Making it happen. Together. - UFA.com
Making it happen. Together. - UFA.com
Making it happen. Together. - UFA.com
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<strong>Making</strong> <strong>it</strong> <strong>happen</strong>. <strong>Together</strong>.<br />
2010 Annual Report<br />
“ Farmers and ranchers are recognized<br />
for their resilience and perseverance<br />
in those times when everything<br />
that can go wrong, does go wrong.<br />
It seems that no matter how tough<br />
things get, they pick themselves<br />
up, dust themselves off and start<br />
looking ahead to next year….I am<br />
optimistic and confident that we are<br />
on the road to recovery.”<br />
Jim Laverick, Chairman of the Board<br />
“ <strong>UFA</strong> has a long history of serving<br />
farmers, ranchers and the people<br />
of rural Alberta. While our horizons<br />
have broadened, our core purpose<br />
remains the same. Our objective<br />
is to re-earn your trust and loyalty.<br />
I am proud of the <strong>UFA</strong> team and<br />
their dedication and passion to<br />
our Co-operative.”<br />
Bob Nelson, President & CEO<br />
© 2011 <strong>UFA</strong> Co-operative Ltd. All rights reserved. <strong>UFA</strong>.<strong>com</strong>
Letter from our Chairman<br />
Jim Laverick<br />
Chairman of the Board<br />
Jim Laverick was elected to the <strong>UFA</strong> Board in 2008 and elected Chairman in 2010. Jim’s passion for agriculture, rural Alberta and<br />
Co-operatives <strong>com</strong>es naturally. Jim grew up on a family farm in the Grande Prairie area and spent 38 years w<strong>it</strong>h the Co-operators<br />
Group Ltd., holding numerous senior pos<strong>it</strong>ions. At the 2011 <strong>UFA</strong> Annual General Meeting, he was elected by the Board to serve as the<br />
Chairman for another year.<br />
For <strong>UFA</strong>, 2010 was a year of trans<strong>it</strong>ion. While everyone expects a few bumps and<br />
bruises as they adapt to change, I’m not sure anyone could have been fully prepared for<br />
the roller coaster ride we took during the past 12 months. Much of the year was spent<br />
stabilizing the Co-operative and getting back on the path to prosper<strong>it</strong>y.<br />
Our financial results are proof of what a challenging year <strong>it</strong> has been. These results<br />
are the worst that <strong>UFA</strong> has ever had to report. Although this is somewhat disappointing<br />
and discouraging, I am optimistic and confident that we are on the road to recovery.<br />
Early in 2010, the Board, as representatives of the owners of the Co-operative,<br />
stepped in to make some drastic changes to the management team. The changes<br />
were necessary and we now have a strong leadership team w<strong>it</strong>h a vision to drive the<br />
business forward. As a Board we also made a firm <strong>com</strong>m<strong>it</strong>ment to a <strong>com</strong>prehensive<br />
rebuilding strategy. We’ve worked closely w<strong>it</strong>h our new management team to develop<br />
that strategy and we have the right people in place to execute <strong>it</strong>. Given the changes<br />
we have made in the past 12 months and the rebuilding plans we have going<br />
forward, I am hopeful and optimistic. Desp<strong>it</strong>e our financial performance, there are<br />
clear signs that we are making excellent progress in our rebuilding efforts. I feel much<br />
more pos<strong>it</strong>ive today than I did a year ago.<br />
We’ve rebuilt the bridges of trust and confidence between the Board and the<br />
management team. <strong>Together</strong> we have re-established a solid foundation of openness,<br />
transparency and honesty. We have strong working relationships among members<br />
of the Board and between the Board and management.<br />
We have also improved our abil<strong>it</strong>y to govern the organization by implementing<br />
a means of facil<strong>it</strong>ating better oversight of operations, increased the engagement<br />
of Board <strong>com</strong>m<strong>it</strong>tees and changed some reporting relationships. This has helped<br />
strengthen our linkages to key roles, increase our controls and improve our<br />
overall culture.<br />
Through the year, we have had many conversations about the Co-operative,<br />
where we are going and how we stay relevant to our owners.<br />
<strong>UFA</strong> has to deliver on three levels:<br />
Enable my business. Members are customers first and<br />
foremost. If we can provide them w<strong>it</strong>h the products and<br />
services they need, when they need them, we be<strong>com</strong>e an<br />
integral part of their business. They, in turn, reward us<br />
w<strong>it</strong>h their business and their loyalty. If we fail to deliver,<br />
we be<strong>com</strong>e irrelevant in their lives and nothing else we<br />
do really matters.<br />
Protect my investment. Once we have earned their<br />
business and they begin to make purchases, members start<br />
to build equ<strong>it</strong>y. As they continue to do business w<strong>it</strong>h us<br />
and their equ<strong>it</strong>y grows, members want what every prudent<br />
investor wants – to know that their investment is safe.<br />
They look to the Board and management to make sound<br />
decisions, provide strong governance and ensure that<br />
whatever equ<strong>it</strong>y they have is managed to minimize risk to<br />
their investment. Protecting that investment also means<br />
protecting the annual patronage dividend. As part of our<br />
rebuilding plan we must get back to where we are able to<br />
reward our members for supporting their Co-operative. It’s<br />
going to take some time but I assure you, we will get there.<br />
Champion rural sustainabil<strong>it</strong>y. <strong>UFA</strong> has be<strong>com</strong>e an<br />
icon on the prairie landscape. As good corporate c<strong>it</strong>izens<br />
w<strong>it</strong>h a special relationship w<strong>it</strong>h farmers, ranchers and<br />
the rural way of life, we have an obligation to be part of<br />
their local <strong>com</strong>mun<strong>it</strong>ies. They look to us for more than our<br />
economic contributions. They also look to us to actively<br />
participate in the local <strong>com</strong>mun<strong>it</strong>y. They expect <strong>UFA</strong> to<br />
invest in ways that will help sustain the agricultural and<br />
rural lifestyle they have chosen.<br />
2 <strong>UFA</strong> Annual Report 2010
Members continually remind us that in order to be relevant and meaningful in<br />
their lives, <strong>UFA</strong> has to deliver on three levels:<br />
Enable my business, protect my investment, champion rural sustainabil<strong>it</strong>y:<br />
<strong>it</strong>’s a clear mandate, powerful <strong>com</strong>pet<strong>it</strong>ive pos<strong>it</strong>ion and an excellent barometer<br />
of our rebuilding strategy. During the past year we have taken several significant<br />
steps to improve our performance in each of these areas.<br />
Much of 2010 was consumed w<strong>it</strong>h restructuring our debt. We now have new debt<br />
financing in place. Our new lending arrangement allows us to refocus on those things<br />
that are really important to our members. On behalf of the Board of Directors, I want<br />
