Two CHS Inc. member retailers –CHS Eastern Farmers in Brandon, S.D., and the CHS business based in Marshall, Minn. – have voted to unify their businesses, effective Sept. 1. The boards of both organizations voted unanimously in June to combine the organizations, which serve 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 chair, CHS Eastern Farmers. “Our board room discussions revealed much greater advantages with a full unification.”
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. The combined business will start operating at the beginning of the new fiscal year on Sept. 1, pending completion of the usual due diligence.
“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.”
In addition to the CHS Eastern Farmers location in Brandon, the Marshall business has Minnesota locations in Marshall, Ruthton, Tracy, Pipestone, and at Elkton, S.D. Both companies operate grain, agronomy, feed, seed, energy, and finance divisions.