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Owen Taylor

Posted 12/21/2015 16:16 (#4976852)
Subject: Iowa - Farmers Cooperative and West Central merger approved

Mississippi

http://agfax.com/2015/12/21/iowa-merger-becomes-seventh-largest-u-s-grain-company-dtn/

Didn't realize how significant this was until I read this...

According to World Grain magazine’s Grain and Milling Annual, Landus Cooperative will become the seventh-largest grain company in North America based on storage capacity and shuttle-loading access on all seven major Iowa rail lines.

garvo

Posted 12/21/2015 19:53 (#4977432 - in reply to #4976852)
Subject: RE: Iowa - Farmers Cooperative and West Central merger approved

western iowa,by Denison

was member of both co-ops-guess less meals now
will there be less managers now or more?
will there be different prices or all one price for inputs?
How long before they take over the next co-op?
If they have only one co-op in Iowa ?
just changing the letterin on the trucks and equipment will cost a lot?
If they are buying products for resale-now they will be big enough to just buy the wholesaler and side step them?
Will my divedends increase-getting 0% interest for 20 years would hope they could make it?

Edited by garvo 12/21/2015 19:59

SteveMn

Posted 12/21/2015 19:58 (#4977447 - in reply to #4977432)
Subject: RE: Iowa - Farmers Cooperative and West Central merger approved

Next up will be a merger of new said coop and Wheat Growers, and Central Valley Ag, done deal according to my source from Key coop

Cat33

Posted 12/21/2015 21:47 (#4977817 - in reply to #4977447)
Subject: RE: Iowa - Farmers Cooperative and West Central merger approved

NE SD

SteveMn - 12/21/2015 19:58

Next up will be a merger of new said coop and Wheat Growers, and Central Valley Ag, done deal according to my source from Key coop

Funny thing, Wheat Growers already formed a "partnership" with those two on September 1, after the earlier proposed merger with North Central failed.

http://www.wheatgrowers.com/News_Events/Press_Releases/showpr?id=71...

If what you heard is true, there are going to be some very PO'd Wheat Growers members in this area ;)

*edit* Technically it can't be a done deal, since WG would have to put it to a member vote first.

Edited by Cat33 12/22/2015 06:16

white shadow

Posted 12/21/2015 22:17 (#4977896 - in reply to #4977817)
Subject: horizontal move to no-where..........

East Central South Dakota

If the very large locals would manage their ego's and build their broken relationships with CHS, they could have processing and world market access. Instead they view CHS as competition even though they are also a "cooperative". CHS are the bad guys "no better than a damn multi-national" (heard it a hundred times) yet it is their business model the super locals are trying to emulate.

Large locals going together is a horizontal move that doesn't bring its member owners any closer to processing and export markets. No matter how big they get they still have to sell to the multi-nationals because of their lack of export terminals. They might be able to negotiate 2-3 cents "if" the export markets have a push and need grain, but still they get scraps when the multi-nationals get the meat. It is a proven fact that all the "advantages of scale" get eroded by poor operational inefficiencies and poor "coop management".

If the new Landus Cooperative, Wheat Growers, and Central Valley Ag would merge with CHS I think you would have an entity that would make the multi-nationals sit up a pay attention. Today the Multi-Nationals just see the horizontal moves as a origination point they don't really own, but they will get the grain anyway.

In Iowa and the other corn belt states that have numerous processing markets and river markets I actually believe you would be better off with NONE of the little commercials. All they do is sell your harvest into the same markets you could access yourself with farm storage------shuttles to export market the exception.

I am impressed both passed with 2/3 of the vote. That is hard to do and the coops must have did an excellent job in selling the merger to the member owners.

Illinois Steve

Posted 12/22/2015 07:37 (#4978329 - in reply to #4977896)
Subject: RE: horizontal move to no-where..........

North Central Illinois

Good thoughts White Shadow. Thanks.

Dave Cen.Ia

Posted 12/21/2015 20:05 (#4977468 - in reply to #4977432)
Subject: RE: Iowa - Farmers Cooperative and West Central merger approved

Nevada, Iowa

Service will be better - prices members pay for inputs will be cheaper - prices members get paid for grain will be better - all due to increased efficiency and improved buying and bargaining power.

I also have 20 acres of ocean front property in Arizona in you case you're buying any of the above.

alnciowa

Posted 12/21/2015 20:14 (#4977498 - in reply to #4977468)
Subject: RE: Iowa - Farmers Cooperative and West Central merger approved

nw/nc iowa on the banks of West Buttrick Creek..

They were not able to get my work done on time or at all this fall but I am sure being bigger and better next year will help.

deltron7

Posted 12/21/2015 20:19 (#4977517 - in reply to #4977468)
Subject: RE: Iowa - Farmers Cooperative and West Central merger approved

NC Iowa

Dave Cen.Ia - 12/21/2015 19:05

Service will be better - prices members pay for inputs will be cheaper - prices members get paid for grain will be better - all due to increased efficiency and improved buying and bargaining power.

I also have 20 acres of ocean front property in Arizona in you case you're buying any of the above.

that's the truth Ruth!

Illinois Steve

Posted 12/22/2015 07:34 (#4978317 - in reply to #4977432)
Subject: RE: Iowa - Farmers Cooperative and West Central merger approved

North Central Illinois

All good questions Garvo. Did you go to one of the meetings and ask those questions?

garvo

Posted 12/22/2015 07:59 (#4978377 - in reply to #4978317)
Subject: RE: Iowa - Farmers Cooperative and West Central merger approved

western iowa,by Denison

nope didn't go was busy at home managing my co-op that I own myself-since I'm the manager and labor I had no one to delegate and manage -so had to do it myself-im sure if I merge with some other co-op -I would be the labor-lot less meetings and politics that way-I did ask questions on the phone and they told me they would get back to me?

earp

Posted 12/22/2015 16:59 (#4979379 - in reply to #4976852)
Subject: RE: Iowa - Farmers Cooperative and West Central merger approved

Manila, Ar

local coop here sold last month........it had a lot chiefs.......with very few warriors.......:(

oldiowa

Posted 12/22/2015 17:04 (#4979391 - in reply to #4976852)
Subject: RE: Iowa - Farmers Cooperative and West Central merger approved

waterloo iowa

I am part of a small chain of co-ops and just checked their bean prices,they are all exactly the same even though one is 30 miles closer to a processor than another.The first year they merged the one that was second closest to me was 8-10 higher on corn so I drove a few extra miles to get the extra money,now the prices are all the same,if you lose 10 cents a bushel due to lack of completion that can be 20 dollars an acre,1,000 acres of corn is 20,000 a year in lost income,,I know the dividend checks aren't that big.

E718

Posted 12/23/2015 09:07 (#4980994 - in reply to #4976852)
Subject: RE: Iowa - Farmers Cooperative and West Central merger approved

Sac & Story county IA

If you want some reading, google west central coop lawsuit.
Here is a sample;
http://www.agweb.com/article/salesman_took_480000_in_bribes_from_io...

Lots more reading than that.
Trouble in river city.

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