability to sell more tons, and continuing to stay efficient. Growth requires everybody to make it happen. We can do this.
- Agronomy had a strong fall. Tons were up compared to last year. All American Co-op projected a large budget increase for agronomy. Our fall definitely got us going in the right direction. Thank you for everybody’s help this fall to get this done. The goal is to continue this growth through the spring of 2019. The growth expectation for our fiscal 2019 agronomy budget is the largest we have ever had in the history of All American Co-op. Through November we made great strides to accomplish that goal, and it will take everybody to get it done. We will accomplish our budget.