For Tree Top, fiscal year 2005 was the complete opposite of F'2004! While 2003 crop year tonnage was the lowest in 12 years, 2004 tonnage processed by our cooperative was the most ever-more than 535,000 tons. At year-end, there was excess inventory. In short crop years, it's difficult to grow peeler-based business; in large crop years, it's difficult to take the peelers available.

The common thread between these two years remains. Although faced with vastly different situations, under your Board of Directors' leadership, Tree Top's employees rose to the challenge-of the short crop and of the abundant crop-and through ingenuity and hard work, took all the fruit we delivered, processed it, and returned a profit. In fact, your return is $13.62 per ton over commercial market value. As in previous years, all member profits will be paid in cash.

Tree Top's management has navigated these times of increasing competition and crop fluctuations, and the cooperative emerged financially stable and focused on serving us, the grower-owners.

On top of daily operations, the management team conducted a thorough assessment of all facilities and processes, and embarked on a long-term plan to better position our cooperative for success in the long run. They didn't shy away from the hard decisions inherent in this kind of process. Already, many changes have been completed or are underway. We should anticipate additional facilities and process changes in the coming months, as Tree Top strives to create new efficiencies and streamline operations.

A second effort Tree Top was involved in was supporting the sunset review of the apple concentrate anti-dumping order against China. While U.S. Apple lead the way, our cooperative provided documentation and guidance in support of continuing the tariffs. Again, because it was the right thing to do to support us, the grower-owners.