Rural Cooperatives Magazine - January/February 2001
N E W S L I N E U.S., Canadian Pasta Co-ops Link
Officials from Dakota Growers Pasta Company, Carrington, N.D., and Prairie Pasta Producers, Carlyle, Saskatchewan, signed a memorandum of understanding Jan. 25 outlining how the two durum co-ops will work together in building an international, farmer-owned, value-added pasta company. The partnership is a proactive approach positioning Dakota Growers Pasta Company in an increasingly competitive global pasta market. "We're trying to do what is right for the farmer. This is not an action that will allow the dumping of Canadian durum into U.S. markets," said Tim Dodd, president of Dakota Growers Pasta Company.
Perry MacKenzie, board chairman of Prairie Pasta Producers, sees the preliminary understanding as a positive opportunity for Canadian durum producers. "Together, Prairie Pasta Producers and Dakota Growers Pasta Company can work toward developing a level playing field for durum producers in North America." Dakota Growers Pasta Co. now can allow non-United States entities and associations of agricultural producers to join the cooperative.
"It is very important to our members that this company remain farmer-owned," said Dodd. New associations that apply for cooperative membership must be grower owned and require board approval. "Our mission is twofold, but is very simple: providing our customers with premium quality pasta products and maximizing returns to our grower-members." Dodd embraces the idea of including all durum producers from the durum triangle region of the northern plains to create a single producer-owned pasta company.
"The pasta industry is in the state of overcapacity. We have quadrupled our pasta capacity and milling needs over the last seven years. Enrolling Canadian farmers into our cooperative provides a broader base to select durum that meets the quality needs our customers have come to expect. By working together with the Canadian farmers, we can accomplish more than working against one another."
The overcapacity market issue has been clearly identified by Prairie Pasta Producers in its feasibility study and business plan as well. The group has recognized that building a "greenfield" plant presents tremendous risk at a time that the pasta industry is fighting for market share at less than desirable prices. This agreement would allow them to work together in Dakota Growers Pasta Co. rather than against them. The next step for the two organizations is to develop a definitive agreement that can be submitted to the Saskatchewan Securities Commission.
Three-person panel to settle raisin deadlock
Raisin packers and growers in California are in the midst of a serious impasse over the field price for raisins. Prices are normally set by October, but in late January the price was still unsettled and growers were left without payment for much of their crop while packers were trying to deal with the food industry without knowing their ultimate costs for raisins. In the latest development, Superior Court judge Stephen Kane in Fresno ruled that a three-member arbitration panel will be used to determine the price. According to the Fresno Bee, this is the first time in the 34-year history of the Raisin Bargaining Association that the matter has been moved to arbitration because of a dead-lock between growers and packers.
Potato co-op seeks answers to crop surplus
Northwest potato growers are struggling to survive in a supply-bloated market that has seen prices plunge to about one cent per pound for a crop that costs them about five cents per pound to produce. To help reduce the surplus, a new cooperative, Potato Management Inc., has been formed by Potato Growers of Idaho. The co-op hopes to dispose of 10 percent of the crop - or about 400 to 600 million pounds of the 1.5-billion pound crop. By reducing the over-supply and encouraging members to reduce their planted acreage, the co-op hopes to drive prices back up. In late January, the co-op was donating spuds to charitable organizations to feed the needy.
Executive director sought for Cooperation Works
Cooperation Works, the national network of cooperative developers and centers, is conducting a nationwide search for an executive director. The North Dakota Association of Rural Electric Cooperatives is coordinating the recruiting project. Interested persons should apply by March 22 to Kent Brick, NDAREC, P.O. Box 727, Mandan, ND 58554-0727. Cooperation Works' mission is to advance the national network of cooperative developers dedicated to prosperous sustainable communities.
Robson heads Milk Board
James Robson, a former vice president with Dairygold Inc., Seattle, Wash., is the new chief executive officer of the Wisconsin Milk Marketing Board, Madison. He leads the $26.5 million organization, which conducts statewide and national dairy marketing and promotion programs for Wisconsin-made dairy products. Producer checkoff funds support the activities. Most recently, Robson managed a Texas firm that worked with dairies, food processors, wholesalers and retailers in strategic planning, new product development, promotion and sales training.
Tripp Producers join AMPI
Another 27 dairy producers, this time shippers to the defunct Tripp, S.D. Cheese Company, now market milk to the Freeman, S.D., plant owned by Associated Milk Producers, Inc. (AMPI). Combining overlapping routes should streamline operations and cut hauling costs. In other AMPI news, the cooperative has distributed equities and earnings payments totaling $8.3 million to members - - revolved $5.6 million of members' 1995 capital retain investment and paid $2.7 million in allocated equities.
Co-op education on web site
Local cooperative directors, managers and employees in the Cenex Harvest States-Land O'Lakes systems can now access cooperative education material and a host of other resources by tapping into the new website, www.mbrservices.com. The new site includes an electronic newsletter, ePreview, frequently used regional phone numbers and e-mail addresses and Co-op Shop, where you can purchase product and promotional materials and meeting supplies identified with these regional cooperative systems. Jessica Lamker, managing editor of the site, says it offers more informational and educational resources for local cooperatives, such as director's corner, monthly articles on ways to improve operations of boards of directors, jobs in the country to help with cooperative employee placement, and financial understanding, a series of learning modules about the basics of cooperative financial statements.
Alabama honors Loftis
The Alabama Council of Cooperatives has bestowed its annual cooperator award on Jim Loftis for his 30 years of promoting cooperatives in the Southeast. He currently is director of communications and governmental affairs for Southern States Cooperatives, Richmond, Va. A native of Tennessee, Loftis began a 24-year career with Gold Kist Inc., Atlanta, managing its grain elevators in North Carolina and later becoming regional manager of member relations and director of public affairs. He is a past chairman of the Georgia Agribusiness Council and serves on the public affairs committee of the National Council of Farmer Cooperatives.
Alto leads cheese project
A new cheese yield project by Alto Dairy Cooperative, Waupun, Wis., teaches members how to tailor their milk production to meet specific protein needs of cheesemakers. Producers learn what management practices can help them meet the milk component levels required by individual processors. Higher cheese yields and possibly higher prices paid to producers are among anticipated results. The pilot project was made possible, in part, by the Wisconsin Department of Agriculture, Trade and Consumer Protection.
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