Members of Dakota Plains Cooperative, a full-service agribusiness headquartered in Valley City, N.D., voted to approve a merger with CHS Inc., an energy, grains and foods company and the nation's leading farmer-owned cooperative.
The proposal passed with a 92 percent approval and will become effective Jan. 1, 2014, pending appropriate due diligence by both organizations and final approval by the CHS board of directors, according to the two organizations.
"We are pleased the members could see the same vision and opportunities the board saw in merging with CHS," said Greg Svenningson, Dakota Plains Cooperative board president. "We are excited to partner with the nation's leading cooperative."
"This is a good match for both cooperatives," said John McEnroe, executive vice president, CHS Country Operations. "We are always interested in investments that align with the CHS commitment to helping our farmer-owners grow their businesses."
Patrons of Dakota Plains Cooperative should expect a smooth transition, including continuity of staffing at its locations. Ken Astrup will continue to lead the co-op as general manager, it was announced.
Dakota Plains Cooperative (dakotaplains.coop) will continue offering farmers and ranchers a full line of agronomy, seed, feed, and energy services and products from 15 locations in central and southeast North Dakota.
In urging members of Dakota Plains Co-op to vote in favor of the merger, the board explained that the merger could enhance agronomy assets in the east central area of North Dakota. "Plans under discussion include constructing three new fertilizer plants within the Dakota Plains trade area to take full advantage of the proposed fertilizer manufacturing facility in Spiritwood, N.D., currently under review by CHS," it was announced.
"Both organizations are looking for growth and expansion opportunities at the same time we protect member equity," said McEnroe, as the vote to merge was being organized.
Source: www.agprofessional.com