–cooperative defined –pros and cons –getting started –managing –new generation...
TRANSCRIPT
– Cooperative Defined– Pros and Cons– Getting Started– Managing– New Generation Cooperatives
Cooperatives In the Shellfish Industry
What is a Cooperative?
1.A business organization
2.Communism
Answer: A cooperative is a BUSINESS
Business Characteristics
Alligator Business Model (not coop)
Types of cooperatives
•Consumer
•Worker
•Producer–Marketing
–Purchasing
Every Farm for Itself
Greater Bargaining Power
Savings to the farms has to be greater than the cost of running the co-op.
Just sells to individuals
Only sells wholesale
Sells to a friend
Has a diverse clientele
Co-op needs to cover its operating expenses from sales.
Farmers need to make more by selling through the co-op.
Advantages
Can focus on farming and increase production
Can reach more diverse markets
LLC vs. Cooperative
Similarities– Producer can own business– Taxes on profits paid by owners
not company– Limits liability– Must cover costs– Must benefit owners
Why Are Co-op’s Different?
1.Open membership2.Democratic Control3.Member Economic Participation4.Autonomous5.Education/training6.Cooperation7.Community
Co-op Principals
Co-op Features The effect of the co-op principals
• Membership is open to persons who can use the co-op’s services.
• Member control is usually one member one vote. Investment $ = control/votes
• Benefits are tied to usage
– Operate at cost– Net margin allocated to members based on use. Investment $ = percentage of profits
– Limited return on equity
Where are Co-ops Effective?
• New/unusual industries- butter in early 20th Century in Midwest
- cranberries
• Areas where private businesses don’t think there is enough profit. – Small/remote salmon fishing districts
• Maintaining prices?– Kachemak Bay
The Cons
• Cooperating
• Start up
• Distraction
• Marketing
• Costs/financing
• Management
• Member dependent
Examples of seafood cooperatives
• Seafood Producers
• Kachemak Bay
Getting Started
• Planning
• Preparing
• Begin operations
Planning Process
Collective Process
• Gather Information
• Get organized
• Research feasibility
Preparing the Business
• Membership Drive • Business Planning • Founding Documents
– Articles – By laws (owners
manual) – Membership
agreements
Beginning Operations
• Elect directors • Hire management• Develop polices and
procedures• Set up business
Members role
• Elect directors. • Vote on major
decisions. • Patronize the
cooperative.
Resources
Technical Assistance• National Coop. Business
Assoc. • Coop. Devlpmnt Institute• Coop. Devlpmnt Services • Northwest Coop Devlpmnt
Center
Financing • Coop. Devlpmnt Fund • Blooming Prairie
Foundation
Alaska Cooperative Development Program
• Purpose• Partnership and
Resources• Clients
Instructors
Andrew CrowConsultant and
Cooperative Program Manager
907-786-5447 [email protected]
Home page – http://ced.uaa.alaska.edu/ac
dp/index.html