A3O-Uncastor Farming, Saturday, March 21, 1998
Hileman Heads Genex Board
BINGHAMTON, N.Y. The
Cenex division of Cooperative
Resources International (RCI),
held its annual meeting Tuesday at
the Holiday Inn-Arena. According
to Skip Jensen, retiring president.
the new electly officers are: Dave
Hileman, Tyrone, president; Joe
Greenbacker, Durham, CT, vice
president; and Lanny Conerly,
Kentwood, LA, secretary.
According to the annual report,
1997, the first full year of opera-
tions forGencx/CRI was a year of
change and a year of success.
The sire sampling programs of
the three AJ. subsidiaries of CRI
continue to yield top new proven
sires in all dairy breeds. In the
Holstein breed, 31 new graduates
were added to the proven sire
lineup. These additions increased
the average Net Merit dollar value
of the available proven sires from
$l6O in 1996 to $176 in 1997. The
average of the top 10 Holstein sires proven in the
CRI system and available through Genex/CRI
increased from $197 to $220 Net Merit during
the year.
1997 also saw die introduction of sires from
the New Zealand Livestock Improvement
Cooperative. These sires, along with those from
Holland and Norway, give Genex/CRI members
and customers access to a strong, diversified
genetic offering.
Net Merit was adopted in 1997 as the primary
selection tool for those dairy producers who seek
high-producing, long-lasting cows. The Net
Merit index developed by USDA researchers
combines production evaluations with trait eva
luations which have a demonstrated effect on
longevity. This simple, easy-to-use tool will aid
producers in developing die profit potential of
their herds.
During 1997, GcncxTCßl achieved a net oper
ating margin of $697,869 on sales of
$27,669,732. This represents a 2.5% net return
on sales, which was slightly less than the
cooperatives goal of 4%. Gcncx’s overall mar
gin, including operating and non-operating
income and expense, was $2,628,173. This
year’s margin was highly influenced by die sale
of the Lancaster headquarters facility which
generated substantial income. As agreed in the
merger plan, the net after-tax gain from this sale
will be returned to the former Atlantic members
of record.
Genex/CRI expanded its membership area to
include Virginia and the eastern half of West Vir
ginia. Membership meetings were held and dele
gates elected. Genex/CRI technicians performed
5,628 more inseminations during 1997 than in
die previous year. Some of this growth occured
in areas where new technician service was intro
duced. while additional growth occurred in some
of the established technician areas. Declining
cow numbers continue to impact technician ser
vice in some areas, but we anticipate our total
number of technicians will increase during the
next year.
The genetic development program, or sam
pling program is a key to maintaining the
strength and superiority of the future proven sire
lineup. Changes in herd management practices
impacting the amount of usable information
obtained in sampling programs was the reason
given to establish a cooperator herd program.
This cooperator herd program will provide closer
monitoring and control of the use of young sires
as well as increased benefits to those producers
providing complete information on the daughters
of young sires. These changes will help assure
Genex/CRI members a continual supply of reli
able superior bulls in the coming years.
During 1997, the board and staff took a num
ber of steps to position the cooperative to be able
to adjust to the rapidly changing dairy industry.
How dairy service organizations will realign
themselves to provide efficient and effective ser
vice in the future is not totally clear, so establish
ing flexible positions has been extremely
important
The quality of the people bringing products
and services to die farm, as well as the innovation
of these products, continues to be very important
To this end, considerable emphasis was placed
on employee development during 1997. New
training programs, for established, as well as new
employees, were developed and
implemented. Team building
through out Genex/CRI has been
emphasized. Recruitment and
selection processes for hiring new
employees is under study. In short,
major emphasis has been given to
maintaining the superiority of
Genex/CRI employees so thy can
provide an increased level of
service.
During the year a number of cos t
reduction steps were implemented,
some resulting in immediate
reductions, while others are more
long range in nature. An example
of these changes can be seen in the
way the sire programs were operat
ing. When Cenex joined CRI and
began sharing the results of the
other AJ. subsidiaries’ sampling
programs, we gained efficiency in
the use of the top sires. This allow
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ed a reduction in the number of
young sires being sampled each
year, thus, reducing operating
costs by lowering the number of
sires purchased and housed.
Many other changes have been
made to increase efficiencies and
position the cooperative for the
future. The finance division imple
mented a uniform accounting sys
tem throughout CRI which will
lead to more timely financial
reporting. The membr equity
records for LABC, Atlantic and
Eastern were integrated into the
CRI record system. Member equi
ty records are now computerized.
Considerable savings occurred
through the coordination of nation
al advertising and other promo
tional materials. Although much
was accomplished in areas like
these during 1997, there are other
w
< **.
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Lancaster Dairy Herd improvement Assoc.
1592 Old Line Ret. Manhe/m, PA 17545
(717} 665-5960
PC DART WORKSHOP basis.
FOR FRANKLIN COUNTY The meeting will be held on
Lancaster DHIA will sponsor a April 9 from 10 ajn. to 2 p.m.,
workshop for dairymen who are with lunch provided. The work
using, or are interested in using, shop is open to current users,
PC Dart to manage their dairy dairymen or consultants who may
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management program supported the future,
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serviced by Lancaster DHIA.
Many dairymen use this program
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areas that will need to be examined
if we are to remain cost competi
tive in the yean ahead.
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