Making it happen. Together. - UFA.com

Making it happen. Together.
2010 Annual Report
“ Farmers and ranchers are recognized
for their resilience and perseverance
in those times when everything
that can go wrong, does go wrong.
It seems that no matter how tough
things get, they pick themselves
up, dust themselves off and start
looking ahead to next year….I am
optimistic and confident that we are
on the road to recovery.”
Jim Laverick, Chairman of the Board
“ UFA has a long history of serving
farmers, ranchers and the people
of rural Alberta. While our horizons
have broadened, our core purpose
remains the same. Our objective
is to re-earn your trust and loyalty.
I am proud of the UFA team and
their dedication and passion to
our Co-operative.”
Bob Nelson, President & CEO
© 2011 UFA Co-operative Ltd. All rights reserved. UFA.com

Letter from our Chairman
Jim Laverick
Chairman of the Board
Jim Laverick was elected to the UFA Board in 2008 and elected Chairman in 2010. Jim’s passion for agriculture, rural Alberta and
Co-operatives comes naturally. Jim grew up on a family farm in the Grande Prairie area and spent 38 years with the Co-operators
Group Ltd., holding numerous senior positions. At the 2011 UFA Annual General Meeting, he was elected by the Board to serve as the
Chairman for another year.
For UFA, 2010 was a year of transition. While everyone expects a few bumps and
bruises as they adapt to change, I’m not sure anyone could have been fully prepared for
the roller coaster ride we took during the past 12 months. Much of the year was spent
stabilizing the Co-operative and getting back on the path to prosperity.
Our financial results are proof of what a challenging year it has been. These results
are the worst that UFA has ever had to report. Although this is somewhat disappointing
and discouraging, I am optimistic and confident that we are on the road to recovery.
Early in 2010, the Board, as representatives of the owners of the Co-operative,
stepped in to make some drastic changes to the management team. The changes
were necessary and we now have a strong leadership team with a vision to drive the
business forward. As a Board we also made a firm commitment to a comprehensive
rebuilding strategy. We’ve worked closely with our new management team to develop
that strategy and we have the right people in place to execute it. Given the changes
we have made in the past 12 months and the rebuilding plans we have going
forward, I am hopeful and optimistic. Despite our financial performance, there are
clear signs that we are making excellent progress in our rebuilding efforts. I feel much
more positive today than I did a year ago.
We’ve rebuilt the bridges of trust and confidence between the Board and the
management team. Together we have re-established a solid foundation of openness,
transparency and honesty. We have strong working relationships among members
of the Board and between the Board and management.
We have also improved our ability to govern the organization by implementing
a means of facilitating better oversight of operations, increased the engagement
of Board committees and changed some reporting relationships. This has helped
strengthen our linkages to key roles, increase our controls and improve our
overall culture.
Through the year, we have had many conversations about the Co-operative,
where we are going and how we stay relevant to our owners.
UFA has to deliver on three levels:
Enable my business. Members are customers first and
foremost. If we can provide them with the products and
services they need, when they need them, we become an
integral part of their business. They, in turn, reward us
with their business and their loyalty. If we fail to deliver,
we become irrelevant in their lives and nothing else we
do really matters.
Protect my investment. Once we have earned their
business and they begin to make purchases, members start
to build equity. As they continue to do business with us
and their equity grows, members want what every prudent
investor wants – to know that their investment is safe.
They look to the Board and management to make sound
decisions, provide strong governance and ensure that
whatever equity they have is managed to minimize risk to
their investment. Protecting that investment also means
protecting the annual patronage dividend. As part of our
rebuilding plan we must get back to where we are able to
reward our members for supporting their Co-operative. It’s
going to take some time but I assure you, we will get there.
Champion rural sustainability. UFA has become an
icon on the prairie landscape. As good corporate citizens
with a special relationship with farmers, ranchers and
the rural way of life, we have an obligation to be part of
their local communities. They look to us for more than our
economic contributions. They also look to us to actively
participate in the local community. They expect UFA to
invest in ways that will help sustain the agricultural and
rural lifestyle they have chosen.
2 UFA Annual Report 2010

Members continually remind us that in order to be relevant and meaningful in
their lives, UFA has to deliver on three levels:
Enable my business, protect my investment, champion rural sustainability:
it’s a clear mandate, powerful competitive position and an excellent barometer
of our rebuilding strategy. During the past year we have taken several significant
steps to improve our performance in each of these areas.
Much of 2010 was consumed with restructuring our debt. We now have new debt
financing in place. Our new lending arrangement allows us to refocus on those things
that are really important to our members. On behalf of the Board of Directors, I want
to thank the management team for their innovative thinking and perseverance in
getting this done.
