Co-ops call off merger, plan another

Staff writer

Customers of Mid-Kansas Cooperative and Frontier Ag will not see the companies merge this year after all.

Merger talks, which began in September, stalled this week after company leaders on both sides could not settle on the terms of the agreement.

“The merger wasn’t canceled over anything specific,” MKC communications director Kerry Watson said. “The way the merger process works is it has to be agreed upon by both parties.”

There is no ill will between the two companies, Watson said.

“The deal was left open indefinitely so that way it could be further pursued down the road,” she said.

While that merger is off the table, another one is being discussed between MKC and Farmers Cooperative Association, based out of Manhattan.

Farmers agreed to take its proposal before its membership this month, ending a two-year search by the company to find a cooperative company to merge with that would provide the best benefits.

Merger documents are currently being developed and awaiting approval from both company boards. If approved, a vote by Farmers’ membership will be required to move the merger forward. The vote has been set for March 6.

Farmers has four locations in Alta Vista, Manhattan, Onaga, and Westmoreland. It is a full service cooperative with annual sales of $50 million.

MKC owns four co-ops in Marion County in Goessel, Peabody, Florence, and Burns.

 

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