FCM International Partnership Beaumont – Koh Thom

1. FCM International PartnershipBeaumont – Koh Thom COOPERATIVES

2. It has: a corporate board of directors, a profit motivation, a service orientation, A cooperative is auser-ownedanduser-controlledcorporate business in which benefits are received in proportion to use. A COOPERATIVE IS A FOR-PROFIT CORPORATION

3. 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 cooperative’s sole purpose is to provide and distribute benefits to members on the basis of their use.

4. It is a fair wayfor producers to go into business together • It is a locally ownedand controlled corporation • Its business purposedepends on its members

5. 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

6. 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).

7. 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

8. 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

9. Cooperative Examples • Cooperatives– examples • Agriculture • Arts and culture • Retail • Environment • Finance • Leisure and tourism • Child care • Research

10. Cooperative Information • Cooperative Model in Canada • Exist in different sectors • Financial • Construction • Electricity • Owned by it’s Members • Members have common needs • Democratic: 1 Member / 1 vote • Members share advantages

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

12. 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.

13. What Cooperatives Do • Production – produce commodities • Purchasing – buy and sell inputs • Marketing – buy and sell commodities • Service - Banking

14. What Cooperatives Do • Production – produce commodities • Purchasing – buy and sell inputs • Marketing – buy and sell commodities • Service - Banking

15. 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

16. What Cooperatives Do • Production – produce commodities • Purchasing – buy and sell inputs • Marketing – buy and sell commodities • Service - Banking

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

18. 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.

19. Cooperatives - Retail Sell many different things Food lumber petroleum Tires hardware and tools agricultural inputs

20. 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.

21. What Cooperatives Do • Production – produce commodities • Purchasing – buy and sell inputs • Marketing – buy and sell commodities • Service - Banking

22. 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

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

24. What Cooperatives Do • Production – produce commodities • Purchasing – buy and sell inputs • Marketing – buy and sell commodities • Service - Banking

25. 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

26. 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/

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

28. 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

29. 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

30. Thank You / aw kohn

31. Questions / Comments