About the Project
The trend for consolidation in the UK agriculture sector will increase in coming years as the globalisation of markets continues. In some cases, consolidation can lead to growth and success; in others it may be a case of “merge or die”. Standing still is not an option for any farmer controlled business.
Merger, acquisition, joint venture or strategic alliance are routes which can potentially reduce costs and improve efficiency, market share and competitive position. However, any major structural upheaval is also fraught with pitfalls - consolidation activity often delivers fewer benefits and incurs much higher costs than anticipated.
This project aims to equip farmer controlled businesses with an up-to-date, practical and relevant guide to successful consolidation in all its forms.
Case Studies
Eight case studies document recent examples of merger and joint venture activity across five different sectors. One is a European example; one is international; one is a merger between a co-operative and a company limited by shares; another is a prospective merger which failed. The cases provide an insight into the process, the pitfalls, and the potential benefits, seen through the eyes of the participants themselves. A pilot study was also carried out, working hand-in-hand with two mushroom groups as they went through the process of merging to become the largest organic mushroom growing co-operative in the UK.
The Handbook
The Handbook draws together all the learning from the case study research, and will enable best practice to be shared across the sector. It is written in an accessible style, and gives a concise overview of the merger process, drawing out learning points and identifying key success factors (such as the importance of communication, member relations and loyalty generation). The particular requirements of farmer controlled businesses (many of which are structured as co-operatives) have been addressed throughout.
The case studies and Handbook can be downloaded at pdfs by clicking on the buttons to the left.
The Mergers & Acquisitions project has been funded by Defra’s Agricultural Development Scheme, with support from Tring Townsend and HSBC.