al rur cooperatives - usda rural development · the men and women of our armed forces have also ......

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lCOOPERATIVESCOOPERATIVESMarch/April 2015

2

APLACE

OFPLENTY

By William J. Lipinski,Chief Executive OfficerFarm Credit East

Editor’s note: The Farm Credit System(FCS) is a federally chartered network ofborrower-owned lending institutions, comprisedof cooperatives and related serviceorganizations. It is the leading lender to U.S.farmers, ranchers and agriculturalcooperatives, with more than $217 billion inloans. FCS includes 78 local, direct-lendingassociations, serving all 50 states and PuertoRico.

Veterans leaving the U.S.Armed Forces havesacrificed much for theircountry during their yearsof service. Whether in

combat in foreign lands such asAfghanistan and Iraq, plying the waters ofthe Pacific Ocean aboard an aircraftcarrier or doing essential logistical support work on adomestic military base, all veterans deserve our appreciationfor their efforts to ensure our nation’s security.

The men and women of our armed forces have alsodeveloped the skills and work ethic that can help ensure thatAmerica remains the world leader in food and fiberproduction. That’s why the Farm Credit System and many ofour nation’s other agricultural cooperatives are committed toprograms that help returning vets get started in farming orrelated agriculture careers.

Pete Frizzell is leading this effort at Farm Credit East. Hebegan his Farm Credit career in 2009 and today works withCrop Growers LLP as a Northeast marketing agent, servingcustomers throughout New England and Long Island. Priorto Farm Credit, Frizzell served in the United States Army asa paratrooper and infantryman, concluding his service as astaff sergeant.

He served four years on active duty, stationed in Vicenza,Italy, with the 173rd Airborne Brigade and then in Ft. Lewis,Wash., with the 2nd Infantry Division. Following active duty,Frizzell enlisted in the Connecticut National Guard andserved as a squad leader with the 29th Infantry Division,during which time his unit deployed to Afghanistan in

support of Operation Enduring Freedom VII. This experience has proven invaluable as Frizzell today

serves as Farm Credit East’s veteran liaison, working withveterans interested in entering agriculture.

“I think veterans can have an important role in agriculture— both as farm owners and employees,” he says. “Mostveterans have strong self-motivation and the dedicationnecessary to be successful.”

In April 2015, Farm Credit East will partner with theFarmer Veteran Coalition to host a farmer veteran workshopto cover business planning for agriculture start-up businessesand to provide networking opportunities for these newfarmers. For more information on these workshops, visit:FarmCreditEast.com/FarmerVeteran. You can read moreabout Farm Credit East’s work with vets on page 22 of thismagazine.

Farm Credit East also has other programs that can helpveterans and other beginning farmers. These include:

• Young, Beginning, Small and Veteran FarmersIncentive program (YBSV) — This program offersdiscounts on services – such as farm accounting software, taxpreparation, consulting and appraisal – for up to five years.These customers also receive payment on guaranteed loan

2 March/April 2015 / Rural Cooperatives

continued on page 40

Commentary Helping Vets Transition into Agriculture

Pete Frizzell, in combat gear and today, in his post-military career at Farm Credit. Photoscourtesy Farm Credit East

Features

Rural Cooperatives / March/April 2015 3

Volume 82, Number 2March/April 2015

Rural Cooperatives (1088-8845) ispublished bimonthly by USDA RuralDevelopment, 1400 Independence Ave.SW, Stop 0705, Washington, DC. 20250-0705.

The Secretary of Agriculture hasdetermined that publication of thisperiodical is necessary in the transactionof public business required by law of theDepartment. Periodicals postage paid atWashington, DC. and additional mailingoffices. Copies may be obtained from theSuperintendent of Documents,Government Printing Office, Washington,DC, 20402, at $23 per year. Postmaster:send address change to: RuralCooperatives, USDA/RBS, Stop 3255,Wash., DC 20250-3255.

Mention in Rural Cooperatives ofcompany and brand names does notsignify endorsement over othercompanies’ products and services.

Unless otherwise stated, articles in thispublication are not copyrighted and maybe reprinted freely. Any opinions express-ed are those of the writers, and do notnecessarily reflect those of USDA or itsemployees.

The U.S. Department of Agriculture(USDA) prohibits discrimination in all itsprograms and activities on the basis ofrace, color, national origin, age, disabili-ty, and where applicable, sex, maritalstatus, familial status, parental status,religion, sexual orientation, geneticinformation, political beliefs, reprisal, orbecause all or part of an individual’sincome is derived from any publicassistance program. (Not all prohibitedbases apply to all programs.) Personswith disabilities who require alternativemeans for communication of programinformation (Braille, large print, audiotape,etc.) should contact USDA’s TARGETCenter at (202) 720-2600 (voice and TDD).To file a complaint of discrimination, writeto USDA, Director, Office of Civil Rights,1400 Independence Avenue, S.W.,Washington, D.C. 20250-9410, or call (800)795-3272 (voice), or (202) 720-6382 (TDD).USDA is an equal opportunity providerand employer.

Tom Vilsack, Secretary of Agriculture

Lisa Mensah, Under Secretary,USDA Rural Development

Dan Campbell, Editor

Stephen A. Thompson, Assistant Editor

Stephen Hall / KOTA, Design

Have a cooperative-related question?Call (202) 720-6483, or email:[email protected] This publication was printed with vegetable oil-based ink.

04 Global co-op economic clout tops $2.6 trillionBy Alan Borst

12 More Than a Store Glut Cooperative’s ‘operation by consensus’ can be intense, but ensures members’ long-termcommitmentBy Thomas W. Gray and Shauntrice Martin

18 Operation BootstrapFacility-design case study traces staged growth of Tuscarora Organic Co-opBy James Barham and Fidel Delgado

22 A New Kind of Service More veterans returning home to a life in agricultureBy Kristie Schmitt

26 ‘Together, we will succeed’Arizona ‘Desert People’s’ co-op helps members find success, better health, by growing traditionalfoodsBy Dianna Jennings

32 The Essential Roles of Co-op ManagersBy Jim Wadsworth

Departments02 COMMENTARY

06 FOCUS ON: SEAFOOD PRODUCERS CO-OP

30 IN THE SPOTLIGHT: SUSAN BRAUNER

34 NEWSLINE

p. 6

ON THE COVER: The Glut Food Cooperative inMaryland offers an amazing array of healthy foods in anarea that has otherwise been labeled as a food desert.Co-op worker-owners and volunteers gathered here,from the left, are: Shauntrice Martin, Tony Green, FifiAnderson and Judy Davis. Story on page 12. USDA photoby Lance Cheung

p. 22 p. 26

By Alan Borst, Ag EconomistUSDA Cooperative Programs

The 2014 WorldCooperative Monitor wasofficially released at theInternational Summitof Co-operatives on

Oct. 28. This third edition, analyzingdata from 2012, aims to give visibility tocooperatives from around the world.

