The Eastern Ontario Local Food Conference (EOLFC 2013) provided a great opportunity to share information, learn about success stories and gather information on innovative local food businesses, projects and best practices. The conference was organized by KEDCO (Kingston Economic Development Corporation) and the Ministry of Agriculture and Food and the Ministry of Rural Affairs. The theme of the conference was Innovation Driving Local Food and it was held December 3, 2013 at the Ambassador Hotel in Kingston, Ontario, Canada. This topic is On coop & cooperative grocers network - Russ Christianson - cooperative models panel.

1. What is a Co-operative and how can
it be used for Local Food?
Eastern Ontario Local Food Conference:
Innovation Driving Local Food

2. Overview
1. What is a Co-operative?
2. Why form a Co-operative?
3. Canada’s Co-op System
4. Starting a Co-op
5. Co-op Organizational Structure
6. Agricultural Co-operatives
7. Co-operative Solutions for Local Food

3. What is a Co-operative?
An autonomous association of persons united
voluntarily to meet their common economic,
social, and cultural needs and aspirations
through a jointly-owned and democraticallycontrolled enterprise.

4. Why form a Co-operative?
• Market Access and Import Substitution
• Risk Management
• Growth Strategy
• Pool Resources and Knowledge
• Asset Utilization
• Distribution Channels
• Product Commercialization
• Land Investment
Scale up, increase efficiencies, reduce costs & risk
Better Bottom Line and ROI

5. Co-operative Principles
International Co-operative Principles
1.
2.
3.
4.
5.
6.
7.
Voluntary and Open Membership
Democratic Member Control
Member Economic Participation
Autonomy and Independence
Education, Training and Information Sharing
Co-operation Among Co-operatives
Concern for Community and Environment
•
Established in 1995 by the International Co-operative Alliance

6. Co-operative Values
Co-operatives are based on the values of:
• self-help, self-responsibility, democracy,
equality, equity and solidarity
• In the tradition of their founders, cooperative members believe in the ethical
values of honesty, openness, social
responsibility and caring for others

7. Comparing Co-operatives
with Corporations
Co-operative Corporations
Business Corporations
• Exist to meet members’ needs, as
defined by members
• Exist to maximize shareholders’
wealth
• Limited Return on Capital
• Unlimited Return on Capital
• Accountable to all members
• Accountable to majority shareholders
• One member – one vote
• Vote based on shares held
• Board represents members; 80% of
directors are elected members
• Board represents shareholders;
outside directors often appointed
• Shares generally not traded
• Shares may be traded
• Limited Liability
• Limited Liability
• Operate in a variety of sectors
• Operate in a variety of sectors

8. Co-operative Membership in Canada
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Percentage of Total Population 2009

9. Co-operatives in Canada
• Canada’s 9,000+ co-ops and credit
unions have combined assets of
approximately $330 billion
• Co-ops and credit unions have 18
million members and employ over
155,000 people
• > 1,300 agricultural co-ops
• > 650 retail co-ops

10. Co-operatives in Ontario
•
•
•
•
More than 1,300 co-ops and credit unions
Over $30 billion in assets
More than 1.4 million individual members
Second to Quebec for highest number of
non-financial co-ops

11. Starting a Co-op
1.
2.
3.
4.
5.
6.
7.
8.
Identify a real opportunity to serve people’s needs better.
Begin to work with others who are committed to the idea.
Investigate the financial and market feasibility of your idea.
Write (or hire a consultant) a comprehensive business plan.
Determine the organizational structure.
Incorporate the co-operative.
Recruit and educate members.
Raise the necessary start-up capital, including member
investment, outside investors and lenders.
9. Organize the first General Membership Meeting and elect the
first Board of Directors.
10. Open for business.

12. Co-op Organizational Structure
Members
Auditor
Board of
Directors
Lawyer
Executive
Committee
Finance
Committee
Fundraising
Committee
Operational
Staff
Board of Directors make decisions on behalf of the
membership, in the best interests of the co-op
Marketing
Committee
General
Manager
Operational
Staff
Co-op Members elect Board members
at the Annual General Meeting
Operational
Staff
Nominations
Committee
Operations
Committee
GM is responsible for the day-today operations & works together
with the board & staff
Operational
Staff
Operational
Staff
Standing
Committees with
members who
meet regularly

13. Agricultural Co-ops - Sectors
• Retail Food & Pre-order Groups
• Livestock: Beef, Emu, Lamb, Pork, Poultry
• Produce: Cheese, Dairy, Fruit, Vegetables,
Mushrooms
• Retail /Wholesale Farm Supplies
• Marketing
• Feeder Finance
• Energy (including renewable)
• Local Organic Food Co-ops

14. Agricultural Co-ops - Examples
• Vineland Growers Co-op, Jordan Station:
Over 300 fruit growers. Canada’s largest
grower & shipper of fruit.
• Agris Co-operative Ltd, Chatham: Farm
supply and grain marketing. Founded in
1921.
• Agris Solar Co-op, Oakville: Solar PV
systems. Over 1,000 land owners and
farmers. Common and Preferred Share
investments.

15. Agricultural Co-ops – Examples
• Gay Lea Foods Co-op, Mississauga:
Processing and marketing dairy products
since 1958; 1,200 members (1/4 of Ontario
dairy farmers).
• AG Energy Co-op, Guelph: Canada’s largest
farm energy co-op providing 50% of natural
gas used by Greenhouses and 1/3 of farm
electricity in Ontario.

16. Benefits / Challenges of Co-ops
Benefits:
•Co-operative structure is proven and flexible
•Democratic: One member = one vote
•Ag Co-op survival rate is 52% vs. 22% for corps.
•Patronage dividends are paid out of co-op’s pretax income and recorded as co-op expense
•Farmers are required to report patronage
dividends as earned income and can be deferred
(if not cash)
•Knowledge and resource sharing

17. Benefits / Challenges of Co-ops
Challenges:
•Farmers are very independent people
•Co-operation and democracy takes time and
effort
•Members need to align their self-interest
with the best interests of the co-operative
•Members receive benefits and also have
responsibilities to fulfill
•Requires compromise and conflict
management

18. Co-operative Solutions for Agriculture
• Moving up the value chain
• Farm succession: Reduces barriers to entry for
young farmers and an exit for retiring farmers
• Land and asset acquisition
• Environmental solutions
• Community development and lowering social
isolation
• Building sustainable farms and businesses
• 8 out of 10 Canadians support co-ops over
large corporations

19. Co-operative Solutions for Local Food
Local Organic Food Co-ops
1.
Bringing local farmers and eaters together directly.
2.
Growing and supplying fresh, healthy food locally.
3.
Keeping money in the community.
4.
Trading fairly.
5.
Saving energy, building the soil, and protecting water.
6.
Celebrating good food, culture and community.