Members of North Wellington Co-operative Services Inc. in Harriston, Ont., and Huron Bay Co-operative Inc. in Teeswater, Ont., on April 7 voted unanimously in favor of a merger of equals that will combine the two businesses under the name of Midwest Co-operative Services Inc.
The merger will become effective Sept. 1, 2022, with the main office located in Teeswater and the Harriston office providing administrative support. The vote required a two-thirds majority for the merger to proceed. The merger was unanimously recommended by the boards of both co-ops, and an information meeting for members was held on March 22 in advance of the in-person vote.
In an FAQ to members, the two co-ops said the combined business would create a “more competitive and profitable co-operative” while building on many existing efficiencies. The two co-ops are both shareholder-owners of Growmark Inc., and they market products and services under the FS retail brand.
“We currently occupy a lot of common trade territory and have limited space to grow geographically,” the FAQ said. “This step will allow us to work within a larger geography in a coordinated and efficient way. We also want to create an organization that can attract talent, as it will be able to offer specialized roles for administrative and management purposes, as well as expertise at the farm gate, like precision agriculture.”
The two co-ops already share a general manager, energy manager, communications and marketing specialist, and human resources/payroll specialist, as well as policies, procedures, and documentation for HR and Health and Safety. Custom application services are also contracted between the two companies, and propane and petroleum deliveries are shared, as is some application and delivery equipment. The list of shared vendors includes Growmark, Masterfeeds, Peavey Industries, Klondike, Lubricants, and many major seed and chemical companies.
The combined membership will total more than 9,000 growers and rural residents in Grey, Bruce, Wellington, Huron, Perth, and Dufferin Counties. The projected combined sales will be more than C$86 million, with service revenues of C$3 million and combined assets estimated at C$55 million at book value.
The co-ops said the combined business will operate from the current 16 locations in Huron, Grey, Bruce, and Wellington Counties, with no plans to close any location or lose jobs. All current members will continue as members of the amalgamated co-op, with no additional investment required. Patronage entitlements will be consolidated into the new structure.
Kelly Boyle, current general manager for both co-ops, will serve as general manager of the combined business. The board will consist of 10 directors, initially composed of five directors from each co-op. Going forward, members will elect directors on a rotating basis at the regular annual meeting.
Huron Bay Co-op currently provides agronomy, animal nutrition, energy, and retail products and services from ten locations in Ontario’s Bruce, west Grey, and north Huron Counties. The company has 2,500 members. North Wellington Co-operative Services provides agronomy, feed, energy, and retail products and services to more than 6,000 members in north Wellington, south Grey, and Bruce Counties from locations in Harriston, Mount Forest, Durham, and Hanover.