to thank the management team for their innovative thinking and perseverance in<br />
getting this done.<br />
I want to congratulate and thank the people who do their best to make <strong>it</strong> all <strong>happen</strong>:<br />
our field staff, petroleum agents, support staff and everyone else who is such a v<strong>it</strong>al part<br />
of this organization. We know <strong>it</strong> has been tough slugging the past few years. We have<br />
asked for a lot from everyone. It hasn’t been easy. And yet, wherever I go, whomever<br />
I talk to, at a Farm and Ranch Supply store, a petroleum agency, an outdoor adventure<br />
location or at the Calgary corporate office, there is a deep desire and <strong>com</strong>m<strong>it</strong>ment to<br />
getting the job done. On behalf of the Board and all the elected officials, I want to<br />
express our sincere thanks and appreciation to every employee, agent and business partner.<br />
During <strong>it</strong>s long history, <strong>UFA</strong> has faced many challenges resulting from volatile economic<br />
and agricultural cycles. W<strong>it</strong>h each downturn, the organization has adapted and emerged<br />
stronger, more focused and better prepared to meet the demands of an evolving<br />
customer base in a more <strong>com</strong>pet<strong>it</strong>ive marketplace.<br />
“ Given the changes we have made in the past 12 months and<br />
the rebuilding plans we have going forward, I am hopeful<br />
and optimistic. ”<br />
As part of the new financial plan, management also put together a three-year operating<br />
plan that specifies exactly how each business un<strong>it</strong> will achieve <strong>it</strong>s financial and strategic<br />
objectives. The 2011-2013 operating plan establishes direction and prior<strong>it</strong>ies for the<br />
organization. It’s based on a <strong>com</strong>m<strong>it</strong>ment to diversification w<strong>it</strong>h a more balanced<br />
approach to serving the agricultural producer. The plan is built on the premise that<br />
each business un<strong>it</strong> must be prof<strong>it</strong>able. We can no longer afford to subsidize parts of the<br />
business. As a result we are ex<strong>it</strong>ing from the <strong>com</strong>mercial construction market.<br />
The plan is not an aggressive growth plan that requires an infusion of new cap<strong>it</strong>al.<br />
Rather <strong>it</strong> focuses on growth; driven by effective execution and attention to sound<br />
business fundamentals. The plan also focuses on cleaning up our balance sheet, which<br />
is why we have elected to take such significant wr<strong>it</strong>e-downs in 2010.<br />
This three-year operating plan accurately reflects the vision, <strong>com</strong>petencies and<br />
capabil<strong>it</strong>ies of the Board and our new management team. It’s about stabilization of<br />
the core businesses: optimizing value by <strong>com</strong>bining good fundamentals w<strong>it</strong>h focused<br />
execution. The next three years will demand true operational excellence from each<br />
business un<strong>it</strong> and support function.<br />
Our current s<strong>it</strong>uation has once again tested our strength, agil<strong>it</strong>y and abil<strong>it</strong>y to rise to<br />
the challenge. And while our financial results are unacceptable and rebuilding is going<br />
to take some time, <strong>UFA</strong> is moving in the right direction.<br />
Farmers and ranchers are recognized for their resilience and perseverance in those<br />
times when everything that can go wrong, does go wrong. It seems that no matter how<br />
tough things get, they pick themselves up, dust themselves off and start looking ahead<br />
to next year. At no time in <strong>it</strong>s history has <strong>UFA</strong> needed <strong>it</strong>s members’ support as <strong>it</strong> does<br />
today. I urge you to keep the fa<strong>it</strong>h. We are on the right track and I am confident that if<br />
we continue pulling together in the same direction, we will be able to get <strong>UFA</strong> back to<br />
where <strong>it</strong> needs to be.<br />
Jim Laverick<br />
Chairman of the Board<br />
<strong>Making</strong> <strong>it</strong> <strong>happen</strong>. <strong>Together</strong>.<br />
3
Letter from our President & CEO<br />
Bob Nelson<br />
President & CEO<br />
Bob Nelson joined <strong>UFA</strong> in 2004 after more than 20 years in the downstream petroleum industry. W<strong>it</strong>hin a year, Bob was called on to<br />
lead the Petroleum division at <strong>UFA</strong>. Bob navigated the petroleum division through supply shortages, diminished refinery rebates and<br />
increased <strong>com</strong>pet<strong>it</strong>ive pressures on margin. Through all this, Bob was able to stabilize the business and lead the team to record financial<br />
results for the division from 2006 through 2009. In Bob, the Board recognized a strong, understanding and effective leader. In early<br />
2010, Bob was appointed President & CEO.<br />
Last year’s annual report clearly stated that 2010 was going to be a difficult year for our<br />
Co-operative. And by all measures <strong>it</strong> was a tough year for <strong>UFA</strong>. It was a year of almost<br />
continuous and unique challenges as we faced up to the real<strong>it</strong>y of our s<strong>it</strong>uation.<br />
In 2010 we began our journey to rebuild our Co-operative. To start, we needed to get<br />
the fundamentals of our business back on solid footing. Only w<strong>it</strong>h a strong foundation,<br />
can we realistically re-set our sights on strategic growth. We’ve already started laying<br />
that foundation by:<br />
• Restructuring the debt<br />
• Developing a rebuilding strategy and a three-year operating plan<br />
• Implementing operational changes<br />
• Reconnecting the organization w<strong>it</strong>h <strong>it</strong>s agricultural roots<br />
• Reengaging w<strong>it</strong>h key stakeholders: owners and customers,<br />
employees and agents, financial partners and vendors<br />
Rebuilding means reaffirming that <strong>UFA</strong> is an agricultural Co-operative w<strong>it</strong>h deep roots.<br />
We are obligated to make sure we effectively serve the farmers and ranchers of Alberta.<br />
That not only means having the products and services you need when you need them,<br />
<strong>it</strong> also demands that we have a responsibil<strong>it</strong>y to ensure the long-term viabil<strong>it</strong>y and<br />
sustainabil<strong>it</strong>y of the Co-operative.<br />
course for the future, as well as re-building a strong foundation and demonstrating<br />
solid operating performance will create strategic options for growth.<br />
We believe that our rebuilding strategy is sound and achievable. But this strategic<br />
direction also represents a fundamental change in the way we’ll do business, especially<br />
in our AgriBusiness and Wholesale Sports divisions. It also means refocusing our<br />
supporting service teams towards business un<strong>it</strong> prior<strong>it</strong>ies and plans. At <strong>it</strong>s core, this<br />
strategic direction emphasizes business fundamentals. It calls for focused execution of<br />
our business plans and for increased and more effective processes and controls w<strong>it</strong>hin<br />
the businesses.<br />
