Building markets and people cooperatively: the Lake to Lake story

373 Pages·1990·59.5 MB·English

by  Truman Torgerson

BUILDING MARKETS AND
PEOPLE COOPERATIVELY:
THELAKETOLAKESTORY
Truman Torgerson

Acknowledgments
I wish to acknowledge the contributions of the many Lake to Lake orga
nizers whom I contacted to review and reconstruct elem.ents of this
book.
Especially, T want to thank secretary Junette Pederson for painstak
ingly typing and retyping the manuscript and son Randall Torgerson for his
editing and critical review of the book's content.
Also, I convey my appreciation to Gene Ingalsbe and others in the
Agricultural Cooperative Service for bringing the manuscript to final form
through further editing and conversion to electronic word processing equip
ment. Thanks also to Lake to Lake's Public Relations Manager Nadine Miller
for proofing the printer's typeset copy.
Finally, I would indeed be remiss if I failed to thank the current
Chief Operating Officer Lawrie Kull and the Board of Directors* of the Lake
to Lake Division of Land O'Lakes for w1derwriting the cost of publication.
" Karl Kappelman, Fred Fisher, Ron 1-lillmann, John Siegmund, Robert Desjarlais,
Rexford Stone, George Delveaux Jr., and Orio Koerth.
ii The Lllke to Lake Story
Pref ace
T he Lake to Lake Dai1y Cooperative story begins with Cl unique sih.1a
tion. Most cooperatives are fonned when farmers have their backs to
the wall. Thnl wns not the case with Lake to Lnke, for wartime
demands for food hnd contTibuted greatly to agriculture's recovery from the
Great Depression. Thus, the cooperative was formed in the comparatively
good times after World War IL
The economic need, however, was there. Dairymen in northeastern
Wisconsin were receiving less than the state average price for their milk. The
opporrunity to market milk for fluid purposes was limited to local cities. In
general, the many cheese factories cried for modernization.
Many of our more progressive fam1ers were aware they needed to
cut costs, be more efficient, and more effective in marketing. Thus, from its
very start, Lake to Lake was market and profit oriented. We recognized we
must operate our cooperative in a businesslike manner if we were to meet
competition over a long period of time. We recognized but one basic differ
ence between a cooperative and our competitors. They were in business to
make money for themselves. Lake to Lake would be in bL1siness to make
money for its fam1er-owners- a major difference in objective.
Also unique in the Lake to Lake story is its continuity of manage
ment (one general manager throughout its existence) and the fact it went out
of existence as a corporate entity, merging into Land O'Lakes Inc., <1l the
zenith of its success. The drii1ymen I write about possessed the foresight lo
recognize the changing structure and demands of the marketplnce. These
changes would require increased research and the need for gargantuan
advertising and merchandising expenditures.
It is indeed a pleasure to write this story of selfless dairymen who
were willing to sacrifice so all might progress as a group. These dairymen
had the courage of their convictions, a willingness to step out - and leave
bt:hind the methods of yesteryear in favor of a better tomorrow.
Preface iii
Forward
L ake to Lake is very pleased to publish Building Markets and People
Coaperatively: The Lake lo Lake Story, authored by our retired President
and General Manager of 35 years, Truman Torgerson.
Three years were spent researching, combing files, interviewing
members, sorting photos, reviewing board minutes and skimming Member
Memos. Even more meaningful, it has been vmtten from the perspective of a
leader directly involved in the decisions.
The Lake to l.tlke Story is more than just a history of the cooperative.
As you read, the adherence to sound cooperative principles surfaces time
and again. Through it all, the mission of the cooperative was never lost, but
always kept in the forefront.
We believe there is something for every reader. For the retired mem
