Coast to Coast All Producers Can Gain from Membership

by David Hileman

Past President, Genex Board of Directors

Chairman, Cooperative Resources International

The 2006 national membership program is now a reality. The need for change never changes, and membership expansion is just the next step in the evolution of Genex.

History
The original A.I. cooperatives that were the predecessors of today's Genex were formed in 1939 and 1940. Then there were 3,750,000 dairy farmers in the United States.

At one time, there were 99 A.I. organizations in the U.S. Today, there are five A.I. companies of significant size. As the numbers of farmers declined over the years, financial considerations pushed these cooperatives to merge together and acquire other businesses. Consolidation was necessary to maintain the critical mass or sufficient size to efficiently provide the excellent quality of products and services members expected and deserved. In 1993, Cooperative Resources International was created, and in 1996, the A.I. subsidiaries merged and became Genex. Today, national membership provides opportunities for the 70,000 dairy and 700,000 beef producers in the U.S. to enjoy the benefits of membership and furnish intellectual input to the cooperative.

National Expansion Is Necessary
The progressive-minded leadership of Genex and the desire and ability to adopt innovative ideas has fueled growth in member and non-member areas. Growth and financial success drives the expansion to national membership.

Sales to customers outside traditional member areas have been steadily increasing. Many of these customers have a history of strong cooperative support. As sales income grew, it became apparent that these good co-op supporters deserved the opportunity to become members of Genex. In the traditional member areas, Genex has enjoyed success with strong member support deeply rooted in member control and member leadership. It made good sense to incorporate the same member controlled cooperative model all over the U.S.

Genex Is Unique
The Board of Directors and senior management test policies and procedures, new ideas and innovative changes against the cooperative's mission statement. It is an anchor and it is a compass. Testing against the mission statement keeps Genex from straying too far from our core business. It also provides direction and guidance as the cooperative grows.

Genex Advantages
In your business and in my business, if we are not growing, we are probably losing ground. Genex is no different. Any business must plan to grow and maintain sufficient size to prosper in today's agricultural economic environment.

Genex gains by becoming more visible nationally, thus increasing sales opportunities. Genex leadership gains by gathering new ideas and opinions from an active and enthusiastic broad cross-section of members and delegates. New members come from different backgrounds with different needs and new challenges. They have adopted creative business structures, and in many cases, very aggressive management styles.

Genex leaders will glean from their intellectual input and new perspectives on numerous issues.

Purebred and commercial beef operators will contribute insight on how to improve and expand beef programs and how to design them for specific needs.

Cooperative loyalty still exists, and as new Genex members experience the pride of ownership in an admired, respected and successful cooperative, they will promote Genex to their fellow producers. Information about the other CRI subsidiaries - AgSource and Central Livestock - will be distributed across the new member regions. Opportunities to expand other CRI related business will develop. New directors will be elected and bring to the board a wider diversity of opinions and ideas. Genex leadership will incorporate the best of all the new suggestions into the plan of work to improve and grow the cooperative.

What Do Members Gain?
Members enjoy the cooperative benefits of sharing profits and building equity. Members have a voice and a vote. At any time, members can have dialogue with cooperative leadership and have their questions answered and concerns addressed. Members elect delegates to vote on all major cooperative decisions and elect their directors. They are kept informed about the cooperative by newsletters, Horizons magazine and member and delegate meetings. From the Horizons, all members can learn about other successful agricultural businesses and what management initiatives make them profitable.

At Genex gatherings, members can network with people from other geographical regions.  Information sharing and the exchange of knowledge that takes place can improve members' business operations. Never to be underestimated is the importance of the strong friendships that are developed.

My Perspective
At the informational meeting for the delegates from the new regions, the desire to learn more about Genex and CRI was amazing. Delegates asked excellent questions, and in-depth discussions followed. Their optimism is contagious and I am excited about this energetic and enthusiastic group of members and delegates.

As the numbers of farmers in production agriculture diminish, it is even more important to support the agricultural organizations we believe in. A member of a successful cooperative can share in the profits and experience the pride of ownership. He or she has a voice and a vote on how the co-op functions and can participate in the governing process.

A member-controlled cooperative led by engaged and involved delegates, a strong board of directors and a skilled, dedicated management team all pulling together is a powerful business model. I would encourage every producer to consider becoming a member of Genex and CRI.