From the General Manager - patronage dividends

2020 was a year of challenge and change at the Co-op, but we weathered the Covid storm and came out with a deep appreciation for our resiliency and strength as a community. Like every small business, we worried about how we would fare financially during the pandemic, but thanks to our staff and members—and a little boost from the federal government—we came through it admirably, and we remain fiscally sound and stable. However, for reasons we’ll explain below, the Co-op did not make a profit on our sales in 2020, so there will be no patronage dividend this year.

Sales grew in 2020, but expenses grew even more. Most of our expenses stayed within our 2020 budget, but the pandemic meant we spent much, much more than budgeted on cleaning and other pandemic protocols. In addition, when the severity of the pandemic became apparent, we raised staff wages by $2 per hour in recognition of their incredible work during this extremely difficult time. There were also completely new expenses, such as those needed to get a curbside shopping service up and running for our members who couldn’t shop in the store. Consequently, we spent more on our operations than we took in on sales, even though sales were very strong.

Luckily, the Co-op has a very sound balance sheet. We don’t have a lot of debt and we have substantial savings. In addition, we were able to apply for the federal government’s Paycheck Protection Program (PPP) to help ensure we’d be able to keep on all our staff during the pandemic. And since we did keep up our staff numbers, the loan was converted into a grant. This infusion of money means we had a profit last year, but since the profit is not from member purchases (i.e., patronage), this money isn’t eligible for patronage dividends. On the plus side, the PPP money will give us extra security in the coming year, with its continued economic uncertainty.

So we want to thank you for your support of the Co-op and all the local businesses and farmers. This year has reminded us all how important community is, and how we must support our farmers, producers, and businesses during the good times so they’ll be here for us when times are hard.

Thank you!

Your Board and General Manager

Owen, Juri, Claire, Charlie, Dave, Lisa, and Kenna

Kenna, GM