Landus Cooperative Announces Multi-Year Plan to Consolidate Then Grow

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Short-term impacts include five percent reduction in force across 26-county region

AMES, IOWA (June 7, 2017)—Landus Cooperative this week implemented Project 2020: Consolidate Then Grow, a multi-year initiative to enhance profitability and re-invest in more efficient assets on behalf of the cooperative’s approx. 7,000 member equity holders.

“We are reducing costs and consolidating to be more profitable and, in turn, re-investing profits to more efficiently handle smart volume through strategic assets,” explained Milan Kucerak, Chief Executive Officer of Landus Cooperative, the Ames-Iowa headquartered farmer-owned cooperative.

Implementation of the consolidation phase includes: 

  • Full closure of four locations in Leland, Parkersburg, Bristow and Coon Rapids 
  • Closing or seasonalizing several grain assets 
  • Shifting agronomy product lines to regional hubs with central dispatch 
  • Five percent reduction in staff across all part-time and full-time employees in the 26 counties in which the cooperative has locations

“We know these changes deeply impact our work family and the decisions have been difficult,” explained Kucerak. “While never easy, we need to make changes in order to move our business forward on behalf of our farmer-owners.”

Implementation of the growth phase is underway as capital expenditure proposals are being finalized for board approval with implementation anticipated in the next fiscal year. A variety of multi-million dollar projects are expected to be implemented through fiscal year 2020 including: 

  • Automate grain assets and agronomy hubs 
  • Build greenfield grain/agronomy hubs in currently underserved markets 
  • Standardize processes and procedures 
  • Continued focus on staffing efficiencies

“This plan is important for all members of Landus Cooperative, both today and into the future,” explained John Scott, President of the Board of Directors and an Odebolt, Iowa-area farmer. “Just like our farmers, our cooperative must keep costs in line and make smart investments in order to proactively position ourselves as winners in today’s competitive, global marketplace.”

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