A Question about Co-ops

[malleefarmer]

Cooperatives are mentioned on here quite
often sometimes negatively sometimes
positively.

so whats the background you guys get all
your fert chems livestock products fuel
from local co-op?

You all shareholders in your local co-
op,are there more than one in each town?

Are they prarie wide ie same co-op in
many towns? They also buy grain?

Your each shareholder and get a small
dividend each year or the more you spend
the more you get back. Are all
shareholders equal or bigger farmers
have more shares

If co-ops go belly up are farmers
liable?

In australia functional co-ops for
inputs are rare mostly its just
resellers each town has 2 or 3 resellers
up to 5 or 6 depending on size of town
some independant some part of a
nationwide chain?

Internet buying of farm inputs is
becoming huge a faceless transaction
much to the anger of local resellers

cheers happy harvesting woops northern
hemishere you guys are done!

[TOM4CWB]

Mallee,

Coops are an option and regular part of our supply chain. They help keep others in line price wise.

Competition is great and Federated Coop provides a baseline for all our farm supplies. UFA at times works as well... not as well as before; but working back up to become competitive again.

[rockpile]

Mallee, most Co-ops here have an equal
membership cost, usually one dollar. They are not
called shareholders but rather members. Returns
are based on patronage so that the large guy who
has large purchases will receive a larger patronage
dividend than a small guy who purchases less.
Through patronage, you also grow an equity
position whereby you provide investment for the
co-op which is deducted from your patronage. Over
time that builds up and is redeemable either when
you retire or after a set period when you quit doing
business with the co-op. Co-ops were a major
factor in settling Western Canada and were also a
major political factor like the UFA which formed the
Government of Alberta from 1921 to 1935. About
25 years ago, farmer owned grain co-ops controlled
over 60% of handling and agro sales here. Today
co-ops provide products and services not only to
rural folks, but urban people as well. In Alberta,
much of the rural population gets their electricity
and heating fuel from locally owned co-ops.
Financial and banking services are often provided
by co-ops called Credit Unions and their is a large
insurance company that provides coverage through
co-operative ownership. A little known fact is that
for the past decade or so, co-operatives have been
the fastest and largest growing form of enterprise
in the world. This also happens to be the
International Year of Co-operatives. Co-ops are
nothing sinister nor socialist, just a different slant
on investors wanting to earn a profit through
investment vs investors needing a product or
service and putting skin in the game.

[Burbert]

In Comedia, co-ops were formed and
framers bought shares and put in sweat
equity to get things up and running,
utilities etc. Once the business got on
its feet and begins to actually make a
difference and a profit, gobermonts
enter the picture and encourage the sale
of the co-op, utility or whatever ta the
private sector. Then prices go up, up,
up, and services go down, down, down.
Butt I guess thats another example of
why we and others worldwide view us as
Comedians, friendly, and polite suckers
ripe fer plucking cousin wes likes level
playing fields!!!!!!

[countryguy]

A gal I know that manages a BMO deals at the local CREDIT UNION. LOL

[malleefarmer]

do any co-ops make there own chemicals?
my state is big with co-ops but west
australia and nsw has a few and i beleive
in nsw co-ops are producing mostly glypho
and some mcpa and group b chemicals for
there mebers all funded by grower equity
i presume

[Burbert]

Good question, in Comedia we don't make
much, we is known ta be drawers a water
and hewers a wood, thats about it.
Monsanto makes chemicals fer Comedia!

[TOM4CWB]

Mallee,

Federated Co-op does make generic common herbicides for instance. They own a large refinery (Regina SK) and part of fert manufacturing system.

FYI:

21. How many co-ops are there in the Co-operative Retailing System (CRS)?
There are approximately 235 locally owned retail co-ops across Western Canada.
These co-ops operate in more than 500 communities serving approximately 1.5 million active members.
Total retail sales are in excess of $8.2 billion.

https://www.coopconnection.ca/wps/portal/fclretail/FCLInternet/CoopStores/CoopFAQ/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3ijkMBQIzdTEwN_H1cTA0 9_x-CQYFN3w2BHM_1wkA68KgqysxUBr-1jbg!!/