Plains Cotton Cooperative Association Announces Distributions
A local cotton cooperative has announced cash distributions to its members.
Plains Cotton Cooperative Association announced today at the cooperative’s 59th annual stockholders meeting, total net margins of $8.4 million from fiscal year 2011-2012 operations, despite an 80 percent reduction in cotton volume, due to last year’s drought.
Further cash distributions to members totaling $13.6 million will be made this month, and is comprised of $6.8 million in cash dividends, and $6.8 million in retirement of per-unit retains.
According to a press release, cotton marketing is the foundation of PCCA’s business, as they strive to ensure its members receive the highest possible price for their crops.
“We began planning ahead in early spring 2011 for the anticipated effects of the drought by cutting our budget 20 percent, and at year-end actual expenses came in even lower than that,” said PCCA President and CEO Wally Darneille.
Darneille continued, saying “Our Textile and Apparel Division did not make money this year. However, over a three-year period, we have seen a net positive cash flow of $14.8 million in this division due to depreciation and shared expenses.”
More information is available at www.pcca.com.