CRI Celebrates 20 Years of Growth

SHAWANO, Wis. - Cooperative Resources International (CRI) celebrated its 20th anniversary at the March 26-27 annual meeting in Bloomington, Minn.

"The birth of CRI, the first ever holding cooperative in the United States, has proven to be a business development milestone and a business model that is the envy of the cooperative world," shared John Ruedinger, CRI Chairman and dairyman from Van Dyne, Wis.

The formation of CRI also marked the first direct link between an artificial insemination organization and a DHI service organization. Through acquisitions, mergers and organic growth, those organizations have become today's CRI subsidiaries Genex Cooperative, Inc. and AgSource Cooperative Services.

In addition to celebrating the anniversary, CRI Chief Financial Officer Larry Romuald reported cooperative financials to the membership. "2012 was a year not without challenges. The drought severely impacted our membership nationally. Securing adequate feed supplies became paramount. High feed costs and its impact on dairy and rancher operating statements pressured margin management, and higher milk prices helped compensate for added feed cost. Still, we are able to report the second highest net savings in CRI's history."

Consolidated income increased to $161,182,358. Net savings from operations was $8,497,306, a 5.3 percent return before income tax and minority interest. Net savings after the provision for income taxes was $7,027,116 or 4.4 percent of reported revenue.

After acknowledging the success of CRI over the past 20 years, Ruedinger spoke about the cooperative's future. "As CRI prepares for the next 20 years, producers around the world are becoming far more aware of both the need to increase output and the potential for controllable margins. These factors provide opportunity for genetic- and management-based improvement, which is created by demand beyond what many local small businesses can provide. CRI has the reputation of fast technology adoption, industry innovation and managing change. Global population and increasing urbanization are driving increased demand for food and protein diets. CRI is in a position to meet those demands."

AgSource Cooperative Services
AgSource, the CRI subsidiary providing comprehensive agricultural testing and informational services, reported record financials marking the third consecutive year with over 1 million dollars in net savings before tax. The reported net savings before tax of $1,064,366 on total revenue of $22,523,271 meant a return of 4.7 percent. All major AgSource business  operations - DHI, food and environmental, and agronomy - were positive contributors to profitability.

Genex Cooperative, Inc.
Genex, the subsidiary providing cattle genetics and artificial insemination services, reported revenue growth over the previous year. Total reported revenue equaled $128,050,548 with before tax savings of $9,066,595. Highlights include continued growth in beef semen sales and growth of GenChoice™ semen sales both domestically and internationally. Additionally, Genex Farm Systems, marketing milking and farmstead equipment, generated $12,432,717 in revenue. Central Livestock, LLC performance improved over the previous year with profit before tax of $352,413 and considerable debt reduction.

For more information, visit www.crinet.com.

CRI, a member-owned holding cooperative, is comprised of two subsidiaries: AgSource and Genex. The CRI mission statement summarizes the goal of CRI: "To provide products and services as effectively as possible to maximize the profitability of members and customers worldwide while maintaining a strong cooperative."