Sunderland Co-operative Inc. Managers Report 2009

Your Co-operative has completed its 59^th successful year of business. This has been a very different year than last and our financial results show the difference. Last year we had a lot of one time expenses such as the pension top up, the higher interest costs do to the additional money required to cover the large grain hedges. One of the major issues this year was the fertilizer market. Speculation drove the fertilizer markets to record high price levels. Production agricultural could not economically justify the purchase and use. As a result sales and tonnage was off approximately 35% volume wise, industry wide.

You will see in our financial results that sales are up and savings before patronage and taxes have increased dramatically. I would like to try and explain some of the reasons for the large change. Last year we had one time expenses of about $500,000.00. The futures grain market gave patrons an opportunity to lock in record grain prices and they took advantage. We had a lot of future contracts on the books at our 2008 year end. These contracts have to be evaluated at year end, even though the contracts have not matured. As you might recall the Canadian dollar was very high at 2008 year end. That devalues the contracts and as a result, we showed a major book loss at year end. This year all the devaluation changed and as a result, the losses from last year in the grain business have returned which has created a major swing in our financial results. In reality you need to look at the past two unusual years and average the financial results to get a better and more accurate picture of how your Co-op is doing. All our other business units show stable operating results for the year ending June 2009.

Staff worked very hard and I would like to thank the whole team for their dedication and support.

I am pleased to report that we offer a new FS Crop Finance Package available for our customers. It is more flexible than the previous package we had to offer and carries a lower interest rate. Customers can now take advantage of early take and pay programs that were not available through our old finance package.

Other programs we offer are maximum price guarantee contracts for all fuels. This is a great program that I have personally used and if you have interest please contact our petroleum department for details.

Speaking of petroleum did you know that your Co-operative sells bulk lubricants delivered, as well as oils and grease from our stores? This is a growing area of our business and if it is a program that might benefit you, please contact us for details.

We also offer automatic delivery, both for home heat and farm fuel plus we offer equal billing for home heat. Your Co-operative supports the “Co-operative Young Leaders” program. Details of the program are on our web site. This year we sponsored two young leaders.

Sunderland Co-op is also a strong supporters of the local communities in which it serves. We support many 4H clubs, fall fairs and none profit service clubs.

Do not forget that you can now get your statements on-line plus print duplicate invoices as required. Contact Paul Robertson for details on getting set up.Grain markets are available on line and bids are updated each morning.Local weather reports are also available through our site. Paul Robertson keeps the site current with co-operative information.

In closing the strength of member support, a strong balance sheet and dedicated staff, your Co-operative remains strong. Our strength comes from a strong Board of Directors, a loyal Membership and a Staff that care. In saying that we can not sit on our Loral’s and as member needs change we as a Co-operative must be prepared to serve our members needs. If you have suggestions or issues please feel free to drop in or give me a call.

Thank you for your business.
Clare Hayes