Unit #1 Co-operatives: The Basics

1. Unit #1Co-operatives: The Basics

2. What is a Co-operative? • A legally incorporated business, owned by its members who use its services. Like other businesses a co-op: • Requires start up capital/equity • Generates revenue to cover its costs • Must provide quality services • Can distribute profits back to its owners • Can retain profits for future needs • Goal is financial self sufficiency • Have limited liability for owners • Can borrow money/sign contracts • Pay business taxes

3. Co-ops are Different From Private Enterprise • Owners benefit from use of the co-op’s services • Not seeking a financial return on their investment • Decision making is democratic – one member/vote • Not based on number of shares held • Profits are allocated based use of the co-op’s services • Not based on number of shares held • A co-ops business assets are owned collectively by local members • Cannot be used for private gain • Co-ops have stated social as well as economic goals • Profit is not the only concern ,

4. Who are Co-op Members? • They are: • Individuals who access retail, financial, housing & health care services • Business operators who benefit from bulk purchasing, sharing facilities & joint marketing activities • CED and other nonprofit groups that share equipment, office space, etc. to reduce operating costs

5. Types of Co-operatives in NL • Financial - providing banking, investment services • Nfld. & Labrador Credit Union • Hamilton Sound Credit Union • Retail – groceries, hardware, building supplies • Indian head Consumer’s Co-op • Gander Consumer’s Co-op • Service – health care, housing, childcare • North Shore Central Ambulance Co-op • Advocate Youth Services Co-op

6. Types of Co-operatives in NL • Producer – fishery, farming, filmmaking, crafts • Northeast Coast Sealer’s Co-op • Nfld Independent Filmmakers co-op • Worker – provides members with employment • Extension Community Development Co-op • Multi-stakeholder – membership categories • Blueberry Industry Co-op • Fogo island Co-op

7. Co-operative Profile: International Ocean Spray • Agricultural Co-op formed 75 years ago • Owned by 800 cranberry growers in U.S. & Canada • Has over 2000 employees • Leading producer of canned & bottled juice drinks in North America • $1.4 billion in gross sales

8. Co-op Profile: National The Co-operators Group • Formed in 1945 by Saskatchewan farmers • Largest Canadian multi-product insurance company • Assets exceeding $5.7 billion • Owned by 37 co-op organizations in Canada • NL Federation of Co-ops is a member-owner

9. Co-op Profile: Provincial Fogo Island Co-op • Formed in 1967 to resist resettlement • Development process pioneered the use of community television to organize residents • “Fogo Process” used as community development tool around the world • Co-op now has fleet of 30 long-liners, 3 fish plants, laboratory and marine service centre • Annual sales of approx. $20 million

10. Co-op Profile: Provincial Eagle River Credit Union • Formed in 1984 when BMO pulled out to lack of business • Received strong support from Caisse Populaire in Blanc Sablon & local businesses • Now second largest credit union in the province • Full service credit union with 6300 members • Has 6 branches & $63 million in assets

11. Co-op Profile: Provincial Advocate Youth Services Co-op • Formed by young people in Baie Verte in 2007 to: • Engage local youth in the community development process • Undertake community infrastructure projects • Develop other opportunities for youth employment • Engage in training & career development activities • Support member participation in youth camps, conferences & other provincial events

12. Preview of Other Next Units • Unit 2: Co-ops as a Business Model • Unit 3: Co-operative Principles, Legislation & Governance • Unit 4: The Existing Co-operative System • Unit 5: Developing a Co-operative