Members to receive largest patronage payout since 2008
(Calgary, Alberta) – United Farmers of Alberta Co-operative Ltd. ("UFA") approved a patronage dividend of $14.1 million to its membership at a special meeting of the Assembly on Tuesday, March 24, 2020. The patronage payment is for 2019 purchases in the following categories: Ag Gas (1.1%), Ag Diesel (4.8%), Canola and Corn Seed (5%), and heavy duty engine oil, tractor fluid and grease Lubricants (10%). The patronage payout is the largest of its kind since 2008, with $40.6 million paid out in the last three years alone.
Earlier in the month, UFA's Board, together with the Senior Leadership Team, elected to postpone its Annual General Meeting ("AGM") originally scheduled for Friday, March 13, 2020. The AGM will be rescheduled for a later date.
In addition to the patronage dividend, the Alberta-based co-operative is proud to report $70 million in earnings before interest, taxes, depreciation and amortization (EBITDA), a return of 10.7% on invested capital, as well as $1.6 billion in financial revenues.
"Serving our members and customers is the driving force of UFA, and giving back to the communities where our members live, particularly at this moment in time, is our core purpose," said Scott Bolton, UFA President and Chief Executive Officer. "We are honoured to demonstrate our commitment with this year's patronage return."
"Over the past few years, we have made significant strides in rebuilding our financial position. While the current situation is unprecedented, your co-op is well-prepared to weather the storm while still paying a patronage return, " adds Bolton. "And, we have enacted comprehensive measures to protect the health and safety of our team, members and customers, while ensuring UFA remains open for business. We are an essential service to our members and customers and we will be there for them."
During the year, UFA invested in its core businesses, including multiple store and petroleum refreshes, launching Dieselex® Gold at more than 50 cardlock locations and expanding its bulk offering, as well as opening a new Farm & Ranch Supply store in Ponoka.
"As we reflect on the past year we must acknowledge that this was an extremely tough harvest with some of the crop still on the ground in parts of the province. We now know we have some extremely tough days ahead, but spring is coming. As farmers, we know how to switch gears, get on with the next job, and keep driving forward. Our co-operative is strong and we have weathered many cycles together. It's because of our members' loyalty that our co-operative has survived over a century. We are thankful and don't take our responsibilities lightly. We know every penny counts and that we wouldn't be declaring a dividend without the support and patronage of our members," said UFA Board Chair, Kevin Hoppins
