In Spite of Challenges, 2020 a Record Year for AFC

By Mary Catherine Gaston

To open his report to the 84th annual membership meeting of Alabama Farmers Cooperative, AFC President and CEO Rivers Myres shared something that was in short supply most places around the world throughout 2020: good news. Myres was pleased to announce that despite the myriad challenges 2020 brought, AFC managed to record the cooperative’s highest net profits ever.

“2020 will go down in history as a year that proved what AFC is made of,” Myres said. “Together we navigated through four storms in the Gulf [of Mexico] and a global pandemic—and came through even stronger than ever before.”

Myres observed that the success AFC achieved in the midst of historically difficult circumstances further reinforced his confidence in the cooperative’s leadership and their ability to work strategically but compassionately through especially trying times.

“I have never been prouder of AFC’s leadership. I am proud of who we are and what we do to serve our customers, teammates and communities with excellence and integrity,” Myres said.

Before sharing highlights from the past year for each of AFC’s divisions, Myres first pointed out that 82 percent of AFC’s Member Cooperatives recorded profits in 2020, while 27 cooperative managers earned the President’s Award.

The Bonnie Plants team distinguished itself in 2020 with their commitment to health and safety on a national level. Mike Sutterer, Bonnie’s president and CEO, led the efforts to ensure that COVID-19 outbreaks were carefully managed through the creation of an Emergency Sanitation Response Team composed of Bonnie associates nationwide.

Myres recognized Agri-AFC CEO Mike Malone’s retirement and expressed gratitude for his outstanding leadership. During Malone’s 14-year tenure at Agri-AFC’s helm, the joint venture’s annual net income grew from $1.3 million to $15.9 million. Malone’s retirement came at the end of another record-setting year for Agri-AFC.

Still other divisions celebrated remarkable accomplishments notwithstanding 2020’s challenges. Frank Currie Gin ginned more than 50,000 bales, while a new joint venture between Purina and AFC Feed allowed for market expansion, new product offerings and improved customer service. In West Alabama, South- Fresh leased its processing facility to Consolidated Catfish Producers and its Feed division recorded a profit.

Continuing the good news, Myres announced that AFC’s 2020 successes allowed for the retirement of $2.2 million in equity and patronage of nearly $8.6 million.

As for next steps, Myres cast a bold, specific vision for AFC in 2021. “As we step into 2021 one thing is for certain: We will continue to focus on our strategic plan for success—our people, our partnerships and our profitability,” Myres said. “AFC’s people are the key to the organization’s success and must never be taken for granted.”

Referring to the 2021 focus on partnerships, Myres highlighted three that hold great promise for AFC’s future growth. In reconfiguring the Bonnie Plants joint venture to a 50/50 partnership with Scotts Miracle Gro, Myres stated that it “brings together the leader in live goods with the leader in lawn and garden,” securing both Bonnie’s and AFC’s future. As a result of this partnership, AFC’s board of directors approved the retirement of $21 million in equity, which brings AFC to within 10 years of equity outstanding. The $21 million in equity retirement will be paid to AFC’s members in April 2021.

Effective August 1, 2020, AFC Farm and Home, TFC Farm Supply, Faithway Feed Company and Alliance Farm and Ranch joined together to form Faithway Alliance. The Faithway Alliance joint venture will improve purchasing power, logistics and customer service for feed, farm and home customers. Likewise, in September 2020, Agri-AFC, Winfield United, GreenPoint AG and TFC wholesale agronomy consolidated under the name GreenPoint Ag Holdings (GPAH). The resulting venture is a top 5 wholesale and retail agronomy company with sales of more than $1 billion annually.

As a powerful new force in the agronomic supply and services field, GPAH has four main goals: Delivering total agricultural solutions, assisting manufacturers with research and development, creating synergies among talent, technology, operations and supply chain and producing patronage for our members. Jeff Blair will serve as GPAH’s CEO.

AFC Director David Womack ended his term as Board Chairman at the meeting, but before he passed the gavel to incoming Chairman Ben Haynes, he recognized Jimmy Newby for eighteen years of service on AFC’s Board of Directors. “Jimmy joined the board in 2003 and has been an exemplary board member,” Womack said. “Jimmy’s leadership, wisdom and service have been greatly appreciated.”

In conclusion, Myres commended the AFC team for their hard work during 2020 and encouraged them to continue working hard in 2021.

“No matter how successful we are, whether in business or in life, there will always be obstacles that challenge us,” Myres said. “Whatever they may be, do not fear them. Embrace them as opportunities to become your best. These are the very things that prepare us to run faster, stretch further, and grow stronger.”

He expressed his pride in AFC and the AFC team, saying that the organization will continue to focus on what’s most important— “to have the right people in the right places, and do the right things for the right reasons.”

With his signature closing, Myres reminded those gathered to “watch us win together.”