FCM International Partnership Beaumont

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FCM International PartnershipBeaumont Koh
Thom

• COOPERATIVES

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A COOPERATIVE IS A FOR-PROFIT CORPORATION

• It has
• a corporate board of directors,
• a profit motivation,
• a service orientation,
• A cooperative is a user-owned and user-controlled
  corporate business in which benefits are received
  in proportion to use.

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User-Owner Principle

• The people who own and finance the cooperative
  are those who use it.
• The people who use the cooperative are those who
  control the cooperative.
• The cooperatives sole purpose is to provide and
  distribute benefits to members on the basis of
  their use.

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• It is a fair way for producers to go into
  business together
• It is a locally owned and controlled corporation
• Its business purpose depends on its members

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History of Cooperatives

• The first modern cooperative was founded in
  Rochdale, England in 1844.
• Canada's first co-operative businesses were
  mutual insurance companies, which were
  established by farmers in what is now Quebec and
  Ontario as early as the 1830s. 
• Between 1860 and 1900, dairy farmers in Quebec,
  Ontario and Atlantic Canada developed over 1,200
  co-operative creameries and cheese factories to
  process their products.
• In the early 1900s, prairie grain farmers
  created co-operatives to sell their grain
  directly to millers and exporters. Other farm
  groups, such as fruit growers and livestock
  producers, also organized co-operatives in the
  years before the First World War.
• In the early 20th century, people worked together
  to create retail cooperatives in many towns in
  the four western Canadian provinces (Manitoba,
  Saskatchewan, Alberta and British Columbia).
• In the 1930s, the movement continued to expand to
  include the creation of credit unions, fishing
  and housing co-operatives, and co-operative
  stores

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Cooperatives in the Global Economy

• Worldwide more than 1 billion people are members
  of cooperatives.
• Cooperatives provide 100 million jobs worldwide,
  20 more than multinational enterprises.
• In India and China combined, more than 400
  million people are part of cooperatives.
• In Germany and the United States, one in four
  people are cooperative members while in Canada
  that number is four in 10!
• Canadian maple sugar cooperatives produce 35 of
  the world's maple sugar production. 
• In Vietnam, cooperatives contribute 8.6 of the
  Gross Domestic Product (GDP).

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7 Cooperative Principles

• Voluntary and Open Membership
• Democratic Member Control
• Members' Economic Participation
• Autonomy and Independence
• Education, Training and Information
• Cooperation among Cooperatives
• Concern for Community

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Cooperative Information

• Foundation of Cooperatives
• Voluntary / open to everyone
• Democratic power to the members
• Economic participation of members
• Autonomy and independence
• Education, training and information
• Cooperation between cooperatives
• Community engagement

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Cooperative Examples

• Cooperatives examples
• Agriculture
• Arts and culture
• Retail
• Environment
• Finance
• Leisure and tourism
• Child care
• Research

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Cooperative Information

• Cooperative Model in Canada
• Exist in different sectors
• Financial
• Construction
• Electricity
• Owned by its Members
• Members have common needs
• Democratic 1 Member / 1 vote
• Members share advantages

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Cooperative Information

• Importance of cooperatives in Canada
• 10 000 cooperative businesses
• 160 000 jobs
• 167 Billion in assets
• 15 Million members

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Types of Cooperatives

• Producer-owned cooperatives
• are owned by farmers, producers or small
  businesses.
• Consumer-owned cooperatives
• enable consumers to secure a wide array of goods
  and services.
• Worker-owned cooperatives
• are businesses owned and controlled by their
  employees.

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What Cooperatives Do

• Production produce commodities
• Purchasing buy and sell inputs
• Marketing buy and sell commodities
• Service - Banking

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What Cooperatives Do

• Production produce commodities
• Purchasing buy and sell inputs
• Marketing buy and sell commodities
• Service - Banking

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Production Cooperatives

• Production cooperatives are sharing resources to
  produce a commodity for sale.
• feeding cattle
• grazing
• agricultural machinery,
• animal reproduction,
• forestry
• handicraft
• There are 603 production cooperatives in Canada

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What Cooperatives Do

• Production produce commodities
• Purchasing buy and sell inputs
• Marketing buy and sell commodities
• Service - Banking

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Purchasing Cooperatives

• Purchase supplies
• operate farm supply store (retail)
• South Country Co-op
• UFA
• joint purchasing programs (wholesale)
• Federated Co-operative

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Purchasing Cooperatives

• Allow those buying the goods to receive benefit
  from sales as profits are shared with all the
  members.
• The more you support and buy goods from the
  cooperative, the more return you receive.
• Retail co-ops can sell many different things and
  are particularly strong in the farm input sales
  giving producers better prices and more access.

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Cooperatives - Retail

• Sell many different things

Food lumber petroleum
Tires hardware and tools agricultural inputs
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Agricultural Co-ops

• farm inputs including fertilizers and chemicals,
  animal feed, seed, building materials and
  petroleum products.
• The 216 supply co-operatives have nearly 5
  billion of all farm supply market share.

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What Cooperatives Do

• Production produce commodities
• Purchasing buy and sell inputs
• Marketing buy and sell commodities
• Service - Banking

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Marketing Cooperatives

• Market products
• acquire and sell commodities
• Gay Lea Foods in dairy
• Exceldor in poultry slaughtering and processing
• Grain marketing
• bargain for price, terms of sale
• 151 marketing cooperatives in Canada

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Agricultural Marketing Cooperatives

• processing and marketing
• grains and oilseed,
• dairy products,
• poultry,
• fruits,
• vegetables,
• livestock,
• honey
• maple products.

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What Cooperatives Do

• Production produce commodities
• Purchasing buy and sell inputs
• Marketing buy and sell commodities
• Service - Banking

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Service Cooperatives

• Largest number of cooperatives are in this area
• Provide needed member services
• Banking Credit Unions
• Water supply
• Insurance
• Housing
• Day cares and nurseries
• Health care
• Funeral services
• Management of facilities

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Key Organizations

• International Cooperative Alliance (ICA)The
  International Cooperative Alliance is an
  independent, non-governmental organisation which
  unites, represents and serves cooperatives around
  the world. http//www.ica.coop/al-ica/
• World Council of Credit UnionsWOCCU is the
  global trade association and development agency
  for credit unions. http//www.woccu.org/

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Cooperative Information

• Advantages of Cooperatives
• Economic and social growth in communities
• Creates more employment opportunities
• Possibility to change something thats not
  working
• Better access to products and services
• Strong customer loyalty
• Access to new markets
• Bring solutions to problems

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Cooperative Information

• Process of Cooperatives
• Mobilize people around one project / need
• Share information and promote the movement
• Support to start of new cooperatives
• Work with the community

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Steps to Organize

• Determine what groups would benefit the most from
  a co-op in your area.
• Hold exploratory meeting with potential members
• Analyze the market
• Evaluate the feasibility discussion with other
  organizations who have experience in such
  organizations.
• Prepare a business plan
• Implement the business plan

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Thank You / aw kohn
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Questions / Comments