2011 is a cr<strong>it</strong>ical year in our rebuilding and an exc<strong>it</strong>ing time for our Co-operative.<br />
We have a great deal of work to do and flawlessly executing our operating plans is our<br />
highest prior<strong>it</strong>y and focus this year. Experience has proven that financial results are the<br />
out<strong>com</strong>e of operational excellence and <strong>com</strong>m<strong>it</strong>ted, engaged people.<br />
The thread that binds all the parts of our rebuilding strategy together is our unwavering<br />
<strong>com</strong>m<strong>it</strong>ment to our Core Purpose – providing supplies and services that add value<br />
and facil<strong>it</strong>ate prof<strong>it</strong>abil<strong>it</strong>y for agricultural <strong>com</strong>mun<strong>it</strong>ies. We’ve wavered from this in<br />
the past, but I can assure you that in the past year all of our decisions have been<br />
measured by this yardstick. We will continue to test our decision-making against our<br />
Core Purpose as we move forward.<br />
Having better financing agreements in place is a start – but <strong>it</strong>’s only a short-term<br />
solution that does not diminish the need to improve the fundamental performance of<br />
our business. Learning from our past, facing our present real<strong>it</strong>ies, charting a new<br />
Prudent diversification is cr<strong>it</strong>ical for the organization’s future. We embarked on a<br />
diversification strategy to m<strong>it</strong>igate some of the financial risk associated w<strong>it</strong>h revenue<br />
streams so heavily skewed towards agriculture. The opportun<strong>it</strong>y to purchase a retail<br />
“A proud history and an exc<strong>it</strong>ing new beginning.”<br />
4 <strong>UFA</strong> Annual Report 2010
Core purpose<br />
To provide supplies<br />
and services that<br />
add value and<br />
facil<strong>it</strong>ate prof<strong>it</strong>abil<strong>it</strong>y<br />
for agricultural<br />
<strong>com</strong>mun<strong>it</strong>ies.<br />
outdoor adventure <strong>com</strong>pany f<strong>it</strong> well w<strong>it</strong>hin our Core Purpose for supporting rural and<br />
agricultural <strong>com</strong>mun<strong>it</strong>ies. As part of a strategy session w<strong>it</strong>h the Board, we collectively<br />
reaffirmed that this diversification strategy was correct. In the past, the execution<br />
of this strategy, however, has been flawed. We worked w<strong>it</strong>h retail business<br />
turnaround experts to help us analyze the Wholesale Sports business and identify<br />
opportun<strong>it</strong>ies for improvement. We’ve developed a three-year operating plan designed<br />
to stabilize operations and drive financial performance. In early 2011, we successfully<br />
recru<strong>it</strong>ed Glenn Bingley as the new leader for the Wholesale Sports division. He has<br />
extensive background in retailing and a depth of relevant experience that will help<br />
us improve the operation and performance of Wholesale Sports.<br />
We also examined our construction capabil<strong>it</strong>ies as part of our diversification strategy.<br />
We did not see the upside for our <strong>com</strong>mercial construction division so we have decided<br />
to ex<strong>it</strong> the marketplace. Going forward, we will make sure that our diversification<br />
strategy is in balance w<strong>it</strong>h our Core Purpose and our agricultural roots.<br />
We’ll manage all of our business un<strong>it</strong>s in such a way that we improve our immediate<br />
performance and set the stage for long-term growth. We’re already seeing some<br />
pos<strong>it</strong>ive results from each of the operating divisions. While we still have a lot of work<br />
to do, this is encouraging and indicates we are on the right track.<br />
We also know that actions speak louder than words. At our Farm and Ranch Supply<br />
stores, throughout our unmatched network of petroleum agencies or at one of our<br />
outdoor adventure stores, listening to our members and customers and adapting to<br />
their changing needs is a cr<strong>it</strong>ical measure of our success. Putting the members<br />
and customers at the centre of our decisions is a prior<strong>it</strong>y. We must continually<br />
ask “what do our members and customers need and how can we make <strong>it</strong> easier to<br />
do business w<strong>it</strong>h us?”. We’ll continue to implement plans that rebalance our focus and<br />
reconnect us w<strong>it</strong>h the people in the <strong>com</strong>mun<strong>it</strong>ies we are proud to serve.<br />
People are the cornerstone of any organization. <strong>UFA</strong> was built by people who shared<br />
a passion and <strong>com</strong>m<strong>it</strong>ment for a successful Co-operative. In our Co-operative<br />
today you find that very same passion and <strong>com</strong>m<strong>it</strong>ment in every part of our business.<br />
I am exceptionally proud of the <strong>UFA</strong> team and sincerely appreciate their dedication<br />
and support.<br />
<strong>UFA</strong> has a long history of serving the farmers, ranchers and the people of rural<br />
Alberta. While our horizons have broadened, our Core Purpose remains the same.<br />
Our objective now is to re-earn your trust and loyalty by serving your needs and<br />
meeting your expectations better than anyone else. We know that to earn your trust<br />
we need to provide you proof of real change, progress and performance. We’re getting<br />
pos<strong>it</strong>ive feedback from you, our owners, and our customers that these changes are<br />
making a difference.<br />
I firmly believe our Co-operative has emerged from 2010 a stronger and more focused<br />
organization. 2011 is a new beginning for <strong>UFA</strong>. I would like to thank you for your support<br />
and understanding as we rebuild our Co-operative for a successful second century.<br />
Bob Nelson<br />
President & CEO<br />
<strong>Making</strong> <strong>it</strong> <strong>happen</strong>. <strong>Together</strong>.<br />
5
Finance<br />
Peter Melnychuk<br />
Executive Vice President & Chief Financial Officer<br />
Peter Melnychuk joined <strong>UFA</strong> as Chief Financial Officer in early 2010. Prior to joining <strong>UFA</strong>, Peter was CEO of BCT Structures, a designer<br />
and manufacturer of custom modular structures. He led that organization through the worst of the global economic recession and<br />
strengthened the <strong>com</strong>pany at a time when <strong>com</strong>pet<strong>it</strong>ors were going out of business. Prior to that, Peter spent nine years w<strong>it</strong>h the<br />
Jim Pattison Group as the Executive Vice President and CFO of their national leasing division.<br />
The poor operating performance of 2009 continued into 2010, <strong>com</strong>pounded by<br />
the impact of weather on the AgriBusiness division. At the end of the first quarter of<br />
2010, we failed to meet the financial covenants in place w<strong>it</strong>h our banking syndicate<br />
and our long-term note holders. Essentially, our portfolio of businesses was not<br />
generating adequate earnings to support our debt level.<br />
Working closely w<strong>it</strong>h our financial stakeholders, we negotiated waivers and<br />
extensions to afford the new management team the time to put together a new<br />
