Consumer Distributing Co. keeps expanding, works on own animal feed line

"We've grown 25 to 30 percent a year for four years in a row, and we're looking at another good year this year," said David Patee, owner. "Our business this year probably grew by another 15 percent in 2002 over 2001."

In November of 2001, Consumers Supply opened an 87,000-square-foot facility at 5101 Harbor Drive in the city's new Expedition Business Park. A steady increase in business left the company needing additional warehouse space.

The increased business also has created a number of new jobs in recent years, with total employment up from about 75 last year to 85 this year.

Consumers Supply is a wholesale distributor for a host of pharmaceuticals, micro ingredients, and vitamins, for large animals, primarily swine and cattle. Many of the manufacturers the company deals with also produce pharmaceuticals for humans.

The Sioux City company essentially serves as a middle man, delivering commodities directly from the manufacturers to a customer base that includes regional animal feed manufacturers, local farmers cooperatives, veterinary clinics and large livestock producers.

The firm also buys commodities in bulk and packages them in smaller quantities under their own label.

A dozen salespeople regularly call on more than 800 customers in an eight-state region. Thirty-five semi trucks make deliveries on a weekly basis.

"It's a case of service and personal relationships," Patee said. "We hear from our customers that we have one of the more reliable logistical services around. Everybody has a certain day of the week that they get product. We do our best to make sure we don't miss anybody on a weekly run."

The company has big plans to diversify by adding a new line of pet and animal feeds under the Country Vet brand name. These will include price point, middle price and professional grade dog food, cat food and horse feed and show feeds formulated for appearance of the animal. Those products are being manufactured for them right now, but Patee said that will change.

"We hope to have a manufacturing plant for those here in Sioux City in a year to a year and a half," Patee said. "The new people we've hired in the last year are focusing on horse feeds. Right now, we are marketing them through our dealer network."

In recent years, consolidation in the livestock industry has required Consumers Supply to change the way it does business, Patee said. There are now only two to three major feed companies in the region, down from eight to 10 at one time. There also has been a sharp reduction in the number of livestock producers in the last two decades.

Large-scale livestock operations represent one of Consumers Supply's fastest growing customer segments. Larger producers are increasingly buying pharmaceuticals and micro ingredients direct from the manufacturers, bypassing the major feed companies. That process has benefitted wholesale distributors like Consumers Supply.

Consumers Supply Distributing was founded in 1956 in Sioux City by Patee's uncle, W.B. Bauer. David's father, Bruce Patee, initially worked for Bauer, and then purchased the business from him in 1958. Bauer also owned Storm Lake, Iowa-based Consumers Supply Corp. In 1998, Patee's Sioux City-based business acquired and then closed the Storm Lake operations.

Consumers Supply now has a third generation working in the family business. David's son, Daniel, joined the company following his graduation in August from the University of Wisconsin-Madison. He works in purchasing. David and his wife, Marta, also have a daughter, Lindsey. Both Daniel and Lindsey attended Wisconsin on swimming scholarships.

Prior to moving to Harbor Drive, Consumers Supply had occupied an older warehouse complex at 2018 Third St. The downtown site was essentially landlocked, and there was no place to grow.

Though the new facility offers roughly the same amount of space, "it's a good deal more efficient" than the old location, he said. There also is plenty of truck parking. At the downtown site, the company's trucks frequently had to park on city streets. Tight space also made loading and unloading difficult. The site includes eight acres for future expansion.

Another advantage of the Harbor Drive site is its close proximity to Interstate 29 and a rail line. Future plans include shipping products by rail, something Patee said he hopes he can work out by summer.