Among the world’s cooperatives withrevenue of more than $100 million,those from the United States had thelargest share, with 26 percent of totalrevenue. This set of large U.S.cooperatives had combined revenue of$669.8 billion out of the global total of$2.6 trillion.

The Monitor reported that revenueof the largest 300 cooperatives grew by11.6 percent, to reach $2.2 trillion in2012. That’s equivalent to the gross

domestic product (GDP) of Brazil, the7th largest economy in the world. Thereport was produce by the EuropeanResearch Institute on Cooperative andSocial Enterprises (Euricse) on behalf ofthe International Co-operative Alliance(ICA).

The top 300 cooperatives are activein the following economic sectors:insurance (41 percent), agriculture andfood (27 percent), wholesale and retail(20 percent), industry and utilities (5

percent), banking and financial services(4 percent), health and social care (1percent), and “others” (2 percent).

The Monitor publishes cooperativestatistics to show the global presenceand viability of this business model asan alternative to the traditionallydominant, investor-owned businessmodel. It provides a unique andvaluable overview of the world’s largestcooperatives.

“The importance of the WorldCooperative Monitor cannot beunderstated,” Dame Pauline Green,president of the International Co-operative Alliance, says in a post on theMonitor’s website. “Not only is it acrucial tool which we can use to raisethe profile of cooperatives to policy-makers and industry professionals, butit also provides an incredibly usefulstarting point for researchers andacademics alike. The new 2014 version,

which is based on data from a wider-than-ever pool of cooperatives, showsthe growth of the largest cooperativesin the world to be sustainable, even inthe face of difficult global economicconditions.

“Before the existence of the Monitor,data on cooperatives was patchy atbest,” she continues. “But now we havestrong empirical evidence that ourmovement is a global economic playerwith an important stake in the world’s

economy. Cooperatives have been givena precious tool which I stronglyencourage them to use to demonstratehow important our enterprise modelis.” She says it is encouraging that morecooperatives from Asia and Africa havecompleted the survey this year.

U.S. has 24 co-ops in top 300Out of the Monitor’s top 300

cooperatives, there were 24 U.S. ruralcooperatives (agricultural and electric)with total revenue of nearly $114.4billion. This amounted to 5 percent oftotal top 300 revenue, or about 10percent, excluding insurance andbanking cooperatives.

The U.S. rural cooperatives rankingand revenue (in billions of dollars) onthe top 300 list are:• CHS Inc., 12th place, $40.6 billion

revenue;• Land O’Lakes, 37th, $14.12 billion;

• Dairy Farmers of America, 44th,$12.14 billion;

• Growmark, 53rd, $10.06 billion;• AGP Inc., 104th, $4.92 billion;• California Dairies, 148th, $3.24

billion;• Darigold, 184th, $2.46 billion; • Southern States, 200th, $2.29 billion;• Basin Electric Power Cooperative,

221st, $1.92 billion;• Associated Milk Producers, 240th,

$1.78 billion;


With $2 trillion in annual revenue among the 300 largest co-opsalone, this sector is a major, global economic force.

Global co-op economicclout tops $2.6 trillion


• Countrymark, 246th, $1.74 billion;• South Dakota Wheat Growers,

249th, $1.69 billion;• Ocean Spray, 252nd, $1.66 billion;• Prairie Farms Dairy, 254th, $1.65

billion;• Foremost Farms USA, 256th, $1.64

billion;• Dairylea, 262st, $1.59 billion;• American Crystal Sugar, 276th, $1.48

billion;• MFA Inc., 278th, $1.47 billion;• Innovative Ag Services, 280th, $1.45

billion;• Oglethorpe Power, 291st, $1.32

billion;• MFA Oil Company, 292nd, $1.31

billion;• Maryland & Virginia Milk Producers,

294th, $1.30 billion• Farmers Cooperative Company,

297th, $1.28 billion;• Tri-State G&T Association, 300th,

$1.26 billion.There were 1,926 cooperatives from

65 countries in the database used forthe 2014 Monitor. Of these, 1,313 from50 countries had revenue of more than$100 million.

U.N. stresses importance of co-op statistics

Two United Nations officials —Simel Esim of the U.N.’s InternationalLabor Organization’s (ILO)Cooperatives Unit and TheoSparreboom of the ILO’s StatisticsDepartment — spoke to the Monitorabout the importance of maintainingcooperative statistics. “Statistics oncooperatives are essential to quantifyand analyze the impact they have ontheir owner-members and on theeconomy as a whole,” they say. “Theycan provide evidence, for example, onhow cooperatives fare in comparisonwith other economic units throughouteconomic cycles, and with respect toemployment and income. Statistics oncooperatives also help to betterunderstand how different businessmodels impact on communities and


Over 100 million U.S. dollars (USD)

GRAPHIC COURTESY WORLD COOPERATIVE MONITOR

GRAPHIC COURTESY WORLD COOPERATIVE MONITOR

F. 1 COOPERATIVES BY COUNTRY

F. 2 COOPERATIVES BY SECTOR OF ACTIVITY

F. 3 COOPERATIVES WITH TURNOVER OF OVER 100 MILLION USD BY COUNTRY

LOOKING AT THE COOPERATIVES WITH A TURNOVER 100 MILLION USD

cooperatives

billion USD


More than 70 years ago, a group of halibutfishermen realized that the best way toensure that their products were “deliveredwith quality, from ocean to market” was toprocess their own fish instead of depending

on the services of agents and distributors. They formed whatwould become one of North America’s oldest and mostsuccessful fishermen’s cooperatives.

Today, more than 575 fishermen belong to SeafoodProducers Cooperative and roam the waters of the NorthPacific, catching fish by hook-and-line methods.

What started in 1944 as a cooperative to provide halibutliver oil to vitamin companies has now become a full-fledgedorganization that provides premium-quality seafood to high-end food service and retail industries around the world.

The co-op’s main processing plant is in Sitka, Alaska,although it has “out-ports” in other parts of Southeast Alaska,Washington and Northern California. The co-op’s businessoffices are in Bellingham, Wash.

Of the co-op’s 575 members, 397 call Alaska home, and216 of these have Sitka as their mailing address. Another 100members winter in Washington while about 75 do so inNorthern California. Some members winter in places as faraway as Vermont and Florida.

SPC has 10 employees in its Bellingham sales office and15 employees at its processing plant in Sitka, where it alsohires a number of seasonal workers.

The following Q&A provides an overview of some of theissues facing their industry and how the co-op helps itsmembers.

