- 61 -
used the soybean facilities to process soybeans purchased
from its patrons into soy oil and soy meal. Petitioner
sold most of the soy oil it produced to unrelated food
processors for use in products such as margarine.
Petitioner processed the soy meal it produced into formula
livestock feed, all of which it sold to its member
cooperatives.
Boone Valley and Land O'Lakes, two other Midwestern
cooperatives, also processed and marketed soy products
during the years in issue. Boone Valley processed soy
meal into livestock feed using petitioner’s proprietary
formulas and technical support. Boone Valley’s feed
production was marketed directly through petitioner.
Boone Valley is included in a list entitled “subsidiaries
and affiliates” in petitioner’s 1980 annual report. In
some earlier reports, Boone Valley is described as a
subsidiary of petitioner and some of its member
cooperatives. The record does not fully disclose the
nature of the relationship of Boone Valley and
petitioner.
During petitioner's 1983 fiscal year, consideration
was given to consolidating the soybean operations of
petitioner, Boone Valley, and Land O'Lakes. Under the
terms of the plan, petitioner was to sell its soybean
Page: Previous 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 NextLast modified: May 25, 2011