CCMA: Co-ops Build a Better World, 6.15.12
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The UN declared 2012 the International Year of Co-operatives, highlighting the contribution of co-ops to food security, economic development, and employment around the world. Despite this recognition, co-ops do not always understand the contribution of other co-op sectors and industries to more resilient, democratic and sustainable local economies. This workshop panel explored the impact of co-ops across our food system--including farmer co-ops, food co-ops, worker co-ops and credit unions--and the potential of the co-operative economy. Panelists included Erbin Crowell, Neighboring Food Co-op Association; Jerry McGeorge, Organic Valley/CROPP Co-op; Nicholas Reid, Equal Exchange; and Mark Wolff, Credit Union National Association.
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CCMA: Co-ops Build a Better World, 6.15.12
- 1. Co-ops Build a Better World Consumer Co-operative Management Association 15th June 2012 // Philadelphia, PA
- 2. Co-ops Build a Better World Erbin Crowell Neighboring Food Co-op Association Jerry McGeorge Organic Valley / CROPP Co-operative Nicholas Reid Equal Exchange Mark Wolff Credit Union National Association
- 3. Outline 1. Our context 2. Our opportunity: The Year of Co-ops 3. Obstacles and bridges to collaboration 4. Cross sector perspectives 5. Ideas & opportunities
- 4. Our Context • Crisis of the our economic system • Unemployment & inequality • Dramatic shifts in wealth • Diminished democracy • Corporate influence • Instability & change • Hunger for alternatives
- 5. What If…? There was a business model that... • …was democratic. • …was rooted in our local communities. • …was part of a values based movement. • …put common good before private gain. • …delivered tangible benefits. • …was flexible and innovative. • …was successful and resilient.
- 6. Our Opportunity Co-ops “in their various forms, promote the fullest possible participation in the economic and social development of all people, including women, youth, older persons, persons with disabilities and indigenous peoples, are becoming a major factor of economic and social development and contribute to the eradication of poverty.” United Nations Resolution 64/136
- 7. Our Opportunity Contribution of co-ops across sectors to: • Poverty reduction • Employment generation • Fairness & globalization • Conflict resolution, reconstruction & reintegration • Food security • Economic resilience
- 8. Our Opportunity UN Goals for the Year: • Increase public awareness about co-ops • Promote formation and growth of co-ops • Encourage governments to establish policies, laws and regulations conducive to the formation, growth and stability of co-ops What are our goals?
- 9. A Co-operative Decade? “The real opportunity, of course, is to use 2012 to help achieve a longer-term vision. ICA is committed to turning the International Year of Co-operatives into A Co-operative Decade, with the goal of the co-operative being the fastest-growing model of enterprise by 2020.” Charles Gould, Secretary General International Co-operative Alliance
- 10. Obstacles to Collaboration • Philosophical Do we believe in the potential of our model? • Expectations We expect a lot from each other. • Mainstream business influence We don’t think strategically as a movement. • Sector & Industry Silos We don’t talk enough.
- 11. Bridging Sector Divides • Shared impact • Shared identity • Shared history • Shared principles • Why collaborate across sectors? • Institutionalizing collaboration • Telling our stories
- 12. Shared Impact • 29,000 co-ops in the U.S. • 1 in 3 Americans are members • $3.1 trillion in assets • 1 billion members worldwide* • 100 million employees worldwide** * More than directly own stock in publicly traded corporations ** More than employed by multinational corporations.
