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  • Last modified 1406 days ago (Nov. 19, 2014)

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Ag co-ops may merge

Staff writer

Board presidents of Cooperative Grain and Supply, Agri Producers Inc., and North Central Kansas Coop recently sent letters to their member-owners informing them that the three co-ops are considering a merger.

Cooperative Grain and Agri Producers have headquarters in Marion County. North Central Kansas Coop is headquartered in Dickinson County.

“The agriculture industry continues to change at a rapid pace driven by the demands of the global marketplace and the need to keep up with our growing producers,” the letter states. “Companies owned by international conglomerates are aggressively moving to our territory. There are now 10 agriculture cooperatives in the system with over one-billion dollars in sales.”

Seeing these cooperatives as “competitive threats,” the three boards of directors have agreed to do a study to determine if a consolidation of the cooperatives would be beneficial to their member-owners.

The process will include an in-depth review of all cooperative facilities, people, systems, processes, and financials. It will look for ways in which consolidation would strengthen the coops.

Members will receive future mailings about the study’s results and the boards’ joint decision.

Last modified Nov. 19, 2014

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