I want to congratulate and thank the people who do their best to make it all happen:
our field staff, petroleum agents, support staff and everyone else who is such a vital part
of this organization. We know it has been tough slugging the past few years. We have
asked for a lot from everyone. It hasn’t been easy. And yet, wherever I go, whomever
I talk to, at a Farm and Ranch Supply store, a petroleum agency, an outdoor adventure
location or at the Calgary corporate office, there is a deep desire and commitment to
getting the job done. On behalf of the Board and all the elected officials, I want to
express our sincere thanks and appreciation to every employee, agent and business partner.
During its long history, UFA has faced many challenges resulting from volatile economic
and agricultural cycles. With each downturn, the organization has adapted and emerged
stronger, more focused and better prepared to meet the demands of an evolving
customer base in a more competitive marketplace.
“ Given the changes we have made in the past 12 months and
the rebuilding plans we have going forward, I am hopeful
and optimistic. ”
As part of the new financial plan, management also put together a three-year operating
plan that specifies exactly how each business unit will achieve its financial and strategic
objectives. The 2011-2013 operating plan establishes direction and priorities for the
organization. It’s based on a commitment to diversification with a more balanced
approach to serving the agricultural producer. The plan is built on the premise that
each business unit must be profitable. We can no longer afford to subsidize parts of the
business. As a result we are exiting from the commercial construction market.
The plan is not an aggressive growth plan that requires an infusion of new capital.
Rather it focuses on growth; driven by effective execution and attention to sound
business fundamentals. The plan also focuses on cleaning up our balance sheet, which
is why we have elected to take such significant write-downs in 2010.
This three-year operating plan accurately reflects the vision, competencies and
capabilities of the Board and our new management team. It’s about stabilization of
the core businesses: optimizing value by combining good fundamentals with focused
execution. The next three years will demand true operational excellence from each
business unit and support function.
Our current situation has once again tested our strength, agility and ability to rise to
the challenge. And while our financial results are unacceptable and rebuilding is going
to take some time, UFA is moving in the right direction.
Farmers and ranchers are recognized for their resilience and perseverance in those
times when everything that can go wrong, does go wrong. It seems that no matter how
tough things get, they pick themselves up, dust themselves off and start looking ahead
to next year. At no time in its history has UFA needed its members’ support as it does
today. I urge you to keep the faith. We are on the right track and I am confident that if
we continue pulling together in the same direction, we will be able to get UFA back to
where it needs to be.
Jim Laverick
Chairman of the Board
Making it happen. Together.
3

Letter from our President & CEO
Bob Nelson
President & CEO
Bob Nelson joined UFA in 2004 after more than 20 years in the downstream petroleum industry. Within a year, Bob was called on to
lead the Petroleum division at UFA. Bob navigated the petroleum division through supply shortages, diminished refinery rebates and
increased competitive pressures on margin. Through all this, Bob was able to stabilize the business and lead the team to record financial
results for the division from 2006 through 2009. In Bob, the Board recognized a strong, understanding and effective leader. In early
2010, Bob was appointed President & CEO.
Last year’s annual report clearly stated that 2010 was going to be a difficult year for our
Co-operative. And by all measures it was a tough year for UFA. It was a year of almost
continuous and unique challenges as we faced up to the reality of our situation.
In 2010 we began our journey to rebuild our Co-operative. To start, we needed to get
the fundamentals of our business back on solid footing. Only with a strong foundation,
can we realistically re-set our sights on strategic growth. We’ve already started laying
that foundation by:
• Restructuring the debt
• Developing a rebuilding strategy and a three-year operating plan
• Implementing operational changes
• Reconnecting the organization with its agricultural roots
• Reengaging with key stakeholders: owners and customers,
employees and agents, financial partners and vendors
Rebuilding means reaffirming that UFA is an agricultural Co-operative with deep roots.
We are obligated to make sure we effectively serve the farmers and ranchers of Alberta.
That not only means having the products and services you need when you need them,
it also demands that we have a responsibility to ensure the long-term viability and
sustainability of the Co-operative.
course for the future, as well as re-building a strong foundation and demonstrating
solid operating performance will create strategic options for growth.
We believe that our rebuilding strategy is sound and achievable. But this strategic
direction also represents a fundamental change in the way we’ll do business, especially
in our AgriBusiness and Wholesale Sports divisions. It also means refocusing our
supporting service teams towards business unit priorities and plans. At its core, this
strategic direction emphasizes business fundamentals. It calls for focused execution of
our business plans and for increased and more effective processes and controls within
the businesses.
2011 is a critical year in our rebuilding and an exciting time for our Co-operative.
We have a great deal of work to do and flawlessly executing our operating plans is our
highest priority and focus this year. Experience has proven that financial results are the
outcome of operational excellence and committed, engaged people.
The thread that binds all the parts of our rebuilding strategy together is our unwavering
commitment to our Core Purpose – providing supplies and services that add value
and facilitate profitability for agricultural communities. We’ve wavered from this in
the past, but I can assure you that in the past year all of our decisions have been
measured by this yardstick. We will continue to test our decision-making against our
Core Purpose as we move forward.