- 13. Shared Identity “A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically- controlled enterprise.” International Co-operative Alliance www.ica.coop
- 14. Shared History “Co-operative housing, worker co-operatives, even collective agricultural co-operatives, can all look back to the original Rochdale plan for inspiration. In 1844 these pieces were not separate… The Rochdale pioneers conceived in one association of what would now make a multisectoral co-operative movement.” Brett Fairbairn, The Meaning of Rochdale www.usaskstudies.coop
- 15. Shared Principles “Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.” 6th Principle of the Co-operative Identity International Co-operative Alliance www.ica.coop
- 16. Why Collaborate? • Raises the profile of co-op enterprise • Reinforces the co-operative advantage • Influences policies affecting co-ops • Creates economies of scale • Frees up capital and resources • Creates opportunities for development • Broadens ownership opportunities
- 17. Mondragón, Spain • Vocational school in 1956 • 256 co-ops & subsidiaries • $20 billion in Sales (‘11) • 84,000 employees (‘11) • Largest domestic grocery • Multistakeholder models • Cross sector: Industry, banking, agriculture, education, tech, etc.
- 18. Emilia Romagna, Italy • 4 Million People • 8,000 Co-ops • 30-40% of GDP • 2/3 are members of co-ops • New Models: Social Co-ops • Vibrant Local Traditions and Food Culture • Integrated, cross sector movement
- 19. Institutionalizing Collaboration • Seeing the co-op landscape Opening the dialog • Cross sector associations Marketing, education, policy engagement • Cross sector business Cross sector trade as a measure of success • Collaboration as an “End”… Cross sector collaboration in policy governance
- 20. Collaboration as an “End” “Because of the Carverville Co-operative Society… There will be a thriving, multi-sectoral co- operative economy in our region, increasing in both scope and impact, to which our co-op is meaningfully connected.” With thanks to Don Kreis, Board of Directors Hanover Consumer Co-operative Society
- 21. Co-ops Build a Better World • Organic Valley A national farmer co-op with over 1,600 members… • Credit Union National Association 7,700 financial co-ops with 93 million members… • Equal Exchange A worker co-op and pioneer in Fair Trade… • Neighboring Food Co-op Association A regional co-op of 30 food co-ops and start-ups…
- 23. “Co-‐opera)ves are a reminder to the interna)onal community that it is possible to pursue both economic viability and social responsibility.” UN Secretary-‐General Ban Ki-‐moon “Organic Valley is a social experiment disguised as a business.” Organic Valley CEO George Siemon
- 24. The coopera)ve in a nut shell Independent • Farmer-‐owned • Family Farms A coopera)ve that works together for the benefit of all, rather than for the benefit of a few, sharing risks and rewards.
- 25. Australia 20 26 Canada 30 115 1 61 1 2 2 33 42 129 9 314 1 113 1 2 2 43 3 12 5 3 3 9 119 1 7 2 115 2 2 42 3 2 1 1 59 4 8 8 49 15 155 1 6 23 32 3 8 99 156 10 1 2 4 2 1 16 1 1 2 1 2 1 9 19 6 2 1 1687 FARMERS 4 1 9 DAIRY 1,411 JUICE 9 BEEF 249 EGG 85 PRODUCE 124 PORK 22 SOY 15 GROWER 78 POULTRY 7
- 26. 4 Missions Organic • Coopera)ve Stable Price / Collec)ve Bargaining • Family Farms OH
- 27. Dairy Pay Price Comparison MW, NE, New England $30 $28 Midwest Base Pay Price - CWT $26 $24 Northeast Base Pay Price-CWT $22 $20 New England Base Pay Price-CWT $18 $16 Conventional Base Pay Price - CWT $14 $12 $10 1989 1990 1991 1992 1993 1995 1996 1997 1998 1999 2000 2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 1994 2004
- 28. Credit Union National Association
- 29. Credit Unions’ Three-Tiered System State CUNA leagues Credit unions
- 30. Structure 7,200 95 million $1.02 trillion 100% 80% 60% 40% 20% 0% CUs Members Assets CUNA Non-CUNA
- 31. Status • Financial – Credit unions strong (capital steady: 10%) – Loans/shares = 66% (matches 25-year low) – Savings growing (safe harbor) – Assets topped $1 trillion in first quarter – Delinquencies, charge-offs decline (responsible lending)
- 32. # of CUs Members (millions) 8,500 8,268 100.0 95.2 7,966 95.0 93.0 8,000 7,708 91.1 91.7 7,486 89.9 90.0 88.5 7,500 7,236 7,186 7,000 85.0 6,500 80.0 07 08 09 10 11 12 07 08 09 10 11 12 Numbers by group Members by group $20M- $100M >$100M 29% 20% >$100M 81% <$5M 1% $5M-$20M 4% $5M-$20M <$5M 27% $20M- 24% $100M 14%
- 33. Credit unions: Great value for consumers • $6.3 billion: Amount consumers saved in 2011 using credit unions instead of banks; – $68 per member – $130 per family • That’s on average. The more you do with a CU, the more you save. • $4 billion: What bank customers save annually by having credit unions in the marketplace.
