LUBBOCK, Texas — Lubbock-based Plains Cotton Cooperative Association today announced fiscal year-end further cash distribution to its grower-owners totaling $30.71 million at the cooperative’s 65th Annual Meeting. The distribution, to be completed this month, consists of $15.90 million in cash dividends and $14.81 million in stock retirements and base capital plan retirements. PCCA’s Warehouse Division also received a record 2,155,212 bales as of June 30, 2018.
“The power of volume was evident once again this year,” PCCA President and CEO Kevin Brinkley reported. “Our revenues this year were a function of better prices and a big crop. The high volume created additional value by helping us be a preferred supplier to many merchandisers and mills. That same volume also lowers the per bale cost of operation by spreading our total expenses over more bales. Last season, it was one of the lowest in recent years. All of this contributes to the net margins of the company, and being a co-op, it all goes back to its owners.” Brinkley also reported on the performance of PCCA’s warehouse operations.
“Our Warehouse Division faced unprecedented challenges last season with a crop that was 30 percent larger than the previous record set just last year,” Brinkley said. “The volume handled at our warehouses was driven by increased acres in areas that don’t traditionally grow cotton and very favorable weather in some areas. The record number of bales presented a very narrow path to success and I am pleased to report that every bale was stored under roof. Furthermore, PCCA’s Warehouse Division shipped cotton faster than at any time in the company’s history.”
In other business during the annual meeting, PCCA grower-owners re-elected Lexie Fennell, District 3, and Eddie Smith, District 4, to the board of directors. Kody Carson was elected director from District 2 to replace the retiring Mark True, and Randy Smith was elected director from District 5 to replace the retiring Charles Macha.
Founded in 1953, PCCA is a marketing cooperative owned by farmers in Texas, Oklahoma, Kansas and New Mexico and is dedicated to supplying sustainably-grown, high-quality cotton fiber around the world. In addition to cotton marketing based in Lubbock, Texas, PCCA also owns cotton warehouse facilities in Texas, Oklahoma and Kansas and develops and offers software programs and networks to local co-op gins that help add value to their grower-owners’ cotton.
–Plains Cotton Cooperative Association
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