Febr. 2010
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From Phil’s Desk
I hope everyone's New Year is off to a good start.
I
wanted to remind you that we will be closed on Monday, February 15, 2010 for
President's Day. For our company it works out better to be closed on this
day and stay open on the 4th of July because harvest always seems to be a
factor. This way our employees know that we will be closed and can make
plans for that day.
I had a customer drop off an article that I thought was very good. The article is called My Friendly Coop. It said, “I never met a Coop crew that I didn’t like. And I’ve been going to Coops since the President’s name was Ike! It was enjoyable going there when I was a little boy. Coke was a nickel; and peanuts a penny; it was such a source of joy! Now pop is a dollar and a quarter and peanuts fifty cents; inflation such a fright. But I still enjoy going there because coffee’s priced just right. When I got my driver’s license, I wanted to drive a lot. So I drove my dad’s pickup every chance I got. I’d volunteer to go to town for seed, feed, or spray. Any day I could go to the Coop was a happy day. One day I wanted to loaf to town – that pop machine was like a mirage. My dad asked where I was going as I backed out of the garage. “I’m going to town to get some feed. I just checked the bin. We’re not short now but would be if we got snowed in.” Dad said, “You can go to the Coop; and you don’t have to tell me why. And don’t worry about the weather, son, because it’s only the second week of July.””
Thanks for the article. If anyone has an article you would like me to put in my newsletter, please get it to me.
FUEL CONTRACTS AVAILABLE
Fuel has become as volatile as the grain
market has. With this happening we must market fuel in a similar fashion as we
do the grain. Every day the fuel contracts will be priced. If you get a price
today you need to commit to the price and get a contract signed. You can not
price the fuel today and take that price tomorrow or next week, there is just
too much fluctuation in the pricing from day to day. We will be offering two
different contracts for dyed diesel and unleaded.
1) A fixed contract in which what ever the price of fuel is that you sign up for that is what you pay for upon delivery, no matter if the price would go up or down. Example, on January 28, 2010 the diesel March-May price was $2.42 per gallon, the June-July was $2.50 per gallon, and the September-November was $2.58 per gallon. These are the prices you would pay no matter what the market was on the day of delivery.
2) A max price contract. This contract has a fixed top price that will never go higher. There is a premium you must pay up front that gives you a down side price protection. Example on January 28, 2010 diesel March-May is $2.42 with a .18 cent down side protection, June-August is $2.50 with a .26 cent down side protection, September-November is $2.58 with a .30 cent down side protection. If fuel drops to $1.50 for example, by paying the down side protection you would receive your fuel for $1.50. Keep in mind that you never received your down side protection money back.
All semi drops (approximately 7,500 gallon drops) are .10 cents less. There are also gasoline contracts available.
Is it time to contract. Who knows? Last year I thought it was only to have the price drop more. But it very well could be the time with all we hear fuel could go higher this summer.
By the way the prices for the months given in the examples above are actual prices for January 28, 2010. I know this is very complicated but it is a very complicated world we live in. Please call me at 970-520-3881 and I would be happy to discuss this with you.
Currently
we have two C Stores in Sterling, one in Grand Junction, one in Cameo, one in
Brush Colorado, one in Wray, one in Yuma Colorado, one in Johnson City Kansas
and one in Tribune Kansas. We also have a tire store in Yuma Colorado. The
fiscal year begins September 1 and we have started off in the black. Notice we
do not have the Sterling Tire Store any longer. We are looking at the stores
that we have not been successful in and cut our losses. I think in the end it
will make us much stronger. These stores make a huge difference in what we can
pay our members in equities. 
On January 29, 2010 wheat was $3.72 bu., corn was $3.17 bu. and millet was $6.50 cwt. 2010 wheat is $4.00 and 2010 corn is $3.61.
When
hauling wheat from your farm bins PLEASE check for bugs. We are no longer
accepting live bugs. If there are live bugs you will need to take your load back
to the farm and have the wheat treated. There will be no exceptions.
For all your feed grinding, mixing and delivery please contact Wayne or Gary at 970-334-2341. We do make deliveries in all surrounding communities. With cornstalks here look into our protein and mineral tubs, a very easy and convenient way to feed. Check with Wayne and Gary on any feed products we have available.
We
are still doing our Lp safety checks. Call in and get your Lp safety check.
Most customers are very happy knowing that their home is safe. In our checks
that we have done this year we have found at least one gas valve with the 100%
not working. This is not a good situation. This allows propane to flow through
the main burners even if the pilot is not burning. We find this in older valves.
The newer valves are double protected. It does pay to have your system checked
and anything that is not code be repaired. When you are on our program your
system will be tested for leaks and all codes every five years. We think propane
is a safe product but only if handled correct. 
We are now requiring all propane customers that are a long distance to be on a route. This does not pertain to large drops. We have run into problems with customers not wanting to be on routes and ordering 100 or 200 gallons of propane. We lose money delivering to these people in the country. You do not save money by doing it this way. We have taken on a larger territory and we do not have time to stop and run out for one person. So make your plans to be put on a route or your cost of propane will be higher. We need to do everything to keep the cost of delivery down and that includes you doing your part.
We
do have an oil shuttle program. This is a program that entitles you to a 120
gallon shuttle that is filled on a route with savings on your oil. The tanks and
stand are at no cost to you. You do have to take 100 gallon of oil per year to
qualify for this program. This is a very good program. Cenex will not fill just
any container in fear of contamination, as they do warrant their product. You
will appreciate the convenience of bulk oil for many reasons, especially the
convenience that comes from no longer handling messy drums. If interested talk
to me on this. We are also putting in shuttles at our station, trying to reduce
the price of oil.
When
you schedule a service job on your vehicle, ask Jody to check your tires and
brakes out for you. This is simple to do
while your vehicle is already on the rack. It can also save you money not
letting your brake pads get so wore out that it ruins the rotors. Keep in mind
that Jody can get you almost any brand of tire there is. Stop and talk to Jody
on this. This helps the whole community to shop local. One issue is that if
pumping fuel at our service station and the pumps are slow; please shut the
nozzle off for 10 or 15 seconds. This is with all submersible pumps. Try it, it
works.
Are you buying the right diesel fuel? Ruby – Fieldmaster
diesel fuel exceeds all standards for any make or model of
diesel engines. The straight #2 diesel has had most of the sulfur taken out for
pollution reasons. The sulfur was the lubricant for your engine. Without this
lubricant it can become very hard on the injectors, etc. Ruby – Fieldmaster has
an additive package that contains this lubricant. It also gives you a higher
cetane for quicker easier starts and will not gel the fuel as easily. Ruby –
Fieldmaster costs three cents a gallon more than the straight #2 diesel. Money
well invested. I have talked to patrons who tried both diesels and they claim
they get more power and better miles per gallon from the Ruby – Fieldmaster
diesel. This premium diesel can be purchased in either red off-road or clear
on-road.
I
would ask that if you are fueling your vehicle at our gas station please stay by
the pump. The automatic nozzles are on the pumps to shut the fuel off when full.
Keep in mind that this is just a piece of equipment and it can and will fail at
any time. I understand that it is nice to run over to the Post Office or into
the station to visit with the employees while fueling. The problem is that if
fuel is spill the fuel is on you and we are to report any spills which can
become an issue.
Also, we can email the day’s ending grain and fuel prices to anyone who is interested. Just email us at our email address listed at the top of the newsletter and ask to be added to the daily notification email.
Have a good February
Sincerely yours,
Phillip M. Schumacher
CEO/PRESIDENT
