UFA says thank you to its member-owners by announcing a $30 million patronage dividend. It's a record being the largest patronage cash payout in the 115-year-old co-operative's history, marking the seventh consecutive year of increased patronage and a $2 million increase over last year.
"We say thank you to our member-owners through consistently delivering growing patronage year after year, and that's why we are excited about this year's announcement," says Scott Bolton, President and CEO, UFA. "We take great pride in our patronage promise, which is part of our value proposition to our membership and reflects our commitment to strong fiscal stewardship. At UFA, patronage is growing, reliable, and consistent, and our members can count on their co-operative and patronage."
With a minimum combined $5,000 purchased in 2023, patronage will be paid on clear and dyed Dieselex® Gold (6.5 cents per litre), clear and dyed diesel (5.5 cents per litre), and clear and dyed gasoline (1 cent per litre), and 3 per cent on other purchases excluding Micro Technologies Feedlot Solutions, crop nutrition (i.e., bulk fertilizer and micro-nutrients), and leased purchases.
UFA delivered one of the strongest financial results in UFA's history, second only to the outstanding results we delivered in 2022. In addition to the $30 million patronage dividend, it reported $2.1 billion in financial revenues and $141 million in earnings before interest, taxes, depreciation, and amortization (EBITDA).
"Our Board of Directors understands the unique challenges faced by farmers and ranchers, and this announcement demonstrates our commitment to the long-term vitality of member-owners," says Kevin Hoppins, Board Chair, UFA. "We've had one of the most successful years in our co-operative history, but we wouldn't be here without the support of our members. Supporting farmers and ranchers in navigating a changing agricultural environment is a privilege. Patronage is our way of thanking those loyal to UFA and who will continue to be for years to come."
UFA also welcomesRoland Grutterink and Bret Walter to its Board of Directors. Re-elected to a four-year term is the current Director, Matt Sawyer, and a special thank you to Wendy Glover and Harold Haugen for their service to the Board.
As part of today's announcement, UFA also unveiled the next two sites that are planned for its Saskatchewan expansion. Melfort and Moose Jaw communities will soon benefit from new state-of-the-art UFA petroleum locations.
Melfort is a city located approximately 150 kilometres northeast of Saskatoon. Considered the hub for many surrounding communities, the area has a strong agricultural focus. This location will introduce UFA to a brand-new market.
Moose Jaw is the fourth largest city in Saskatchewan. Its position on the heavily travelled Highway 1 corridor makes it an ideal location for a new UFA site.
Both sites will be operated using the agent model that has served UFA successfully in the past and will be easily accessible with wide lanes and expansive parking lots. The sites will offer exciting enhancements including high-speed satellite fuel pumps and DEF, along with our standard offering including Shell lubricant products and Dieselex® Gold. Construction will begin on both sites this year with openings planned in early 2025.
With these new sites, UFA will soon offer eight locations in our Saskatchewan network, including the newly opened Corman Park, located 5 kilometres northwest of Saskatoon; Macklin; Kindersley; Swift Current; Weyburn and Yorkton.
"UFA will continue to grow to service major agribusiness, oil and gas and industrial centres throughout Western Canada. The Melfort and Moose Jaw locations will complement UFA's existing petroleum locations in Saskatchewan, and the areas selected for additional locations will be key markets in Western Canada's agribusiness and industrial economy," says Don Smith, Chief Operating Officer, UFA. "We look forward to serving the local communities where the new petroleum sites will be located and exploring new investment opportunities. We believe giving back to our rural communities is essential, ensuring they thrive well into the future."
Stay tuned in the coming months for updates on UFA's Western Canadian expansion and visit here to see all the member benefits at UFA.
