Koch Agriculture Company's Domestic Milling Decisions: The Western Kansas Flour Mill Project

Brenda Tucker and Gary W. Brester

Review of Agricultural Economics, 1997, vol. 19, issue 2, 463-474

Abstract: We initially developed this teaching case for multidisciplinary teams of students from an agribusiness-management capstone course, a grain-science capstone course, and an MBA strategic-business management course. Koch Milling Company is a relatively new division of Koch Agriculture Company, Inc. The division has been assigned the task of developing successful business opportunities in the grain/flour/baking industry. The advent of short-flow flour mills, agricultural producers' desire for value-added opportunities, and the vertical-integration expertise of agribusinesses have significantly reduced barriers to entry into flour milling. Nonetheless, such ventures are not without risk. This case illustrates the thought process used by a large agribusiness firm seeking partnerships with agricultural producers and baking companies.

Date: 1997
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