- 34. Status • Public image strong – Consumers like us, believe we are strong Favorability ‘Best place … ?’ 100% 100% 89% 80% 80% 69% 80% 60% 60% 60% 53% 40% 26% 40% 31% 25% 20% 8% 20% 4% 0% 0% Credit unions Banks CUs Banks Favorable Unfavorable Primary Members Non-members
- 35. Small Business Lending: CUs v. Banks Business Loan Growth From Start of Crisis to September 2011 (Sources: FDIC, NCUA, CUNA) 42.21% -‐1.71% -‐14.54% Bank Commercial Loans Bank Small Business Loans Credit Union MBLs Growth is for period 12/07 to 9/11 excep)ng bank small business loan growth which is for 6/08 to 9/11. Prior to 2010 banks reported small business loans outstanding only at mid-‐year.
- 36. Top Legislative Issue: S. 2231 The Credit Union Small Business Jobs Act • Flexibility – To make more business loans • Fastest-growing loan category for credit unions • Small business has the need … • … but banks are not lending • Economic recovery depends on small business • Legislation pending (in Senate, House) – $13 billion in new lending the first year alone – Will create an estimated 140,000 new jobs – No cost to the US taxpayer – Coalition includes NCBA, NCGA
- 38. Equal Exchange
- 39. Equal Exchange • Founded in 1986 (by three employees from Northeast Co-‐ops). • $46,819,829 in sales in 2011. • 107 Worker-‐Owners.
- 40. The Worker Co-operative model : democratic & for-profit
- 41. EE Difference -‐ EE Success Educate Workers. Empower Owners. Cul)vate Values. EE Community Drive Change Reinforce Integrity Create Value
- 42. Food Co-‐ops Educate Members. Empower Owners. Cul)vate Values. Your Community Drive Change Reinforce Integrity Create Value
- 43. Farmer Co-‐ops Community Means: • Infrastructure • Civil Society • Cultural Survival • Empowerment Marisol Espinoza, Vice President of Peru
- 44. Fair Trade = Coopera)ve Supply Chain Change Integrity Value
- 45. FAIR TRADE The System We Built, Together • Beneficiaries: 5 million • Fair Trade Sales (2010): $1.2 Billion in the US; $5.4 Billion Globally • Premiums Paid in 2010 (US): $17 million • Addi`onal Income since U.S. Fair Trade began (13 years/USA): $225 million
- 46. Fair Trade Gone Wrong • Corpora`ons • Planta`ons • Profit-‐Driven Businesses
- 47. Geing Back to “Co-‐opera)ve Trade” The Authen)c Fair Trade Campaign FARMER CO-OPERATIVES CO-OP CO-OP EQUAL DEVELOPMENT EXCHANGE FINANCIAL ORGANIZATIONS ORGANIZATIONS Trade and collabora`on based on shared co-‐opera`ve FOOD principles and values. CO-OPERATIVES
- 48. Talk More Celebrate Co-ops! This is a Co-op Product. For more information on what makes co-ops go. Printed on recycled paper by Collective Copies, a proud member of the Valley Alliance of Worker Co-ops www.valleyworker.org
- 49. Neighboring Food Co-op Association
