2011 09 20 ora lg and island city fc and ag
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Eric Bowman from the Northwest Co-op Development Center gave a presentation about co-ops to a group in La Grande, Oregon. He discussed that co-ops are member-owned businesses that can take various forms like agriculture co-ops, food co-ops, and online food co-ops. Bowman explained that his organization provides assistance to new and existing co-ops in all stages of development from feasibility studies to startup. He emphasized that co-ops allow members to access resources together and keep profits local.
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2011 09 20 ora lg and island city fc and ag
- 1. NW Co-op Development Center La Grande, OR Co-op Ag Marketing Northeast Oregon Economic Development District Sept 20th , 2011 Eric Bowman, Cooperative Development Specialist eric@nwcdc.coop 1063 S Capitol Way # 211 Olympia, WA 98501 360.943.4241
- 2. Presentation Overview 1. Intro 2. Co-ops 101 and Overview 3. Food Co-ops, Ag Co-ops and emerging models 4. Development process 5. Q&A 6. Next Steps
- 3. NWCDC The Center a 501(c)3 nonprofit which provides development services for new and existing co-ops Our mission to foster community economic development through the co-op business model Were a team of co-op developers with skills specific to start-up and organizational business development
- 4. Co-op Role U.S. Facts: 3,000 farmer co-ops market 30% of farmers products 6,400 housing co-ops provide 1.5m homes 10,000 credit unions provide services to 84m members 1,000 rural electrics operate 遜 the nations distribution 47,000 co-ops serve 43% of the population Top 100 co-ops 2009 revenues = $176 Billion!
- 5. Co-ops 101 Investor owned: Sole proprietor: Co-ops are member: Owned Controlled Benefited
- 6. Ownership Member-Owners can be Consumers Producers/Farmers Workers Other Businesses
- 7. Distributionism Consumer Credit Unions Housing Retail (e.g. food co-ops) Farm Supply Two Schools Producer Worker Farmer Artisan
- 8. Distributionism Another School Solidarity or Multi-Stakeholder Producers & Buyers Co-op: Farms Institutions Weaver Street Market: Worker-owners Consumer-owners Idahos Bounty Co-op: Producer-owners Consumer-owners
- 9. Co-op to Co-op Supply Chain
- 10. Why Cooperate? to access resources not individually achievable Marketable Co-op Benefits; Goodwill Keep profits, ownership and control local Accountable Trusted
- 11. Unique Characteristics of Co-ops Owned/controlled by members, not outside investors Exist solely to serve members Return surplus to members based on use, not investment Pay taxes on income kept for investment/reserves; surplus revenue returned to members who pay taxes Economy of scale = valued added
- 14. Co-op Development Stages Identify a need a co-op could meet Form Steering Committee Research Feasibility Review Findings (Go/No Go) Membership Drive Planning and Financing Begin Operations (Go/No Go) How We Assist Facilitate identifying mission and goals Train founding Board members Market and feasibility research Assist with organizing Professional, 3rd party perspective General business consulting Project LifecycleProject Lifecycle
- 15. Food Co-ops
- 16. Ag Co-ops
- 18. Thank You! Eric Bowman eric@nwcdc.coop Northwest Cooperative Development Center 1063 Capitol Way S # 211 Olympia, WA 98501 360.943.4241 | www.nwcdc.coop Fostering community economic development through the cooperative business model
Editor's Notes
- #2: <Remember: slooooooowwww and be natural> I appreciate the opportunity to be here Very timely event!
- #3: <Go slow>
- #4: <slowly> Intro self and sectors
- #5: <ehm, breath> Co-ops are dynamic and relevant in todays economy
- #6: What does this mean: the equity owners of a co-op are the same people who: - democratically govern the business thru 1-member = 1-vote - are the beneficiaries of the services provided
- #7: <are you going slowly enough> Co-ops are defined by ownership In this collection of cooperative businesss logos, I see groups of people who had a need: - they could not meet individually and - which was unfulfilled by the traditional investor-owned private sector
- #10: To close on the general info
- #11: <S.L.O.W.> Because co-op businesses are: - comprised of the community - they are representative of the community - and they are a part of the community Co-ops: - Keep profits, ownership and control local - Are less vulnerable to take-over and closure by outside decision-makers ; often stay long after others leave - Are trusted business partners; people like to deal with the producer Co-ops have an innate edge on investor-owned corporations and they have an opportunity to sell it!
- #12: To close on the general info
- #13: Building blocks of economic cooperation Authority: - basic authority and responsibility imposed by law, in other words the incorporating statute - Bylaws and policy provide guidance and clarify authority Ultimate authority from 2 places: Comes from members and this overall system The co-op is theirs and without their desire to create and perpetuate co-op, the board wouldnt exist Members place their needs, trust and Board of their choosing.
- #14: Note how co-ops can leverage producers up the chain This helps co-op members retain a chain of custody for members