際際滷

際際滷Share a Scribd company logo
NW Co-op Development Center
Marketing Co-ops
Lewiston, ID  Livestock Producer Forum
Nov 12th
, 2011
Diane Gasaway, Executive Director  diane@nwcdc.coop
Eric Bowman, Co-op Development Specialist - eric@nwcdc.coop
1063 S Capitol Way # 211
Olympia, WA 98501
360.943.4241
Presentation Overview
1. Intro
2. Co-ops 101; Ownership and governance
3. Adding Value
4. Business Development process
5. Brief models:
 CNB (natural beef)
 Bunkhouse (vacations)
 Organic Valley (dairy)
 PSMP/IGFC/CPoW (mobile processing)
1. Q&A
2. Next Steps
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
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!
Co-ops 101
Investor owned:
Sole proprietor:
Co-ops are member:
 Owned
 Controlled
 Benefited
Ownership
Member-Owners can be
 Consumers
 Producers/Farmers
 Workers
 Other Businesses
Why Cooperate?
to access resources not individually achievable
Marketable Co-op Benefits; Goodwill
 Keep profits, ownership and control local
 Accountable
 Trusted
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
Relationships and Authority
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
2011 11 12 u of id   livestock co-ops and co-ops 101
Un-Corporation
o 1,658 members (64 in NW)
o ~ 10% of organic farm community
o Largest organic co-op
o Founded in collective bargaining
Philosophy:
o Crafting new vision of foods/farms
o More than delicious
o Adding value thru values
CROPP Cooperative
We get $25 per 100 pounds of milk now. Its a steady price,
not up and down every month. In effect, we negotiate with
ourselves.
David Roberts  Franklin Co, ID
Jon Bansen - Monmouth, OR
This is as big as I ever want to be. Working with a co-op
has allowed me to produce good milk that receives a
premium price, giving me a great livelihood, so I
don't have any reason to want more
14 farmers in Brothers, OR
we were going broke (1986)
o Economics: increasing interest rates, land
prices
o Social: cholesterol fears, enviros
Product is more than beef
its about the people
 Selling direct = value added
 Shinrai
 Consensus
Business Philosophy
 20 cattle ranches offering varied agri-tourism
 Co-op:
 Matchmaker
 Co-marketing
 geo-tourism
 Point of contact
 Commission-based
Travelers come to the ranches as guests but they go home as
advocates for family ranching  Karen Searle, founder
Montana Bunkhouse Working Ranch
Vacations
2011 11 12 u of id   livestock co-ops and co-ops 101
Case Studies Review
Key Points:
1. Born out of need/adversity
2. Meeting members economic needs
3. Members are invested in success of co-op
4. Marketing values and philosophy
5. Successful innovation/reinvention
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

More Related Content

2011 11 12 u of id livestock co-ops and co-ops 101

  • 1. NW Co-op Development Center Marketing Co-ops Lewiston, ID Livestock Producer Forum Nov 12th , 2011 Diane Gasaway, Executive Director diane@nwcdc.coop Eric Bowman, Co-op 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; Ownership and governance 3. Adding Value 4. Business Development process 5. Brief models: CNB (natural beef) Bunkhouse (vacations) Organic Valley (dairy) PSMP/IGFC/CPoW (mobile processing) 1. Q&A 2. 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. Why Cooperate? to access resources not individually achievable Marketable Co-op Benefits; Goodwill Keep profits, ownership and control local Accountable Trusted
  • 8. 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
  • 10. 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
  • 12. Un-Corporation o 1,658 members (64 in NW) o ~ 10% of organic farm community o Largest organic co-op o Founded in collective bargaining Philosophy: o Crafting new vision of foods/farms o More than delicious o Adding value thru values CROPP Cooperative
  • 13. We get $25 per 100 pounds of milk now. Its a steady price, not up and down every month. In effect, we negotiate with ourselves. David Roberts Franklin Co, ID
  • 14. Jon Bansen - Monmouth, OR This is as big as I ever want to be. Working with a co-op has allowed me to produce good milk that receives a premium price, giving me a great livelihood, so I don't have any reason to want more
  • 15. 14 farmers in Brothers, OR we were going broke (1986) o Economics: increasing interest rates, land prices o Social: cholesterol fears, enviros Product is more than beef
  • 16. its about the people Selling direct = value added Shinrai Consensus Business Philosophy
  • 17. 20 cattle ranches offering varied agri-tourism Co-op: Matchmaker Co-marketing geo-tourism Point of contact Commission-based Travelers come to the ranches as guests but they go home as advocates for family ranching Karen Searle, founder Montana Bunkhouse Working Ranch Vacations
  • 19. Case Studies Review Key Points: 1. Born out of need/adversity 2. Meeting members economic needs 3. Members are invested in success of co-op 4. Marketing values and philosophy 5. Successful innovation/reinvention
  • 20. 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
  • #8: <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!
  • #9: To close on the general info
  • #10: 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.
  • #12: Note how co-ops can leverage producers up the chain This helps co-op members retain a chain of custody for members
  • #13: - 1988 - CROPP (Coulee Region Organic Produce Pool) = 7 farms selling produce expanded into distro of fruits, veg and dairy - "CROPP" was adjusted to Co-op Regions of Organic Producer Pools The Un-Corporation In an era where corporations dominate all facets of business including government, global energy, ag and global food supply, Organic Valley serves small farmers and rural community health by combining two alternative business models - the family farm and the co-op. Our co-op was founded to nurture local communities by keeping farmers on the land, farming. We understood from the beginning that we would need to pool our product in a cooperative fashion to accomplish that goal. How it Works Farmer members establish equity thru joining: - elect national Board - regional executive committees carry opinions to Board In addition to a member-determined pay-price and equity ownership in a leading national food brand, members receive numerous benefits including support in production, certification, farm planning, feed sourcing, veterinary consultation and more. Adding Value thru values! With the customer, building a new vision Building our base of loyal customers allows us to bring more farm families into the co-op, along with the land, water, and animals that they protect.
  • #16: Its the smell of sage after a summer thunderstorm, the cool shade of a Ponderosa Pine forest. Its the 80 year old weathered handssaddling a horse in the Blue Mountains, the future of a 6 year old in a one room schoolon the High Desert. Its a trout in a beaver built pond, haystacks on an Aspen framed meadow. Its the hardy quail running to join the cattle for a meal, the welcome ring of a dinner bell at dusk.
  • #17: Member Dick Bradbury: ..we've realized that the people part of it is much more critical than the cows. The rancher-to-consumer connection is what gives us the uniqueness of our product. Also, the idea that the consumer feels they are dealing directly with the people who actually grow their food . Mary Bradbury: The people who eat the product need to be partners Doc Hatfield, founder: Most of the ranchers are rural, conservative, Republican, heterosexual and religious. And most of the customers are urban, secular, Democratic, liberal, and you'd think they wouldn't mesh. Connie Hatfield on Berkeley, CA Customers: They have a lot of piercings, tattoos and colored hair and different things. But it's really interesting to mix our cultures and be able to stay on the land because we started to market our products. Adding value by selling more directly to consumers and thru connecting Thereby ranchers could set their price to cover the cost of production, plus a reasonable return on investment, and a reasonable profit.
  • #18: Eco-tourism uses revenue to promote conservation and geo extends ethic to culture and history