NorthStar Cooperative Stockowners Earn
NorthStar Cooperative stockowners are receiving more than $427,000 in patronage and dividends. This announcement was made recently when the board of directors approved the Cooperative’s 2006 audited financial statements which reflected a net margin of $622,000. 2006 marks the Cooperative’s third highest operating margin in history and is the result of record sales of more than $17.1 million.
Patronage & Dividends in Excess of $427,000
“Our 2006 report card was very good,” stated Gary Smith, general manager. “Again revenues exceeded the previous year, as sales increased 7.6 percent. With record sales, the board believed it only fitting to share the success with the producers who have invested in the Cooperative.”
The board approved a patronage allocation of $400,777 to common stockowners, with fifty percent being paid in cash right now. This sizeable patronage allocation means on average common stockowners received a 4.6 percent return on their annual expenses with the Cooperative in 2006.
“Patronage to an individual stockowner can really add up,” remarked Smith. “Purchasing from the Cooperative means they have an opportunity to offset their annual expenses. This is a benefit few agricultural suppliers offer.”
The NorthStar board also approved a 68-cent dividend, the highest ever on shares of Class A Preferred Stock. 2006 marks the eighth consecutive year a preferred stock dividend was paid. Payments and reinvestments of more than $26,000 were dispersed to preferred stockowners in February.
The ability to pay such returns to stockowners is the result of NorthStar’s patronage-based business units performing beyond expectations. NorthStar’s A.I. business unit had its best year ever marketing 711,387 units of semen, generating nearly $10 million in revenues. DHI Services experienced its sixth consecutive year of growth with more than 240,000 cows on test in Michigan, Indiana, Ohio and Wisconsin. In addition, NorthStar’s Ag Products and Technologies business unit experienced its highest revenue year ever with sales in excess of $2 million.
While the patronage-based business units turned in outstanding performance, Antel BioSystems, Inc. (AntelBio), a subsidiary of UniStar, Inc., a wholly owned company of NorthStar Cooperative, Inc., also experienced tremendous growth, with an increase in revenues of 48 percent. An animal disease testing facility, specializing in developing tests using the milk platform, AntelBio offers Johne’s, leukosis and BVD testing. In 2006, the test to run AntelBio’s Johne’s Milk ELISA was licensed by the USDA.
NorthStar Cooperative, Inc. is a stock based cooperative, owned by dairy and beef producers in Michigan, Indiana and Wisconsin. Originally formed in 1944 as an artificial insemination cooperative, NorthStar Cooperative, Inc. is now comprised of sales and service for Select Sires, Ag Products and Technologies, DHI Services and Antel BioSystems, an animal disease testing center. Based in Lansing, Michigan, NorthStar provides sales and service to producers, veterinarians and industry members across the United States. For more information, visit www.northstarcooperative.com.
For More Information Contact:
Kelly Bristle Ekovich, Director Member Relations and Promotions
P O Box 23157 , Lansing, Michigan 48909
Phone: 517.908.0492 Email:email@example.com