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Area cooperatives create grain marketing companyCo-Mark, Inc., Cheney, Kan., announced the formation of a new grain marketing venture, initiated by area farmers' cooperatives, that focuses on strengthening the value for Kansas and Northern Oklahoma grown grain, through innovative marketing efforts. Co-Mark Grain Marketing, LLC, or "CGM" officially began operations on Feb. 1. Over a three month period a total of ten cooperatives will join CGM, including: Anthony Farmers Cooperative Association, Anthony, Kan.; Cairo Cooperative Equity Exchange, Cairo, Kan.; CCGP, Inc., Wichita, Kan.; Danville Cooperative Association, Danville, Kan.; Farmers Cooperative Grain Association, Caldwell, Kan.; Farmers Cooperative Grain Association, Conway Springs, Kan.; Farmers Cooperative Elevator Association, Garden Plain, Kan.; O.K. Cooperative Association and Mercantile, Kiowa, Kan.; Two Rivers Consumer Cooperative Association, Arkansas City, Kan.; and Valley Coop, Inc., Winfield, Kan. CGM now serves as the grain division for these ten cooperatives handling all grain merchandising, logistics, and accounting under one Federal License. According to David Smith, president/general manager, the advantage of a grain marketing alliance is increased efficiencies including the better use of storage assets. Ownership of the physical grain assets remains with the local cooperative. CGM anticipates that nearly 40 million bushels of grain will be marketed each year through the alliance. "The idea behind CGM and other similar alliances is to better link producers to end users therefore providing more competitive prices for their grain," Smith said. CGM is governed by a board of directors who are member-owners, much like a local farmers' cooperative. Each of the ten cooperatives' General Managers serves as a director on the board. As for the farmers, they won't see much change at their local cooperative. "Farmers will still be able to contract and sell grain as well as get a check cut at their local coop. However we will be working hard behind the scenes to create a strong demand for their grain," says Smith. The Co-Mark Grain Marketing office is located at 326 East South Avenue, Cheney, Kan. 4/14/08 Date: 4/8/08
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