Cooperatives’ dispute headed to court
Farmers Cooperative Elevator Company, Cooperative Grain and Supply, and Central Prairie Co-op filed a petition in district court Tuesday seeking to dissolve Team Marketing Alliance.
TMA is owned by the plaintiffs and MKC in Moundridge, Midwest Fertilizer in Moundridge, and Producer Ag in Topeka.
TMA is the marketing wing for the six co-ops. Profits earned are returned to the cooperatives annually.
According to the petition, the owner cooperatives’ profits and losses were not calculated according to TMA’s operating agreement.
The three plaintiffs have been at odds with TMA and the other cooperatives over profit distributions for months.
According to the petition, Central Prairie Co-op tried to forge a compromise distribution agreement with MKC and Producer Ag in June, but MKC and Producer Ag refused.
The petition claims MKC and Producer Ag’s refusal to cooperate threatens the business of TMA with irreparable injury.
The petition asks for a compromise fund distribution, an independent audit of TMA, and that TMA be dissolved.