Focus On: Seafood Producers Cooperat ive‘One Hook, One Fish at a Time’ philosophyhelps Alaskan co-op sustain fisheries

Fisherman and board member Don Seesz is one of more than 575 members who have united in the Seafood Producers Cooperative (SPC). Each fishis handled individually and immediately cleaned while onboard to ensure the highest quality and freshness. Photos by Dan Lamont, courtesy SPC

Q. It has become increasingly hard for young producers to getstarted in farming and ranching. How about for commercialfishing? A. A common problem in the seafood industry is the “greyingof the fleet.” There are a number of obstacles facing a youngperson wanting to get started in commercial fishing. Theseinclude the high costs of investing in a boat, liability issues,the uncertainty of fisheries and the hard work involved infishing.

While the “greying of the fleet” is certainly an issue forour cooperative and most other fishermen’s organizations, wehad a large number of younger members join the cooperativeduring the past year or so, giving the co-op new life. Most ofour members are men, but there are a growing number ofwomen.

Many of our members fish with family, either as husband-wife teams, and/or with their children. Others hire deckhands while a number of our members fish alone, enjoyingthe special connection they have with the ocean. To read the stories of some of the co-op fishermen, pleasevisit:

• https://alaskagoldbrand.com/ fisherman-spotlight/• https://alaskagoldbrand.com/get-fish-fisherman/• https://alaskagoldbrand.com/strictly-a-salmon-troller/.

Q. Where do your members fish? Are they mostly based in oneport?A. The majority of our salmon (king, coho and keta) areharvested in the waters of Southeast Alaska, along with ourhalibut, sablefish (black cod), ling cod and rockfish. We havea number of members who catch albacore tuna off the coastsof Washington and Oregon. Members catch our CaliforniaGold™ king salmon off the coast of Northern California.

Q. Who, or what, is your primary competition?A. In many ways, our biggest competition is the reluctance ofmany Americans to cook seafood. A big misconceptionamong consumers is that it is difficult to prepare seafood (seesidebar, page 11).

There were near-record sockeye salmon catches in BristolBay this year, which puts pricing pressure on our cohosalmon. Coho salmon is arguably the most versatile salmon,

“Our biggest competition is the reluctance of many Americansto cook seafood.”

The harbor of Sitka, Alaska, where Seafood Producers Cooperative (SPC) has a state-of-the-art processing facility.


regarding the many ways it can be prepared and served. Butit’s hard to ignore the dwindling prices of sockeye and theimpact that has on us. People seem to be more familiar withsockeye, as its deep red color makes it more recognizable forthe typical consumer.

Farmed salmon, imported from places like Chile andNorway, drive salmon prices down, though we don’t competedirectly with farmed salmon — what we’re offering in themarket is a completely different product.

Q. How and where do you market your catch? Do you havebrand names?A. We have three main brands that we promote. Our SPC™sablefish (black cod) is known as the highest quality black codavailable among buyers in Asia. Our Alaska Gold™ salmonand halibut and California Gold™ brands are well knowndomestically. We also sell our fish in Europe, where anumber of retailers and smokers recognize the quality of ourfish.

Q. Why does a co-op business make good sense for afisherman?A. In a nutshell, a fisherman will get the fairest price when heor she delivers to the co-op — which is the fishermen’s ownorganization. It is very rare that fishermen can concentrate

both on fishing and on selling their product, and do both jobswell. Working with a co-op that processes, packages and sellsthe fish allows members to share the costs and maximize thedollars that end up in the fisherman’s pocket. A co-op alsomaximizes returns on fishermen’s catches vs. what they’dmake on their own.

Fishermen who sell on their own face three problems:• Who will process and package the fish?• How will they produce the volume needed to assure

customers of a reliable supply? • How can they get enough money to solve the first two

problems?This is where a fishermen’s co-op comes in. A co-op

allows fishermen to do what they do best: catch fish. A co-opcan invest in processing and packaging facilities. A co-op canachieve enough scale so that customers don’t “run dry.” A co-op provides a safety net by allowing members to pooltogether and negotiate for better prices for common needs,such as vessel insurance and fishing gear.

Co-ops have a unique way of doing business that offersfishermen the best of both worlds, giving them theopportunity to work independently while also providing aspace to pull their resources together to achieve bigger goals.

At the end of the day, the reason we have members whoenthusiastically join the co-op is that their fish reaches a

By joining forces in a co-op, fishermen lower their processing costs and ensure access to a much larger market than they would on their own. Here,members of the Halvorsen family fish for albacore tuna.


larger market than it would if they were working on theirown. They get the fairest price for their hard work.

Q. Describe some of the ways your co-op and its membersdemonstrate commitment to maintaining the sustainability ofyour fishery. A. Our members fish using hook-and-line methods, whichminimize the “by-catch” (the catching of non-target fishspecies or sizes). Hook-and-line methods are the opposite ofmass extraction methods — there is a tremendous amount ofrespect for the fish when the fisherman handles one fish at a

time. As a result, we produce aquality product using moresustainable methods. Our fishermen/members areexamples of what Dan Barber writesabout in Third Plate: Field Notes onthe Future of Food. “Wild fish didnot come into this world just to beour food,” Barber writes. “Theycame into this world to pursue theirown individual destinies. If we huntthem and eat them, we must huntthem with care and eat them withthe fullness of our appreciation.” Our members’ use of traditionalhook-and-line methods respects thequality and uniqueness of each fish.Our motto is: One Hook, One Fish ata Time. This means that we catch,process and put the fish on icewithin minutes of being caught.Once you see our fishermen inaction and taste the results of a line-caught salmon from SPC, we thinkyou’ll be hooked. Alaska is a world leader insustainable fisheries. Maintainingsustainable fisheries is even writteninto the state constitution. TheAlaska fisheries within which ourmembers fish are carefully managedby biologists so that our members’grandchildren can fish the same waythat we do. That, to us, is thedefinition of sustainability. Inaddition, some of our membersparticipate in marine debris clean-ups. To learn more about this effort,see this blog post:https://alaskagoldbrand. com/dick-curran-fv-cherokee/.

Q. Describe the code of fishing ethics your members subscribe to. A. Our code of ethics starts with quality. Our missionstatement reads: The mission of Seafood Producers Cooperative isto maintain an opportunity for quality-oriented fishermen toparticipate in a cooperative organization that provides processing,marketing and support services which will allow members tomaximize the benefits of their fishing efforts and provide theconsumer with the highest quality seafood possible.

At the heart of everything we do is the overriding concernfor “maintaining a top-quality product, from ocean to

Like all co-op members, fisherman Jay Skordahl and his son, Andrew, are committed to fishing in away that ensures the sustainability of their fishery.


market.” Quality is the keystone of ourmission.

