Wisconsin Ag Connection - NorthStar Coop Stockowners Receive in Patronage, Dividends

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NorthStar Coop Stockowners Receive in Patronage, Dividends
Wisconsin Ag Connection - 06/02/2008

Dairy and beef producers who are stockowners of NorthStar Cooperative received more than $420,000 in patronage and dividends for the company's fiscal year-end results. During 2007, sales increased five percent, bringing NorthStar's consolidated revenue to $18 million. Income from operations was up $53,000 over the prior year, bringing the total to $609,000; the second highest in the coop's history.

"This is a great range for a cooperative to be in," noted Gary Smith, NorthStar Cooperative Executive Vice President and General Manager. "It allows us to pay back strong dividends to our members stockowners and have the working capital to grow the business."

Earlier this year, the NorthStar board of directors approved a patronage allocation of $395,000 to common stockowners, of which, 55 percent was paid in cash. This sizeable patronage allocation means that on average, common stockowners received a 4.5 percent return on their annual expenses with the Cooperative in 2007.

Additionally, the board also approved a 69-cent dividend on shares of Class A Preferred Stock, the highest ever. The year 2007 marks the ninth consecutive year a preferred stock dividend was paid. Payments and reinvestments of more than $25,000 were dispersed to preferred stockowners in February. In addition to this record dividend, the value of NorthStar's Preferred Stock increased to $23.25 per share. Since its introduction in 1999 at $10 a share, this series of stock has experienced an annual growth rate of 11.1 percent.

The ability to pay such returns to stockowners is the result of NorthStar's patronage-based business units performing beyond expectations.

NorthStar Cooperative, Inc. is a stock-based cooperative, owned by dairy and beef producers in Michigan, Indiana and Wisconsin.

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