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Maximizing Profitability for Local Farmers: Analysis of MME Case Study

In response to the MME Case Analysis, Group 10 highlights completed goals and suggests strategies for local farmers. Challenges such as full-time management are acknowledged, proposing new terms for potential selling deals and emphasizing profitability. Recommendations include cash offers and retaining a larger ownership portion. The analysis stresses maintaining the current company status, envisioning MME as a debt-free, dividend-paying entity poised for success. Group 10 advocates for decisions regarding membership retention post-LLC formation.

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Maximizing Profitability for Local Farmers: Analysis of MME Case Study

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  1. Response to MME Case Analysis By: Group 10

  2. Goals • Most of the stated goals have already been completed or are not economically viable. • Help local farmers by keeping corn prices high. • Help member farmers profit from the increased demand for ethanol. • Continue the process of converting into an LLC

  3. Constraints • We agree that fulltime management is a substantial issue but the rest of the constraints seemed irrelevant or were already overcome.

  4. Implementation • We suggest looking into selling but under different terms. • Look for a deal that would offer all cash instead of just 20%. • Why sell and hold onto 80% of a company that you are looking to get out of. • Adding a contract stipulation to continue local corn purchase seems highly unlikely. • Maintain the current status. • We see MME as a profitable company that caries no debt and pays a substantial dividend. • Once an LLC is formed let members decide to stay in or not.

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