Q. What are some reasons consumersshould consider buying their seafoodfrom a co-op? A. For starters, when you get fish froma fishermen’s co-op, you get the fish

from a fisherman. If the co-ophas a good year, the fishermen,who are our shareholders, arethe ones who benefit. Youcould walk to the docks and getsome fish directly from afisherman. But with the co-op,you’ll know we willconsistently have productavailable and that we haveconsistent quality standards.

Q. Are there any majorenvironmental issues facing yourindustry? Any regulatory issues on yourradar?A. Alaska has been experiencing somevery good salmon returns. However,managing quotas for halibut, forexample, is tricky. There are a lot of“politics” involved. And there aremining and oil drilling operations thatcan threaten our fisheries.

Fortunately, Alaska has had theforesight to understand that the Alaskaseafood industry has a huge, positiveimpact both on the state economy andon the U.S. economy as a whole.

Our co-op is ruggedly American. Inan age when 91 percent of the seafoodAmericans eat comes from abroad —most of it farmed and often producedusing questionable labor practiceswithout regard to sustaining fisheries —Seafood Producers Cooperative is stillfollowing its 70-year commitment to

offering quality wild fish andresponsible stewardship of the ocean.

Q. Is the technology used by the industry changing?A. Although we use traditional hook-and-line methods, most of ourfishermen’s boats are equipped with

laptop computers for navigation. Moremembers are equipping their boats withfreezers so that they can blast-freezefish at sea, producing the freshestquality available. We’re constantlyinvesting in freezing technologies at theplant, in addition to processingmachines.

We start with a great product, butevery touch along the way to thecustomer has to be managed carefully,which requires investing in newtechnologies. Distribution logistics isalways challenging.

Q. Describe the co-op governancesystem. A. We have quarterly board meetingsand an annual meeting to which all

members are invited. We have 12democratically elected fishermen boardmembers. There are various committeesover which our fishermen/memberspreside. These committees include:Audit and Finance, Legislative,Sales/Marketing, Longline,Packers/Outports, Member Public

Relations, Operations, Quality,Scholarships, and others.

Q. Is the co-op very involved incommunity affairs? A. We are involved withNooksack SalmonEnhancement Association(NSEA), an organization thatrestores salmon habitat here inBellingham. Our members arealso part of advisory boardsand advocacy groups, such as

Northwest Fisheries, Alaska TrollersAssociation and the InternationalPacific Halibut Commission. Weparticipate in the Winn BrindleEducational Loan. We also have ourown SPC scholarships available formembers’ families.

Q. Does the co-op have specific goals forthe next five years? A. A big goal is to develop our direct-to-consumer sales via our e-commercewebsite (www.AlaskaGoldBrand.com).Not just so that the fishermen earn a bitmore per pound with direct sales, but sothat we can build the co-op brand. It’simportant for us that people know thestory of our co-op and our fishermen.

Through the website, we also hopeto educate people about the benefits ofa fish caught on hook and line. One bigsales and marketing goal is educatingconsumers about the advantages

“Alaska fisheries are carefully managed by biologists so that ourmembers’ grandchildren can fish the same way that we do.”

An increasing number of women are joiningthe co-op. Photo courtesy Alaska Seafood.Facing page: Don Seesz with his latest catch.Photo by Dan Lamont, courtesy SPC


of fish caught this way.

Q. What is the best thing about beinga fisherman? The worst? Do you getmany multi-generation fishingfamilies? A. When asked “why are you afisherman,” a common response isthat they like the freedom. There isnothing like being your own boss.

As it is for any agriculturalproducer, the worst part aboutbeing a fisherman is being at themercy of Mother Nature, thevagaries of the economy, currencyfluctuations and political issues. Webelieve it is better when ourfisheries are managed by science,rather than dictated by politics.Alaska strives for a science-firstapproach.

We have a number of familiesinvolved in the co-op, including alarge number of husband-wife

teams and father-son teams. Ifyou’re the son or daughter of amember, it’s safe to say you spent atleast a few summers on the boat.Many of our members come fromfamilies that represent multiplegenerations with the cooperative.The Eliasons are a great example ofa multi-generational fishing familybelonging to SPC. They representthree generations as members. ■

Americans are a truly great people, but they have one serious flaw. They don’teat enough seafood! At least that’s a fishing cooperative’s point of view.Indeed, U.S. consumption of seafood is dwarfed by chicken, beef and porkconsumption.

Consumers have to deal with a number of “confusing messages” aboutseafood when shopping, says Kendall Whitney, marketing manager forAlaska’s Seafood Producers Cooperative (SPC). “One of our biggestchallenges is to convince consumers of just how easy it is to cook fish. Toomany Americans are intimidated by cooking seafood. We believe this is amajor reason why seafood consumption is so low on a per capita basis in thiscountry.”

Over the past two decades, per capita consumption of seafood products inthe United States has ranged from a low of 14.6 pounds per person in 1997 to arecord high of 16.6 pounds in 2004, Whitney notes. Since 2004, U.S. annualconsumption of fish and shellfish has gradually decreased, to 14.5 pounds perperson in 2013. For comparison, U.S. annual per capita consumption of othermajor food commodities is: red meats, about 110 pounds; poultry, nearly 75

pounds; dairy products, over 600 pounds; vegetables,over 400 pounds; fruits, over 250 pounds; flour andcereal products, almost 200 pounds.

“While seafood, like salmon, is a great source ofOmega-3s — which have been shown to be bothheart- and brain-healthy — our consumption of fish isrelatively low,” says Whitney. “Most of what we get isimported, and a lot of that is caught illegally and/ormislabeled, of poor quality and not from sustainablefisheries. This is a shame, because Alaska is one of thepremier fisheries in the world and is a pioneer insustainability. We believe that the low seafoodconsumption here is due to misunderstanding ofseafood and how to prepare it.”

When working with quality meats, like seafood, thebeauty is in the simplicity, he continues. “Most of us inthe co-op use simple recipes for cooking fish. Nothingfancy. Minimal seasoning.”

A fish shouldn’t taste or smell “fishy,” Whitneystresses. It should have a slight smell and taste of the sea.

“SPC fish tastes like a pleasant ocean breeze and doesn’t require anyfancy preparation to cover up its natural flavor. Too often, people experience a‘fishy tasting’ fish and give up on seafood, or they only eat it on specialoccasions.

“More people these days also want to know where their fish comes fromand how it got to them. We provide those answers via our website at:www.AlaskaGoldBrand.com.” ■

Key to boosting seafood consumption:Keep it simple!


