Otter Co-op will be giving back $508,000 to its members who purchased feed in 2023, the co-op announced after its 102nd annual general meeting held at the end of June. 

The co-op reported a $1.2-million profit during the 2023 fiscal year. 

Since 43.1 per cent of purchases were from members, they receive that percentage of the $1.2-million. However, due to the lower bottom line than previous years, it was decided to allocate 1.1 per cent to members who purchased feed last year. 

"If we spread the $508,000 over our 50,000 members, they'd be getting about five to 10 bucks," said CEO Jack Nicholson. 

He explained that each division was looked at, and because investments were made in food, liquor, gas bars, and other divisions of co-op, it was decided to divvy up the $508,000 among members who purchased feed. 

Co-op members went online to share their displeasure with the decision, some saying they will cancel their memberships and will no longer shop at Otter Co-op.

"Feed had a very successful year, and we put $60 million into gas bars, liquor stores, and food store upgrades. Feed did not get that same investment," Nicholson explained. 

He noted that for 13 years the co-op has made record profits to allocate money back to members and invest in the future, but "unfortunately we had a very tough year and only had $1 million at the end of the year." 

Other members online have been reaffirming their commitment to the co-op, sharing that they shopped there for years and this "won't stop us from supporting local farmers." 

In the announcement, Nicholson noted that Otter Co-op has been impacted by various challenges that affected the rest of the province and retail sector last year, too. 

"With the global economy facing significant downturns and several of our business lines experiencing unprecedented disruptions, we've encountered a notable decline in bottom line profits. A year of wars, wildfires, avian flu and economic turmoil severely hampered our profitability," he said. 

Additionally, the co-op was affected by supply chain issues and an increase in competition, which "further strained our operations." 

"We didn't expect interest rates to go up, gas bars and liquor stores to be closed during the wildfires, and a couple years ago we didn't expect to have to close Abbotsford because of the floods [in 2021]," Nicholson told The Star. 

"All the profits, whatever profits we have, all stays here," he noted. 

Nicholson points to the 14 new Husky gas stations that the co-op converted, and the two new cardlocks and two new gas bars, a new food store in Cloverdale that all opened last year, plus investments into current assets. Otter Co-op also donated $403,000 to local community groups and sports teams in 2023. 

"We're investing for the future," he said. "Unfortunately, a lot of things hit in 2023 and we did not have the bottom line that we expected." 

Looking ahead, Nicholson is cautiously optimistic for a better year in 2024. 

"We deeply appreciate the support and dedication of our team and membership. We are confident that our collective efforts and investments will lead us to a stronger position in the coming years."