Golden Growers Cooperative  (GGROU)
Other Ticker:  
Price: $4.2500 $-0.10 -2.299%
Day's High: $4.4 Week Perf: -3.41 %
Day's Low: $ 4.25 30 Day Perf:
Volume (M): 26 52 Wk High: $ 4.50
Volume (M$): $ 111 52 Wk Avg: $4.43
Open: $4.25 52 Wk Low: $4.25

 Market Capitalization (Millions $) 67
 Shares Outstanding (Millions) 16
 Employees 1
 Revenues (TTM) (Millions $) 96
 Net Income (TTM) (Millions $) 6
 Cash Flow (TTM) (Millions $) 0
 Capital Exp. (TTM) (Millions $) 0

Golden Growers Cooperative

Golden Growers Cooperative is a value-added agricultural cooperative association owned by 1,556 members primarily from Minnesota, North Dakota and South Dakota, all of whom deliver corn to the Cooperative for processing into a value-added product. Golden Growers Cooperative was originally formed in 1994 as a North Dakota agricultural cooperative. On September 1, 2009, by way of a series of mergers, the Cooperative changed its domicile and form of entity from a North Dakota cooperative to a Minnesota cooperative association governed under Minnesota Statutes Chapter 308B. A Minnesota cooperative association formed under Minnesota Statutes 308B operates as a cooperative for state law purposes, but is taxed as a partnership under Subchapter K of the Internal Revenue Code for tax purposes.

The Cooperative is in the business of providing value to our members by facilitating their delivery of corn to the corn wet-milling facility owned by ProGold. We accomplish our business on behalf of our members not through the ownership of assets such as a plant and equipment but through our contract relationships with all of the parties involved in the ownership and operation of the facility. From an income production perspective our membership interest in ProGold is our primary asset that, in addition to giving the Cooperative the right to receive distributions from ProGold, also provides our members with additional value for the delivery of their corn for processing. Annually the Cooperative is required to deliver approximately 15,490,480 bushels of corn to Cargill for processing at the ProGold facility. We meet this delivery obligation by having our members deliver their corn to the ProGold facility.

Since November 1997, ProGold has leased its corn wet-milling facility to Cargill. Annually, Cargill pays ProGold rent equal to $21,500,000. Throughout the term of the lease between Cargill and ProGold, our members, on the Cooperative’s behalf, have delivered corn to the facility for processing into high fructose corn syrup and related co-products. It is our ownership interest in ProGold that creates a value-added relationship between our growers and the facility. Notwithstanding this cooperative arrangement, Cargill is an integral part of our financial success. Separate from the lease, Cargill also provides the Cooperative services that allow us to facilitate corn delivery at little or no expense. In addition, the lease payments Cargill makes to ProGold that are in turn distributed to the Cooperative provide us with the cash to make distributions to our members. If, however, at some time in the future ProGold stopped leasing its plant to Cargill it is anticipated that the plant would continue operations, managed either by ProGold or another party. It is expected that the plant would continue to provide a market for the corn produced by our members whether the plant is leased in the future by Cargill or another party or operated by ProGold.

Any person residing in the United States can own our Units as long as that person delivers or provides for the delivery of corn for processing at the ProGold facility. Ownership of our Units requires our members to deliver corn to the Cooperative in proportion to the number of Units each member holds. Currently 15,490,480 Units are issued and outstanding. The Cooperative’s income and losses are allocated to our members based on the volume of corn a member delivers or has delivered. Subject to certain limitations, as long as a member patronizes the Cooperative by delivering corn equal to the number of Units held by the member, the member will be allocated a corresponding portion of our income (or loss). In this way, we operate on a cooperative basis.

To hold our Units a member is required to execute a Uniform Member Agreement that obligates the member to deliver corn to us and an Annual Delivery Agreement by which each member annually elects the member’s method to deliver corn — either Method A or Method B, or a combination of both. Under Method A, a member is required to physically deliver the required bushels of corn to us either at the ProGold facility or another location designated by the Cooperative. Under Method B, a member appoints us as its agent to arrange for the acquisition and delivery of the required bushels of corn on the member’s behalf. Separate from leasing the facility from ProGold, Cargill is in the grain services business. In order to most cost effectively provide delivery services to our members, the Cooperative has entered into an agreement with Cargill whereby we appoint Cargill as our agent to arrange for the delivery of the corn by our members who elect to deliver corn using Method A, and we appoint Cargill as our agent to acquire corn on our behalf for our members who elect to deliver corn using Method B. If a member elects to deliver corn using Method B, the price per bushel the Cooperative pays to the member is equal to the price per bushel paid by Cargill to acquire the corn as our agent. The Cooperative pays members who deliver corn under Method A the market price or contracted price for their corn at the time of delivery. Members who deliver corn under Method A receive from the Cooperative an incentive payment of $.05 per bushel on the corn that they deliver while members who elect Method B to deliver corn pay to the Cooperative a $.02 per bushel agency fee for the cost of having us deliver corn on their behalf. The incentive payment for Method A deliveries and the agency fee for Method B deliveries are subject to annual adjustment at the sole discretion of our Board of Directors. While the Cooperative is financially responsible for the various payments to the members for corn, Cargill, serving as the Cooperative’s administrative agent, issues payments to members for corn on the Cooperative’s behalf.