Glut Cooperative, aworker-owned foodcooperative in Mt.Rainier, Md., islocated within a food

desert and near several other food

MoreThan a StoreGlut Cooperative’s‘operation by consensus’can be intense, but ensuresmembers’ long-termcommitment

By Thomas W. Gray and Shauntrice MartinUSDA Photos by Lance Cheung

Editor’s note: Gray is a rural sociologist with USDA’s CooperativePrograms; Martin is a worker-owner of Glut Cooperative. The authorswelcome feedback on this article: [email protected] and/[email protected].


deserts in Prince George’s County,Maryland, and Washington, D.C. It canthus be viewed as a food oasis in adesert of need.

A food desert is defined by USDA as“an urban neighborhood or a rural

town without ready access to fresh,healthy and affordable food. Instead ofsupermarkets and grocery stores, thesecommunities may have no food accessor are served only by fast foodrestaurants and convenience stores that

offer few healthy, affordable foodoptions.”

A place of plenty The founders of the business gave

the cooperative the name “Glut” tosignify that “here at this location thereis a glut of food. Look no further. Wehave plenty.”

While “food desert” has onlyrecently become a commonlyunderstood term, bringing “cheap,wholesome food into the city” for poorand lower income people has been acentral objective of Glut Cooperativefor more than 45 years.

When the cooperative opened in1969, its early operations involvedserving as a supply source for a series oflocal buying clubs. Its mission was tobring greater food security to itsmember-families. Demand was highfrom the start, and the cooperativeopened its doors to the general publicin 1971, after just two years ofoperation.

Cooperative offeringsThe cooperative offers a broad range

of fresh fruits and vegetables, grains,beans, nuts, seeds, cheeses, coffee, herbsand spices, as well as health and beautyproducts, food supplements, vitaminsand sundries. The large herb selectionbrings in shoppers from as far away asVirginia.

In supplying the store, every effort ismade to stock products that are organic,locally sourced and/or come from othercooperatives. Gross sales of the storeare approximately $2 million annually.

Governance and workersGovernance and management of the

co-op is facilitated with bi-monthly

Co-op volunteer Tony Green works quickly topackage, weigh, label and deliver cashew nutsto a waiting customer. Green is retired andsays he enjoys devoting time and effort topeople, as well as the congenial atmosphere ofthe store.


member meetings. These member-onlysessions are held every other Mondaythroughout the year. Decisionmaking ismade through consensus, with eachmember having one vote. There arecurrently 11 members. Chairing of themeetings rotates through themembership.

All members are free to bring upwhatever issue they please, with theexpectation that it will be discussed,

debated and, if necessary, voted upon.Everything from worker tardiness tocustomer complaints, to workerconflicts, to general management of thestore, are handled during these bi-weekly sessions.

During particularly heatedconversations, the acting chair may stepin to bring order to the discussion. “It

is not a perfect system, but everyonehas an equal opportunity to be heard,”Martin says.

“I once had a big conflict withanother worker,” she recalls. So theytried to work things out at a co-opmeeting. “Usually our meetings are 30minutes to an hour. This one lastedabout two hours. We pretty much justtalked it out. There is nowhere else togo here — no HR department to hide

behind. You just have to work thingsout.”

The frequency of the meetingsallows the members to direct andmanage the organization withouthaving to hire an over-arching manager.This style of management andgovernance — i.e., bi-weekly meetingsand decisionmaking by consensus —

allows for intense, direct involvement ofmembers and creates long-termcommitment to the organization.

Labor is provided both by member-workers and customer-volunteers, whoearn store credits for their work.However, shoppers are not required tobe members nor to participate in the“volunteer for credit” program.Worker-volunteers may apply formembership after gaining experience in

the store and successfully navigatingthrough the member interview process.This is intended to determine theircommitment, reliability and knowledgeof the workings of the organization.

Local and regional food systemThe store is structured to be a retail

point for other cooperatives and/or for


Clockwise from facing page: Felix, age 3, and hismother shop at Glut for the variety, good prices andclose proximity to their home – they often walk to it. Aco-op member inspects a delivery of broccoli outsidethe store. With his leash tied to a bench in front of thestore, a canine companion greets a passerby whilewaiting for its master to finish shopping. About 75percent of the store’s produce is organic.


Prior to joining the Glut Food Cooperative, Shauntrice Martinwas working as an addictions recovery counselor at PhoenixHouses of the Mid Atlantic, a drug rehabilitation clinic inArlington, Va. It was important work that offered support topeople in dire need of assistance. But it was also stressful —very stressful.

“I would be talking with girls who had been abused andwere addicts, maybe whose parents were also addicts. Aftera while, it takes a toll on you. It drained me, spiritually andphysically.” It finally reached the point where she needed tochange careers.

Martin believes that her poor diet also contributed to herfrequent illness and generally run-down physical health duringthat time. “I tended to eat whatever was around — chips,candy, donuts.”

Martin had been doing volunteer work at Glut FoodCooperative in Mt. Rainer, Md., for several years, working in

exchange for food credits, when an opportunity arose to jointhe co-op as a worker-owner.

Despite a significantly lower salary, Martin says it was amove that has made her a happier, healthier person. It was atGlut that she learned about healthy eating, shedding the poordietary habits that extended back to her childhood inKentucky.

“We have our issues here, too; it is certainly not perfect.But at the end of each day, I’m happy here,” Martin says.Another big plus: the hour-long commute to her old job inVirginia has been sliced to a two-block walk, first to drop offher son at day care, and then another half block to the co-op.

Martin greets many of the shoppers by name as they bustlein and out of the store on a recent weekday morning. One ofthe aspects of her job that she likes best is being able toadvise these customers about nutritional foods and healthyeating habits.

Looking something like an old-fashioned country store, theGlut Food Co-op offers fresh produce, packaged foods, herbs,milk, cheeses and sundries. About 75 percent of the produceis organic, but conventional produce is also stocked, since itis usually somewhat cheaper.

“Tuscaroa (see more about it on page 18) is one of our bestproduce suppliers. I don’t remember ever having a problem

The Glut Cooperative’s founders chose the name to signify that “Here there is a glut of food. Look no further. We have plenty.”

Joining co-op proved to be Rx for healthier life


local/regional food businesses. Seasonalproduce is sourced from TuscaroraOrganic Growers Cooperative, acooperative of farmers in nearbyMaryland and Pennsylvania (see relatedarticle, page 18), among others.

Vegan and gluten-free baked goodsare purchased from the Maryland FoodCollective on the University ofMaryland campus. Bulk spices comefrom Frontier Cooperative, and whilenot geographically close, it is acooperative specializing in spiceassembly and distribution from Norway,Iowa.

Bulk tofu and organic soy productsand various bulk nut butters are

purchased (respectively) from TwinOaks Community, a cooperativecommunity in Virginia, and East Wind,a cooperative community in Missouri.Several other products are purchasedfrom local, family-owned businesses.