Having better financing agreements in place is a start – but it’s only a short-term
solution that does not diminish the need to improve the fundamental performance of
our business. Learning from our past, facing our present realities, charting a new
Prudent diversification is critical for the organization’s future. We embarked on a
diversification strategy to mitigate some of the financial risk associated with revenue
streams so heavily skewed towards agriculture. The opportunity to purchase a retail
“A proud history and an exciting new beginning.”
4 UFA Annual Report 2010

Core purpose
To provide supplies
and services that
add value and
facilitate profitability
for agricultural
communities.
outdoor adventure company fit well within our Core Purpose for supporting rural and
agricultural communities. As part of a strategy session with the Board, we collectively
reaffirmed that this diversification strategy was correct. In the past, the execution
of this strategy, however, has been flawed. We worked with retail business
turnaround experts to help us analyze the Wholesale Sports business and identify
opportunities for improvement. We’ve developed a three-year operating plan designed
to stabilize operations and drive financial performance. In early 2011, we successfully
recruited Glenn Bingley as the new leader for the Wholesale Sports division. He has
extensive background in retailing and a depth of relevant experience that will help
us improve the operation and performance of Wholesale Sports.
We also examined our construction capabilities as part of our diversification strategy.
We did not see the upside for our commercial construction division so we have decided
to exit the marketplace. Going forward, we will make sure that our diversification
strategy is in balance with our Core Purpose and our agricultural roots.
We’ll manage all of our business units in such a way that we improve our immediate
performance and set the stage for long-term growth. We’re already seeing some
positive results from each of the operating divisions. While we still have a lot of work
to do, this is encouraging and indicates we are on the right track.
We also know that actions speak louder than words. At our Farm and Ranch Supply
stores, throughout our unmatched network of petroleum agencies or at one of our
outdoor adventure stores, listening to our members and customers and adapting to
their changing needs is a critical measure of our success. Putting the members
and customers at the centre of our decisions is a priority. We must continually
ask “what do our members and customers need and how can we make it easier to
do business with us?”. We’ll continue to implement plans that rebalance our focus and
reconnect us with the people in the communities we are proud to serve.
People are the cornerstone of any organization. UFA was built by people who shared
a passion and commitment for a successful Co-operative. In our Co-operative
today you find that very same passion and commitment in every part of our business.
I am exceptionally proud of the UFA team and sincerely appreciate their dedication
and support.
UFA has a long history of serving the farmers, ranchers and the people of rural
Alberta. While our horizons have broadened, our Core Purpose remains the same.
Our objective now is to re-earn your trust and loyalty by serving your needs and
meeting your expectations better than anyone else. We know that to earn your trust
we need to provide you proof of real change, progress and performance. We’re getting
positive feedback from you, our owners, and our customers that these changes are
making a difference.
I firmly believe our Co-operative has emerged from 2010 a stronger and more focused
organization. 2011 is a new beginning for UFA. I would like to thank you for your support
and understanding as we rebuild our Co-operative for a successful second century.
Bob Nelson
President & CEO
Making it happen. Together.
5

Finance
Peter Melnychuk
Executive Vice President & Chief Financial Officer
Peter Melnychuk joined UFA as Chief Financial Officer in early 2010. Prior to joining UFA, Peter was CEO of BCT Structures, a designer
and manufacturer of custom modular structures. He led that organization through the worst of the global economic recession and
strengthened the company at a time when competitors were going out of business. Prior to that, Peter spent nine years with the
Jim Pattison Group as the Executive Vice President and CFO of their national leasing division.
The poor operating performance of 2009 continued into 2010, compounded by
the impact of weather on the AgriBusiness division. At the end of the first quarter of
2010, we failed to meet the financial covenants in place with our banking syndicate
and our long-term note holders. Essentially, our portfolio of businesses was not
generating adequate earnings to support our debt level.
Working closely with our financial stakeholders, we negotiated waivers and
extensions to afford the new management team the time to put together a new
strategy for UFA. The strategies and plans developed ensure that all of our businesses
will be self-sustaining and therefore provide positive contributions to the
operating results of the Co-operative.
New financial partners
While we were making progress in renegotiating the terms of our financial
arrangements with our banking syndicate and long-term note holders, it was apparent
that those existing financial arrangements were both operationally constraining and
punitive. We began discussions aimed at securing an alternate financial arrangement;
one that would provide sufficient flexibility to facilitate the operations of the business
over the next two to three years.
Integral to these discussions were the strategic operating plans that we had developed.
These plans were critical in building confidence in the future potential of our Co-operative
and in the strength of our assets. We needed to show potential financial partners that
we were committed to making fundamental changes to how we managed our business.