ber, there is the pride of being part of the struggling birth and the years of
growth. To the second and third generation families, there are the stories you
heard your father or grandfather tell. To new members, it is a chance to learn
of the organization's roots and heritage.
To our industry friends, there is the history of Lake to Lake and
what makes us tick. And, to students of cooperation, we hope there are valu
able lessons to be learned.
Our boundless appreciation to Truman for his dedication and
immense effort to write The Lllke to Lake Story. It was a labor of love for him,
but also, an enormous task.
We hope this book furthers the w1derstanding and growth of coop
eratives from the experiences outlined and the lessons learned.
Thank you, Trwnan.
Lawrie Kull
Chief Operating Officer
Lake to Lake Division of Land O'Lakes Inc.
iv The i.llke to f.llke Story
BUII.DING MARKETS AND PEOPLE COOPERATIVELY:
THELAKETOLAKESTORY
Table of Contents
Preface
Chapter 1-TI1e Birth of Lake to Lake 1
A Prophetic Statement
Organizing Manitowoc Cow1ty
The Sparkplug Igniting Door County
Resistance in Calumet County
Slow Going in Other Counties
Developing Articles and Bylaws
Financing - $10 Per Cow
Chapter 2-Passing U1e Startup Tests 15
Overcoming the Opposition
Shaping the Organization
Hiring the Manager
Early Leadership Test
Plant Local-ion Decisions
Quality Car for Quality Milk
First Producer Payroll
Our First Office
First Year's Operations
Chapter 3- Building a Winning Team 25
Burdette and Gladys
Wise - Production Expertise
Rounding Out Early Staff
Chapter 4 - The Fom1ative Years 31
Developing Policy
Why Join Organizations?
Pioneering in Protein Pricing
Strong Communication Link
Contracts- Valuable but Ridiculed
Never Take "No" for an Answer
A Few Unusuals
Camaraderie Develops
Bits of Frivolity
Sustaining Letters from Members
Preface v
Chapter 5 - Early Life in Kiel 43
Resolving Water and Sewage Problems
Introducing Ourselves to Residents
Chapter 6 - Golden Opportunity Seized 47
lntegrily 1ested
$10,000 Suit Filed
Early Producer Returns Disappointing
The Price of Naivete
Chapter 7 - The Cheese Story 53
Four Goals
Achieving USDA Grade AA
Quality and Brand Identity
Chapter 8 - When the Going Was Tough 61
A Pitch for Employees
Cash Estate Settlement
Cream Markets Disappear
A Different Farm Sign Program
Converting from Cans to Bulk
Slim, Trim, and Healthy
Chapter 9 - Solidly Establishing Ourselves 73
Impatience with Finance
Landmark Year
Certificates, Gold Cows, Ribbons, Trophies
Our Cooperative Principles
Health Insurance - A Political Decision
Chapter 10 - Mid-Fifties and Moving 83
Reporting After 10 Years
Modem Dairy Battle
L-0ng-Term Contract
Luetsd1er Leaves, Jolmson Promoted
Operation Heifer Lift
Lively and Well-Organized Meetings
Double National Championships
Phage and Public Service
The Value of Financial Strength
Wilson Replaces Reinhard
Consolidation, Expansion, Open House
Year-End Confidential Reports
vi The Lake to Lake Story
Chapter 11-Soaring into the Sixties 99
Merger Battles
Why Supply Management?
Iowa Cow Pool Examined
Order 41 Markeling Cooperative Organized
Annual Meeting and Records
Membership Protection Emphasized
Chapter 12-Employee and Member Recognition 111
Strike-Free Record
Employee Aduevement and Change
Long-Trme Members Honored
Chapter 13 - How We Developed Leadership 117
Greatness and Moral Fiber
Qualilies of Leadersrup
01apter 14 - Change and 01allenge of 1961 123
Minit Milk Mart
Co-ops United at Milk-Hauling Hearing
Fonnula Price for 01eese
Epic Merger Battle
Chapter 15 - Sales Exceed $20 Million 133
What Have We Built?
Super Pool Stmggles
Brick, Mortar, and People
Youth Program Builds Leaders
Chapter 16-First Changing of U1e Guard 143
Director Reports
President Murphy Retires
Membership Growth
Australians Adopt Our Practices
Owen Plant Closing
Swanton and Froker Retire
Honoring Binversie
Chapter 17 - The NFO Saga 151
Farmers for Freedom
Lake to Lake Policy
01apter 18 - Chicago Federal Order Battles 161