SustainabilityOver its long history of operation,

the actions of the Glut Cooperativehave anticipated several of the morerecent narratives of economic, socialand environmental sustainability —what some refer to as the “three-leggedstool of sustainability.” (For more onthis concept, visit the websites of theCenter for Integrated Agricultural

Systems, Madison,Wis., and theLeopold Center forSustainableAgriculture, IowaState University.)

Glut seeks toaddress economic

viability needs by providing low-cost,high-quality food to local residentswhere few, if any, other alternativesexist (due to food-desert and food-security problems). It does so in amanner that builds community withlocal residents and with a systemsapproach that links local and regionalproducers to Glut as a point of finalretail sales.

Great care is also taken to ensureproducts come from systems thatconsider the importance of preservingair, water and soil quality while makinglittle, if any, use of non-renewableresources.

In the words of one GlutCooperative customer: “When, fromthe future, we look back and explainhow we got this far and how we did sowell, not as individuals but as acommunity, [we] will find that Glut wasmore than a store; it was a historicallysignificant idea.” ■

with anything they have delivered to us,” Martin says.Tuscarora supplies Glut with “Pretty, happy produce thatcustomers buy up. And it is very affordable.”

Most of the co-op staff are artists, musicians or have someother side activity or business, Martin says. “This is an artist’sdistrict, and many artists seem to follow a healthier lifestyle.They are also often broke, so they learn to garden and otherways to sustain themselves.”

She, too, is an artist who does portraits, collages,photography, “a bit of everything, really” when not working at

the store. “I just did a show last night in which I used allrecycled canvases and materials.” For example, she used oldcoffee grounds mixed with glue to make a strong adhesive.These are things she learned about from people at Glut.

“This is a community where people want to help eachother,” she says. “Here, people actually care about eachother.” There is a sense of a larger mission at the co-op thanjust selling food. The co-op is a vital part of the community and“we need do all we can to support the people who support theco-op,” Martin says.

That spirit was clear during a winter blizzard in 2010, whichlocals here still refer to as “Snowmageddon.” The stormparalyzed the D.C. area for days. Glut was one of a very fewbusinesses in the area that remained open. It became a lifelinefor snowbound residents needing food and sundries.

Since his day care center was closed, Martin brought herson to work with her. “Not too many other businesses will letyou do that,” she says. “We came in really early to make surethe walk was shoveled and salted. It is very important that westay open when it snows so that people have access to food.That’s a good thing about most of us living in the neighborhood— we can walk to work and back home.” ■

Despite earning a significantly lower salary, Martin says switching toher job at the co-op has made her a happier, healthier person.


By James Barham and Fidel Delgado

Editor’s note: Barham is anagricultural economist specializing inlocal food systems development withUSDA’s Cooperative Programs office.Delgado is an architect with USDA’sAgricultural Marketing Service. Thisarticle is a slightly abridged version of aUSDA Agricultural Marketing Servicereport posted on the web at: http://dx.doi.org/10.9752/CSG206.02-2015. Toobtain hard copies, please contact:[email protected].

As part of USDA’scommitment tosupporting thedevelopment andgrowth of food hubs

— including examples of how foodhubs manage distributioninfrastructure — USDA has workedwith Tuscarora Organic Growers todocument the development stages ofits aggregation and distributionwarehouse. Tuscarora is anestablished cooperative inPennsylvania, the producer-membersof which grow a wide variety ofcrops.

This case study describes how afood hub can take a “bootstrap”approach to launching a lean, low-cost operation, relying on communityequity. Below, we describe thecooperative’s solutions to warehouselayout, design and function needs,

Operation BootstrapFacility-design case study traces

staged growth of Tuscarora Organic Co-op


along with the associated costs ofequipment and labor. Our hope is thatthese insights will assist both new andexpanding food hubs in making sounddecisions about infrastructureinvestments.

Co-op overviewTuscarora Organic

Growers (TOG) is aproducer-owned cooperativethat aggregates, distributesand markets USDA-certifiedorganic fresh produce onbehalf of its members torestaurants, retail outlets,farmers markets andcommunity supportedagriculture (CSA)organizations in the metroareas of Baltimore, Md., andWashington, D.C.

TOG was launched in1988 in Hustontown, Pa., byJim Crawford, the owner ofNew Morning Farm. Thegoal was to meet the growingdemand from restaurants inthe District of Columbia formore fresh, locally grown andorganic produce. SinceCrawford could not meet thisdemand on his own, herecruited farmers in his areato join him in establishing a producercooperative.

TOG has grown from three farmermembers and a part-time manager in1988 to having 44 farmer members(about half of whom are Amish) atpresent. The co-op employs four full-time staff and 12 to18 part-time andseasonal employees.

TOG also buys from about 20 non-members annually. The majority of thefarmer- members live within 50 miles ofthe co-op’s facility. The majority ofbuyers are located within 150 miles ofthe facility.

Markets and salesTOG currently offers 1,200 produce

items — or, in trade lingo, stock

keeping units (SKUs) — to itscustomers. Half of its sales revenue isderived from restaurants and retailers,such as MOM’s organic markets, WholeFoods and various food retailcooperatives, such as the Glut FoodCooperative in the D.C. suburb of

Mount Rainier, Md. (see related article,page 12). The remaining half of its salesare split evenly between institutionalfood service buyers, producedistributors, buying clubs and TOGmembers (seven or eight TOGmembers buy produce regularly fromthe cooperative to sell at their farmstands, farm stores or farmers markets).

About 75 percent of TOG’s salesrevenue goes back to the farmermembers, with the remaining 25percent being retained by the co-op tocover management expenses, such asproduction planning, storage, sales andtransportation costs. In 2013, TOG had

$3.1 million in gross salesfrom products grown by co-opmembers. Farmer-membersreceived about $2.3 millionfrom the co-op. Theorganization also generated anadditional $1 million in annualgross sales in 2013 from thesale of products non-memberfarmers.

Food hub services TOG carries out five

primary food hub functions onbehalf of its members andnon-member suppliers:

1. Distribution andMarketing — TOG offers itsmembers effective sales anddelivery services to ensure theyhave access to a consistent andprofitable market.

2. ProductionCoordination — Co-opmanagement and farmer-members negotiate anagreement in advance of

planting to determine who will begrowing certain products for theupcoming season, based on marketdemand. There is no written contract;farmermembers make a good-faitheffort to meet their supplycommitments, and TOG managementmakes a good-faith effort to sell theirproducts on their behalf.

3. Quality control — TOGmembers are responsible for packingproducts on their farms. TOGmanagement inspects all productsdelivered by farmers to ensure theymeet the quality standards expected bytheir buyers. TOG management retainsthe right to refuse any product fromfarmer members that does not meet theagreed-upon specifications.

