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Veteran Advisor

being stabbed with own knife

Well the local Mega coop, that didn't
pay divided this year, that bought 6
Elevators, have 25 elevators, 2 Mega train
Facilities, and just bought a 3ed one
Using our money....and was going to
Be so efficient and just must have
Those 100 unit trains, to capture the
Best price.....

Funny 2 other small coops nearby
To the big outfit, are paying 10 cents
A bushel more for everything....even
New crop.

They have to buy new everything
Are constantly building.
The kicker was at the last stockholders
Meeting, it was almost 50/50
Shareholders, and people wearing
Company shirts.

They have pushed/bought everyone out
No competition....who's making the
Money.....all those working in the
Head office...
Lexas....BMW....Lincoln pickups...denali
suberbans


And the board just can figure it out and
they all say they have the best management
Staff.

Perhaps a hostile take over at the next
Annual meeting?
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6 Replies
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Senior Advisor

Re: being stabbed with own knife

I just love a good "David and Goliath" story.

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Frequent Contributor

Re: being stabbed with own knife

My local co-op always paid 4-8 cents more than the chain that was nearby,when they bought us out are basis dropped so that all branches quote the same price,even if 1 is 30 miles from a processor and the other one is sixty miles away.The old guys are just happy to have somewhere to drop off their grain,but alot of younger farmers are putting up bins and buying semis because of the 30-40 price difference a half hour away. The old guys think it is great when they get a dividend,they don't understand that they are getting gouged on sale price and shrink at the local co-op .

 

When we were independent we had alot of followers on the co-op board that were followers,if that is still the case on these merged co-ops a handful of people could run big businesses into the ground.

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Honored Advisor

Re: being stabbed with own knife

Co-ops were created for service............Many have forgotten that fact.

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Senior Contributor

Re: being stabbed with own knife

Coop here purchased 300 acres or so next to them and along the R.R. maybe for expansion but me thinks to keep any competitors away.  Then spent another 1,000 or so per acre developing. Maybe they want to produce their own grain.

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Veteran Contributor

Re: being stabbed with own knife

All I can say about my local coop is the price on the board for grain is lower than everyone else usually and the price in back for seed/fertilizer and chemicals is with out a doubt the highest you can find.  You would literaly have to have blinders on not to know they are screwing you.  We buy run down facilities in small junk towns with no storage.  One class 6 combine and 3 semis can keep those small elevators busy and we spend pills building them up.  All the while the original locations fall in disrepair because we can't justify fixing them up.  IE we got you locked in and you can't go anywhere else.  But I guess as long as the CEO of my coop is making $640,000 a year plus a new pickup of his choosing every 2 years so all is as it should be. Why dose my dividend jingle instead of fold???

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Advisor

Re: being stabbed with own knife

Same deal with co op here. Their own line of seeds are as expensive as the major players. They bought 90 acres to build a rail loading facility, 45 miles from me. Too far to pull wagons.
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