Our three-year plan and the operating changes we implemented in the fourth quarter
of 2010 earned the confidence of these financial partners.
In December, after significant negotiations, we finally completed a new financial
arrangement for the Co-operative in the form of an asset based lending agreement
with the full support of our new financial partners.
These asset-based lenders have not just given us the money and walked away.
They have become a real partner in our business and we’ve established a strong
two-way relationship. We provide them with ongoing updates and understanding
of the issues and challenges of the business. In turn, we can draw on their expertise
and knowledge to help shape our future.
Our focus over the next few years will be to continue to reduce our debt, improve
our profitability, and operate clearly within our financial covenants. By doing so,
we will ensure the long-term viability and sustainability of the Co-operative.
Financial Summary
Revenues were $1.74 billion, up from $1.6 billion in the previous year. Most of
this increase was attributed to the Petroleum Division where volumes grew
and global commodity prices increased throughout 2010. Wholesale Sports
revenue was up slightly due to additional stores in Canada. AgriBusiness saw
a reduction in revenue primarily due to the continued weakness in the economy
and unfavorable weather conditions.
Gross margins on combined sales were down from 2009. Losses incurred in our
commercial construction group and weaker margins in the AgriBusiness and
Wholesale Sports US were the key factors. Wholesale Sports US was impacted by
the weak US economy.
Operating and administrative expenses were $212.2 million, an increase of $30.7
million over the prior year. A significant part of this increase is due to the early
termination fees paid to the holders of our long-term notes and the structure
fees on our Asset Based Lending Agreement. Other factors included additional
expenses from new Wholesale Sports Canada stores, incremental bad debt
provisions and restructuring and severance costs.
EBITDA contribution was $7.7 million, compared to $56.4 million in 2009.
A significant amount of the year over year difference of $48.7 million is related
to one-time charges to realign and stabilize the business. On a normalized basis
our 2010 EBITDA would have been approximately $53 million.
The net financial result for 2010 was a loss of $88.5 million before
patronage allocation and income taxes. A significant portion of this
loss was due to one-time charges impacting our EBITDA, the goodwill
impairment charge of $26.6 million and the additional financing charges
incurred to avoid being in formal default of our financial covenants.
The loss of $88.5 million is significant, but became necessary as the
new management team, working under the guidance and direction of the
Board of Directors, took the required initiatives to stabilize UFA and set
in place a rebuilding strategy for our Co-operative.
6 UFA Annual Report 2010

Consolidated Balance Sheets
As at Dec. 26, 2010 Dec. 27, 2009
(expressed in thousands)
Assets
Current
Accounts receivable [note 5] $ 118,164 $ 143,739
Inventories 239,852 258,023
Prepaid expenses and deposits 18,808 6,002
Future income taxes [note 11] - 232
Property held for resale 833 -
Total current assets 377,657 407,996
Property held for resale [note 6] 13,165 379
Investments 862 1,223
Other long term assets 1,328 1,008
Goodwill and intangible assets [note 7] 69,822 101,143
Future income tax asset [note 11] 12,253 -
Property and equipment [note 8] 227,213 263,711
Total Assets $ 702,300 $ 775,460
Liabilities and Members’ Equity
Current
Bank indebtedness [note 4] $ 16 $ 2,625
Accounts payable and accrued liabilities 123,198 148,934
Deferred revenue [note 9] 10,709 15,318
Member loans [note 10] 15,092 17,251
Future income tax liability [note 11] 116 -
Current portion of long term debt [note 12] 6,418 1,685
Total current liabilities 155,549 185,813
Long term debt [note 12] 193,122 151,650
Asset retirement obligations [note 13] 22,171 26,207
Future income tax liability [note 11] - 1,300
Long term liabilities [note 14] 17,696 21,222
Total Liabilities 388,538 386,192
Members’ Equity
Member entitlements [note 16] 208,438 214,386
Retained earnings 122,886 189,566
Accumulated other comprehensive loss (17,562) (14,684)
Total Members’ Equity 313,762 389,268
Total Liabilities and Members’ Equity $ 702,300 $ 775,460
Five Year Summary
(expressed in thousands) 2011 2010 2009 2008 2007 2006
Revenue $ 1,742,941 1,603,863 2,161,230 1,805,977 1,613,118
Gross margin 216,306 225,697 216,412 246,395 231,524
Operating Expenses (212,224) (181,559) (146,028) (136,516) (118,482)
Earnings before patronage allocation and income taxes (88,530) (4,077) 45,099 91,626 93,345
Patronage allocation - - - 15,700 35,200 35,000
Distributions to Members
Cash portion of patronage allocation - - 3,648 8,223 8,166 5,827
Issuance of Class A investment shares 15,900 15,012 16,023 15,924 13,860 11,815
Dividends on investment shares 2,500 1,894 1,550 2,952 3,164 2,417
Retirement of equity 6,350 6,287 6,163 3,852 3,645 3,244
Total Distribution to Members $ 24,750 23,193 27,384 30,951 28,835 23,303
* 2011 Distribution to Members are estimates of what will occur in 2011 under the Member Equity Plan.
