Processing : Annual Meeting Highlights

Annual Meeting Highlights

AGP hosted its 33rd Annual Meeting on January 19 and 20 at the La Vista Conference Center, La Vista, NE. Member participation was again outstanding with approximately 1,000 people in attendance. Brad Davis, Board Chairman, expressed appreciation to the membership. 'Much of our Company's success is the result of the great support we receive from you, our member-owners, and we thank you for that loyalty and continued business,' said Davis. 'I would also like to thank all the management and employees who make AGP such an excellent Company.'

The Annual Meeting theme of 'Building Sustainable Value' highlighted AGP's ongoing strategic direction of optimizing returns, investing in assets, and adding value for members. As part of the business meeting, members voted on candidates for the Board of Directors. Re-elected to three-year terms were incumbent Directors Randy Robeson, General Manager, Frontier Cooperative Company, Brainard, NE; Chuck Schafer, General Manager, North Iowa Cooperative, Thornton, IA; and Jay Sunderman, Producer, Clarinda Cooperative Company, Clarinda, IA.

Fiscal 2016 Solid Year of Successes

Keith Spackler, Chief Executive Officer, thanked member cooperatives for their participation at the Annual Meeting as well as their ongoing support and business, which are critical to AGP's success. Spackler said that while AGP faced challenging business conditions during fiscal 2016 amid the downturn in the agribusiness environment, the Company generated ongoing success ranging from financial achievements to marketing and operational milestones. AGP's soybean processing production, refined oil volume, and biodiesel output were all the second highest in Company history. Volume through AGP's export terminal at the Port of Grays Harbor in Aberdeen, WA was the third highest. Spackler concluded his comments by stating 'Our ongoing commitment to you, AGP's member-owners, is to pursue success and excellence in all aspects of what we do as we continue Building Sustainable Value for your cooperative.'

Amid these operational achievements, AGP generated solid earnings of $100.4 million according to Scott Simmelink, Chief Financial Officer. AGP's patronage to cooperative members totaled $74 million, and the Board of Directors approved cash patronage of 40 percent. The combined equity redemptions, cash patronage, and component premiums totaled $68.6 million in cash paid out to AGP owners. Since its formation in 1983, AGP has now returned over $1 billion dollars to members in cash distributions. 'AGP is certainly proud of reaching this milestone,' said Simmelink.

Cal Meyer, Chief Operating Officer, provided an industry and operational update, along with a project review. He noted that the Company is well-positioned for growth opportunities. AGP invested in capital improvements at nearly all of its processing, refining, and biodiesel facilities. 'Looking forward, the Board and management made a major commitment to build a new soybean processing facility in Aberdeen, SD,' said Meyer. The new plant is scheduled to be completed in 2019.

Additional management presenters were Mark Sandeen, Vice President, Processing Marketing; Troy Alberts, Vice President, Refined Oils; Steve Nogel, Vice President, Renewable Fuels; and Johann Schnell, CEO, Protinal/Proagro. Each highlighted the success of the past year, while commenting on the future opportunities within their business units.

AGP's 2017 Annual Meeting is scheduled for January 18 and 19, 2018 at the La Vista Conference Center.