Co-operatives to merge (From Western Telegraph)

Co-operatives to merge

Two West Wales agricultural co-operatives have this week revealed merger plans in a move to create a business with a £40 million annual turnover.

Clynderwen and Cardiganshire Farmers and Carmarthen and Pumpsaint Farmers are keen to be trading as one business from October 1st. But they will first need the approval of their combined membership exceeding 10,000. The majority of members are farmers.

Vernon Edwards, general manager of CCF Ltd, hopes the prospect of a more cost effective operation will win them over. He said that at the heart of the merger proposals was the long-term viability of both businesses. It will give us improved buying power and it will enable us to give our customers better value for money, Mr Edwards maintains.

Negotiations between the two century-old co-operatives have already taken place at board and management level and a series of meetings will be held with members at the end of the summer. The umbrella body of these two businesses, the Welsh Agricultural Organisation Society, stresses the importance of co-operatives in the Welsh rural economy.

The Welsh Agricultural Co-operatives are vital to the future and sustainability of the rural economy of Wales, providing much needed employment and community-based services for the rural people of Wales, says its spokeswoman.

Last month CCF Ltd revealed a remarkable financial recovery in a year when the to foot and mouth crisis had been expected to diminish sales. It increased sales of livestock feed and achieved a record turnover of £31.6 million in the year leading to September 30th 200l.