2/11/19-Press release from Midwest Farmers Cooperative Board of Directors:
After careful consideration, the Boards of Directors of Midwest Farmers Cooperative and Frontier Cooperative have approved and signed a non-binding Letter of Intent (LOI). By signing the LOI, the boards of Frontier Cooperative and Midwest Farmers Cooperative have unanimously approved proceeding with a study that will enable them to explore in more depth the benefits of unifying the cooperatives.
The challenges of global competition, changing technologies, increased compliance and regulatory mandates, as well as an overall increase in the cost of doing business have created a need to continue to evolve the two companies. To remain sustainable in changing times, certain levels of growth are sometimes needed to meet the challenging and evolving future.
Board Chairman for Midwest Farmers Cooperative, Neil Stedman, sees value in pursuing the project. “This unification study will help us understand if working with Frontier Coop will provide us with the opportunities we need to support our membership and grow in this business environment,” said Stedman. “We are part of a dynamic industry that is constantly changing, as a result we need to be examining opportunities than can ensure our long-term relevancy to our patron owners, employees and industry partners.”
By agreeing to the LOI, the two businesses will now focus on examining the merits of combining the two cooperatives.
“We are excited to explore this opportunity with Midwest Farmers Cooperative and the benefits it could bring to our membership,” said Frontier Coop Board Chair, Greg Sabata. “It is always important to bring growth to your business and be able to invest in your people and technology for better member services in the future.”
This unification of equals would potentially provide a solid foundation for the future and generate benefits for members, customers and employees in multiple areas. This includes strengthening member services, avoiding investment duplication and enhancing their ability to grow and compete.
The study phase or due diligence will begin shortly and is expected to wrap up later this spring. Once it is complete, the boards will assess the findings and determine if a unification would be beneficial to members of both cooperatives.
Members are encouraged to contact their Board members with any questions throughout the process.
2/11/19-A letter is being sent to our voting membership along with a FAQ sheet. This letter can be viewed below.