Att-L«ncMt»r Fanning, Saturday, March 1, 1997
Land O’Lakes OKs Merger
(Continued from Page A 1)
discussions were in progress
between the management of both
organizations to develop a closer
working arrangement The hint of
a merger was made then, though
not held out as the explicit goal of
talks.
Mote recently, the boards of
directors of both organizations
approved a merger plain, leaving
the final decision of such a busi
ness move up to membership
delegates.
ADC membership through
its elected, delegates is to
decide on the merger on Match 13,
during a special delegate vote.
ADC members were to have
been made directly aware of the
voting procedures through a mail
ing by the co-op done early this
week.
If ADC member-delegates
approve the merger, it is to become
effective on April 1.
Atlantic has been processing
and packaging butter at its Mt.
Holly plant in Carlilse for the Land
O’Lakcs brand since 1980 and has
recently reported making a profit
on the investment into the business
arrangement.
ADC has been a growing
cooperative and its members pro
duce and market a large percentage
of the milk in Pennsylvania.
For example, it grew in mem
bership and marketing clout when
it contracted several years ago to
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supply the milk for the Pennsylva
nia operations of Hetshey Foods,
which was moving to eliminate its
direct-purchase operations from
local independent producers.
Those independent suppliers
were given the option of joining
Atlantic and continue to help supp
ly the Hetshey demand. Some did
and some didn’t
Atlantic also subcontracts for
milk with smaller dairy coopera
tives, such as the Mt Joy Farmers
Cooperative.
That cooperative also received a
boost in membership when former
direct suppliers to Hershey sought
to retain a local market.
ADC has also been working
with the Rodale Foundation in a
Dairy Network Partnership
program.
The effect of a merger between
ADC and Land O’Lakcs on current
ADC alliances and business rela
tionships with other cooperatives
is unknown, though Laura Eng
land said Thursday that it was
expected that those contracts and
agreements would be maintained.
In the joint Land O’Lakes/ADC
news release made this week, John
Gherty, Land O’Lakes president
and chief executive officer stated,
“We arc excited about this oppor
tunity to maximize our butter
supply close to our strongest mark
ets while establishing a true
national organization with mem
bership on the East Coast, across
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Phone 800-326-9763
FAX 717-523-8175
the Mid West and reaching to the
West Coast
“By creating value-added mark
ets for members and delivering
cost-effective, on-farm production
programs, we strengthen our entire
cooperative system and become
better positioned for long-term
growth in both domestic and inter
national markets.* 1
Land O’Lakes is a Minnesota
based food and agricultural
cooperative owned fay farmers,
ranchers and member cooperatives
in 20 states. It provides agricultur
al inputs for nearly 1,000 member
cooperatives supplying 300,000
farmers; serves more than 7,000
direct producer-members; and
manufactures and markets a wide
variety of food products.
ADC primarily mark
ets raw milk. Both
cooperatives handle
about the same volumen
of milk annually.
In a recent compari
son of the two coopera
tives by Dr. George
Haenlein, a long-time
dairy professor and col
umnist at University of
Delaware, through its
value-added market
ings, Land O’Lakes was
able to generate about
twice as much gross
income on the sale of its
producers’ milk than
what ADC was able to
gross.
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HARRISBURG (Dauphin Co.)
Pennsylvania has been desig
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equine health study to be con
ducted by the National Animal
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within the USDA. Veterinarians
involved with the NAHMS are
interested in having individuals
allied with the horse industry help
determine the study’s focus.
The NAHMS has set up a tele
phone number and Internet address
where individuals may respond to
a short survey anytime before
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March IS, 1997. Those who are
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There is no cost to respondents,
and the input gained by the study
leaders will be invaluable in set
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f W T.'V-'TT