Local CHS ag retailers merge
By:
Staff reports
BRANDON – As locally governed CHS ag retailers, the two producer boards of CHS Eastern Farmers and the CHS business based out of Marshall, Minn., have voted unanimously to unify their operations and create one, new business unit within CHS.
The two boards came to this decision in late June after much thoughtful discussion about how best to serve the farmers, ranchers and other customers in southeastern South Dakota and southwestern Minnesota.
“The idea to unite was initially brought to our boards by our two general managers who’d been discussing ways to partner,” said Doug Brake, board hair, CHS Eastern Farmers. “Our board room discussions revealed much greater advantages with a full unification.”
“Both of our operations are financially strong,” said Tom Versavel, board chair, CHS (Marshall). “But our combined size and scope will strengthen things like our risk management of market positions and our leverage with suppliers, for example. Together, we’ll be able to reach efficiencies and enhance service levels that we could not achieve individually.”
Plans are to start operating as one at the beginning of the next fiscal year, Sept. 1, pending completion of the usual due diligence. Chuck Miller, current general manager for CHS Eastern Farmers, has been chosen to lead the new operation as general manager until his planned retirement on Dec. 1, 2017. At that time, Kent Mulder, current general manager for the CHS Marshall business unit, will assume the leadership role.
Both operations are part of CHS Inc. (www.chsinc.com), a leading U.S. farmer-owned cooperative. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS supplies energy, crop nutrients, grain marketing services, animal feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.
