How the Cooperative Works
Individual Shareholders own Patron Preferred Shares which entitles them to raise an acre of beets per share. The Shareholder is then obligated to enter into a Shareholder Agreement with the Cooperative, which is the contract between the two parties. The Shareholder Agreement sets the standards for which the Shareholder will deliver the beets and how much will be paid for the beets delivered each year. The price of beets per ton is determined by the percent of sugar content of the beets delivered as well as the average net selling prices of the sugar marketed during the marketing year. The Shareholder Agreement is reviewed each year by the Board of Directors for any needed changes. It is the Shareholder’s obligation to raise and deliver the sugar beets to the Cooperative and the responsibility of the Cooperative to process and market the sugar and related by-products for the Shareholders. It is an interactive, give and take relationship between the two parties.
The Cooperative is governed by an elected Board of Directors. The board works alongside the Management team in order to sort the matters of business as per the Bylaws and Articles of Incorporation of the Cooperative.