strategy for <strong>UFA</strong>. The strategies and plans developed ensure that all of our businesses<br />
will be self-sustaining and therefore provide pos<strong>it</strong>ive contributions to the<br />
operating results of the Co-operative.<br />
New financial partners<br />
While we were making progress in renegotiating the terms of our financial<br />
arrangements w<strong>it</strong>h our banking syndicate and long-term note holders, <strong>it</strong> was apparent<br />
that those existing financial arrangements were both operationally constraining and<br />
pun<strong>it</strong>ive. We began discussions aimed at securing an alternate financial arrangement;<br />
one that would provide sufficient flexibil<strong>it</strong>y to facil<strong>it</strong>ate the operations of the business<br />
over the next two to three years.<br />
Integral to these discussions were the strategic operating plans that we had developed.<br />
These plans were cr<strong>it</strong>ical in building confidence in the future potential of our Co-operative<br />
and in the strength of our assets. We needed to show potential financial partners that<br />
we were <strong>com</strong>m<strong>it</strong>ted to making fundamental changes to how we managed our business.<br />
Our three-year plan and the operating changes we implemented in the fourth quarter<br />
of 2010 earned the confidence of these financial partners.<br />
In December, after significant negotiations, we finally <strong>com</strong>pleted a new financial<br />
arrangement for the Co-operative in the form of an asset based lending agreement<br />
w<strong>it</strong>h the full support of our new financial partners.<br />
These asset-based lenders have not just given us the money and walked away.<br />
They have be<strong>com</strong>e a real partner in our business and we’ve established a strong<br />
two-way relationship. We provide them w<strong>it</strong>h ongoing updates and understanding<br />
of the issues and challenges of the business. In turn, we can draw on their expertise<br />
and knowledge to help shape our future.<br />
Our focus over the next few years will be to continue to reduce our debt, improve<br />
our prof<strong>it</strong>abil<strong>it</strong>y, and operate clearly w<strong>it</strong>hin our financial covenants. By doing so,<br />
we will ensure the long-term viabil<strong>it</strong>y and sustainabil<strong>it</strong>y of the Co-operative.<br />
Financial Summary<br />
Revenues were $1.74 billion, up from $1.6 billion in the previous year. Most of<br />
this increase was attributed to the Petroleum Division where volumes grew<br />
and global <strong>com</strong>mod<strong>it</strong>y prices increased throughout 2010. Wholesale Sports<br />
revenue was up slightly due to add<strong>it</strong>ional stores in Canada. AgriBusiness saw<br />
a reduction in revenue primarily due to the continued weakness in the economy<br />
and unfavorable weather cond<strong>it</strong>ions.<br />
Gross margins on <strong>com</strong>bined sales were down from 2009. Losses incurred in our<br />
<strong>com</strong>mercial construction group and weaker margins in the AgriBusiness and<br />
Wholesale Sports US were the key factors. Wholesale Sports US was impacted by<br />
the weak US economy.<br />
Operating and administrative expenses were $212.2 million, an increase of $30.7<br />
million over the prior year. A significant part of this increase is due to the early<br />
termination fees paid to the holders of our long-term notes and the structure<br />
fees on our Asset Based Lending Agreement. Other factors included add<strong>it</strong>ional<br />
expenses from new Wholesale Sports Canada stores, incremental bad debt<br />
provisions and restructuring and severance costs.<br />
EBITDA contribution was $7.7 million, <strong>com</strong>pared to $56.4 million in 2009.<br />
A significant amount of the year over year difference of $48.7 million is related<br />
to one-time charges to realign and stabilize the business. On a normalized basis<br />
our 2010 EBITDA would have been approximately $53 million.<br />
The net financial result for 2010 was a loss of $88.5 million before<br />
patronage allocation and in<strong>com</strong>e taxes. A significant portion of this<br />
loss was due to one-time charges impacting our EBITDA, the goodwill<br />
impairment charge of $26.6 million and the add<strong>it</strong>ional financing charges<br />
incurred to avoid being in formal default of our financial covenants.<br />
The loss of $88.5 million is significant, but became necessary as the<br />
new management team, working under the guidance and direction of the<br />
Board of Directors, took the required in<strong>it</strong>iatives to stabilize <strong>UFA</strong> and set<br />
in place a rebuilding strategy for our Co-operative.<br />
6 <strong>UFA</strong> Annual Report 2010
Consolidated Balance Sheets<br />
As at Dec. 26, 2010 Dec. 27, 2009<br />
(expressed in thousands)<br />
Assets<br />
Current<br />
Accounts receivable [note 5] $ 118,164 $ 143,739<br />
Inventories 239,852 258,023<br />
Prepaid expenses and depos<strong>it</strong>s 18,808 6,002<br />
Future in<strong>com</strong>e taxes [note 11] - 232<br />
Property held for resale 833 -<br />
Total current assets 377,657 407,996<br />
Property held for resale [note 6] 13,165 379<br />
Investments 862 1,223<br />
Other long term assets 1,328 1,008<br />
Goodwill and intangible assets [note 7] 69,822 101,143<br />
Future in<strong>com</strong>e tax asset [note 11] 12,253 -<br />
Property and equipment [note 8] 227,213 263,711<br />
Total Assets $ 702,300 $ 775,460<br />
Liabil<strong>it</strong>ies and Members’ Equ<strong>it</strong>y<br />
Current<br />
Bank indebtedness [note 4] $ 16 $ 2,625<br />
Accounts payable and accrued liabil<strong>it</strong>ies 123,198 148,934<br />
Deferred revenue [note 9] 10,709 15,318<br />
Member loans [note 10] 15,092 17,251<br />
Future in<strong>com</strong>e tax liabil<strong>it</strong>y [note 11] 116 -<br />
Current portion of long term debt [note 12] 6,418 1,685<br />
Total current liabil<strong>it</strong>ies 155,549 185,813<br />
Long term debt [note 12] 193,122 151,650<br />
Asset retirement obligations [note 13] 22,171 26,207<br />
Future in<strong>com</strong>e tax liabil<strong>it</strong>y [note 11] - 1,300<br />
Long term liabil<strong>it</strong>ies [note 14] 17,696 21,222<br />
Total Liabil<strong>it</strong>ies 388,538 386,192<br />
Members’ Equ<strong>it</strong>y<br />
Member ent<strong>it</strong>lements [note 16] 208,438 214,386<br />
Retained earnings 122,886 189,566<br />
Accumulated other <strong>com</strong>prehensive loss (17,562) (14,684)<br />
Total Members’ Equ<strong>it</strong>y 313,762 389,268<br />
Total Liabil<strong>it</strong>ies and Members’ Equ<strong>it</strong>y $ 702,300 $ 775,460<br />
Five Year Summary<br />
(expressed in thousands) 2011 2010 2009 2008 2007 2006<br />
Revenue $ 1,742,941 1,603,863 2,161,230 1,805,977 1,613,118<br />
Gross margin 216,306 225,697 216,412 246,395 231,524<br />
Operating Expenses (212,224) (181,559) (146,028) (136,516) (118,482)<br />
Earnings before patronage allocation and in<strong>com</strong>e taxes (88,530) (4,077) 45,099 91,626 93,345<br />
Patronage allocation - - - 15,700 35,200 35,000<br />
Distributions to Members<br />
Cash portion of patronage allocation - - 3,648 8,223 8,166 5,827<br />
