New Hampton, IA — Boards of directors for Farmers Win and Five Star cooperatives have agreed to no longer proceed with unifying the cooperatives after two voting periods, the coops said in a Monday, Nov. 1, news release.
Iowa law requires that both cooperatives must each achieve a 50%+1 quorum and then reach a two-thirds majority to approve merging.
Five Star Cooperative found success in the first voting period by exceeding both thresholds and did not have to vote a second time.
Farmers Win narrowly missed the second threshold in the first voting period and sent it back to their members for a revote, which recently concluded. Although the 50%+1 threshold was exceeded in the revote, the approval rating did not reach the two-thirds majority.
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“We are appreciative of the employees who gave their valuable time to this process," said Dwane Koch, Farmers Win board president.
"From management to our location teams, all participated in presenting this opportunity to our membership.” shares.
“As a cooperative board of director member, it is our responsibility to do what is best for the entire membership.
"Even though we did not reach the approval rating we had wanted, the members’ voices have been heard.”
Both cooperatives will continue to operate independently of each other and strive for the highest level of member service.
The management and employee teams will continue identifying new offerings and opportunities for growth.
“We’ve reached a pivotal point for our cooperatives and are thankful for those members who took the time to return their ballots," said Tom Shatek, Five Star board president.
"Participation is a huge part of the process, whether attending a meeting or just calling a director with questions.
“Even though this rare opportunity has been missed, your board of directors and employee team will continue to be focused on the meeting the members’ needs and continuing to strengthen the relationship you have with your cooperative.”
Farmers Win Cooperative and Five Star Cooperative each said they have strong financial positions and will continue to create value for their member-owners.
Both cooperatives said they are thankful for their employee teams, membership bases and Boards of Directors for the time given during this process.
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