After a lack of success at finding a new general manager, the Pineland Co-op chose to sign an agreement with Lake Country Co-op to provide that service.
Dean McKim, the general manager of the Prince Albert-based co-op, now serves as the general manager of Pineland. He also serves as the general manager for the Meadow Lake Co-op.
“It is definitely different. It’s change,” McKim said. “I think it can be a very successful model. We’re very like-minded co-ops that are very close together. We’re in a great position to share resources, including general management.”
Morley Doerksen, Pineland’s president, told the members at the annual general meeting March 14 they posted for a general manager after Geoff German had left about a year and a month ago. Nothing came of that posting.
At a Federated Co-operatives Ltd. meeting, Doerksen said McKim had approached him about the possibility of an agreement, but the board still wanted their own manager. The board continued to wait, with no results. They decided to listen to what McKim had proposed. After a period of thinking about it, the board decided to try it out.
Doerksen said the agreement was one that’s easy to enter and easy to leave. Pineland doesn’t have to worry about severance, benefits or moving expenses. Either party can opt out with one month’s notice. The agreement also results in cost-savings for the co-op.
“It’s working out great,” he said. “We’re very happy to be working with Lake Country now.”
McKim pointed out that Pineland already provides services to other co-ops, like accounting services for Carrot River and marketing services for Humboldt Co-op.
“This isn’t a buyout. This isn’t a takeover. This is co-ops co-operating,” he said. “As competition gets larger around us and there’s so much consolidation, we need to [co-operate].”
The manager said the new agreement should also provide savings for the three co-ops he works with through the increased volume of products purchased at one time.
McKim said Pineland and Lake Country are focused on exploring their relationship through their current management agreement at this point.
“I do know, at this point, the board of directors for both co-ops are not talking about amalgamation. We’re just trying to understand and realize if there’s a relationship we can build on and enhance in the future.”
Fiscal results
As for the co-op’s fiscal results for 2017, McKim said the balance sheet is strong.
We’re a year away from paying off our Food Store and that was a very big cash outlay for the association a number of years ago,” he said. “We’re in a great position to take advantage of some growth opportunities while continuing to invest in our assets.”
The co-op earned $2.40 million for the 2017 fiscal year, which ends Oct. 31, compared to $2.26 million last year. Members will receive $1.62 million in patronage payments, compared to $1.40 million.
Cash flow was worse this year, with the co-op $312,000 in the hole as of Oct. 31, 2017, compared to $1.94 million in the black last year. That was due to farmers not yet paying off their accounts during harvest. As of this month, the co-op has around $400,000 in cash.