Detailed notes to financials are available at UFA.com
Making it happen. Together.
7

AgriBusiness (formerly Farm & Ranch Supply)
Ron Schinnour
Vice President, AgriBusiness (formerly Farm & Ranch Supply)
Ron Schinnour was appointed Vice President, AgriBusiness in June 2010. Ron has 25 years of experience in agriculture, both
locally and globally. After starting his career in the farm implements and fertilizer businesses in Alberta, Ron joined Monsanto
in 1992 where he held several key leadership and executive roles in Canada, United States and Latin America. Coming to UFA
means returning to Alberta where he was born and raised, to lead our Farm and Ranch Supply store turnaround team. His deep
agricultural roots and personal approach to the business is a great fit with our Co-operative values.
UFA Farm and Ranch Supply stores have been landmarks throughout Alberta for
decades. For this legacy to continue and thrive, we need to make some bold, yet
necessary, moves. The bottom line is UFA must fundamentally overhaul how our
network of stores and outreach teams serve farmers and ranchers.
Why change now?
To be blunt, we’re clearly falling short of the mark when it comes to meeting the needs
of our members and customers. Our customers expect us to have quality agricultural
products at the right place, at the right time and at a competitive price. Our customers
expect our employees to understand agriculture and the products we sell. Our customers
expect it to be easy to buy from UFA.
As owners, members demand their Co-operative to be financially sustainable and create
the ability to invest in growth. That means we can’t afford to have one division of the
with limited potential and they are now being converted into specialized service
stores. These stores will have their inventory calibrated to meet local market needs
after considering the primary agricultural focus in the area and the competition that
they face. In addition, staffing will be geared to customer sales and service activities.
These stores have the potential to be best in class for financial performance and there
are already some exciting examples of these changes in the first quarter of 2011.
There are also stores in markets where there is high market potential and we have room to
grow. In these stores, we are investing in growth. In all cases, these changes will require
better coordination between stores and taking advantage of our network capabilities.
We are reducing our cost of doing business. For UFA, our strength is our network:
we’re close to our customers and where they farm. When we truly examine our business
model, we’re a business-to-business agricultural solutions provider. Others may shop
“ We invite members and customers to support us. We are working
hard to earn your business.”
organization depend on UFA’s other businesses to exist. We need better performance
from all our business units now.
What will change?
Change is not just being planned, change is already happening.
We’re improving our marketing capability. For some time now we have taken a one-sizeserves-all
approach to stores. It may have been efficient in theory but it doesn’t serve
the core needs of a diversified agricultural community. We’re improving our marketing
capability to align market needs with the products on the shelf. This means we will offer
different product selections in different stores.
We’re also optimizing our store performance. Examining store performance and market
potential revealed some opportunities. We have stores with poor performance in markets
at our UFA stores but the foundation of success is serving agricultural professionals.
They represent the most important and growing market segment. This will result in
changes to the UFA organization, and some of these changes will be challenging
because they affect people. In the field and in Calgary, we are bringing in people who
better understand our members, customers and agriculture.
To serve the agricultural professionals we’re growing our field sales force. Today’s
farmers and ranchers expect UFA to come to them. Our experiments with a field sales
force prove this model works. We’ve also found that successfully serving customers at
the farm gate increases our opportunity to do even more business with them.
UFA is negotiating new partnerships with fewer, but more strategic vendors.
A one per cent reduction in operating costs makes an important contribution to
the bottom line. By comparison, when we improve our gross margin by one per cent,
Store Network Strategy Direction
Past & Current
Business focus based on meeting all customer
requests, regardless of organizational capability
Eroding competitive position
Inefficient operating model
Slow response to customer evolution
Operating at a loss and destroying owner value
Future
Focus on the areas of AgriBusiness where
UFA can create sustainable strategic value
Growing competitive position
Integrated and efficient business operations
Responsive to changes in agriculture
Operating at a profit and creating owner value
8 UFA Annual Report 2010

“ Others may shop at UFA but the foundation of success is serving
the agricultural professional.”
it delivers more than six times the impact to the bottom line. Since customers are
not willing to pay more, higher margins require us to have more buying power
with key strategic partners.
What will look different to customers?
Here is an example of the kind of changes we are making. We dedicate a high amount
of shelf space to an assortment of good, better and best paint brushes. When it comes
to paint brushes, how much choice does a customer want? The price and margin difference
are nominal and can’t ever justify the work required to source and distribute that many
different brushes to 35 stores. Customers will see a narrower, but more focused selection
of products that they need, where they want them, when they want them.
