Two agricultural cooperatives in the Upper Midwest have signed an intent to merge. The board of directors for East Central/Select Sires in Waupun, Wis., and NorthStar Cooperative in Lansing, Mich., decided to work toward unifying the two entities under the name CentralStar Cooperative Inc.

Currently, NorthStar serves dairy and beef producers in northern Wisconsin, Michigan and north of U.S. Highway 50 in Indiana. East Central/Select Sires serves dairy and beef producers in southern Wisconsin. There is no overlapping territory between the two cooperatives, so once the merger is confirmed, service will continue as usual for patron members.

The goal is to combine cooperatives, creating even greater value for members and customers. This includes taking advantage of economies of scale; expanding resources and services available to customers, such as Dairy Herd Improvement services and diagnostic testing; and removing the current business line in Wisconsin.

MILK SAMPLING: DHI specialist Alicia Knapp samples milk at Crandall Dairy Farm in Battle Creek, Mich. Although milk sampling and analysis is available in southern Wisconsin, pending a positive merger vote, the program will significantly expand.

“The board is really excited about this potential merger,” says Paul Trierweiler, president of NorthStar’s board of directors. “Collaborating in strategic alliances is one element of NorthStar’s vision, which guides us into discussions like this one. The dairy and beef industries are changing rapidly, and the board believes becoming one cooperative creates a lot of opportunities to better serve all members and customers.”

“Employees will see advantages, as well,” says Steve Abel, president of  East Central/Select Sires’ board of directors. “By combining employee numbers from both cooperatives, we can use economies of scale in areas such as benefits, insurance and technology. There will be more opportunity for career development, and with expanded services, employees will benefit from providing more value to customers.”

LAB WORK: NorthStar’s laboratories provide sample analyses on milk, blood, fecal and tissue samples for a variety of production, disease and health traits.    

NorthStar and East Central/Select Sires will follow their governing documents and conduct a vote of the common stockowners (NorthStar Cooperative) and delegates (East Central/Select Sires), to approve the merger. Voting will be in early 2019. Upon a positive vote, merging business operations will begin May 1.

CentralStar will focus on enhancing producer profitability through integrated services, providing Accelerated Genetics, GenerVations and Select Sires genetics, as well as extensive artificial insemination technician service, genetic consultation, reproduction services, DHI services, diagnostic testing, herd management products, and research and development. All current business locations will remain open for the foreseeable future.

For more information, visit NorthStar Cooperative and East Central/Select Sires.

Source: NorthStar Cooperative