By John Boyla
A study by the US Department Agriculture (USDA) on the country’s co-ops shows the strength of the sector, with 22 dairy processors in the top 100 list.
A USDA report to be published later this month shows that cooperatives generated record figures of $246.7bn in total revenue and earned $6.5bn in net income last year. The report is based on 2014’s business volume and total assets of all cooperatives in the country.
As part of USDA’s observance of October as National Cooperative Month, Tom Vilsack, agriculture secretary, previewed the report. Co-ops’ net income increased by 16.5%, while revenue rose 0.4% compared with 2013. Last year was the fourth year in a row that co-ops set a record for income and revenue.
Vilsack said: “The nation’s co-ops are essential to the US economy and to rural America. The income they generate is reinvested or returned to members who spend it in their local communities. USDA is proud to continue its support of the cooperative movement.”
Vilsack recently signed a Cooperative Month proclamation saluting the nation’s cooperative business sector, which includes over 30,000 co-ops.
Due to strong commodity prices last year, most dairy co-ops held their own or moved up several spots in the ranking from the previous year. Some 22 of the nation’s 100 largest co-operatives have dairy businesses. All of these reported more business volume in 2014 compared with 2013, and all but four reported increased assets compared to a year earlier.
The top 100 list includes co-ops involved in a wide range of businesses. While totals for most dairy co-ops reflect only dairy-related income, Land O’Lakes reported 2014 total sales at $15.3bn, up from $14.3bn in 2013. Net sales from its dairy foods division was about $5.1bn in 2014, up from $4.5bn in 2013.
Dairy Farmers of America’s merger with longtime business partner Dairylea, agreed in 2013, brought their business volume to $17.8bn, which took them into the number one spot.