Select Sires gains power

PLAIN CITY, Ohio — After months at the discussion table, the members of Select Sires and Sire Power have approved the merger of the two cooperatives.



The vote of each organization was to be announced today, June 29, at a Select Sires’ open house held in conjunction with the 2000 National Holstein Convention.



The agreement combines the sire programs of both organizations and integrates the farmer membership of Sire Power into Virginia-North Carolina/Select Sires’ local cooperative structure.



Original merger discussions began five years ago. Even though action did not materialize at that time, the groundwork was laid for these more recent considerations.



“With the fiscal efficiencies we gain united as one, Select Sires will be the most price competitive A.I. organization,” said Select Sires General Manager David Thorbahn. “We will be able to lower our collective costs and, in turn, increase returns to our member patrons.”



Thorbahn said the merged sire programs will expand sampling capacity by 40 percent and allow for greater diversity in sire selection. Select’s sire proving program is expected to sample 360 bulls per year.



“Agriculture is a challenging industry with tight margins. Those who choose to lead will prosper,” Thorbahn said.



“Both organizations bring genetic staying power, financial clout and skilled people to the merger. Collectively, we can now offer an even greater genetic advantage in providing an even larger membership the industry’s best genetics and services at competitive prices.”



With the consolidation of sire lineups, the proven Sire Power bulls will be available, effective immediately, through all 10 member co-ops in the Select Sires federation.



Select Sires will retain the sire facilities in Tunkhannock, Pa., to house and collect bulls plus process and ship semen.



Although final votes were being tallied at presstime, dairy and beef producers in Sire Power’s traditional membership areas of Pennsylvania, New Jersey, Maryland, Delaware and West Virginia approved membership in Select Sire Power Inc.



The newly-named cooperative that combines Sire Power and VA-NC/Select Sires will be headquartered in Rocky Mount, Va., with financial operations continuing in Tunkhannock.



“Looking at them in the past as a regional competitor, VA-NC/Select Sires has long been an effective, efficient member of the Select Sires federation,” said DuWayne Kutz, Sire Power general manager. “Throughout these negotiations we felt an honest, strong spirit of cooperation, developing a ‘win-win’ relationship for all parties.”



With the merger, Sire Power’s mid-eastern states membership area, the adjacent Select Sires non-member sales areas of New York and New England, and VA-NC/Select Sires’ marketing territory are one sales area under the name Select Sire Power Inc. It makes Select Sire Power the largest member cooperative of Select Sires, serving more than 12,000 customer-members from Maine to Florida.



Projected annual Select Sire Power semen sales are in excess of 1 million units.



Eight farmer-members will be seated on the Select Sires board of directors, four of whom will represent the Sire Power membership.



After the merger, the 10 member cooperatives of Select Sires are expected to sell 33-35 percent of the A.I. dairy and beef semen marketed in the United States.



The Select Mating Service (SMS) replaces Sire Power’s LAMP (Linear Appraisal and Mating Program) service.

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