- 50. VERMONT NEW HAMPSHIRE • Brattleboro Food Co-op, Brattleboro • Co-op Food Stores, Hanover • Buffalo Mountain Food Co-op, Hardwick • Co-op Food Stores, Lebanon • City Market / Onion River Co-op, Burlington • Great River Food Co-op, Walpole (Start-up) • Co-op Food Stores, White River Junction • Littleton Food Co-op, Littleton • Dottie’s Discount, Brattleboro • Manchester Food Co-op (Start-up) • Hunger Mountain Food Co-op, Montpelier • Monadnock Food Co-op, Keene (Open ‘12) • Middlebury Natural Foods Co-op, Middlebury • Plainfield Food Co-op, Plainfield MASSACHUSETTS • Putney Food Co-op, Putney • Berkshire Co-op Market, Great Barrington • Rutland Area Food Co-op, Rutland • Dorchester Community Food Co-op, • South Royalton Food Co-op, South Royalton Dorchester (Start-up) • Springfield Food Co-op, Springfield • Green Fields Co-op Market, Greenfield • Stone Mountain Community Market, Poultney • McCusker's Co-op Market, Shelburne Falls • Upper Valley Food Co-op, White River Jct. • Leverett Village Co-op, Leverett • Old Creamery Co-op, Cummington CONNECTICUT • River Valley Co-op Market, Northampton • Elm City Co-op Market, New Haven • Wild Oats Co-op Market, Williamstown • Fiddleheads Food Co-op, New London • The Local Beet Co-op, Chester RHODE ISLAND • Willimantic Food Co-op, Willimantic • Urban Greens Food Co-op, Providence (SU)
- 51. Neighboring Food Co-ops • A Co-op of 30 food co-ops and start-up initiatives • 80,000 individual members • 1,400 employees (2010) – VT members among top 25 employers in the state • $28.6 million in wages (’10)… – Average wage was 18% higher than the average for food and beverage industry in same states. • $250 million revenue (‘10) – $161 million in 2007 • $33 million in local purchases (‘07)
- 52. A Regional Co-op Economy New England & New York: • 8,860 co-ops • 9.5 million members • 55,000 employed • $2 billion in wages • $100 billion in assets • ±$14 billion revenue reic.uwcc.wisc.edu www.nfca.coop/co-opeconomy
- 53. Cross Sector Initiatives • Cross Sector Networks Dialog & marketing Business development Valley Co-operative Business Association • Policy IYC Resolutions Legislative engagement New England Farmers Union
- 54. Cross Sector Initiatives • Products & Sourcing “Go Co-op” Initiative Promote co-op products New co-op product development • Education Ads & press Resources for co-ops Events & outreach www.nfca.coop/iyc
- 56. Co-ops & Local Economies • Achieve scale AND retain local ownership • Democratic control • Focus on meeting needs before profit • Develop local skills & assets • Ability to assemble limited resources • Address challenge of business succession • Community wealth v. speculative markets • Difficult to move or buy-out • Low business failure rate & are long-lived • Mobilize stakeholder loyalty…
- 57. Co-ops & Local Economies Result… • …more stable and resilient local food systems, infrastructure, employment, services and economies.
- 58. Co-ops Across Sectors • …put people before profit, • …are democratic, • …are rooted in the community, • …are innovative, • …are successful, • …are resilient, and • …build a better world.
- 59. Discussion Questions Feedback Ideas Opportunities for Collaboration
- 60. Contact Erbin Crowell, Neighboring Food Co-op Association erbin@nfca.coop // www.nfca.coop Jerry McGeorge, Organic Valley jerry.mcgeorge@organicvalley.coop // www.organicvalley.coop Nicholas Reid, Equal Exchange nreid@equalexchange.coop // www.equalexchange.coop Mark Wolff, Credit Union National Association mwolff@cuna.coop // www.cuna.org