Issuance of Class A investment shares 15,900 15,012 16,023 15,924 13,860 11,815<br />
Dividends on investment shares 2,500 1,894 1,550 2,952 3,164 2,417<br />
Retirement of equ<strong>it</strong>y 6,350 6,287 6,163 3,852 3,645 3,244<br />
Total Distribution to Members $ 24,750 23,193 27,384 30,951 28,835 23,303<br />
* 2011 Distribution to Members are estimates of what will occur in 2011 under the Member Equ<strong>it</strong>y Plan.<br />
Detailed notes to financials are available at <strong>UFA</strong>.<strong>com</strong><br />
<strong>Making</strong> <strong>it</strong> <strong>happen</strong>. <strong>Together</strong>.<br />
7
AgriBusiness (formerly Farm & Ranch Supply)<br />
Ron Schinnour<br />
Vice President, AgriBusiness (formerly Farm & Ranch Supply)<br />
Ron Schinnour was appointed Vice President, AgriBusiness in June 2010. Ron has 25 years of experience in agriculture, both<br />
locally and globally. After starting his career in the farm implements and fertilizer businesses in Alberta, Ron joined Monsanto<br />
in 1992 where he held several key leadership and executive roles in Canada, Un<strong>it</strong>ed States and Latin America. Coming to <strong>UFA</strong><br />
means returning to Alberta where he was born and raised, to lead our Farm and Ranch Supply store turnaround team. His deep<br />
agricultural roots and personal approach to the business is a great f<strong>it</strong> w<strong>it</strong>h our Co-operative values.<br />
<strong>UFA</strong> Farm and Ranch Supply stores have been landmarks throughout Alberta for<br />
decades. For this legacy to continue and thrive, we need to make some bold, yet<br />
necessary, moves. The bottom line is <strong>UFA</strong> must fundamentally overhaul how our<br />
network of stores and outreach teams serve farmers and ranchers.<br />
Why change now?<br />
To be blunt, we’re clearly falling short of the mark when <strong>it</strong> <strong>com</strong>es to meeting the needs<br />
of our members and customers. Our customers expect us to have qual<strong>it</strong>y agricultural<br />
products at the right place, at the right time and at a <strong>com</strong>pet<strong>it</strong>ive price. Our customers<br />
expect our employees to understand agriculture and the products we sell. Our customers<br />
expect <strong>it</strong> to be easy to buy from <strong>UFA</strong>.<br />
As owners, members demand their Co-operative to be financially sustainable and create<br />
the abil<strong>it</strong>y to invest in growth. That means we can’t afford to have one division of the<br />
w<strong>it</strong>h lim<strong>it</strong>ed potential and they are now being converted into specialized service<br />
stores. These stores will have their inventory calibrated to meet local market needs<br />
after considering the primary agricultural focus in the area and the <strong>com</strong>pet<strong>it</strong>ion that<br />
they face. In add<strong>it</strong>ion, staffing will be geared to customer sales and service activ<strong>it</strong>ies.<br />
These stores have the potential to be best in class for financial performance and there<br />
are already some exc<strong>it</strong>ing examples of these changes in the first quarter of 2011.<br />
There are also stores in markets where there is high market potential and we have room to<br />
grow. In these stores, we are investing in growth. In all cases, these changes will require<br />
better coordination between stores and taking advantage of our network capabil<strong>it</strong>ies.<br />
We are reducing our cost of doing business. For <strong>UFA</strong>, our strength is our network:<br />
we’re close to our customers and where they farm. When we truly examine our business<br />
model, we’re a business-to-business agricultural solutions provider. Others may shop<br />
“ We inv<strong>it</strong>e members and customers to support us. We are working<br />
hard to earn your business.”<br />
organization depend on <strong>UFA</strong>’s other businesses to exist. We need better performance<br />
from all our business un<strong>it</strong>s now.<br />
What will change?<br />
Change is not just being planned, change is already <strong>happen</strong>ing.<br />
We’re improving our marketing capabil<strong>it</strong>y. For some time now we have taken a one-sizeserves-all<br />
approach to stores. It may have been efficient in theory but <strong>it</strong> doesn’t serve<br />
the core needs of a diversified agricultural <strong>com</strong>mun<strong>it</strong>y. We’re improving our marketing<br />
capabil<strong>it</strong>y to align market needs w<strong>it</strong>h the products on the shelf. This means we will offer<br />
different product selections in different stores.<br />
We’re also optimizing our store performance. Examining store performance and market<br />
potential revealed some opportun<strong>it</strong>ies. We have stores w<strong>it</strong>h poor performance in markets<br />
at our <strong>UFA</strong> stores but the foundation of success is serving agricultural professionals.<br />
They represent the most important and growing market segment. This will result in<br />
changes to the <strong>UFA</strong> organization, and some of these changes will be challenging<br />
because they affect people. In the field and in Calgary, we are bringing in people who<br />
better understand our members, customers and agriculture.<br />
To serve the agricultural professionals we’re growing our field sales force. Today’s<br />
farmers and ranchers expect <strong>UFA</strong> to <strong>com</strong>e to them. Our experiments w<strong>it</strong>h a field sales<br />
force prove this model works. We’ve also found that successfully serving customers at<br />
the farm gate increases our opportun<strong>it</strong>y to do even more business w<strong>it</strong>h them.<br />
<strong>UFA</strong> is negotiating new partnerships w<strong>it</strong>h fewer, but more strategic vendors.<br />
A one per cent reduction in operating costs makes an important contribution to<br />
the bottom line. By <strong>com</strong>parison, when we improve our gross margin by one per cent,<br />
Store Network Strategy Direction<br />
Past & Current<br />
Business focus based on meeting all customer<br />
requests, regardless of organizational capabil<strong>it</strong>y<br />
Eroding <strong>com</strong>pet<strong>it</strong>ive pos<strong>it</strong>ion<br />
Inefficient operating model<br />
Slow response to customer evolution<br />
Operating at a loss and destroying owner value<br />
Future<br />
Focus on the areas of AgriBusiness where<br />
<strong>UFA</strong> can create sustainable strategic value<br />
Growing <strong>com</strong>pet<strong>it</strong>ive pos<strong>it</strong>ion<br />
Integrated and efficient business operations<br />
Responsive to changes in agriculture<br />
Operating at a prof<strong>it</strong> and creating owner value<br />
8 <strong>UFA</strong> Annual Report 2010
“ Others may shop at <strong>UFA</strong> but the foundation of success is serving<br />
the agricultural professional.”<br />
<strong>it</strong> delivers more than six times the impact to the bottom line. Since customers are<br />
not willing to pay more, higher margins require us to have more buying power<br />
w<strong>it</strong>h key strategic partners.<br />
What will look different to customers?<br />
Here is an example of the kind of changes we are making. We dedicate a high amount<br />
