This past year brought forth a solid year in volumes and earning. Interstate Mills earned a record profit year with a local net of $1,690,891. We had record sales number finishing the year with $200,083,616 in total. We had solid grain volumes and record feed tonnage tipping in at over 327,000 tons for the year. All of this does not go without a lot of hard work and effort. The staff of Interstate mills is constantly looking for ways to improve on the past and they deserve a lot of credit producing a great year. I also would like to applaud the continued support that our patron base gives us. With this solid following it gives me great confidence as we move forward with new ventures.
This past year you have seen quite a change in the presentation of Interstate Mills. We concluded a very in depth branding process partnering with Neuger Communications out of Northfield, MN. Going through this process we learned a lot about Interstate Mills and the way the employees and its customers view us. Understanding your brand is more than your logo and Tag Line. When you totally understand your identity it allows you to develop the outward communication that you want your organization to present itself professionally internally and externally. Interstate Mills is constantly striving to live our core values of Safety, Quality, and Efficiency. As we look at new partnering opportunities they need to meet the qualities of our Strategically Driven brand. Launching our new website design has given us a technology presence that brought us into todays technology age. Our new On-line grain buying system helps us connect with our patrons at any given time. It makes it very efficient for customers to send in grain offers and we have the opportunity to accept or decline. It is very convenient for the customer and the ISM merchandising staff. Our new grain / DTN website, automatic text alerts, and automatic e-mail opportunities have helped us continue to stay closer with our grain patrons. If you have not explored this opportunity yet I would encourage you to contact the staff at Interstate Mills and get signed up.
Record feed volume of 327,000 tons helped produce a strong profit year in the feed division. These results are much needed after a very turbulent 2009 and 2010. Grain volumes were solid. Profitability in grain was a challenge all year long as we had a very short grain drying season in the fall of 2010. Having both divisions finish strong gives us much confidence as we approach 2012.
The outlook for the swine industry is very positive as export demand continues to remain strong even with the weak economies we are dealing with. Many of the developing nations are continuing to increase better consumer incomes resulting in more demand for pork. ISM Swine Production area posted very strong results for the year. ISM Swine Services has grown to serve and help manage three independent LLC’s and is in the process of developing a fourth LLC partnership. It is this type of working relationship that allows patrons of ISM to operate in an industry that is very mature and technically advanced. The sheer need for intense marketing of outputs and inputs, cost control procedures, and the sophisticated financial reporting it takes to comply with banking relationships have made our swine services division become a real opportunity for many. If you have any questions about swine services and want to learn more please contact Doug Frodl Director of Swine Services.
Looking forward to 2012 Interstate Mills will continue to search for partnering opportunities. The feed division will be obtaining HACCP Certification in the fiscal year. The ISM grain division is going to continue to explore its opportunities to strengthen its market position for the patrons and ISM. The ISM swine production division will develop a partnership with Partners In Pork LLC reducing our swine ownership by 1400 head per week. ISM swine services division will continue to position itself with producers that want to work within the swine industry and its intense nature.
2012 is guaranteed to bring on additional change and opportunity. Determining which strategically aligned relationships to pursue will be challenging for the board and management of ISM. I am confident however that if we stick to our Core values of Safety, Quality, and Efficiency as well as reaching for Strategically Driven relationships, our success for the future will be greatly enhanced.
Have a great Holiday Season.
Jim Dell- Vice President, General Manager
