Cooperatives: A tool for economic development...Cooperatives: A tool for economic development 2013...
Transcript of Cooperatives: A tool for economic development...Cooperatives: A tool for economic development 2013...
Cooperatives: A tool for economic development
2013 UW-Extension ED Inservice June 25, 2013
Courtney Berner
Cooperative Development Specialist UW Center for Cooperatives
Overview
What is a co-op? What is the UW Center for
Cooperatives? Development Examples Wisconsin Food Hub Co-op Madison Co-op Business
Conference Honey Creek Market
What is a cooperative? A cooperative is a business owned and
democratically controlled by the people who use its services.
Member - owned Member - controlled Member - benefits
Types of Cooperatives
Purchasing Co-ops
Consumer Co-ops Marketing Co-ops Worker Co-ops
Multi-stakeholder Co-ops
Cooperative Principles 1) Voluntary and open
membership 2) Democratic member control 3) Member economic
participation 4) Autonomy and independence 5) Education, training, and
information 6) Cooperation among
cooperatives 7) Concern for community
Why do people form cooperatives?
Unmet social or economic need Market power imbalances Problems with alternatives Control decision-making Gain profits up the value-chain Relatively easy to enter and exit Community support
The Cooperative Economy Cooperatives in the U.S. Nearly 30,000 cooperative
businesses >$3 trillion in assets >$500 billion in total revenue $25 billion in wages and benefits Nearly 1 million jobs
Cooperatives in Wisconsin Approximately 650 co-ops 2.12 million members $8.6 billion in gross sales
Data from 2009 UWCC Research on Economic Impact of Cooperatives
Selected sector impacts Agricultural co-ops: almost 1/3 of supplies and
products purchased or marketed Grocery co-ops pioneered introduction of
natural/organic foods, now over $26B industry Credit unions: 93 million members (2011) Rural electric co-ops: 7 customers per mile of line,
as opposed to 35 for IOUs Housing co-ops: correlation with building quality,
security, community stability in studies
UW Center for Cooperatives Three core activities: research, education, outreach Available resources Comprehensive website: http://www.uwcc.wisc.edu Extensive research and publications library Development support Deliver guest lectures and presentations on co-op model
Project history Sept 2011: Feasibility study completed Feb 2012: WFU/grower partnership Sept 2012: Business plan competed Oct 2013: Co-op incorporates
Key Players Dane County Economic Development Wisconsin Farmers Union
Project status GM and sales manager hired Moving product this season
Source: www.zoebakes.com
Lessons learned Strong institutional support presents
challenges and opportunities Project champion: Who is it? Who
should it be? Gauging member interest can be
challenging Co-op incubation vs. grassroots
efforts
Madison Co-op Business Conference June 6-7, 2012 Partnership between UWCC, City of Madison, and
other members of co-op community Target audience: business owners, economic
development professionals, general Outcomes: 160+ attendees At least one co-op development project Strengthened relationships w/city officials, co-op
community, EDs Dane Cooperative Alliance (placeholder name)
Madison Co-op Business Conference Lessons learned Bring in the right partners Need content that is relevant to all audience
members Timely follow-up critical to cementing relationships
and catalyzing action You never know what seeds you’re planting!
Conference videos available here:
http://www.cityofmadison.com/citychannel/ShowDetails.cfm?Id=133
Project history Summer 2012: Idea sparked Dec 2012: Community-wide meeting to gauge support Feb 2013: Taskforces established March 2013: Co-op incorporates
Key players: Sauk County ED, UWCC, CDS Consulting Co-op
Project status Pro forma complete Membership drive and loan campaign ongoing Purchase agreement in process
Lessons learned Fewer documented “best practices”
for conversions Community buy-in critical but
sometimes hard to assess Desire to rush the process needs to
be managed Process needs to be scaled to
project, e.g. feasibility analysis
Examples of other co-op projects Worker owned home care co-op Worker-owned mental health services co-op Producer-owned hops co-op Multi-stakeholder food distribution co-op Worker-owned co-op of biologists and
environmentalists
Selection of UWCC Resources UWCC website Cooperatives in Wisconsin: The Power of
Cooperative Action Cooperative Equity and Ownership: An
Introduction A Study of Co-op Business Development in
Wisconsin and Minnesota Cooperatives in Community Economic
Development
Courtney Berner Cooperative Development Specialist, UW Center for Cooperatives [email protected], 608.890.0966 www.uwcc.wisc.edu
Questions?