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
a business-like manner that will
improve their income and be
competitive in the industry.”
Our Heritage
•Producers Livestock Association
•Formed in 1934 - Ohio
•Farm Bureau affiliate
•Livestock marketing & financing
Corporate Overview
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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
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
United Producers, Inc.
•Livestock Marketing
•Member Relations & Government
Affairs
•Board Relations
•Corporate “ash & trash”
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
Livestock Marketing
• Procurement – feeder and breeding livestock
• Grazing and back-grounding program
• Production coordination
• Packer contracts, supply agreements,
investments
• Parks Livestock - LLC
Producers Technologies, Inc.
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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
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
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
Our Issues
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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
Thank you!
www.uproducers.com