Annually, we notify Cargill of the number of bushels of Method A corn to be delivered by each member who has elected to deliver corn by Method A. Once we provide notification to Cargill of the number of bushels of corn, Cargill then confirms the amount of corn with each member and notifies that member with respect to quality specifications, allowances, deductions and premiums to be applicable to that corn. That Method A member then directly contracts with Cargill for the contract price agreed upon for the corn or, in the absence of an agreed upon price, the market price per bushel for corn delivered on the day on which the corn is delivered and accepted at the facility. With respect to all corn that is delivered by Method A, Cargill pays to the Cooperative the aggregate purchase price for corn purchased from our members, and then, on our behalf, makes individual payments for corn directly to our members. In the event a member who has elected to deliver corn by Method A delivers to Cargill more than its delivery commitment, any corn delivered in excess of that commitment is handled as a direct sale of corn to Cargill and is priced at the current closing delivery corn price established by Cargill at the facility on the day it is unloaded. In the event a member who has elected to deliver corn by Method A delivers to Cargill less than its committed amount of corn, the quantity of the shortfall is then purchased and delivered by Cargill on our behalf, but this purchased corn is not credited to such member’s account. If a member fails to fully satisfy the corn delivery requirement, Cargill purchases replacement corn for which we reimburse Cargill the amount by which the underlying contracted corn price is less than the price of buying the replacement corn that was due on the delivery date. In addition, if a member fails to deliver all of the corn it was obligated to deliver, that member’s allocation of our profit or losses and any cash distributions is proportionately reduced and we may terminate the member’s membership.

Based on the corn to be delivered by our members using Method A, Cargill then purchases the remainder of the corn to be delivered by us on behalf of our Method B delivering members at such time and in such quantities and at such prices it deems appropriate and in the best interest of us and Cargill. Because Cargill purchases the corn on our behalf for our members who elect to deliver using Method B, the purchase price for the corn that would be paid to our members if they actually delivered the corn is offset against the payment to be made by us to Cargill for the cost to purchase the corn, thus no payment is made from Cargill to us for corn delivered using Method B.

   Company Address: 1002 Main Avenue West West Fargo 58078 ND
   Company Phone Number: 281-0468   Stock Exchange / Ticker: GGROU
   GGROU is expected to report next financial results on March 07, 2024.

Customers Net Income grew by GGROU's Customers Net Profit Margin grew to

43.83 %

13.25 %

• Customers Performance • Customers Expend. • Customers Efficiency • List of Customers


Stock Performances by Major Competitors

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DAR        1.54% 
SEB   -0.51%    
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Golden Growers Cooperative

Headline: Golden Growers Cooperative Records Significant 12.5% Decline in Income per Share in Third Quarter of 2023

As an avid investor and a keen observer of the agricultural sector, I was intrigued by the recent financial results of Golden Growers Cooperative for the third quarter of 2023. While the numbers may seem daunting at a glance, further analysis reveals a story of resilience and strategic adaptation amidst challenging market conditions.
Firstly, it is important to note that Golden Growers Cooperative witnessed a 12.5% decline in income per share, from $0.08 to $0.07, compared to the previous year. Additionally, income fell by 22.22% from the previous reporting period. However, it is crucial to delve into the reasons behind these fluctuations and understand the broader context.
The revenue crumbled by a significant 23.656%, dropping from $22.89 million to $17.48 million in the comparable financial period from the previous year. Sequentially, revenue fell by 24.09% from $23.02 million. This sharp decline can be attributed to various factors, including unfavorable market conditions and disruptions caused by external events.
Despite these challenges, Golden Growers Cooperative highlighted their improving profit margins. Their net margin rose to an impressive 6.33% in the third quarter of 2023, indicating their ability to control costs and optimize operations. The operating margin also showed a positive trend, edging up to 6.84%.

Golden Growers Cooperative

Golden Growers Cooperative Surges with a Massive 50% Surge in Earnings, Despite Revenue Dive in Q2 2023

Golden Growers Cooperative, a leading agricultural cooperative, has recently announced an impressive income advance in its financial second quarter of 2023. The cooperative reported a 50% increase in income to $0.09 per share, despite a decline in revenue of -21.994% to $23.02 million compared to the previous year.
This decline in revenue may seem concerning at first glance, but when compared to the first quarter of 2023, it is evident that Golden Growers Cooperative has been actively working towards improving its financial performance. In the first quarter, revenue fell by -26.407% from $31.28 million, and profits fell by -10% from $0.10 per share. These results indicate that the cooperative has made considerable progress towards stabilizing its revenue and profitability.


Golden Growers Cooperative's Segments
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