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Grange Co-op: growing with purpose Photo by Bob Pennell By David Preszler CENTRAL POINT � On the surface, these would seem to be trying times for Grange Co-op. Agriculture�s place in the Rogue Valley is fading as more farmland slides into disuse and toward subdivisions. The retail lawn-and-garden market � long a Co-op hallmark � is now crowded with national chains and one-stop superstores. Big and getting bigger Business lines: Five retail stores, three card lock fuel depots, bulk fuel delivery, lubricants, feed and fertilizer production plants, field crop analysts Sales: $25.29 million in 1999, up from $22.97 million in 1998 Profits: $731,938 in 1999, down from $873,804 in 1998 Ownership: Co-op is owned by roughly 3,000 members who live in Southern Oregon and Northern California No. of employees: 110 full-time equivalents History: Central Point-based co-op was founded in 1934 by 99 members, each of whom put in $10 to get the business going. But things are not always as they appear. The Co-op saw record sales of more than $25 million in 1999 and profits of $731,938. It has recently extended new benefits to non-members and will break ground this summer on a new, larger store in Central Point. While other agricultural cooperatives have fallen on tough times, the Co-op has flourished despite the valley�s changing landscape. "We�re seeing now a lot of co-ops in other parts of the country that are more heavily dependent on agriculture having more difficulty," says Barry Robino, the Co-op�s general manager. "We�re very fortunate to be in the position that we are." The Co-op�s success is rooted in a decision to diversify made by its board nearly 35 years ago, company officials say. Seeing a need to reach the valley�s urban as well as rural residents, the board expanded its retail offerings to target homeowners and gardeners. "They were real visionaries," Robino says. "If we were just totally reliant on agriculture, we might not be here." Agriculture remains a core part of the Co-op�s business. It still runs its feed and fertilizer plants in Central Point and has field-crop analysts that serve customers scattered from the coast to the Klamath Basin, and from Douglas County into northern California. It still delivers bulk gas, diesel and heating oil � services started by the founders. And its card-lock fuel service for farmers and commercial users continues to grow. But retail sales at the Co-op�s five stores � one each in Medford, Central Point, Ashland and Grants Pass as well as Pet Country in Medford � are playing an increasingly important role. "The retail stores have been growing the most in recent years," Robino says. The retail success has come despite a host of new competitors that have been drawn by the valley�s rapid population growth. "It brought a lot more competition but it also brought a lot more customers," says Tim Higinbotham, manager for feed and agronomy operations. And the Co-op�s agricultural roots give it credibility among those customers, company officials say. "We tend to garner the more hard-core, true gardener," says Jay Powell, retail operations manager. He says its reputation for quality products and top-notch service have helped the Co-op weather increased competition. "We�ve better than held our own," Powell says. "We are experiencing very good growth.�� That growth may get a new boost. Last fall, the board voted to begin offering patronage dividends to non-members. Co-op members � who must be full- or part-time farmers or ranchers � get an annual dividends of cash and equity credits based on their purchases. Last year�s dividend was 4.4 percent. The new program extends similar dividends to non-members � without a sign-up fee. Since the program began, about 3,000 non-members have signed up � essentially matching the number of members. Obituaries | Sports | Business | Classifieds | Tempo | Prime Times | So Oregon Sites | Outdoor Journal | Subscribe | Contact | Movies | Advertise | Real Estate Showcase | Archive | Editorials | Letters to the editor | Religion | Wake-up Call | NIE | Cyber Chef | Job Network | So Oregon Weather | WSJ Northwest | Forums | AP Wire | AP Money | F.A.Q. | Awards Ottaway Newspapers, Inc. The Community Newspaper Subsidiary of Dow Jones & Co, Inc Copyright �The Mail Tribune 2000, Medford, Oregon USA