Cooperatives Achieving together what one cannot do alone

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CooperativesAchieving together what one cannot
do alone

• A presentation of the
• Virginia Council of Farmer Cooperatives

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What is a cooperative?

• A cooperative is an organization owned and
  controlled by the people who use it.
• The primary goal of a cooperative is to meet the
  needs of its member-owners versus creating
  returns for its investors.

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Cooperative history

• Weavers and other craftsmen in Rochdale, England,
  in 1844 are tired of paying high prices for low
  quality goods to local (unscrupulous?)
  shopkeepers
• Oatmeal with sand added
• Butter weighed with a thumb on the scale

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Cooperative history

• Created the Rochdale Equitable Pioneers Society
  to
• Purchase needed goods in bulk butter, flour,
  sugar, oatmeal, candles
• Open a shop on Toad Lane
• Re-sell to themselves at cost plus a small margin
• Return any profit to the members at year end,
  based on the members volume of business

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Cooperative principles

• Open membership
• One member, one vote
• Limited return on capital
• Operation at cost
• Dividends returned to members in proportion to
  use
• Duty to educate

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Cooperative benefits

• Improve bargaining power
• Reduce costs and increase income
• Obtain products or services not otherwise
  attainable
• Gain market access or enhance marketing
  opportunities
• Improve produce or service quality

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How cooperatives benefit YOU

• What did you have for breakfast?
• Florida Natural orange juice or Ocean Spray
  cranberry juice
• Welchs grape jelly, Land O Lakes butter
• Have you had a snack?
• Diamond walnuts, Sunmaid raisins, Sunkist oranges
• Do you shop at a local farm supply co-op?
• Southern States, Farmers Cooperatives

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How cooperatives benefit YOU

• Where do you do your banking?
• Farm Credit, Credit Unions
• How many electrical appliances have you used
  today?
• Electric Cooperatives
• Do you market milk through a cooperative or drink
  milk processed by a cooperative?
• - Dairy Farmers of America, Maryland Virginia
  Milk Producers

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Other cooperatives

• Hardware (Ace, True Value)
• News (Associated Press)
• Insurance (Nationwide Insurance Co.)
• Recreation (REI)
• Motels (Best Western)
• Food (Dunkin Donuts)

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Cooperatives benefit America

• Nearly 48,000 cooperatives generate more than
  120 billion in annual economic activity for
  about 100 million members1 in 3 Americans!
• 11 million people rely on electric cooperatives
  for their power
• Nearly 570 rural credit unions help their 3.8
  million members save more than 18 billion
• Cooperatives create more than 250,000 jobs

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Why should you be a member of a cooperative?

• Have a voiceone member, one vote
• Elect board members from the general membership
• Serve on the board, which sets the direction for
  the cooperative
• Share in profits of the cooperative profits are
  returned to members as patronage refunds, in
  proportion to the members use of the cooperative

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Why should you do business with a cooperative?

• The primary goal of a cooperative is to meet
  member needs, not make profit for outside
  investors
• Cooperatives emphasize quality products and
  services and knowledgeable employees
• Cooperative business dollars stay in the
  community
• Your friends and neighbors own the business

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A cooperative is a grassroots organization.

• It is formed by a group of individuals who
  identify an unmet need and set out to meet that
  need. Cooperatives then serve as a competitive
  yardstick for other businesses.

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• Cooperatives truly do together what one cannot do
  alone.

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The mission of the Virginia Council of Farmer
Cooperatives is to promote the understanding of
farmer and consumer-owned cooperatives in
Virginia and their contributions to the economy.

• Virginia Council of Farmer Cooperatives
• www.vcfc.net
• USDA Rural Business Cooperative Service
• www.rurdev.usda.gov/rbs/coops/csdir.htm
• National Council of Farmer Cooperatives
• www.ncfc.org