Annual Report - CoBank

CorporateAgribusinessBANKING GROUPKnouse FoodsWith roots going back to the early 1900s,Knouse Foods has grown into one of thelargest apple processors in the world. Acommitment to quality and a focus on thefuture have enabled the co-op’s more than100 grower members to thrive despite naturalfluctuations in apple harvests and increasingindustry consolidation.Based in Peach Glen, Pennsylvania, the co-oprecently faced a dramatic increase in operatingcosts at its main processing plant due to theexpiration of statutory rate caps on electricity.Knouse knew it needed to take action toprotect the long-term health of the business.A long-standing commitment to sustainabilitymade the self-generation of solar energy anatural solution.“Solar energy is non-polluting, operating costsare relatively low and the cells have a longlifespan, making it both environmentally friendlyand economical once operational,” said TomDeNisco, vice president and general manager/CFO. A more than 50-year history with the FarmCredit System and a solid relationship withCoBank made it easy for Knouse to select afinancing partner.“No other lender invested the time to learnabout the project like CoBank did,” saysKnouse Foods President and CEO Ken Guise.“If you think about it, they were really takinga leap of faith with us. When people think ofsolar fields they think of places like Arizona andFlorida, not the chilly northeast.”Since its completion, the facility has beenproducing 7 to 10 percent more electricity thananticipated. “In the end, it doesn’t matter howcold it is as long as the sun is out,” DeNiscosaid. “We’re really pleased with the outcome ofthis project – and with our ongoing relationshipwith CoBank.”Kenneth E. Guise,Knouse FoodsPresident and Chief Executive OfficerScott Trauth, CoBankVice President, Relationship ManagerTom DeNisco, Knouse FoodsVice President-General ManagerChief Financial Officer20COBANK 2011ANNUAL REPORT