THE CYCLICAL NATURE OF OUR INDUSTRY: EMRACING THE CHALLENGES AHEAD

JEFF MANDERSCHEID, CHAIRMAN OF THE BOARD, UFC

It’s an undeniable truth that what goes up must come down, and this adage holds true for the commodity markets and our industry as a whole. While the past five years have been prosperous in many ways, we must confront the reality of stiff headwinds and an impending economic downturn on the horizon. However, this is not a cause for alarm; rather, it’s a testament to the foresight and preparedness of your board of directors and leadership team.

Since 2018, the UFC board of directors and leadership team have been proactively anticipating and preparing for these challenging times. Through forward-thinking strategic decisions, your cooperative has strengthened its position to weather the storm.

This journey began with a pivotal leadership change in 2018, ushering in a new era of strategic planning and a steadfast commitment to preparing for challenging times. One of our key priorities has been to build a stronger balance sheet, a goal we have achieved through various strategies, with equity retirement being a top priority.

Retiring equity is a prudent financial strategy that safeguards the long-term interests of our memberowners and reinforces the value proposition of our business. By proactively reducing liabilities and improving liquidity, we are enhancing your coop’s financial flexibility resulting in the ability to withstand challenging economic times. Combined, these efforts show our commitment to sound financial management with our member-owners and the cooperative system top of mind.

We firmly believe that investing in our people and infrastructure, even during turbulent times, is essential for sustaining long-term growth and success. We will continue to allocate resources towards upgrading our facilities, implementing cutting-edge technologies, and providing continuous training and professional development opportunities for our employees. These investments not only improve our operational efficiencies but also ensure that we have a skilled, knowledgeable, and safe workforce capable of delivering exceptional service to our member-owners.

While the road ahead may be challenging, we are confident in our ability to navigate these times. Our strategic planning, forward-thinking approach, and commitment to financial strength have positioned us well.

On behalf of the entire UFC team, I want to express our gratitude for your continued support and trust in our cooperative. We remain dedicated to serving our local agricultural communities and contributing to its success, even in the face of adversity.

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