Transcript Virginia's Tobacco Economy - Virginia Cooperative Council

Cooperatives
Achieving together what
one cannot do alone
A presentation of the
Virginia Cooperative Council
P.O. Box 25202 Richmond, VA 23260  (804) 281-1211
 Fax: (804) 281-1383  Email: [email protected]
What is a cooperative?
A cooperative is an organization owned and
controlled by the people who use it.
The primary goal of a cooperative is to
meet the needs of its member-owners
versus creating returns for its investors.
P.O. Box 25202 Richmond, VA 23260  (804) 281-1211
 Fax: (804) 281-1383  Email: [email protected]
Cooperative history
Weavers and other craftsmen in Rochdale,
England, in 1844 are tired of paying high prices
for low quality goods to local (unscrupulous?)
shopkeepers
– Oatmeal with sand added
– Butter weighed with a thumb on the scale
P.O. Box 25202 Richmond, VA 23260  (804) 281-1211
 Fax: (804) 281-1383  Email: [email protected]
Cooperative history
Created the Rochdale Equitable Pioneers Society to:
 Purchase needed goods in bulk: butter, flour, sugar,
oatmeal, candles
 Open a shop on Toad Lane
 Re-sell to themselves at cost plus a small margin
 Return any profit to the members at year end, based on
the member’s volume of business
P.O. Box 25202 Richmond, VA 23260  (804) 281-1211
 Fax: (804) 281-1383  Email: [email protected]
Cooperative principles
 Open
membership
 One member, one vote
 Limited return on capital
 Operation at cost
 Dividends returned to members in
proportion to use
 Duty to educate
P.O. Box 25202 Richmond, VA 23260  (804) 281-1211
 Fax: (804) 281-1383  Email: [email protected]
Cooperative benefits
 Improve
bargaining power
 Reduce costs and increase income
 Obtain products or services not
otherwise attainable
 Gain market access or enhance
marketing opportunities
 Improve produce or service quality
P.O. Box 25202 Richmond, VA 23260  (804) 281-1211
 Fax: (804) 281-1383  Email: [email protected]
How cooperatives benefit YOU
What did you have for breakfast?
– Florida Natural orange juice or Ocean Spray cranberry juice
– Welch’s grape jelly, Land O’ Lakes butter
Have you had a snack?
– Diamond walnuts, Sunmaid raisins, Sunkist oranges
Do you shop at a local farm supply co-op?
– Southern States, Farmers Cooperatives
P.O. Box 25202 Richmond, VA 23260  (804) 281-1211
 Fax: (804) 281-1383  Email: [email protected]
How cooperatives benefit YOU
Where do you do your banking?
- Farm Credit, Credit Unions
How many electrical appliances have you used today?
-
Electric Cooperatives
Do you market milk through a cooperative or drink
milk processed by a cooperative?
- Dairy Farmers of America, Maryland & Virginia Milk Producers
P.O. Box 25202 Richmond, VA 23260  (804) 281-1211
 Fax: (804) 281-1383  Email: [email protected]
Other cooperatives
Hardware (Ace, True Value)
News (Associated Press)
Insurance – (Nationwide Insurance Co.)
Recreation (REI)
Motels – (Best Western)
Food (Dunkin’ Donuts)
P.O. Box 25202 Richmond, VA 23260  (804) 281-1211
 Fax: (804) 281-1383  Email: [email protected]
Cooperatives benefit America
Nearly 48,000 cooperatives generate more than $120
billion in annual economic activity for about 100
million members…1 in 3 Americans!
 11 million people rely on electric cooperatives for
their power
 Nearly 570 rural credit unions help their 3.8 million
members save more than $18 billion

 Cooperatives
create more than 250,000 jobs
P.O. Box 25202 Richmond, VA 23260  (804) 281-1211
 Fax: (804) 281-1383  Email: [email protected]
Why should you be a
member of a cooperative?
 Have
a voice…one member, one vote:
– Elect board members from the general membership
– Serve on the board, which sets the direction for the
cooperative
 Share
in profits of the cooperative:
Profits are returned to members as patronage refunds,
in proportion to the member’s use of the cooperative
P.O. Box 25202 Richmond, VA 23260  (804) 281-1211
 Fax: (804) 281-1383  Email: [email protected]
Why should you do business
with a cooperative?
The primary goal of a cooperative is to meet
member needs, not make profit for outside
investors
 Cooperatives emphasize quality products and
services and knowledgeable employees
 Cooperative business dollars stay in the
community
 Your friends and neighbors own the business

P.O. Box 25202 Richmond, VA 23260  (804) 281-1211
 Fax: (804) 281-1383  Email: [email protected]
A cooperative is a
grassroots organization.
It is formed by a group of individuals who
identify an unmet need and set out to meet
that need. Cooperatives then serve as a
competitive yardstick for other businesses.
P.O. Box 25202 Richmond, VA 23260  (804) 281-1211
 Fax: (804) 281-1383  Email: [email protected]
Cooperatives truly do together
what one cannot do alone.
P.O. Box 25202 Richmond, VA 23260  (804) 281-1211
 Fax: (804) 281-1383  Email: [email protected]
The mission of the Virginia Cooperative Council is to promote the
understanding of farmer and consumer-owned cooperatives in
Virginia and their contributions to the economy.
Virginia Cooperative Council
www.virginia.coop
USDA Rural Business – Cooperative Service
www.rurdev.usda.gov/rbs/coops/csdir.htm
National Council of Farmer Cooperatives
www.ncfc.org
National Coop Business Association
www.ncba.coop
P.O. Box 25202 Richmond, VA 23260  (804) 281-1211
 Fax: (804) 281-1383  Email: [email protected]