Aurora Coop posts 30% sales growth

The Aurora Cooperative celebrated “a winning year” and talked about plans for embracing change during last week’s two-day annual meeting at the state fairgrounds in Grand Island.
A crowd estimated at nearly 700 people took in a day full of ag-based presentations and entertainment on Feb. 8, followed by a smaller agenda on Thursday featuring the company’s annual business meeting.
Chris Decker, the cooperative’s president and CEO, was upbeat about the state of the company as well as the outlook for area agriculture in the coming year.
“This is all about our owners and the change that’s coming in the market,” Decker said during a brief media session. “We know with commodity prices being where they’re at things could be really good, but there are a lot of high prices out there as far as expenses coming in. It’s about embracing change and I believe, for the cooperative and for Nebraska farmers, as well as our surrounding state farmers, there’s a lot of change that’s happening.” 
One of the biggest changes was still pending as of last week’s meeting, though it became official on Friday when final documents were signed creating a new partnership regarding the Aurora ethanol plant’s ownership. The Aurora Cooperative has been the plant’s sole owner for the past two years, though as of Friday handed operational control over to KAAPA Ethanol Holdings, LLC. (See a related story, as well as Decker’s reaction to that transaction, in next week’s ANR.)
Speaking in broad terms about the ethanol plant transition and other company strategies, Decker again said the coming year is all about change.
 “There’s a lot of consolidation and we’re just looking forward in 2023-24, putting some capital investment in our facilities, working on a safe environment for our employees and learning how to do things in this tight market, where not only are there less employees out there, but really the pool to grab from is getting tighter and tighter,” he said of a company that now has more than 700 employees. “We know that we have to work with technology and so it’s really about embracing change.”
With change unfolding on so many fronts in the ag sector, Decker was asked what is it that keeps enticing producers to be involved with the cooperative model.
“You know, we’ve been here for 115 years so that’s what we’re celebrating,” he responded. “We’ve weathered a lot of change in those years and in the 20 years I’ve been with the cooperative the changes seem to be on an express route. When you’re all rowing the boat together, we can handle change a lot quicker than a lot of other companies out there.
“Change is going to happen,” he continued. “Just like our speakers today at the conference have talked about, you really have to thrive in the fact of looking at change as a positive, not a negative, and it’s really how you tackle the things that come in front of you and being able to plan forward and have vision to see what’s going to happen, even though no-one really has that capability. But, just being able to adjust to change is really what this cooperative is looking for in the next five years.”

30 percent sales growth
The company adapted well during the last fiscal year, as reflected in financial results shared during the annual business meeting. For fiscal year 2022, sales were reported at $1.657 billion, a 30 percent increase over 2021 sales. Revenues increased in all divisions of the company, with net income after accounting for cost of goods sold and other expenses listed at $21.7 million, the company’s best results since 2013.
Based on that performance, the board elected to revolve $5.1 million of equity to its member/owners, and also approved distribution of $15.3 million through Section 199A tax deductions.
During his annual report on Thursday, Decker provided a snapshot of some of the company’s highlights during the year, including significant growth in the animal nutrition feed line and several key capital investments in fertilizer and grain facilities to improve speed, quality and efficiencies, as well as safety for employees and customers.
Asked specifically in the press conference about plans for the Aurora Service Center, which has been previously mentioned for a planned expansion, Decker said that project is on hold for the coming year.
“That will probably get bumped down the list for our patrons right now,” he explained. “We’re really focused on the fact, and anybody in the grain handling industry will tell you this if you travel the old cattle trail all the way into Texas, there is an infrastructure issue. Some of the economists have talked about it being a driving force and what we want to do is upgrade those pieces, as well as look at our communities that really need them.
“I believe in Aurora we can survive in the market with the service center that we have, but we’re outgrowing it,” he added. “At some point in time it will be on the docket to look at.”

Looking forward
“It’s always fun to look back when you have a winning year, but it’s also important to be forward thinking,” Decker continued. “So with that in mind, here is what we’ll focus on for the year ahead.”
That list includes improving customer experience both on the farm and through digital platforms; investing in technology and equipment that increases automation efficiencies; focusing on recruitment as well as internal learning and development; finding new opportunities within the company’s current core divisions; modifying risk management tools and processes to be equipped for the new economy; making smart capital investments to improve customer experiences as well as to create an ROI that owners expect.
Decker said the company’s challenge going forward is to continue to work hard, while also working smarter.
“In closing, I can say that change will happen,” he concluded, wrapping up the two-day event. “We will be here ready to help you and our employees navigate the change. We continue to be forward thinking, community minded and technology focused at the cooperative. With that, I would say thank you, and thank you for your business in 2022. We look forward to earning your business in 2023.”
Elections were held as always during Thursday’s annual meeting. Five incumbents up for election all sought to remain on the board and were unopposed. Those re-elected for three-year terms included Paul McHargue, Craig Grams, Brad Kroeger, Ken Kozisek and Ryan Sands.
Editor’s note: Watch for other stories from the company’s summit in next week’s edition, including a presentation by retired Green Beret Mark Nutsch.