The Hafford Co-operative Association Ltd. held its annual general meeting March 21 at the Hafford Seniors' Centre.
General Manager Phil Herman explained the Hafford Co-op experienced another successful year in 2010 with sales reaching $6,666,449, which was an increase of $722,921 over the previous annual sales. The business did incur higher operating costs due to the purchase of some fixed assets such as a new tri-drive fuel delivery unit and the adjacent property. Both these purchases were made in preparation for the decommissioning of the corporate bulk tank facility west of Hafford. Although the annual earnings were down by $48,214, the Hafford Co-op still allocated $219,435 back to its members.
"Since 2001, the Hafford Co-op has allocated $2,487,987 back to its members," explained Herman, "of which $2,264,765 was paid back in cash. And through all this we have been able to upgrade our facilities to what you see today."
Hafford Co-op will be experiencing some infrastructure upgrades to include the installation of a 75,000 litre storage tank and new pumps providing the ability to receive semi loads of fuel. The underground tanks have come to the end of their life expectancy and will be removed due to environmental legislation. The gas pumps will no longer be located at the front of the store. Full service will still be provided but through the card lock pump system.
"We are also considering installing a 100,000 litre fuel tank west of the store to keep bulk diesel fuel for when the corporate bulk plant is closed," commented Herman.
President Dale Paulow indicated Hafford Co-op has been busy providing all the services it can to be competitive with city counterparts. Some services and products offered include hardware, petroleum, oil, fence posts, gate panels, wire and paint.
Beryl Bauer, district director, provided insight and information regarding the FCL and its operations. He mentioned Scott Banda, the new CEO for FCL, is leading a dramatic transformation of the organization by setting a new vision for the future, moving to modernize service to the CSR and to fully engage the employees. The mission statement was renewed "to provide responsible, innovative leadership and support to the CRS, for the benefit of members, employees and Canadian communities." He also mentioned the board of directors was reduced from 19 to 15, the number of board committees has been reduced and a board competency initiative is under way.
"Throughout the year 2010 ending October 31, sales and net savings were well below budget," explained Bauer. "However a strong fourth quarter led to the best ever. Sales totalled $7.1 billion an increase of $569.6 million from 2009. Net savings before patronage were $498 million with patronage allocation of $351.6 million."
Bauer emphasized other FCL highlights including 160 new construction, expansion and renovation projects in either the planning or development; a "we care" program was designed to promote awareness of the CRS's efforts in energy efficiency and environmental sustainability; a new food flyer was introduced and is available online; a partnership with Saskatchewan Roughriders and the Co-op was undertaken and proved to be a huge success; completion of an expanded Calgary warehouse increasing its size by 84,000 square feet; completion of a new 10,700 square foot Calgary region office; Saskatoon food warehouse expansion was improved; a new magstripe card for card locks was rolled out and has seen 80 of 280 card locks put on the system; 33 new gas bars, bulk plants and card locks became operational; the new Carseland, Alta. petroleum storage facility was started; logging resumed to supply peeler logs for the plywood plant which achieved daily production records but the sawmill remains shut down; and CCRL processed 32.4 million barrels of crude, down three per cent from 2009.
"The expansion project is proceeding nicely though projected costs are likely to be five to fifteen per cent above initial projections due to weather and resulting labour productivity problems. Over 4,500 will be involved with scheduled completion of May 31," explained Bauer.
"Even though parts of the refinery are shut down, production does continue with 20,000 barrels of diesel produced daily. Inventories of gasoline are also at record highs (265 million litres). Millions of litres will be spot purchased (150 million plus). Most of these litres are returns from refineries that have time trades with FCL."
Bauer concluded by sharing the sales after the first quarter as being very strong. Gains were in the petroleum division and crop supplies. The feed, food, forest products and general merchandise divisions were all down marginally. The overall net savings are ahead of budget by over $100 million.
Co-op Youth Camps offered for the upcoming season and any youth between the ages of 12-18 can pick from a number of dates to attend camp at Candle Lake.
Discussion was held regarding the bulk plant consolidation which will permit Hafford to receive bulk fuel from either Saskatoon or Shellbrook.
Each year since 2001, with the exception of 2009, sales for Hafford Co-op have increased. The running tally of sales since incorporation on May 11, 1914 has been $86,757,716 and total savings has been $7,789,567. Hafford Co-op has a total of 828 members of which 634 are active members.
Directors Morris Shyluk, Greg Grzybowski and Rob Rivett terms had expired. The three let their names stand and were nominated to the board of directors rejoining Dale Paulow (president), Walter Zadorozny (vice-president), David Shyluk (Secretary), Philip Herman (manager), David Wintonyk, Mervin Lesko and Howard Linnell.
