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Landus Coop Optimaization
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Kooiker
Posted 5/14/2021 21:59 (#9005622 - in reply to #9005471)
Subject: RE: Landus Coop Optimaization



cornfolio - 5/14/2021 20:30 What happened to the last GM they had from the last merger? Every time these coops merge they brag about how this merger is going to improve their efficiency because of synergies between the coops then a few years later they have to merge again because they are not efficient enough but they will this time because of synergies between the two coops sooner or later members are not going to buy that line anymore so this is probably the next way to get around that




Efficiencies of scale and synergies are greatly exaggerated in their merging sales pitches.

There is a point where increased scale leads to inefficiency and a poorly run operation.


Local coop here built a huge new feedmill and closed down a lot of their older smaller feedmills.   Supposed to save lots of labor.   Far as I can tell all of the labor savings at the big new feedmill vs the older smaller mills is eaten up by having more trucks on the road hauling feed longer distances and hauling corn into the feed mill.        They brag about how many miles they put on their feed truck fleet in a year...





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