PENDLETON, Ore.--(BUSINESS WIRE)--Pendleton Grain Growers, a member-owned agricultural marketing and supply cooperative serving the farming communities of Eastern Oregon and Eastern Washington, has reported its 2014 financial results and has restructured its operations and strengthened its financial position for 2015.
In 2014 the 86-year-old co-op recognized a loss of $7.9 million; however, during the year PGG sold or closed underperforming divisions accounting for $7.5 million of these losses. Through restructuring PGG operations are focused on four core businesses: grain, energy, seed, transportation and the Precision Rain irrigation subsidiary. The divestments, along with operational changes to reduce administrative costs, have improved PGG’s financial position and are expected to allow the organization to return to profitability.
Through the sale of business units, inventory and surplus assets, the company has been able to significantly reduce its total debt and create ample working capital reserves. PGG was also recapitalized in 2014, and all existing debt was replaced with a comprehensive new debt package from CoBank.
“We have done the hard work together,” said Tim Hawkins, chairman of the co-op board, “and although some of the steps were difficult, we are now in a stronger financial position and have put in place a meaningful foundation for the future. We are pursuing additional opportunities to expand our financial returns, and we look forward to continuing to provide locally owned and controlled grain, energy, seed, transportation and irrigation services to our members for years to come.”
About Pendleton Grain Growers
Founded in 1929, Pendleton Grain Growers is a member-owned agricultural marketing and supply cooperative serving the farming communities of Eastern Oregon and Eastern Washington. PGG’s mission is to deliver quality agricultural products and services at a competitive price to its cooperative members and customers with superior service. PGG has 67 employees and 1850 members.