of shelf space to an assortment of good, better and best paint brushes. When <strong>it</strong> <strong>com</strong>es<br />
to paint brushes, how much choice does a customer want? The price and margin difference<br />
are nominal and can’t ever justify the work required to source and distribute that many<br />
different brushes to 35 stores. Customers will see a narrower, but more focused selection<br />
of products that they need, where they want them, when they want them.<br />
Customers will not see all products at every store. We cannot afford large inventories<br />
s<strong>it</strong>ting around gathering dust, but we will always have those products available in our<br />
network. Stores are now organized into seven trade areas, w<strong>it</strong>h a <strong>com</strong>mon agricultural<br />
focus in each area. Each trade area has a hub centre store. If the area is focused on<br />
grain production, then grain bins will be fully available w<strong>it</strong>hin the trade area for delivery<br />
anywhere in the region. Customers get what they want and <strong>UFA</strong> reduces inventory<br />
costs. <strong>UFA</strong> members have an entire store network that will better meet their needs and<br />
contribute to the prof<strong>it</strong>abil<strong>it</strong>y of the Co-operative.<br />
We’ll be getting out of some businesses. <strong>UFA</strong>’s move into construction taught us a lot.<br />
One of the best lessons is simple: if you are going to be in a business, make the<br />
<strong>com</strong>m<strong>it</strong>ment to be the best in <strong>it</strong> or don’t play at all. We can’t afford to dabble in<br />
ventures. We need to be focused and excellent. Members expect <strong>it</strong>.<br />
How can members help?<br />
W<strong>it</strong>hout members, <strong>UFA</strong> will not exist. The truth is that our Farm and Ranch Supply<br />
store business was sick. We could not get better w<strong>it</strong>hout making significant changes.<br />
The changes that started in 2010 will continue into 2011 and beyond. We’re already<br />
seeing some encouraging signs and we inv<strong>it</strong>e members and customers to support us<br />
during this process. We’re working hard to earn your business and, ultimately your trust.<br />
Please continue to look to <strong>UFA</strong> for your farm and ranch needs.<br />
Hub & Spoke Store Model<br />
HUB<br />
CENTRE<br />
STORE<br />
<strong>UFA</strong>’s new hub and spoke model functions in a way that a hub centre store operates<br />
as a feeder store to spoke stores. The hub centre store acts as a distribution point for<br />
specialized products and customer service in areas w<strong>it</strong>h a <strong>com</strong>mon agricultural focus.<br />
<strong>Making</strong> <strong>it</strong> <strong>happen</strong>. <strong>Together</strong>.<br />
9
Petroleum<br />
Ed McCoy<br />
Vice President, Petroleum<br />
Ed McCoy was appointed Vice President, Petroleum, in February 2010. Ed joined <strong>UFA</strong> in 2005 as Director, Petroleum Logistics and<br />
Commercial Sales. In that role he successfully negotiated new supply partnerships and contracts, enhanced pricing and margin<br />
management capabil<strong>it</strong>ies, built up storage infrastructure, renegotiated transport contracts, developed import/export capabil<strong>it</strong>ies and<br />
<strong>com</strong>pletely revamped the lubricants business. Prior to joining <strong>UFA</strong>, Ed spent more than 30 years w<strong>it</strong>h Shell; overseeing many different<br />
aspects of their downstream business in Canada. Ed is passionate about driving results and continuing to build and grow the<br />
Petroleum business for <strong>UFA</strong>.<br />
The Petroleum division had an outstanding year in 2010 delivering a strong financial<br />
contribution to the Co-operative. Desp<strong>it</strong>e a slowly recovering economy and supply<br />
challenges arising from refinery disruptions, we were still able to cap<strong>it</strong>alize on market<br />
opportun<strong>it</strong>ies that optimized prof<strong>it</strong>abil<strong>it</strong>y.<br />
The Petroleum business is healthy and <strong>it</strong>s long-term strategic plan is solid. The strategy<br />
work that was performed in 2010 across the organization validated that Petroleum’s<br />
plan is sound and no significant changes to the ongoing operations of the business<br />
are required.<br />
As always, our top prior<strong>it</strong>y is to ensure that our members and customers obtain the<br />
petroleum supply and services that they need while maintaining the prof<strong>it</strong>abil<strong>it</strong>y<br />
of the business. A key <strong>com</strong>pet<strong>it</strong>ive advantage for us is the strength of our agency<br />
network located w<strong>it</strong>hin the local <strong>com</strong>mun<strong>it</strong>ies. Our Agents are <strong>com</strong>m<strong>it</strong>ted to serving<br />
their members and customers. Their ongoing relationship w<strong>it</strong>h our local members and<br />
customers, along w<strong>it</strong>h an unwavering passion for servicing their needs, is cr<strong>it</strong>ical to<br />
maintaining and growing our sales and fostering enduring loyalty to <strong>UFA</strong>.<br />
Keeping the tanks full<br />
A major advantage for us is the depth and breadth of our supply pool from all of<br />
the local refiners. As a reseller, we purchase our fuel from local Alberta refiners under<br />
longer-term supply contracts. However, when we’re unable to tap into sufficient<br />
product from our local suppliers, like during peak harvest demand or periods of refinery<br />
maintenance, we’re set up to quickly seek supply elsewhere. In the second half of 2010<br />
we arranged to import add<strong>it</strong>ional product directly from the Un<strong>it</strong>ed States to supplement<br />
our local supply. As a result, our customers and members experienced very l<strong>it</strong>tle,<br />
if any, interruption in fuel supply.<br />
Optimizing our network<br />
We’ll continue to support our Agents to develop s<strong>it</strong>e level plans to drive excellence<br />
in all aspects of operations. Where <strong>it</strong> makes sound business sense, we’ll also continue<br />
to consolidate agencies to multi-s<strong>it</strong>e operations whereby one agent is responsible<br />
for more than one agency. This will prevent potential s<strong>it</strong>e closures and enable<br />
us to economically keep cardlock s<strong>it</strong>es operating to meet the fuel needs of local<br />
<strong>com</strong>mun<strong>it</strong>ies. In 2010, we did close two agency locations – Youngstown and<br />
Fort Nelson. While Youngstown customers continue to be served by nearby agencies,<br />
the economic model in Fort Nelson no longer made financial sense for <strong>UFA</strong> to<br />
continue operations.<br />
Driving success in 2011<br />
In 2010, we started our three-year plan to significantly upgrade technology w<strong>it</strong>hin<br />
our cardlock network. This will provide s<strong>it</strong>es w<strong>it</strong>h improved technical stabil<strong>it</strong>y, options<br />
for future growth and <strong>com</strong>pliance w<strong>it</strong>h new privacy/secur<strong>it</strong>y standards for financial<br />
