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![Page 1: –Cooperative Defined –Pros and Cons –Getting Started –Managing –New Generation Cooperatives Cooperatives In the Shellfish Industry.](https://reader035.fdocuments.net/reader035/viewer/2022070305/5514595a5503462d4e8b550f/html5/thumbnails/1.jpg)
– Cooperative Defined– Pros and Cons– Getting Started– Managing– New Generation Cooperatives
Cooperatives In the Shellfish Industry
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What is a Cooperative?
1.A business organization
2.Communism
Answer: A cooperative is a BUSINESS
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Business Characteristics
Alligator Business Model (not coop)
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Types of cooperatives
•Consumer
•Worker
•Producer–Marketing
–Purchasing
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Every Farm for Itself
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Greater Bargaining Power
Savings to the farms has to be greater than the cost of running the co-op.
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Just sells to individuals
Only sells wholesale
Sells to a friend
Has a diverse clientele
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Co-op needs to cover its operating expenses from sales.
Farmers need to make more by selling through the co-op.
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Advantages
Can focus on farming and increase production
Can reach more diverse markets
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LLC vs. Cooperative
Similarities– Producer can own business– Taxes on profits paid by owners
not company– Limits liability– Must cover costs– Must benefit owners
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Why Are Co-op’s Different?
1.Open membership2.Democratic Control3.Member Economic Participation4.Autonomous5.Education/training6.Cooperation7.Community
Co-op Principals
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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
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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
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The Cons
• Cooperating
• Start up
• Distraction
• Marketing
• Costs/financing
• Management
• Member dependent
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Examples of seafood cooperatives
• Seafood Producers
• Kachemak Bay
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Getting Started
• Planning
• Preparing
• Begin operations
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Planning Process
Collective Process
• Gather Information
• Get organized
• Research feasibility
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Preparing the Business
• Membership Drive • Business Planning • Founding Documents
– Articles – By laws (owners
manual) – Membership
agreements
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Beginning Operations
• Elect directors • Hire management• Develop polices and
procedures• Set up business
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Members role
• Elect directors. • Vote on major
decisions. • Patronize the
cooperative.
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Resources
Technical Assistance• National Coop. Business
Assoc. • Coop. Devlpmnt Institute• Coop. Devlpmnt Services • Northwest Coop Devlpmnt
Center
Financing • Coop. Devlpmnt Fund • Blooming Prairie
Foundation
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Alaska Cooperative Development Program
• Purpose• Partnership and
Resources• Clients
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Instructors
Andrew CrowConsultant and
Cooperative Program Manager
907-786-5447 [email protected]
Home page – http://ced.uaa.alaska.edu/ac
dp/index.html