Facing page: Tuscarora’s warehouse facility inrural southern Pennsylvania has beenexpanded in stages, as demand for its organicproduce has grown. The floor-space blueprintshows how space is allocated today. Above:some co-op members also market throughtheir own roadside stands and farmersmarkets.


4. Group purchasing — TOGpurchases inputs —– such as boxes,packaging labels, pest control materials,fertilizer and starter plants — in bulk ata substantially lower cost than can berealized by individual farmers.

5. Knowledge sharing — Farmermembers get together at least twice ayear to share production andagriculture-related knowledge with eachother.

Distribution logistics

Since its inception, TOG has reliedon its farmer-members to sort and packon-farm, using industry-standard boxesand farm-identifying labels, provided atcost by TOG. With few exceptions,farmer-members are also expected todeliver products to the co-op facility.

Buyers of TOG’s products receive aprice list and have the opportunity tosubmit orders twice a week. Ordersplaced on Friday are delivered on thefollowing Tuesday, while orders placedon Tuesday are delivered on thefollowing Friday. TOG uses anywherefrom one to four trucks on deliverydays.

Trucks are rented from Crawford,founder and president of TOGCooperative, who owns a fleet of sixrefrigerated trucks. Crawford rents histrucks to the cooperative at cost, whichhelps TOG save on transportationexpenses while enabling Crawford tocover some of his overhead when thetrucks are not needed for his own farmbusiness.

To use the trucks most efficiently,TOG also offers refrigerated freightservice to those farmer-members whoproduce perishable products — such aseggs and meat — that are not soldthrough the cooperative.

TOG also works regularly with atrucking company that maintains awarehouse in Jessup, Md., betweenBaltimore and Washington, and whichmakes the final delivery to some TOGcustomers. This company handles abouta third of co-op’s current deliveries.

Food hub facility and operations

The co-op owns the TOG facilityand grounds, located next to Crawford’sNew Morning Farm in the rolling hillsof Fulton County, Pa.

The topography of the facility site issevere. On the east side, the facilityabuts the property line; on the west andnorth boundaries, the land drops off ata steep angle into the flood plain of ariver. The facility is only approachablefrom the southeast, via a winding, part-gravel road 1.8 miles from a pavedcounty road.

Although the entry to the TOGfacility is large enough to handle aconventional semi-truck and trailer,there is limited space for maneuveringtrucks.

The facility building itself is a wood-frame structure on a concrete slab, builtin phases over a 20-year period. It hasexpanded as needs changed and

financing became available. The overalllayout of the facility reflects its phasedgrowth, during which rooms wereadded, as needed.

The facility uses available spaceefficiently. It has six loading dockswithout shelters, but with canopiesabove the overhead roll-up doors.

From 1988 to 1991, TOG did nothave a facility. During those years, it

used excess storage and truckingcapacity from Crawford’s farm. In 1992,when the membership doubled, TOGdecided to rent a facility about 8 milesfrom its present location. Due tolimited staffing and the difficulty ofproviding adequate oversight ofbusiness operations from a distance,TOG management in 1993 decided torelocate the facility to the propertyadjacent to Crawford’s farm.

Phase One — 1993In 1993, TOG hired a new manager.

At that time, six members, includingCrawford, invested about $7,000 topurchase a used refrigerated trailer andcompressor that was incorporated into ashed built around it. The first phaseincluded developing refrigeratedstorage, a loading area and office space.Additional equipment and materialswere either purchased or donated bymembers on an as-needed basis.

The initial wood-frame building waserected on a concrete slab covering1,133 square feet, with refrigerationcapacity of 374 square feet (via therecycled refrigerated trailer). In 1994,TOG was officially incorporated as aproducer cooperative with 14 farmermembers. All of the members who hadinvested in the original structure were

Three-phase power

An easy-to-install, three-phase electrical service system operatesbehind the scenes to run high-horsepower electric motors atTuscarora’s warehouse. The motors provide power used by fan coilunits and compressor motors for the commercial-grade refrigerantsystems. This system provides a smoother, more balanced powerload.

Three-phase power is 150 percent more efficient than a single-phase electrical power supply. Utility companies prefer three-phasesystems for industrial environments because they require lesscabling. ■


paid back with interest from co-opproceeds. Phase Two — 1998

In 1998, the co-op raised $50,000from the community and customers tofinance additions to its facility, whichwas used to construct the front part of

the present facility. This phase ofdevelopment included the addition ofthree loading docks, more office space,an additional walk-in cooler and anenclosed staging area.

A used cooler was purchased andincorporated into the facility, expandingcooler capacity of the facility to 969square feet, a 160-percent increase inspace.

Phase Three — 2004With an increase in market demand

for its products and more farmersjoining the cooperative, TOG madeadditional investments in its facility. In2004, the building size was effectivelydoubled, with the inclusion of a secondenclosed dock and two large coolers.

This increased total refrigerationarea to 3,183 square feet, which tripledthe available cold storage capacity. Italso provided the multi-temperaturezones needed for optimal handling of avariety of produce items. Thecooperative also installed three-phaseelectrical power to support itsrefrigeration equipment.

This phase of expansion was financedby two loans totaling $180,000 (onefrom the Pennsylvania Progress Fund,the other from a local bank). This phaseof development marked the first timeTOG had relied on loans to finance itsoperations. Up until then, the co-ophad relied solely on community andmember equity to fund its operations

for the first 16 years of its existence.

Phase Four — 2011In 2011, a receiving/shipping cooler

for staging product was added to thegrowing business. This 12-by-56-footaddition added flexibility to the

operation, especially for preparation ofoutgoing shipments. The addition alsoincreased the facility’s total refrigerationcapacity to 3,857 square feet.

At its present capacity, the facility iscold-chain compliant and can handleproducts in four different temperaturesettings, ensuring that TOG’s widediversity of products can be stored atthe needed temperature. The finalphase of facility development cost about$60,000, financed by TOG salesrevenue.

The Phase Four expansion linked theoriginal structure with the 2004addition, providing consistent cold-chain staging protection for incomingand outgoing produce. This additionallows TOG to use the “pass-through”concept by having incoming productsflow from the front to the back storagearea, and for outgoing products to bestaged in a controlled-temperatureenvironment.

Facility costs and capacitiesTOG’s current facility has roughly

10,500 square feet of total space, about4,000 square feet of which isrefrigerated. TOG’s annual gross sales(member and non-member) of freshproduce exceeded $4 million in 2013.At the current sales volume, the facilityis meeting the needs of the cooperative.

During peak season (August toOctober), the facility operates at fullcapacity. But because product is usually

turned over in two days, product flowcan be managed so that the cold chainis maintained, ensuring that customersreceive the freshest product.