transactions. This new technology has been successfully road tested and will be rolled<br />
out to all locations over the next couple of years.<br />
One of our biggest challenges ahead of us is the trans<strong>it</strong>ion to biofuels in April 2011.<br />
W<strong>it</strong>h the Alberta government’s mandated introduction of biofuels, we’re preparing<br />
for this trans<strong>it</strong>ion to sell these new fuels throughout the network w<strong>it</strong>h minimal<br />
disruption or qual<strong>it</strong>y issues.<br />
We’ll also continue to carefully manage our financial returns through sound price and<br />
margin management. Whether we are talking about fuel or lubricant products, we need<br />
to be mindful of the careful trade-off between sales and volume to ensure a healthy<br />
gross margin.<br />
Above all, in 2011 we’ll continue our two-pronged effort to protect our core agriculture<br />
market share, while growing our <strong>com</strong>mercial business w<strong>it</strong>hin the constraints of our<br />
available supply.<br />
Thanks for your business. We’ll continue to work hard for you and for <strong>UFA</strong>.<br />
10 <strong>UFA</strong> Annual Report 2010
Wholesale Sports Outdoor Outf<strong>it</strong>ters<br />
Glenn Bingley<br />
Chief Operating Officer, Wholesale Sports Outdoor Outf<strong>it</strong>ters<br />
Glenn is the newest add<strong>it</strong>ion to the <strong>UFA</strong> executive leadership team. He joined the organization in February 2011 and has <strong>com</strong>plete<br />
operating responsibil<strong>it</strong>y for our Wholesale Sports business in Canada and the Un<strong>it</strong>ed States. Glenn joins us from the Home Depot<br />
organization. His career started on the store floor and has progressed to senior operations roles in Canada and the Un<strong>it</strong>ed States.<br />
Most recently, he was the Vice President, Merchandising for Home Depot Canada. Glenn is a leader who clearly understands that<br />
success starts and finishes w<strong>it</strong>h the customer. His track record demonstrates an abil<strong>it</strong>y to turn that strong customer relationship<br />
into bottom line results.<br />
2010 was a tough year for the Wholesale Sports Outdoor Outf<strong>it</strong>ters division. The US<br />
economy has continued to struggle and while the Canadian economy recovered<br />
slightly better, discretionary spending has been very slow to rebound. Poor weather in<br />
the spring and early summer also had an impact on sales in both Canada and the US.<br />
There’s no question of the need to significantly improve the prof<strong>it</strong>abil<strong>it</strong>y of the<br />
business. From the time we acquired this business, we’ve been in fire-fighting mode:<br />
constantly reacting to issues that demand our attention, treating the symptom<br />
and moving on to the next crisis. We must trans<strong>it</strong>ion from being reactive to creating<br />
a proactive environment where we strategically anticipate and respond to market<br />
and operational dynamics rather than constantly reacting w<strong>it</strong>h short-term<br />
band-aid solutions.<br />
In response to these challenges, we have developed a <strong>com</strong>prehensive three-year operating<br />
plan that focuses on stabilizing operations and driving fundamental performance.<br />
The plan includes in<strong>it</strong>iatives to:<br />
Improve inventory management and controls. We must constantly review<br />
and rationalize the SKUs we choose to keep. We’ve also restructured our<br />
buying departments to ensure that we’re able to more effectively determine<br />
our inventory requirements.<br />
Lower operating costs and reduce labour costs while balancing customer<br />
service levels. Service is a distinct <strong>com</strong>pet<strong>it</strong>ive advantage for Wholesale<br />
Sports Outdoor Outf<strong>it</strong>ters. We must effectively manage our labour costs<br />
w<strong>it</strong>hout sacrificing the level of service or expertise that our customers have<br />
<strong>com</strong>e to expect.<br />
Enhance merchandising, buying and marketing capabil<strong>it</strong>ies. A new point-ofsale<br />
and inventory management system was installed in early 2011 that will<br />
improve buying, inventory management and marketing decisions.<br />
Launch more proactive and localized marketing in<strong>it</strong>iatives and improve<br />
brand presence, especially in our US markets.<br />
Improve our merchandising processes and capabil<strong>it</strong>ies. We can do a much<br />
better job of responding to the seasonal<strong>it</strong>y of different product categories.<br />
We clearly have an opportun<strong>it</strong>y to shrink the space allocated to non-seasonal<br />
<strong>it</strong>ems and expand the display of faster moving <strong>it</strong>ems to stimulate sales.<br />
Improve our stocking and replenishment of seasonal <strong>it</strong>ems. Stores spend too<br />
much time chasing product in-season because they run out. However, by the<br />
time product can be ordered and delivered, we may have missed the peak<br />
sales period for that particular season and are stuck w<strong>it</strong>h inventory we won’t<br />
need. A far more strategic and planned approach to seasonal selling and<br />
inventory management is being implemented.<br />
In the second half of 2010, teams in both countries began executing the three-year<br />
plan. These efforts helped produce excellent results in the fourth quarter and pos<strong>it</strong>ive<br />
financial results in early 2011 are evidence that we’re on the right track.<br />
2011 will be a year of great change. New practices, processes and procedures are<br />
being introduced to drive us forward. As the business be<strong>com</strong>es increasingly proactive<br />
in <strong>it</strong>s approach to the day-to-day operations, we’re confident that Wholesale Sports<br />
Outdoor Outf<strong>it</strong>ters can be a viable and significant player in both the Canadian and<br />
US markets.<br />
2010 Board of Directors<br />
Front row: Duane Glimsdale, Barry Webster, Jim Laverick, Clarence Olthuis (Retired June 2010), Bill Lee<br />
Back row: Jacob Middelkamp, Tim Bancroft, Cornie Teichroeb, Debbie Adolphson, Mic Thiessen, Bob Chisolm, Bill Dobson<br />
Core purpose<br />
To provide supplies and services that add value and<br />
facil<strong>it</strong>ate prof<strong>it</strong>abil<strong>it</strong>y for agricultural <strong>com</strong>mun<strong>it</strong>ies.<br />
Ownership<br />
<strong>UFA</strong> Co-operative Lim<strong>it</strong>ed is owned by more than<br />
120,000 active members. As a co-operative, <strong>UFA</strong><br />
returns <strong>it</strong>s earnings to members, proportionate to<br />
financial results. Membership is available w<strong>it</strong>h a<br />
minimum share purchase of five dollars.<br />
Meet your delegate<br />
Business<br />
W<strong>it</strong>h more than 120,000 members and revenues<br />
in excess of $1.7 billion, <strong>UFA</strong> Co-operative<br />
Lim<strong>it</strong>ed is one of Canada’s largest and oldest<br />
agricultural Co-operatives. <strong>UFA</strong> owns 35 Farm<br />
and Ranch Supply stores, more than 110 bulk fuel<br />
and <strong>com</strong>mercial cardlock s<strong>it</strong>es located in Alberta,<br />
Saskatchewan and Br<strong>it</strong>ish Columbia, and 26<br />
