West Central Cooperative CEO, Milan Kucerak, said he and Farmers Cooperative Company CEO, Jim Chism, are supportive of the independent viewpoint from outside consultants who are researching the possibility of a unification agreement. He said what is most important for them to learn are what benefits will be delivered to members and employees. They have already identified five major areas, with the first being the diversity gained by a merger. Kucerak said both companies’ long history of innovation turns member crops into value-added products sold internationally. The second benefit he identified was streamlining and increasing productivity. Right now, the overlap in facilities would allow them to bring more efficiencies to logistics and equipment. Perhaps one of the most important benefits for members, Kucerak said, is the strategic channeling of capital.
For employees, Kucerak said both cooperatives are in a type of limbo; they are too big to be small and too small to be big. Their greatest challenge is turnover, but combined they would have more depth of staff and more career opportunities for current and future employees. The fifth benefit comes from the initial reaction Kucerak hears most often.
This merger would preserve and maintain farmer’s equity with what they anticipate to be a dollar for dollar valuation. He added this opportunity is one of significant impact for both companies as well as the industry as a whole.
However, their focus on this merger really is on what it can do for the people they serve.
If the boards of both cooperatives elect to take this to a member vote, it will require 50 percent plus one shareholders from each to cast a vote. Of those, 67 percent must vote yes for the merger to be approved. West Central Cooperative is offering all the information presented at their recent meetings in an online format. Go to the West Central website and log into your member account, where a link has been provided.