Customers will not see all products at every store. We cannot afford large inventories
sitting around gathering dust, but we will always have those products available in our
network. Stores are now organized into seven trade areas, with a common agricultural
focus in each area. Each trade area has a hub centre store. If the area is focused on
grain production, then grain bins will be fully available within the trade area for delivery
anywhere in the region. Customers get what they want and UFA reduces inventory
costs. UFA members have an entire store network that will better meet their needs and
contribute to the profitability of the Co-operative.
We’ll be getting out of some businesses. UFA’s move into construction taught us a lot.
One of the best lessons is simple: if you are going to be in a business, make the
commitment to be the best in it or don’t play at all. We can’t afford to dabble in
ventures. We need to be focused and excellent. Members expect it.
How can members help?
Without members, UFA will not exist. The truth is that our Farm and Ranch Supply
store business was sick. We could not get better without making significant changes.
The changes that started in 2010 will continue into 2011 and beyond. We’re already
seeing some encouraging signs and we invite members and customers to support us
during this process. We’re working hard to earn your business and, ultimately your trust.
Please continue to look to UFA for your farm and ranch needs.
Hub & Spoke Store Model
HUB
CENTRE
STORE
UFA’s new hub and spoke model functions in a way that a hub centre store operates
as a feeder store to spoke stores. The hub centre store acts as a distribution point for
specialized products and customer service in areas with a common agricultural focus.
Making it happen. Together.
9

Petroleum
Ed McCoy
Vice President, Petroleum
Ed McCoy was appointed Vice President, Petroleum, in February 2010. Ed joined UFA in 2005 as Director, Petroleum Logistics and
Commercial Sales. In that role he successfully negotiated new supply partnerships and contracts, enhanced pricing and margin
management capabilities, built up storage infrastructure, renegotiated transport contracts, developed import/export capabilities and
completely revamped the lubricants business. Prior to joining UFA, Ed spent more than 30 years with Shell; overseeing many different
aspects of their downstream business in Canada. Ed is passionate about driving results and continuing to build and grow the
Petroleum business for UFA.
The Petroleum division had an outstanding year in 2010 delivering a strong financial
contribution to the Co-operative. Despite a slowly recovering economy and supply
challenges arising from refinery disruptions, we were still able to capitalize on market
opportunities that optimized profitability.
The Petroleum business is healthy and its long-term strategic plan is solid. The strategy
work that was performed in 2010 across the organization validated that Petroleum’s
plan is sound and no significant changes to the ongoing operations of the business
are required.
As always, our top priority is to ensure that our members and customers obtain the
petroleum supply and services that they need while maintaining the profitability
of the business. A key competitive advantage for us is the strength of our agency
network located within the local communities. Our Agents are committed to serving
their members and customers. Their ongoing relationship with our local members and
customers, along with an unwavering passion for servicing their needs, is critical to
maintaining and growing our sales and fostering enduring loyalty to UFA.
Keeping the tanks full
A major advantage for us is the depth and breadth of our supply pool from all of
the local refiners. As a reseller, we purchase our fuel from local Alberta refiners under
longer-term supply contracts. However, when we’re unable to tap into sufficient
product from our local suppliers, like during peak harvest demand or periods of refinery
maintenance, we’re set up to quickly seek supply elsewhere. In the second half of 2010
we arranged to import additional product directly from the United States to supplement
our local supply. As a result, our customers and members experienced very little,
if any, interruption in fuel supply.
Optimizing our network
We’ll continue to support our Agents to develop site level plans to drive excellence
in all aspects of operations. Where it makes sound business sense, we’ll also continue
to consolidate agencies to multi-site operations whereby one agent is responsible
for more than one agency. This will prevent potential site closures and enable
us to economically keep cardlock sites operating to meet the fuel needs of local
communities. In 2010, we did close two agency locations – Youngstown and
Fort Nelson. While Youngstown customers continue to be served by nearby agencies,
the economic model in Fort Nelson no longer made financial sense for UFA to
continue operations.
Driving success in 2011
In 2010, we started our three-year plan to significantly upgrade technology within
our cardlock network. This will provide sites with improved technical stability, options
for future growth and compliance with new privacy/security standards for financial
transactions. This new technology has been successfully road tested and will be rolled
out to all locations over the next couple of years.
One of our biggest challenges ahead of us is the transition to biofuels in April 2011.
With the Alberta government’s mandated introduction of biofuels, we’re preparing
for this transition to sell these new fuels throughout the network with minimal
disruption or quality issues.
We’ll also continue to carefully manage our financial returns through sound price and
margin management. Whether we are talking about fuel or lubricant products, we need
to be mindful of the careful trade-off between sales and volume to ensure a healthy
gross margin.
Above all, in 2011 we’ll continue our two-pronged effort to protect our core agriculture
market share, while growing our commercial business within the constraints of our
available supply.
Thanks for your business. We’ll continue to work hard for you and for UFA.
