Connection Spring 2017 | Page 8

Danevang feed mixing plant , slated to be in operation by July 2017 , will use locally produced corn to feed locally produced cattle — a win-win for corn and cattle producers .

FROM THE MANAGER

Dear members & patrons

I

think everyone has heard enough of how bad 2016 was for all our agricultural producers and oilfield customers . We would like to say all that is behind us , but there is still a glut of corn in our production area that needs to find a market . The huge swing in corn acres last year coupled with good yields has kept basis levels very low .
Producers looking at their options for new crop are looking at all angles to try to squeeze profits out of their 2017 crops . Burned by low futures and basis , many corn producers will shift to cotton . Early indications are that grain sorghum acres will drop significantly because of insect and weather risks and an even softer basis than corn .
Your cooperative has continued to repair and maintain both our gins and elevators . A large project is the replacement of our load out tank at Hillje that basically collapsed last season . The new tank will make for faster loading of outbound trucks , getting trucks loaded and sent to port and making space at harvest as well as getting trucks back from Houston ports faster , making dispatching to producers fields more efficient . With our old system , we could load about a truck ever 15 to 20 minutes . The new system should be able to load four to five trucks , if not more , in the same time frame .
In a time when corn sales have been so slow , your deer corn bagging plant has risen to the occasion . The plant is running at full steam and has pushed us to doing a second phase to improve efficiency . Our goal has been to add value to our producers ’ corn and continually move bushels to market . United Ag ’ s high quality “ High Caliber Deer Corn ” has made a mark throughout the state . You can all be proud to say , “ that may be the corn I produced ,” when you see it displayed at retailers throughout our trade area .
Your board and management teams have continued to study ways to add value to more of the products we produce and I am proud to announce that plans to build a feed mixing plant at our Danevang location have already been approved .
This plant will use Purina ’ s intake modifying concentrates and cracked corn to make many tons of the feed we are now buying from Purina Mills . Not only will we be adding value to our producers ’ corn , we will also be able to lower the costs of these feeds significantly to our cattle producers . United Ag ’ s feed mixing plant will be the only plant that I ’ m aware of that has the major ingredient ( corn ) FOB the mill , eliminating freight to the mill or freight to a competing mill . This venture will use locally produced corn to feed locally raised cattle . This

Danevang feed mixing plant , slated to be in operation by July 2017 , will use locally produced corn to feed locally produced cattle — a win-win for corn and cattle producers .

is a win-win combination for both corn and cattle producers . Plans are for this mill to be in operation by July 2017 .
As bad as 2016 was for our producers , it was equally bad for your cooperative . However , your board has continued to plan and discuss all cost cutting measures to continue to remain financially stable . We have continued to repair and upgrade both our cotton gins and elevators to be ready for the 2017 harvest .
Our farm supply store employees are all working on helping our members and patrons with whatever they may need . Considering the atmosphere we are working in , sales have been good and we appreciate the support of all our members and patrons . Sometimes we don ’ t say thank you enough for your confidence and support .
Another bright spot has been our Blue Creek Market . Sales have been good with new items arriving daily . We would like to invite all those who haven ’ t visited Blue Creek Market ( located in our old farm supply store at 909 South Wharton St .) to please stop by and see the array of items and clothing that are available .
Our cotton producers will be happy to learn that we have finally added cotton GameGuard shirts to our inventory . We have continually looked for suppliers of cotton clothing and now we have it .
As you can see , there are still many exciting things happening around your cooperative . Please come by and visit and remember besides El Campo , we have farm supply stores in Danevang , Eagle Lake and Edna .
We appreciate your business and support and here ’ s wishing for bountiful crops , ideal weather , good cattle production and much better prices for our 2017 year .
Sincerely , Jimmy Roppolo
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