Neepawa-Gladstone Co-op marks 88 years with ‘good year’
- Details
- Published on Sunday, April 30, 2017
By Ken Waddell
The Neepawa Banner
Neepawa-Gladstone Co-op board chairman Ray Kulbacki said, “Eighty eight years in business is quite a feat… I hope you’re as proud of it as we are,” as he opened the annual general meeting (AGM) on April 20, “On the local level, 2016 was a good year for us. Sales reached $74.2 million which was down from last year’s $76.6 million due to deflation in fuel prices. Local saving was up at $1.2 million and our net savings after patronage was up to $3.7 million from $3.3 million last year.”
Kulbacki noted that the Federated Co-op Community Spaces supports local initiatives relating to recreation, environmental conservation and urban agriculture. They also launched a new paint donation program, Co-op Communities in Full Colour this year. “Neepawa-Gladstone Co-op was a part of that program and the Neepawa Yellowhead Centre benefited from this program with new paint on the bleachers. The Co-ops and FCL also came together and raised over $800,000 to support those affected by the fire in Fort McMurray Alta.”
Kulbacki said, “Our current Agro department is located in town and on two acres of property. The addition of Eagle Agro to our Neepawa Agro department has been a huge success story for us, but it has also added some complications. By doubling the size of our custom application department, we no longer have room for all the applicators and support vehicles. Also with the addition of former Eagle Agro staff, we do not have room at the Agro office for everyone. In previous years, we have added pup trailers to our fuel trucks and this year, we are adding pup trailers to our NH3 trucks as well as our third NH3 semi-trailer unit. These trucks are having difficulty maneuvering around the Agro property. And finally, to compound the problem, we are in need of a new location for bin building and our Ag equipment department. We have studied the situation for two years and are in the final stages of purchasing 12 acres of land. Once finalized, this property will give us the opportunity to expand and grow our agricultural business over the next number of years. When this purchase is completed, we will present our plan to the public and our customers, which we hope to be able to do in the next few months.” The local co-op is also looking to provide more car wash bays to meet the demand.
In 2016 there were 356 new memberships purchased which was down from 392 last year.
General Manager Brian Hedley gave a detailed report. He stated, “Neepawa-Gladstone Co-op depends heavily on the agricultural sector for the success of our operations and we are therefore dependent on the weather conditions. This was one of the more stressful seasons we have seen for a long time. Things seemed to start out well but as many of you know, harvest became very difficult and many areas in western Canada did not even complete the harvest before winter set in. If it wasn’t for three great weeks in November that allowed the fall fertilizer to be applied, I’m afraid this would be a quite different report.”
“In the area of margins, many departments had much improved margins over last year. Most departments did well and achieved budget, but this is not the case in all departments and some have to put a priority back into achieving budgeted margins. To respond to this problem, as a management group, our number one priority in our business plan is Improved Department Operations. This includes operational analysis by our new Controller Myles Boyce on all departments on a period basis. This is where we meet on a monthly basis or in some cases, weekly, and examine each department with detail to determine concerns and corrective actions. Continued emphasis is placed on gross margin improvements and reduction of expenses. And finally tighter inventory management to achieve higher inventory turns.”
Hedley revisited the events of the past few years, “Three years ago in March, we opened our new Food Store facility and two years ago, we finalized the purchase of Eagle Agro custom application business. So what has been the result of these two ventures? The public’s reaction has been extremely positive on both and our customer feedback has been tremendous. Sales have been well beyond what we had hoped for with both ventures which is extremely encouraging. Our Food Store business has increased by over 60 per cent in the last three years and our Agros have grown by over 40 per cent. Our custom application business alone has more than doubled in sales. In today’s competitive business world, any company would be extremely excited with these numbers.”
Hedley emphasized that this growth does not occur from just new facilities and equipment. “Our People, and the relationships they have with our customers, is what drives our success.” He paid tribute to the many managers who are impacting the co-op’s success.
The Home Centre’s in both Neepawa and Gladstone had a lot quieter year in 2016, due to less building projects within our trading area.
Sales and profits were slightly behind budget and down from 2015, which was a record year. The upgrade to the roof in Neepawa was completed in 2015 and in 2016 an exterior upgrade with some new signage was finished. The Home Centres in both locations have been joined together under one management team.
In 2016 Co-op Agro upgraded five of their Terragators/Rogators to new units.
Hedley noted that while it was early yet, sales for 2017 look encouraging.
