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Agricultural & Food Cooperatives in Rural Development:

Agricultural & Food Cooperatives in Rural Development: Implications of Business Dynamics for Public Policy Company Overview June 16-17, 2004. Mission Statement. “The mission of United Producers is to provide necessary livestock services on a cooperative basis to its members in

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Agricultural & Food Cooperatives in Rural Development:

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  1. Agricultural & Food Cooperatives in Rural Development: Implications of Business Dynamics for Public Policy Company Overview June 16-17, 2004

  2. Mission Statement “The mission of United Producers is to provide necessary livestock services on a cooperative basis to its members in a business-like manner that will improve their income and be competitive in the industry.”

  3. Our Heritage • Producers Livestock Association • Formed in 1934 - Ohio • Farm Bureau affiliate • Livestock marketing & financing

  4. Corporate Overview • Formed October 1, 1999 • Merger of PLA & MFA Livestock • 521 Co-op • Parent Coop – 25-member board e16 • Delegate System • 70,000+ Patrons • Non-stock Coop

  5. Corporate Overview • Acquired IPLA (IL) – 12/2000 • Transaction with Southern States for MLE in March-May of 2001 • Agreement with DFA to manage Dairy Financing Services (Texas) • 50 livestock facilities • Do business in 15 states • 205 full time employees

  6. United Producers, Inc. • Livestock Marketing • Member Relations & Government Affairs • Board Relations • Corporate “ash & trash”

  7. Livestock Marketing • 25 Weekly Auctions • 24 additional collection points • All species – except poultry! • $1.2 B annual sales volume • 3.9 M Head of livestock marketed

  8. Livestock Marketing • Procurement – feeder and breeding livestock • Grazing and back-grounding program • Production coordination • Packer contracts, supply agreements, investments • Parks Livestock - LLC

  9. Producers Technologies, Inc. • Corporation – for profit • Non-traditional, non-member services, fee based • 5 member board elected from UPI Board • Formed 1998 • Risk management & brokerage services with FC Stone • Information management & record keeping • Production management/coordination • Managed Beef Alliance program – value added grant • Access to vertical integration – farmers choice

  10. Producers Credit Corporation • Currently owned by UPI; stock corporation; SSC minority interest • 5 member board – elected from parent • 501C16 (IRS) – tax exempt • $65m – notes/feeding agreements • $40m – “California Connection” • Ownership in other credit corps in OK & TX • DFS Management Agreements - $40M • Loan Participations

  11. Producers Credit Corporation“Relationship Lender” • Short, intermediate & long term loans • Variable & fixed rates • Livestock & operating expenses • Crops • Buildings & equipment; real estate • Farm Credit Leasing – origination • ACH’s and drafts • Differential Pricing • NLPA Sheep & Goat Fund

  12. Our Issues • Net Farm Income • Mechanisms to extract more of consumers’ dollar • Banking environment • Access to capital • Livestock production shifts; vertical integration • Pending legislation & regulation • Packer & retailer consolidation /concentration • Cooperative structural alternatives • Access to Federal Programs e.g. FSA loan guarantees

  13. www.uproducers.com Thank you!

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