Articles > Taking Action: FY2020 Management Report

Taking Action: FY2020 Management Report

Dec 15, 2020

During 2020, it nearly became second nature to always be in pursuit of ‘the next improvement’, to look ahead before taking the time to reflect on where we’ve been. With 2020 officially in the books, I’m sharing with you all my reflection of the year, the actions we took and the success we had.

In early 2019 the board of directors made it clear we needed to return our strategic focus to UFC’s core businesses. Originally, we expected the plan to take several years to execute because of the complexity and immense headwinds the agricultural sector was facing. In my inaugural year as your CEO and with tremendous teamwork across all of our departments, we put the accelerator to the floor and executed swiftly and effectively on nearly all aspects of the plan. Our journey through 2020 was not an easy one, but it was highly rewarding to see our plan come to fruition in such an expedited timeline compared to expectations. As I pause to reflect, I am overcome with gratitude. UFC’s foundation is built on the individual strengths of our people. The success of 2020 is a true testament to their grit, their passion for our business and their ongoing commitment to excellence. I am humbled to be working alongside such talented and hardworking folks! Please join me in thanking them!

Financially, our plan translated into a great year. In fiscal year 2019, UFC reported a local loss of $1.4 million. In fiscal year 2020, we are pleased to report a local savings of $2.4 million and a total net savings of $3.5 million. In addition, in just one year we reduced our overall debt by nearly $36 million year over year. To say we are proud of these results is an understatement!

Our strong financial improvement was a direct result of specific details within our plan. Most notably, resizing the business (assets, personnel and inventory levels) allowed us to become more lean within our day to day operations. We also implemented tighter expense controls across the company as well as improved our cash management. Technology has also played a significant role as it has allowed us to streamline our processes and capture more efficiencies. Additionally, our relentless focus on local profitability across the company has led to better business decisions. Combined, these efforts have the foundation for a financially strong business which we will continue to build upon in FY 2021. Included in the audit report you can expect to receive later this month will be a detailed summary of the 2020 activities by department.

As I reflect on 2020 and the positive results of our actions, I am confident in our ability to continue strengthening and positioning your cooperative for future success. Our first and foremost priority will be to continue improving the ways we serve our owners across our core business units.

I am honored to serve as your CEO, and to have the opportunity to work alongside the talented and hardworking team at UFC. Thank you for your continued support and patronage. If you have any questions regarding the annual report, I encourage you to reach out to myself, a member of our management team or a director.

Sincerly, 

Mitch Altermatt

CEO/General Manager
 



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