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Cooperative Essentials CE2 Cooperatives in Agribusiness

Cooperative Essentials: Cooperatives in Agribusiness Notes Page

Date _______Topic___________________________________

----------------------------------------------------Summary of Main Ideas-------------------------------------------------------

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Determine the need for the cooperative

What are the goals/motives of forming a cooperative?

What problems are critical to solve before forming a cooperative?

How would cooperative business principles help solve and reach a

common goal?



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Voluntary and Open Membership

Democratic Member Control

Member Economic Participation

Autonomy Independence

Education, Training, and Information

Cooperation among Cooperatives

Concern for Community



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Hold an exploratory meeting

Select a steering committee

Analyze the Opportunity and Gain Commitment

Conduct a member-use analysis

Conduct an initial market analysis



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Conduct a feasibility study

Prepare a business plan

Develop legal papers and hold the first meeting

Articles of Incorporation

Bylaws



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Patronage Initial Steps for the Cooperative First meeting of Board of Directors Hold a membership drive Hire a manager Acquire capital Conduct ongoing member relations

Coopertive Essentials CE2 Cooperatives in Agribusiness

Cooperative Essentials: Cooperatives in Agribusiness CE2.1

Piece It Together

01

02

03

04

05

06

07



Match the Principles

Concern for Community

Education, Training, and Information

Autonomy and Independence

Voluntary and Open Membership

Cooperation Among Cooperatives

Member Economic Participation

Democratic Member Control

Make cooperatives voluntary; open to all

persons able to use their services and willing

to accept the responsibilities

Select leaders to serve as elected

representatives to be accountable for

membership

Members contribute equitably to capital of

their cooperative

If members enter into agreements with other

organizations, including governments, or

raise capital from external sources, they do

so on terms that ensure democratic control

by their members and maintain their co-op

autonomy

Inform the public-especially young people

and opinion leaders

Strengthen the cooperative movement by

working together through local, national,

regional, and international structures

Work for the sustainable development of

their communities through policies accepted

by members


Cooperative Essentials: Cooperatives in Agribusiness

CE2.2 Key

Match the Principles Key

Concern for Community- Work for the sustainable development of their communities through

policies accepted by members

Education, Training, and Information- Inform the public-especially young people and opinion

leaders

Autonomy and Independence- If members enter into agreements with other organizations,

including governments, or raise capital from external sources, they do so on terms that ensure

democratic control by their members and maintain their co-op autonomy

Voluntary and Open Membership- Make cooperatives voluntary; open to all persons able to

use their services and willing to accept the responsibilities

Cooperation Among Cooperative- Strengthen the cooperative movement by working together

through local, national, regional, and international structures

Member Economic Participation- Members contribute equitably to capital of their cooperative

Democratic Member Control- Select leaders to serve as elected representatives to be

accountable for membership



Determine A Common Need

The fundamental reason for establishing a cooperative is to enable a group of people to

accomplish a goal or meet a shared need by working together. Answer the following

questions/prompts to help your cooperative determine a common need.

What are the cooperatives goals? What problems are critical for the cooperative

to solve?

How would cooperative business principles

help to solve problems and reach a common

goal?

How does this differ from other business

structures?



Select A Steering Committee

If there is a strong interest in working together to solve a problem, your group is ready to explore

the formation of a cooperative by electing a temporary steering committee. The entire class or

FFA chapter will be too large to plan, shape and draft a proposal for organizing a cooperative to

achieve specific goals, so a smaller group of dedicated people should be selected.

