1. NW Co-op Development Center
Marketing Co-ops
Lewiston, ID – Livestock Producer Forum
Nov 12th
, 2011
Diane Gasaway, Executive Director – diane@nwcdc.coop
Eric Bowman, Co-op Development Specialist - eric@nwcdc.coop
1063 S Capitol Way # 211
Olympia, WA 98501
360.943.4241

2. Presentation Overview
1. Intro
2. Co-ops 101; Ownership and governance
3. Adding Value
4. Business Development process
5. Brief models:
– CNB (natural beef)
– Bunkhouse (vacations)
– Organic Valley (dairy)
– PSMP/IGFC/CPoW (mobile processing)
1. Q&A
2. Next Steps

3. NWCDC
The Center
a 501(c)3 nonprofit which provides development services
for new and existing co-ops
Our mission
to foster community economic development through the
co-op business model
We’re
a team of co-op developers with skills specific to start-up
and organizational business development

4. Co-op Role
U.S. Facts:
– 3,000 farmer co-ops market 30% of farmers’ products
– 6,400 housing co-ops provide 1.5m homes
– 10,000 credit unions provide services to 84m
members
– 1,000 rural electrics operate ½ the nation’s
distribution
– 47,000 co-ops serve 43% of the population
Top 100 co-ops’ 2009 revenues = $176 Billion!

5. Co-ops 101
Investor owned:
Sole proprietor:
Co-ops are member:
◦ Owned
◦ Controlled
◦ Benefited

6. Ownership
Member-Owners can be
– Consumers
– Producers/Farmers
– Workers
– Other Businesses

7. Why Cooperate?
…to access resources not individually achievable
Marketable Co-op Benefits; “Goodwill”
• Keep profits, ownership and control local
• Accountable
• Trusted

8. Unique Characteristics of Co-ops
• Owned/controlled by members, not outside investors
• Exist solely to serve members
• Return surplus to members based on use, not
investment
• Pay taxes on income kept for investment/reserves;
surplus revenue returned to members who pay taxes
• Economy of scale = valued added

9. Relationships and Authority

10. Co-op Development Stages
• Identify a need a co-op could
meet
• Form Steering Committee
• Research Feasibility
• Review Findings (Go/No Go)
• Membership Drive
• Planning and Financing
• Begin Operations (Go/No Go)
How We Assist
• Facilitate identifying mission and
goals
• Train founding Board members
• Market and feasibility research
• Assist with organizing
• Professional, 3rd
party perspective
• General business consulting
Project LifecycleProject Lifecycle

12. “Un-Corporation”
o 1,658 members (64 in NW)
o ~ 10% of organic farm community
o Largest organic co-op
o Founded in collective bargaining
Philosophy:
o “Crafting new vision of foods/farms”
o “More than delicious”
o Adding value thru values
CROPP Cooperative

13. We get $25 per 100 pounds of milk now. It’s a steady price,
not up and down every month. In effect, we negotiate with
ourselves.
David Roberts – Franklin Co, ID

14. Jon Bansen - Monmouth, OR
This is as big as I ever want to be. Working with a co-op
has allowed me to produce good milk that receives a
premium price, giving me a great livelihood, so I
don't have any reason to want more…

15. 14 farmers in Brothers, OR
“we were going broke” (1986)
o Economics: increasing interest rates, land
prices
o Social: cholesterol fears, “enviros”
Product is more than beef…

16. …it’s about the people
• Selling direct = value added
• Shinrai
• Consensus
Business Philosophy

17. • 20 cattle ranches offering varied agri-tourism
• Co-op:
– Matchmaker
– Co-marketing
– ”geo-tourism”
– Point of contact
– Commission-based
Travelers come to the ranches as guests… but they go home as
advocates for family ranching – Karen Searle, founder
Montana Bunkhouse Working Ranch
Vacations

19. Case Studies Review
Key Points:
1. Born out of need/adversity
2. Meeting members economic needs
3. Members are invested in success of co-op
4. Marketing values and philosophy
5. Successful innovation/reinvention

20. Thank You!
Eric Bowman
eric@nwcdc.coop
Northwest Cooperative Development Center
1063 Capitol Way S # 211
Olympia, WA 98501
360.943.4241 | www.nwcdc.coop
Fostering community economic development through the
cooperative business model