KANSAS CITY, Mo. – Farmland Industries recorded the loss of $346.7 million for the fiscal year 2002 ending Aug. 31, according to a filing by the Securities and Exchange Commission. While the figures are the worst in Farmland’s 73-year history, earnings from the meat processing businesses showed a significant increase, which made managing officials confident in their restructuring plan for the bankrupted cooperative.

“We are pleased with the sales and earnings gains in our meat businesses. These results strengthen our belief that our focus on these businesses will maximize the company’s value for the benefit of all stakeholders,” Farmland President/C.E.O. Bob Terry said.

Of the $346.7 million loss, $182.6 million was operating loss and the rest was a one-time expenditure for restructuring. Fertilizer and petroleum productions took the most part of the deficit with $121.8 million and $48.8 million losses respectively. The co-op decided to sell out assets of both segments.

When Farmland filed the Chapter 11 protection on May 31, Terry said the co-op would focus on its meat business. The sales in the meat segment rose by 3 percent, and the sales per unit also increased by 9 percent. The co-op attributed the success to increased plant efficiencies.

“Despite the uncertainty caused by our reorganization, sales of our meat products have grown and the Farmland brand continues to gain strength. This strong customer loyalty bodes well for our future,” Terry said.

Terry had suggested that the co-op would resume production in Albert Lea, pending the negotiation with insurance firms over the payment for the damage inflicted by a fire on July 8, 2001.

The City of Albert Lea crafted a comprehensive incentive package that included swapping the old plant with a new site in the Habben Industrial Park and the city taking over demolition responsibilities for the destroyed plant. But the bankruptcy made it extremely implausible to get the deal done with the co-op. And the city decided to go ahead with the cleanup using the money retained from the company’s insurance and start marketing the Habben site for other possible employers.