Steering Committee Members

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________



Obtain Support and Approval

A cooperative can succeed only when the majority understand and share a commitment to make

it work. The potential members need to discuss the specific goals, suggest changes and finally

approve the plan. Following a meeting of the class (potential cooperative members), record a

summary of the following:

Specific goals discussed

Suggested changes made by members

Revised goals

Final approval



Cooperative Organizational Meeting

Date of meeting:

Members present:

Bylaw adoption:

Board of Directors:

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

Member Sign-Up:

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

Cooperative Manager:

______________________________________________________________________________

Policies Guiding Cooperative Activities

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________



Carrying Out The Functions of the Cooperative

In this step, the manager carries out the day-to-day operation of business and ensure that the

policies adopted by the board are followed. The manager hires the staff to conduct the business

operation. The board monitors the operation and initiates any changes in the policies necessary

to strengthen the cooperative. Work with cooperative members to determine a plan for this step:

What are the day-to-day operations the manager will need to carry out?

What staff will the manager need to hire to conduct the business operations of the cooperative?

How will the board monitor the operations of the manager and cooperative?

If needed, how will the board initiate any changes in policy as they see fit?



Create Your Own Cooperative Evaluation

Use the documents completed through this lesson to develop a new cooperative proposal. This

proposal should document the following steps taken to create your own cooperative:

Determine a common need

Select a steering committee

Analyze the opportunity and gain commitment

Draft bylaws

Conduct an organizational meeting

Carry out cooperative’s function

Keep members informed

Although your group or class has created these documents, for this evaluation they need to be

transferred into a final document that can be presented to classmates, school administration,

cooperative representatives, etc. as the teacher sees fit. Final documents may include but are not

limited to: PowerPoint presentations, tri-fold display boards or a mock Facebook page.

Use the scoring guide on CE2.8 to guide the development of your document and presentation.



Create Your Own Cooperative Evaluation Rubric

Organization, neatness,

completion

Create Your Own

Cooperative Components Presentation

25

points

The presentation tool used

to display the information

is typed, neatly organized

so information can easily

be found and is easy to see

from a distance.

All 7 Create Your Own

Cooperative components are

completed and present in the

deliverable.

All cooperative members

participate in the

presentation and can answer

questions pertaining to the

cooperative and its plan for

creation.

20

points

All 7 Create Your Own


present in the deliverable,

but not complete.


participate in the

presentation, but it is

apparent that there are one or

two leaders in the group.

15

points



is typed, neatly organized

so information can easily

be found, but is difficult to

see from a distance.

5-6 of the Create Your Own



deliverable.


participate in the

presentation, but do not

answer questions fully and

completely.

10

points




deliverable.

Not all cooperative members

participate in the

presentation, but when asked

questions even those who did

not participate can answer.

5 points



is typed, but the content

lacks organization.




deliverable.

Not all cooperative members

participate in the

presentation, and have

difficulty answering

questions.

0 points

The presentation tool is not

typed, lack organization

and is difficult to see from

a distance.

The Create Your Own

Cooperatives components are

incomplete or not present.

Presentation was ineffective

at sharing the plan for

creating the cooperative.



CE2.9

Cooperatives in Agribusiness Evaluation

1. Which of the follow is NOT an economic goal or motive of a cooperative?

a. Risk Reduction

b. Achieve Additional Market Gains

c. Provide Missing Services

d. Gain Community Trust

2. What cooperative principle works to strengthen the cooperative movement by working

together through local, national, regional, and international structures?

a. Concern for Community

b. Cooperation Among Cooperatives

c. Member Economic Participation

d. Democratic Member Control

3. (The) __________________ give(s) the cooperative legal standing.

a. Bylaws

b. Patronage

c. Articles of Incorporation

d. Board of Directors

4. This principle operates by using equal voting rights (one member, one vote).

a. Voluntary and Open Membership

b. Autonomy and Independence

c. Education, Training, and Information

d. Democratic Member Control

5. List four of the eight components that make up a business plan.

a.

b.

c.

d.

6. What are three ways cooperatives can acquire capital?

a.

b.

c.

7. Give two examples of ways to communicate with members.

a.

b.



CE2.9

8. Describe the cost-benefit analysis.

9. Explain the role and responsibilities of the Board of Directors.

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