1 / 12

Development of Alternatives to Cooperative Mergers and Federated Structures Bruce J. Reynolds USDA/Rural Development/Co

Development of Alternatives to Cooperative Mergers and Federated Structures Bruce J. Reynolds USDA/Rural Development/Cooperative Programs NCERA-210 Nov. 7, 2012 Cooperative Programs surveyed in 2007 about “other ownership structures”

thimba
Download Presentation

Development of Alternatives to Cooperative Mergers and Federated Structures Bruce J. Reynolds USDA/Rural Development/Co

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Development of Alternatives to Cooperative Mergers and Federated Structures • Bruce J. Reynolds USDA/Rural Development/Cooperative Programs • NCERA-210 Nov. 7, 2012 • Cooperative Programs surveyed in 2007 about “other ownership structures” • (http://www.rurdev.usda.gov/supportdocuments/CoopMag-nov08.pdf) • Another survey in 2010 added joint venture participation with non-cooperatives • Mailing problems & survey design problems in not identifying names of joint ventures • Follow-up telephone survey in 2011 to produce a report • (http://www.rurdev.usda.gov/supportdocuments/RR226.pdf )

  2. Table 2- Distribution of centralized cooperatives’ joint ventures and subsidiaries, 2007 • There are 206 centralized cooperatives with ventures. The sum of separate reporting of • joint ventures and subsidiaries is 221 cooperatives, indicating that 15 have both types of ventures.

  3. Table 3 – Distribution of centralized cooperatives' joint ventures & subsidiaries, 2010/11 * Duplicate joint ventures by reporting co-ops are included. ** There are 180 centralized co-ops reporting ventures. The sum of co-ops reporting joint ventures and subsidiaries is 195, indicating 15 have both types of ventures.

  4. Figure 1—Organizational form for separate business ventures, 2010/11

  5. Figure 2—Composition of joint venture partners with cooperatives, 2010/11

  6. Figure 3 - Percentage share of ownership by cooperatives in joint ventures, 2010/11

  7. Figure 4 – Joint ventures by type of business operation

  8. There were 38 federated and 20 mixed cooperatives in 2010. • By the 1980s multi-commodity and farm supply federated cooperatives • were “full service”– doing all things for all members. • While federated co-ops have declined in number, they have expanded • their membership regions, and are focused on the things they do well. • Centralized co-ops have increased their size from merging and • capturing business from exiting firms. • Centralized co-ops form subsidiaries or joint ventures to address specific • weaknesses of one or two operating divisions. • Joint ventures are a means of delaying or avoiding more mergers. • More willingness to joint venture with non-cooperatives and the potential • for flexibility in partners is an attractive feature of using an LLC.

More Related