Co-ops engage in reboot strategy

Peter Brown, CEO of the Lloydminster and District Co-op, speaks during the Rotary Club of Lloydminster’s Monday lunch. Geoff Lee Meridian Source

 

The Lloydminster and District Co-op is on track to generate record revenue of about $180 million this year.

That’s one of many insiders highlights the company’s CEO, Peter Brown, shared with the Rotary Club of Lloydminster during a Monday lunch presentation.

“We’ve had considerable growth,” said Brown, with current revenue around the $80M mark.

“We have a lot of projects that we have in mind as we’re thinking about the future. I can’t really get into them in depth right now, but definitely, we’re not sitting flatfooted.”

Brown was able, however, to talk more freely about overall corporate growth and trends with the Lloyd Co-op, one of 162 members of Federated Cooperatives Ltd. (FCL).

He last worked at FCL as a business advisor in Saskatoon before accepting the CEO role in Lloydminster in March, bringing his wife with him.

“It’s been awesome; we have a great dedicated team. The board is on point with where this Co-op’s trying to grow,” said Brown.

At Rotary, he focused on some of the big-picture changes going on within FCL that will eventually alter the face of the Co-op market in Lloydminster. 

For instance, he reported that FCL is working towards zero-based emissions in regards to their refinery in Regina and recently acquired an ethanol plant to meet the renewable fuel demands of the future. 

FCL has also embarked on a $360 million joint venture project with AGT Food and Ingredients to build a canola-crush plant that will supply about half of the oil FCL will need to make 15,000 barrels of diesel per day.

The plant will open in 2027 with FCL having 51 per cent ownership.

“That’s going to provide all the feedstock that we need to meet future demands for renewable diesel products,” said Brown.

He says it will also close a loop with their farming partners whereby their feedstock can help provide that fuel.

Brown says FCL is trending to become more renewable when it comes to energy.

“We know there’s a path out there where gas and sales will start to decline,” he said, noting that’s not over concerns that electric vehicles will take over Western Canada.

“The reality is, vehicles just consume less gas than they used to and technology improves.”

He also said there is no end in sight for diesel.

“Heavy horsepower fuels are going to be needed for a long term,” he predicted.

Brown says Co-ops are also seeing more quick service restaurants, liquor store expansions, along with new brewery businesses, car wash expansions, residential and commercial rentals and even RTMs. 

He says the company is also making heavy investments in food stores and agriculture.

The canola crush plant is part of a $2 billion investment FCL is making in the construction of an Integrated Agriculture Complex in Regina.

In the meantime, Brown says Co-ops are seeing huge challenges with the recruitment of front-line employees, especially in a highly competitive market.

“You see the impact of inflation on top-line revenue, but you also see it in your operating expenses and costs throughout the organization. We are continuing to deal with that,” he said.

“Of course, employees are looking for more too.”

The company also faces challenges to keep up with the fast pace of technology.

Despite the challenges, Brown sees a lot of opportunities to grow with agriculture, bulk fuels, new ventures and the diversification of commodities.

He also sees endless opportunities to keep educating the public on the values of a Co-op and how important it is to communities like Lloydminster.

He says Lloydminster is one of the top 20 Co-ops by size in the FCL network.

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Geoff Lee
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