ST. PAUL, Minn., Oct. 4, 2016 /PRNewswire/ -- The farmer-owned cooperative business model delivers economic value in its communities far exceeding the multiplier effect of other business sectors, the chief executive officer of CHS Inc. (NASDAQ: CHSCP), the nation's leading cooperative and a global energy, grains and foods company, told a University of Minnesota audience today.
Carl Casale, CHS president and chief executive officer, shared the results of the cooperative's major economic impact study as part of his address to the 1st Tuesday lecture series sponsored by the University of Minnesota's Carlson School of Management.
"We've always recognized that the cooperative system is a significant economic force in the rural communities it serves and across the country," Casale told nearly 300 business and higher education leaders. "Now we have hard data on job creation and other economic impacts that far exceeds our expectations. The end game is the tremendous value CHS creates in rural America multiplies and stays in those communities."
CHS commissioned business consulting firm Ernst & Young (EY) to take an in-depth look at the company's economic impact in America. The firm analyzed data including CHS U.S. sales, earnings, employment, patronage to owners and capital expenditures.
EY found CHS economic activity supported more than 60,700 jobs directly and indirectly, far exceeding the company's 12,100 employees.
"That means for every job CHS creates itself, there are four more jobs supported indirectly in the community as a result of the economic activity from the cooperative system," Casale said. "This 'job multiplier' factor far surpasses that of other sectors of the economy."
The report, based on CHS fiscal 2014 data, showed CHS $33.45 billion in gross global business in the U.S. translated to direct gross economic output of nearly $18.5 billion dollars locally. In addition, each $1 million of CHS economic output supported an additional $600,000 in output for other U.S. businesses. The study analyzes CHS economic data and impact for all U.S. states and every congressional district. For more details visit www.valueofthecoop.com
The CHS study's release came as the nation marks Cooperative Month recognizing the economic and other benefits of the nation's 29,000 cooperatives, of which more than 2,000 are agricultural. Nationally, cooperatives directly generate more than $650 million in revenue and employ 2.1 million people. Minnesota was the first state to declare an official Cooperative Month proclamation in 1948; it has been a nationally recognized celebration since 1964.
In his remarks, Casale also addressed a wide range of economic topics, voicing continued long-term optimism for agriculture and energy despite current challenging global markets.
"In the commodity business we're always riding ups and downs, but one constant is the cooperative system business model as a critical partner for our owners in the ag and energy industry," he said. "We're side-by-side with our owners creating solutions for today and innovations to ensure a bright future for the next generation of farmers and ranchers."
CHS Inc. (www.chsinc.com) is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS, a Fortune 100 company, supplies energy, crop nutrients, grain marketing services, animal feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.
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Audio - http://origin-qps.onstreammedia.com/origin/multivu_archive/ENR/Carl-Casale-1st-Tuesday.mp3
Video - https://www.youtube.com/watch?v=jPXtwWK4lkc
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SOURCE CHS Inc.