Drier Network Update

I want to get straight to it and talk about the Drier Division plan announced a few weeks ago. I know these changes have raised a lot of questions and concerns, and I want to take a moment to address them directly.

I’ll be honest, this has been one of the most difficult decisions I’ve had to face in my career. Closing local driers, even temporarily, is not something any of us wanted to do. We know what these locations mean to our members, not just from a convenience standpoint, but from the relationships, history, and trust that have been built over time.  Over the past several weeks, I’ve had a lot of conversations with members. I fully understand the frustration and concern this plan brings, especially for those who now have to rethink how and where they deliver their crop this fall. That’s not a small change, and I don’t want to minimize that.

At the same time, based on what we’re hearing directly from growers and what we’re seeing across the footprint, we are preparing for a significantly smaller rice crop. That reality forced us to step back and take a hard look at how we operate as we head into harvest. As difficult as it is, we have to align our footprint with the volume we expect to handle. Our cost structure doesn’t scale down much at low volumes; it costs almost as much to run at half capacity as at full capacity. Without the volume, the revenue just isn’t there to support operating the division as normal. Consolidating bushels into fewer locations is the most practical way for us to manage through a smaller crop. We recognize that what makes sense on paper doesn’t always feel that way on the ground. We understand that this affects each operation a little differently and, in some cases, creates real challenges. Our focus throughout this process has been to ensure every member still has a path to deliver, even if it isn’t the same as what they’re used to. I know these changes may create some congestion at certain locations during parts of harvest, and I understand that’s frustrating, but I can assure you we’re going to do everything we can to keep lines moving and turn trucks as quickly as possible so your operation can keep running.  

I also want to recognize our employees across the Drier Division. They’re hearing the same concerns from members while also dealing with uncertainties themselves, and I appreciate the way they’ve continued to show up and support the membership through it all. We truly have an outstanding team in the drier division, and we couldn’t do any of this without them. Our plan is to shift employees where they are the best fit to help limit the need for seasonal labor. This approach helps reduce costs, brings experienced team members to our open locations during harvest, and allows us to retain knowledgeable employees to return to the idled locations so we’re in a good position to reopen when the market turns around.

As Kevin said, we will continue to monitor sign-ups closely and stay flexible as we move forward. If we see opportunities to improve the plan or make adjustments that better serve the membership, we will.

None of this has been easy, and it hasn’t been taken lightly. These decisions weigh heavily because we know who they affect. Our goal is to work through this in a way that keeps Riceland strong and able to serve our members not just this year, but well into the future. I truly appreciate the feedback, the patience, and the understanding as we work through these difficult times together.  Please don’t hesitate to reach out to me anytime. I’m here for you and will do everything I can to help however possible.

 Nick Kelley