MFA Incorporated Annual Report
President's & Chairman's Letter
MFA Incorporated Annual Report for August 31, 2014
President’s / Chairman’s Letter
MFA Incorporated has made significant financial progress these last four years as evidenced by pre-tax profitability of $24.1 million. The accomplishments can be broken down into three components: financial, marketing/operations and human resources. Every company’s success depends on how it addresses and manages these three core components.
MFA’s financial strength can be seen through the metrics of working capital ($98 million before patronage payments), net worth ($158 million before patronage) and solvency ratio (36 percent before patronage).
MFA’s marketing and operations revolve around internal initiatives. The company has fixed goals for its sales programs: plant foods, crop protection, seed, feed, farm supply, animal health, precision agronomy, agronomy and livestock. In the past fiscal year, management established 14 moderately aggressive goals. The results were highly successful rates on annual targets.
In terms of operations, the company continued its expansion plans by adding new and acquiring existing facilities in an ongoing effort to expand the geography and strengthen the current structure.
The company purchased grain facilities in two areas and constructed new grain facilities in four additional areas, effectively adding five million bushels of capacity. In addition, the company has added eight million bushels of temporary storage. MFA opened MFA Agri Services Centers in Charleston and in
Savannah to strengthen market position.
MFA also created a new animal health company called Alliance Animal Care that is projected to generate $50 million in annual sales within five years.
Simultaneously, the company has implemented major information technology and accounting enhancements that will provide better decision making for all areas of the company well into the future.
In terms of image improvement, the company has an ongoing $40 million per year dedicated to improvements for facilities and rolling stock. During the last three years, an additional $5 million was spent on demolishing outdated facilities no longer in use. MFA’s corporate image is reflected in the company’s facilities, rolling stock and employees. There is no substitute for a good image. It is about pride throughout the organization.
The final component is human resources (people and people development). MFA continues to recruit, hire and train the best. People do business with people. It is imperative that MFA have a strong training program for employee development. That training is in place and functioning effectively.
Where does the company go from here? It is simple. MFA will continue to concentrate on building financial strength; on sales, marketing and operational efficiencies; and on hiring, training and developing competent employees who will become the company’s future leaders. Management cannot take the role of caretaker. Management must continue to grow the company.
It does not get any simpler than this.
President and CEO
Chairman of the Board
View, Print or Download the 2014 Annual Report HERE.
Originally published in the February 2015 Today's Farmer magazine ©2015 MFA Incorporated. All rights reserved.
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