Dakota Growers transformed from a cooperative to a Class C corporation in 2004.
The transition required the company to go through Colorado.
“There was a spilt second in time you can say where they went through ... Colorado,” Jack Dalrymple, former chairman of the board, said. The legal team, he said, advised the company to go through Colorado because it has a clear process for that type of transition while North Dakota does not have a process.
Dalrymple said the change was made for three reasons.
First, he said, because some cooperative members, who still held delivery rights, were no longer durum producers, there were concerns about whether a cooperative was still the proper structure.
Second, the arrival of a durum disease diminished the quality and production, he said.
Finally, the board wanted to maneuver the company into a strategic position where it could perform acquisitions and joint ventures.