10 UFA Annual Report 2010

Wholesale Sports Outdoor Outfitters
Glenn Bingley
Chief Operating Officer, Wholesale Sports Outdoor Outfitters
Glenn is the newest addition to the UFA executive leadership team. He joined the organization in February 2011 and has complete
operating responsibility for our Wholesale Sports business in Canada and the United States. Glenn joins us from the Home Depot
organization. His career started on the store floor and has progressed to senior operations roles in Canada and the United States.
Most recently, he was the Vice President, Merchandising for Home Depot Canada. Glenn is a leader who clearly understands that
success starts and finishes with the customer. His track record demonstrates an ability to turn that strong customer relationship
into bottom line results.
2010 was a tough year for the Wholesale Sports Outdoor Outfitters division. The US
economy has continued to struggle and while the Canadian economy recovered
slightly better, discretionary spending has been very slow to rebound. Poor weather in
the spring and early summer also had an impact on sales in both Canada and the US.
There’s no question of the need to significantly improve the profitability of the
business. From the time we acquired this business, we’ve been in fire-fighting mode:
constantly reacting to issues that demand our attention, treating the symptom
and moving on to the next crisis. We must transition from being reactive to creating
a proactive environment where we strategically anticipate and respond to market
and operational dynamics rather than constantly reacting with short-term
band-aid solutions.
In response to these challenges, we have developed a comprehensive three-year operating
plan that focuses on stabilizing operations and driving fundamental performance.
The plan includes initiatives to:
Improve inventory management and controls. We must constantly review
and rationalize the SKUs we choose to keep. We’ve also restructured our
buying departments to ensure that we’re able to more effectively determine
our inventory requirements.
Lower operating costs and reduce labour costs while balancing customer
service levels. Service is a distinct competitive advantage for Wholesale
Sports Outdoor Outfitters. We must effectively manage our labour costs
without sacrificing the level of service or expertise that our customers have
come to expect.
Enhance merchandising, buying and marketing capabilities. A new point-ofsale
and inventory management system was installed in early 2011 that will
improve buying, inventory management and marketing decisions.
Launch more proactive and localized marketing initiatives and improve
brand presence, especially in our US markets.
Improve our merchandising processes and capabilities. We can do a much
better job of responding to the seasonality of different product categories.
We clearly have an opportunity to shrink the space allocated to non-seasonal
items and expand the display of faster moving items to stimulate sales.
Improve our stocking and replenishment of seasonal items. Stores spend too
much time chasing product in-season because they run out. However, by the
time product can be ordered and delivered, we may have missed the peak
sales period for that particular season and are stuck with inventory we won’t
need. A far more strategic and planned approach to seasonal selling and
inventory management is being implemented.
In the second half of 2010, teams in both countries began executing the three-year
plan. These efforts helped produce excellent results in the fourth quarter and positive
financial results in early 2011 are evidence that we’re on the right track.
2011 will be a year of great change. New practices, processes and procedures are
being introduced to drive us forward. As the business becomes increasingly proactive
in its approach to the day-to-day operations, we’re confident that Wholesale Sports
Outdoor Outfitters can be a viable and significant player in both the Canadian and
US markets.
2010 Board of Directors
Front row: Duane Glimsdale, Barry Webster, Jim Laverick, Clarence Olthuis (Retired June 2010), Bill Lee
Back row: Jacob Middelkamp, Tim Bancroft, Cornie Teichroeb, Debbie Adolphson, Mic Thiessen, Bob Chisolm, Bill Dobson
Core purpose
To provide supplies and services that add value and
facilitate profitability for agricultural communities.
Ownership
UFA Co-operative Limited is owned by more than
120,000 active members. As a co-operative, UFA
returns its earnings to members, proportionate to
financial results. Membership is available with a
minimum share purchase of five dollars.
Meet your delegate
Business
With more than 120,000 members and revenues
in excess of $1.7 billion, UFA Co-operative
Limited is one of Canada’s largest and oldest
agricultural Co-operatives. UFA owns 35 Farm
and Ranch Supply stores, more than 110 bulk fuel
and commercial cardlock sites located in Alberta,
Saskatchewan and British Columbia, and 26
Wholesale Sports Outdoor Outfitter locations in
western Canada and the northwest US.
UFA is your Co-operative and you have a voice. Each of these dedicated individuals is fully committed to representing
the needs and concerns of their respective members. Let your voice be heard through your delegate.
Visit UFA.com/aboutUFA for contact information or contact our call centre at 1-877-258-4500.
