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Oklahoma Agricultural Cooperative Council

5100 N. Brookline Ave., Suite 450

Oklahoma City, OK, 73112


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The Sustainable Growth Rate of a Cooperative Firm

Phil Kenkel
Bill Fitzwater Cooperative Chair

In many strategic planning sessions the board and CEO develop a vision of what the cooperative will look like ten years in the future.  That vision invariably brings up a conversation about growing the cooperative. While there are cooperatives that remain small and stay successful most cooperative organizations have a desire to grow.  As producers grow their operations there is a need for the cooperative to grow in order to remain relevant.  All of the agribusiness input industries are becoming more concentrated which requires cooperatives to have a larger scale in order to compete.  Cooperative boards also want their cooperative to be of a size and scale that they can compete for talent at both the CEO and mid-level management positions.  A vision for growth of a cooperative leads to the next question.  Is the desired growth achievable?

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