Upload
dhagenmaier
View
96
Download
2
Tags:
Embed Size (px)
Citation preview
Cooperatives: What are they? Where are they? Who cares?
Women Managing the Farm ConferenceManhattan, KS
February 5th, 2015
Brian C. BriggemanAssociate Professor and
Director of the Arthur Capper Cooperative Center
Arthur Capper Cooperative CenterOur purpose is to determine, develop and deliver research
and education for the cooperative community.
Cooperative ScholarshipsCooperative Research
Cooperative Education Programs
And, so much more…
www.accc.ksu.edu
What is a cooperative?
• A type of corporation. A business!
• A cooperative is a business owned and democratically controlled by the people who use its services and whose benefits are derived and distributed equitably on the basis of use.
Co‐op1. Maximize Member
Benefits
2. Users can own and control
3. Patronage
4. ROI (high or low?)
Cooperative vs. Investor Owned Firm (IOF)
IOF1. Maximize Profit or
Shareholder Wealth
2. Users typically don’t own and control
3. Dividend
4. ROI (high or low?)
Roles1. Customer
2. Patron
3. Owners
4. Control
Function1. Profit generation
2. Profit distribution (patronage)
3. Investment (stock)
4. Vote
Unique Advantages but also some Unique Challenges
Cooperative members are…
• Distribution of profits called patronage
• Better prices
• Access to markets
• Access to services
Cooperatives provide benefits through…
• Members are ‘active’ because they provide the funds for labor, materials and investment.
• By being active, members hope to get more benefits because they both patronize and investin the co‐op business.
Cooperative members are ‘active’ owners
• By working together, active members exchange information to enhance benefits.
• Some members are more ‘active’ because they serve on the board of directors.– Strategic direction of the co‐op and CEO’s supervisor
Cooperative members are ‘active’ in control
Three broad categories of the value proposition.
1. The co‐op is an extension of the farm
2. Investment in rural America
3. The Power of Patronage
The co‐op is an extension of the farm…up and down the supply chain.
Input Producer Retailer
Output Producer (Farmer)
Elevator Processor End User
Co‐op
Co‐op
What do farmers gain?
The Power of Patronage
Patronage is an investment. That is, a
grower gets equity in an agribusiness just by doing business with the co‐op.
• Cooperatives are a prominent part of the U.S. economy, especially in rural America
• 3 principles define cooperatives– User‐benefit– User‐owner– User‐control
• Cooperatives are very important agribusinesses!– Benefit to ‘active’ members– An investment in rural America
Cooperatives are important to agriculture