Airdrie Leonard Wright Mayerthorpe Harvey Hagman
Athabasca David Salé Medicine Hat Mario Biemans*
Brooks Monfred Haag Olds Jim Donner
Calgary Gar Beacom Oyen Elizabeth Roberts
Camrose Roger Gabert Pincher Creek Todd Vance
Claresholm Vacant Ponoka Clifford Stone
Drayton Valley Colleen Sekura Provost Harvey Adams
Drumheller Darcy Jensen Red Deer Terry Young
Fairview Blair Shilka* Rocky Mountain House Roland Grutterink
Falher Claude Smith Spruce Grove Kathy Playdon
Fort Saskatchewan Vacant St. Paul Dave Pilisko
Ft. St. John Larry Holthe Stettler Vacant
Grande Prairie East Robert Patterson* Strathmore Joseph Van Bavel
Grande Prairie West Garry Roessler Swift Current Mark Mitchell
Grimshaw Jim Allan Taber James Bettcher
High River Rick Hansen Trochu Kevin Hoppins
Kindersley Reed Burton Two Hills Peter Flondra
La Crete Bruce Harder Vermilion Gary Moses
Leduc Jerome Lickacz Vulcan Ed Kettenbach
Lethbridge Mark Sayers Wainwright Jim Fraser
Lloydminster Donald King Westlock Karen Brown
*Delegate has indicated they will not seek re-election in July 2011. Visit UFA.com for updates on our delegates.
Making it happen. Together.
11

Making it happen. Together.
Making it happen in our communities
UFA is part of small towns from the prairies to the foothills. Just like small towns,
our Co-operative was founded on the principle that we can achieve far greater
things as a group than we can as individuals. Together we have learned that great
things really do happen by sharing a simple vision, then rolling up our sleeves to get
it done. It’s about generations of families, friends, neighbours, and communities...
Making it happen. Together.
Small Town Heroes
The heart and soul of any small town are those people who make their
community the absolute best place to live… people who have a ‘can do’
attitude and a passion for their community. In every town, there are heroes
– individuals who go above and beyond to make a difference. Whether it’s
working together to fulfill a big dream or simply lending a hand, these
people are our small town heroes.
UFA is proud to recognize and honour these selfless individuals through our
Small Town Heroes contest. With over 170 nominations and more than 300,000
votes, the contest told heartfelt stories of volunteerism, kindness, passion and
an inner strength that binds us all.
While everyone is a winner in their small town, picking the contest winners
was a tough job. The grand prize winners were Doris McFarlane in Beaverlodge
and Dr. Lewke-Bogle in Milk River. Each received a Paul Brandt concert, and
UFA helped to raise over $40,000 for the Beaverlodge “Every Drop Builds a Dream”
Pool Project and more than $20,000 for the Quad Municipality Physician
Recruitment and Retention Committee (Milk River).
Do you know a small town hero? Stay tuned for more information on the 2011
UFA Small Town Heroes contest and maybe you can win a Paul Brandt concert
for your community.
Generations of Support
UFA has been a reliable and supportive neighbour in Alberta communities for more than 100 years. Together our
shared sense of community has opened many doors for generations of youth, family and agriculture for the better
and for the future.
For more information on our Generations of Support
program and how you can get involved, visit us online
at UFA.com/community.
Farmers’ Day
In the past, Albertans came together to honour the frontier spirit and contribution of our farmers every year on
the second Friday in June. This came to be known as Farmers’ Day.
As a way to say “thanks”, UFA decided to revive this special day and invite farmers, members and their families
to come out and enjoy time together with old fashioned food, fun and prizes. Contests, draws, BBQs, and games
were held across our network of Farm and Ranch Supply stores and Petroleum locations on June 11, 2010.
Our network of UFA Farm and Ranch Supply stores and Petroleum locations participated enthusiastically in
Farmers’ Day. The activities that engaged our members and their families, along with staff, included ‘kiss the pig’,
pie baking contests, petting zoos, racing riding lawnmowers and so much more. It’s about food, fun and families
enjoying the tradition of Farmers’ Day.
Hope you can join us for Farmers’ Day on June 10, 2011.
“Farmers are great. Farmers are neat.
You should hug a farmer, if you like to eat.”
Paul Brandt, 2010 Chats from the Barn
Visit UFA.com to see this Farmers’ Day chat and many more
Top ten winners
DORIS MCFARLANE, Beaverlodge
DR. LEWKE-BOGLE, Milk River
GLEN KEELEY MEMORIAL BULL RIDING COMMITTEE, Stavely
MARGARET THIBAULT, Mayerthorpe
MATTHEW SKRETTING, Vauxhall
SHARON SYMES, Paradise Valley
STAN NILES, Kindersley
TERRY ATKINSON, Nanton
TERRY TRAINER, Magrath
THE TOWN OF IRVINE, Irvine
FSC logo to go here
We’re listening
At UFA, we are committed to providing you with the best
experience possible. It’s why your opinion is so important to us.
Please pass along feedback, concerns, or suggestions you
may have. We’re always listening.
1-877-258-4500
customer.support@ufa.com
or visit UFA.com
UFA.com