Wholesale Sports Outdoor Outf<strong>it</strong>ter locations in<br />
western Canada and the northwest US.<br />
<strong>UFA</strong> is your Co-operative and you have a voice. Each of these dedicated individuals is fully <strong>com</strong>m<strong>it</strong>ted to representing<br />
the needs and concerns of their respective members. Let your voice be heard through your delegate.<br />
Vis<strong>it</strong> <strong>UFA</strong>.<strong>com</strong>/about<strong>UFA</strong> for contact information or contact our call centre at 1-877-258-4500.<br />
Airdrie Leonard Wright Mayerthorpe Harvey Hagman<br />
Athabasca David Salé Medicine Hat Mario Biemans*<br />
Brooks Monfred Haag Olds Jim Donner<br />
Calgary Gar Bea<strong>com</strong> Oyen Elizabeth Roberts<br />
Camrose Roger Gabert Pincher Creek Todd Vance<br />
Claresholm Vacant Ponoka Clifford Stone<br />
Drayton Valley Colleen Sekura Provost Harvey Adams<br />
Drumheller Darcy Jensen Red Deer Terry Young<br />
Fairview Blair Shilka* Rocky Mountain House Roland Grutterink<br />
Falher Claude Sm<strong>it</strong>h Spruce Grove Kathy Playdon<br />
Fort Saskatchewan Vacant St. Paul Dave Pilisko<br />
Ft. St. John Larry Holthe Stettler Vacant<br />
Grande Prairie East Robert Patterson* Strathmore Joseph Van Bavel<br />
Grande Prairie West Garry Roessler Swift Current Mark M<strong>it</strong>chell<br />
Grimshaw Jim Allan Taber James Bettcher<br />
High River Rick Hansen Trochu Kevin Hoppins<br />
Kindersley Reed Burton Two Hills Peter Flondra<br />
La Crete Bruce Harder Vermilion Gary Moses<br />
Leduc Jerome Lickacz Vulcan Ed Kettenbach<br />
Lethbridge Mark Sayers Wainwright Jim Fraser<br />
Lloydminster Donald King Westlock Karen Brown<br />
*Delegate has indicated they will not seek re-election in July 2011. Vis<strong>it</strong> <strong>UFA</strong>.<strong>com</strong> for updates on our delegates.<br />
<strong>Making</strong> <strong>it</strong> <strong>happen</strong>. <strong>Together</strong>.<br />
11
<strong>Making</strong> <strong>it</strong> <strong>happen</strong>. <strong>Together</strong>.<br />
<strong>Making</strong> <strong>it</strong> <strong>happen</strong> in our <strong>com</strong>mun<strong>it</strong>ies<br />
<strong>UFA</strong> is part of small towns from the prairies to the foothills. Just like small towns,<br />
our Co-operative was founded on the principle that we can achieve far greater<br />
things as a group than we can as individuals. <strong>Together</strong> we have learned that great<br />
things really do <strong>happen</strong> by sharing a simple vision, then rolling up our sleeves to get<br />
<strong>it</strong> done. It’s about generations of families, friends, neighbours, and <strong>com</strong>mun<strong>it</strong>ies...<br />
<strong>Making</strong> <strong>it</strong> <strong>happen</strong>. <strong>Together</strong>.<br />
Small Town Heroes<br />
The heart and soul of any small town are those people who make their<br />
<strong>com</strong>mun<strong>it</strong>y the absolute best place to live… people who have a ‘can do’<br />
att<strong>it</strong>ude and a passion for their <strong>com</strong>mun<strong>it</strong>y. In every town, there are heroes<br />
– individuals who go above and beyond to make a difference. Whether <strong>it</strong>’s<br />
working together to fulfill a big dream or simply lending a hand, these<br />
people are our small town heroes.<br />
<strong>UFA</strong> is proud to recognize and honour these selfless individuals through our<br />
Small Town Heroes contest. W<strong>it</strong>h over 170 nominations and more than 300,000<br />
votes, the contest told heartfelt stories of volunteerism, kindness, passion and<br />
an inner strength that binds us all.<br />
While everyone is a winner in their small town, picking the contest winners<br />
was a tough job. The grand prize winners were Doris McFarlane in Beaverlodge<br />
and Dr. Lewke-Bogle in Milk River. Each received a Paul Brandt concert, and<br />
<strong>UFA</strong> helped to raise over $40,000 for the Beaverlodge “Every Drop Builds a Dream”<br />
Pool Project and more than $20,000 for the Quad Municipal<strong>it</strong>y Physician<br />
Recru<strong>it</strong>ment and Retention Comm<strong>it</strong>tee (Milk River).<br />
Do you know a small town hero? Stay tuned for more information on the 2011<br />
<strong>UFA</strong> Small Town Heroes contest and maybe you can win a Paul Brandt concert<br />
for your <strong>com</strong>mun<strong>it</strong>y.<br />
Generations of Support<br />
<strong>UFA</strong> has been a reliable and supportive neighbour in Alberta <strong>com</strong>mun<strong>it</strong>ies for more than 100 years. <strong>Together</strong> our<br />
shared sense of <strong>com</strong>mun<strong>it</strong>y has opened many doors for generations of youth, family and agriculture for the better<br />
and for the future.<br />
For more information on our Generations of Support<br />
program and how you can get involved, vis<strong>it</strong> us online<br />
at <strong>UFA</strong>.<strong>com</strong>/<strong>com</strong>mun<strong>it</strong>y.<br />
Farmers’ Day<br />
In the past, Albertans came together to honour the frontier spir<strong>it</strong> and contribution of our farmers every year on<br />
the second Friday in June. This came to be known as Farmers’ Day.<br />
As a way to say “thanks”, <strong>UFA</strong> decided to revive this special day and inv<strong>it</strong>e farmers, members and their families<br />
to <strong>com</strong>e out and enjoy time together w<strong>it</strong>h old fashioned food, fun and prizes. Contests, draws, BBQs, and games<br />
were held across our network of Farm and Ranch Supply stores and Petroleum locations on June 11, 2010.<br />
Our network of <strong>UFA</strong> Farm and Ranch Supply stores and Petroleum locations participated enthusiastically in<br />
Farmers’ Day. The activ<strong>it</strong>ies that engaged our members and their families, along w<strong>it</strong>h staff, included ‘kiss the pig’,<br />
pie baking contests, petting zoos, racing riding lawnmowers and so much more. It’s about food, fun and families<br />
enjoying the trad<strong>it</strong>ion of Farmers’ Day.<br />
Hope you can join us for Farmers’ Day on June 10, 2011.<br />
“Farmers are great. Farmers are neat.<br />
You should hug a farmer, if you like to eat.”<br />
Paul Brandt, 2010 Chats from the Barn<br />
Vis<strong>it</strong> <strong>UFA</strong>.<strong>com</strong> to see this Farmers’ Day chat and many more<br />
Top ten winners<br />
DORIS MCFARLANE, Beaverlodge<br />
DR. LEWKE-BOGLE, Milk River<br />
GLEN KEELEY MEMORIAL BULL RIDING COMMITTEE, Stavely<br />
MARGARET THIBAULT, Mayerthorpe<br />
MATTHEW SKRETTING, Vauxhall<br />
SHARON SYMES, Paradise Valley<br />
STAN NILES, Kindersley<br />
TERRY ATKINSON, Nanton<br />
TERRY TRAINER, Magrath<br />
THE TOWN OF IRVINE, Irvine<br />
FSC logo to go here<br />
We’re listening<br />
At <strong>UFA</strong>, we are <strong>com</strong>m<strong>it</strong>ted to providing you w<strong>it</strong>h the best<br />
experience possible. It’s why your opinion is so important to us.<br />
Please pass along feedback, concerns, or suggestions you<br />
may have. We’re always listening.<br />
1-877-258-4500<br />
customer.support@ufa.<strong>com</strong><br />
or vis<strong>it</strong> <strong>UFA</strong>.<strong>com</strong><br />
<strong>UFA</strong>.<strong>com</strong>