FAIRPORT, N.Y., July 2 /PRNewswire-FirstCall/ -- Pro-Fac Cooperative, Inc. (Nasdaq: PFACP), an agricultural cooperative, today announced a $0.20 per share dividend, payable July 31, 2009, to shareholders of record of its Class A cumulative preferred stock at the close of business on July 15, 2009.

Pro-Fac announced on April 3, 2009 its intention to reduce the quarterly dividend, if declared, from the full quarterly dividend of $0.43 per share. Since the dividend is cumulative, the $0.23 per share which is not paid cumulates and must be paid in the future before the payment of dividends on any other Pro-Fac equity and before the redemption of any Pro-Fac equity. The lower $0.20 rate is expected to continue indefinitely and will preserve approximately $1.2 million in cash for Pro-Fac on an annual basis.

"The Pro-Fac Board understands the importance of conserving operating funds in order to maintain a viable enterprise," said General Manager and CEO Stephen R. Wright. "A quarterly dividend of $0.20 per share represents an annual yield of over 3%, which is still competitive in today's market."

ABOUT PRO-FAC:

Pro-Fac Cooperative is an agricultural cooperative that markets crops grown by its member-growers, including fruits (cherries, apples, blueberries and peaches), vegetables (snap beans, beets, peas, sweet corn, carrots, cabbage, squash, asparagus and potatoes) and popcorn.

These commodities are marketed through Birds Eye Foods, of which Pro-Fac is a significant minority owner, and several other food processing and marketing companies.

Only growers of crops marketed through Pro-Fac (or associations of such growers) can become members of Pro-Fac.

Pro-Fac's Class A cumulative preferred stock is listed on The NASDAQ Capital Market under the stock symbol, "PFACP."

More information about Pro-Fac can be found on its web site at www.profaccoop.com.

FORWARD LOOKING STATEMENTS:

This release contains "forward-looking statements" -- that is, statements related to future events. The following factors, among others, could cause actual results to differ from those set forth in forward-looking statements: the value of its investment in Birds Eye Holdings, LLC, its principal asset; the availability of cash, capital surplus and future earnings; and the collection of accounts receivable from the sale of crops. Reference is made to Pro-Fac's filings with the SEC for further discussion of risks and uncertainties regarding its business.

SOURCE Pro-Fac Cooperative, Inc.