BANKRUPTCY OF A SUPPLY COOPERATIVE: THE CASE OF AGWAY, INC.* by Bruce L. Anderson Associate Professor Department of Applied Economics & Management Cornell University E-mail:
[email protected] and Brian M. Henehan** Senior Extension Associate Department of Applied Economics & Management Cornell University E-mail:
[email protected] For Presentation at the AAEA Meetings Montreal, Quebec July 28, 2003 ___________________ * Copyright by Bruce L. Anderson and Brian M. Henehan . All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided this copyright notice appears on all such copies. ** Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the authors and do not necessarily reflect the views of organizations which supported this research. 1 Introduction Agway, Inc. headquartered in Syracuse, New York has played a pivotal role over the years in the food and agricultural industry of the Northeast. With the largest membership, expansive operations, and the highest number of employees, it became the dominant cooperative in the region. Agway also played a very prominent role in regional and national organizations of cooperatives as well as in international cooperative development. In it’s day, Agway and it’s predecessor organizations were highly innovative and helped commercialize many valuable new feed and fertilizer products developed through research conducted at Land Grant Universities as well as through work conducted at Agway owned research farms. On October 1, 2002 Agway, Inc. filed for Chapter 11 bankruptcy. The filing involves a select group of Agway holdings including: Feed and Nutrition, Agronomy, Seedway, Feed Commodities International, Country Best Produce, CPG Nutrients, CPG Technologies and the Agway General Agency.