Annual Report - CoBank

C O R P O R A T E A G R I B U S I N E S S B A N K I N G G R O U PB LU E D I A M O N D G ROWERSAlmonds are synonymous with health, and thefolks at Blue Diamond Growers — the world’slargest tree nut processing and marketingcooperative — have been expanding rapidly tomeet the growing domestic and internationaldemand for this versatile crop.California grows more than 80 percent of theworld’s almonds, and Sacramento-based BlueDiamond Growers has a working relationshipwith approximately one-third of California’salmond growers through its network of 3,000independent growers.The recent boom in the almond market hasbeen spurred by studies that tout the healthbenefits of almonds, which have been found tolower cholesterol and reduce the risk of heartdisease. Today, almonds are enjoyed bythemselves as a tasty snack and used as aningredient for a wide variety of other productsboth sweet and savory, including cereals,crackers, energy bars, baking ingredients,spreads and more.“Because of the industry’s growth, we neededcapital to expand our facilities and upgradeour equipment,” said Robert S. Donovan, BlueDiamond’s chief financial officer. “CoBank hasthe financial strength and capacity to meet ourneeds, and we appreciate the added benefitof membership in the form of an annualpatronage payment.”In addition to a revolving line of creditand term loans, Blue Diamond also utilizesleasing services from CoBank for somenut processing equipment. “It trulyhelps to have a financial institution thatunderstands cooperatives and agriculturalcycles,” Donovan said.A M E R I C A NS U G A R H O L D I N G SFlorida Crystals and Sugar Cane GrowersCooperative are two independent Florida sugarproducers that have been in business forgenerations. In the late 1990s, the twocompanies decided to link their destinies byworking together to vertically integrate intothe sugar refining sector.It has proven to be a wise move. Today,American Sugar Holdings — jointly owned byFlorida Crystals and Sugar Cane Growers —is the largest sugar refining operation in thecountry, with facilities in Florida, California,Louisiana, New York and Maryland as well asCanada and Mexico. The company’s productsare household names sold under the Domino,C&H, Florida Crystals, Redpath and Jack Frostbrands. CoBank is part of a consortium thatprovides American Sugar Holdings with arevolving line of credit and term debt.“CoBank has been a dependable partner fromthe very beginning,” said Antonio L. Contreras,co-president of American Sugar Holdings anda senior vice president at Sugar Cane Growers.“CoBank provided the support that allowed usto make the move into vertical integration andthe refining business. We would not be here ifit were not for CoBank.”“CoBank has been our primary financialpartner for over 30 years,” said Luis J. Fernandez,co-president of American Sugar Holdings andchief financial officer for Florida Crystals.“They have participated in the financing ofsignificant acquisitions and internal expansionprojects for our companies, as well ascommodity financings.”S t r e n g t h a n d s ta b i l i t y 11