Financial picture improving for Farmland Industries - Newsline - Brief Article - Statistical Data Included

Rural Cooperatives, Jan-Feb, 2002

Despite a $90 million net loss for fiscal 2001, Farmland Industries, the nation's largest agricultural cooperative, continues to make progress toward regaining financial strength, CEO Bob Honse told more than 2,500 members, employees and business partners attending the cooperative's annual meeting, Dec. 6, in Kansas City. Honse said it was a year of rebuilding. Farmland cut its debt by $268 million, slashed corporate expenses by more than half, improved food company operations, increased pre-tax operating income $566 million and reported a one-time, principally non-cash, restructuring charge of $80 million.

Honse said work will continue to strengthen agricultural marketing joint venture companies, namely Agriliance, ADM-Farmland and Land O'Lakes Farmland Feed. The cooperative closed two inefficient pork plants and opened three new pork and beef case-ready facilities in 2001, altering plant configurations to meet changing consumer needs. The co-op also invested in advertising and promotion to build national recognition of its Farmland brand pork, beef and catfish products. Further cost reducing moves in Farmland's food companies will be made in 2002, Honse said.

Harry Fehrenbacher, a grain and live. stock producer from Newton, Ill., was elected chairman. He is president of the Effingham (Ill.) Equity cooperative. New directors elected to the board include Douglas Kuhlman from St. James, Minn., and Larry Shriver from Los Alamos, Colo.