United States
Department of
Agriculture
Rural Business-
Cooperative
Service
RBS Research
Report 174
Abstract
Cooperative Unification: Highlights From 1989 To Early 1999
James J. Wadsworth
RBS Agricultural Economist
This report describes cooperative unification activities, It discusses unification as a
means of strategic positioning for cooperatives, given changing industry trends and
conditions, and identifies the implications of unification and potential subsequent
strategies. Highlights of unification activities, most of them among well-known cooper-
atives, are described for the 1 O-year period, January 1989 - April 1999. Selected
activities are cataloged in the appendix, listed by date, naming the cooperatives
involved with a brief description of what the unification entailed.
Keywords: unification, merger, consolidation, acquisition, strategic direction
September 1999
Preface
Unification activities of agricultural cooperatives recently have been making headlines,
largely due to the size of some of the partners involved. Cooperatives of all sizes have
been unifying, but the spotlight has been enhanced by the activity among large region-
al cooperatives. In some cases, merger partners have been other large cooperatives
and in others, smaller local cooperatives were brought into a large regional fold.
Across the nation, smaller cooperatives continue to consolidate in various agricultural
sectors.
Unification often improves.industry strategic positioning and answers the need for
growth, the lifeblood of all businesses. Unification opens opportunities for new strategic
directions: horizontal integration, vertical integration, capacity expansion, scale
economies, synergies and efficiencies, etc.
Cooperative leaders must understand the implications of unification and the impact
that such activity has on their industry and their cooperative position in it. Highlights of
selected major unification activity are provided in this report, covering the last 10
years. The listing is not an exhaustive compilation, but rath