CARROT RIVER — Last year was a solid year for the Carrot River Co-op as it continues a drive to diversify.
“I like what we’ve done,” said Ward Kewley, the co-op’s general manager. “We’ve added the liquor commodity and that’s been open now for 10 months. It’s been a big learning process.”
He added that hiring Bev Kott, who worked at Carrot River’s government liquor store before it closed, was a solid hire who’s trained staff in the proper processes and procedures.
The co-op replaced both of its fuel trucks with two new units bought second-hand, the deli and cheese display in the main store have been replaced, and the main store’s point of sale systems have been upgraded.
Kewley said the co-op’s board continues to look at more ways to diversify.
“We haven’t stepped into ag yet but it’s something I know our board would like us to look at.”
The co-op saw net savings of $540,000 in the 2017 fiscal year, which ended Oct. 31. Locally, it lost $724,000 but that was made up by $724,000 in refunds from Federated Co-ops Limited.
Sales have increased by $1.6 million to $16.3 million. Margins have decreased from 16.8 per cent to 15.8 per cent. Kewley said that’s due to price increases on petroleum – just because it’s higher doesn’t mean the co-op is making extra money on the product.
“People have to realize that as the price of petroleum goes up, the window, the little bit you’re making, is very lean and it makes it tougher and tougher. Unless the industry allows us to make more per litre, that makes the margin tighter.”
The general manager said the co-op’s balance sheet is looking pretty good and is pleased sales have increased. He added it would look even better if weather co-operated in the Carrot River area, as 2017 started with a wet spring. Luckily, the summer was decent for farmers.
“I’m just happy the co-op is doing as well as it is,” he said. “We have a great community that supports us and we’re knee deep in the community, from the community square to 4-H and every club around.”
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