When demand on the facilityexceeds capacity, the co-op addsanother delivery day to the schedule to

move products through the facilitymore rapidly. Even with continuedgrowth, TOG believes that it can findnew ways to optimize its space withoutthe need — at least for now — toexpand the facility.

Advantages of the ‘bootstrap’ approach

Tuscarora’s “bootstrap” approach togrowing its business may hold lessonsand provide ideas for similar operations.Growing the business in an organicway, as demand increases, and changingthe scale of operations as necessary hashelped Tuscarora build a thrivingbusiness. TOG never over-extended itsrisk threshold and has madeinfrastructure investments that matchedits growth. The cooperative ownershipbusiness structure has enabled a highmeasure of member control overinvestment decisions.

Since the members are also thesuppliers for the aggregation anddistribution activities, there is goodcoordination between growth indemand and growth in facility scale andoperational characteristics. TOG hascontinued to add members and has alsoexpanded by purchasing from non-members, always accommodatingchanges with facility expansion.

This growth pattern has preventedthe co-op from building at overcapacity,albeit at the expense of a uniformfacility design. ■

TOG never over-extended its risk threshold and has madeinfrastructure investments that matched its growth.


By Kristie Schmitt,Director of Marketing andCommunicationsFarm Credit East ACA

Editor’s note: This article is slightlyabridged and adapted from one thatoriginally appeared in Financial Partner,the member publication of Farm CreditEast.

Standing large in frontof the United Nationsbuilding in New YorkCity, a sculpture bearsthe inscription: “They

will beat their swords into plowsharesand spears into pruning shears.” Forthousands of returning veterans, thesewords apply.

In 2013, 21.4 million men andwomen, or 9 percent of Americanadults, were veterans. The Departmentof Veteran Affairs anticipates thatnumber will continue to rise.

As these veterans return home andenter civilian life, where are theyheaded? Many are returning to ruralAmerica, and some are enteringagriculture.

“Our veterans are a purpose-drivengroup of people,” says MichaelO’Gorman, executive director for theFarmer Veteran Coalition. “They don’tenter the military because it’s easy.They are looking for a challenge and todo something greater than just supportthemselves. They want to support theirfamilies, their communities and thefuture of our country.”

“Veterans have a desire to feed theirfamilies and their communities,” addsMichele Pfannenstiel, Maine chapterpresident and coordinator of NewEngland activities for Farmer VeteranCoalition. “They saw the hardships offood insecurity overseas, and when theyreturn home they want to ensure acomfortable, healthy lifestyle for theirfamily and community.”

A New Kind of

More veterans returning hometo a life in agriculture

Service


“Before Iraq, I was a perfectionist,” says military veteran Jamie Critelli, seen here tending a crop of poinsettias at his Floral Beauty Greenhouses inElmira, N.Y. “Now, my family is most important. I value peace and quiet and the satisfaction of watching plants grow.” Photos courtesy Farm CreditEast


Why agriculture?Many veterans were raised in rural

areas, so agriculture is a familiarlifestyle. Others studied an ag-basedcurriculum in college, which piquedtheir interest. Yet others are drawn tothe outdoors, working with their handsand making something grow.

John Lemondes, a retired Armycolonel, explains: “I grew up near farmsand in high school I worked on a farm.Then, in college, I majored in agscience. I was commissioned as an Armyofficer straight out of Penn State, butowning a farm was always my goal.

“While in the Army, we lived insuburban areas,” he continues.“Somewhere between moving from onecul-de-sac to another, my wife and Idecided we wanted a rural lifestyle forour three children. That’s when we setour goals on owning our own farm.This decision was a huge risk, but as myretirement from the service approached,we were fortunate to purchase a 400-acre piece of land in Jamesville, N.Y.”

One of Lemondes’ militaryassignments helped him decide what todo with his 400 acres of open space.“For three years, my team and I wereresponsible for development of alltextile-based individual equipment,clothing and parachutes for the Army.In that position is where I first I learnedabout sheep, wool and textiles.” Now heand his wife own a flock of 23 sheep,with plans to grow.

Jamie Critelli, former Army Reservecaptain and owner of Floral BeautyGreenhouses in Elmira, N.Y., says hegot started in agriculture because hewanted to control his own destiny.

“Before Iraq, I was a perfectionist,”Critelli says. “What matters to me nowis not what mattered to me before.Now, my family is most important. Ivalue peace and quiet and thesatisfaction of watching plants grow. Ifind there’s something therapeuticabout putting my fingers in the dirt.And I enjoy the freedom of my day-to-day. Corporate life was not for me.”

Challenges veterans face in getting started in agriculture includegaining access to land and credit and developing the business planning,financial management and entrepreneurship skills needed to own abusiness.

“Many veterans are interested in getting started; they just don’t knowhow,” says Michael O’Gorman. “As an industry, we need to create anetwork for them. They need support from both veteran and industrygroups.”

To help fill the industry gap, O’Gorman founded the Farmer VeteranCoalition (FVC) in 2007. “I saw more and more statistics showing the highnumber of veterans returning to rural America. It seemed the more ruralthe area, the greater the number of veterans and some of the highestunemployment rates.”

The two missions of the FVC are to first help veterans return to ruralAmerica and, second, to help those veterans enter agriculture. FVC hasdeveloped a network to connect veterans with agricultural employmentopportunities. When veterans contact the FVC, their skills and capabilitiesare assessed, and then they are matched with a farm that fits their skills.

FVC also has veterans on staff to help, including a food safetyspecialist, a lawyer for legal assistance on setting up a farm, and afinancial planner for business and financial planning. Of the FVC’s 3,000members, 242 reside in the Northeast.

“I feel good about directing people into agriculture,” commentsO’Gorman. “Our veterans are relatively young and have a whole careerahead of them. With the demand for food going up, it’s a good time tobecome a farmer.”

To raise awareness of this growing segment in agriculture, the FVClaunched the national Homegrown By Heroes program last spring as ameans for veterans to market their products as veteran grown. TheHomegrown By Heroes label was developed by the Kentucky Departmentof Agriculture to afford farmer veterans the recognition, pride andconsumer support of their agricultural businesses and products.

With the national expansion of this program, any veteran or active dutymember can place a Homegrown By Heroes label on their agribusinesssignage and/or agricultural products. Since inception last year, 100veteran farmers have signed up across the country.

Jamie Critelli started labeling his products with the Homegrown ByHeroes label in May, and says, “It’s not just marketing. It’s a positivedifferentiator. It’s a way for consumers to support veterans with more thanjust words, but with actual product purchases.

“And it’s a daily reminder of veterans’ service for our country. I’ve hadpositive response from the public. It starts a conversation about myservice and my product.”

As the number of veterans choosing agricultural life continues to grow,so do the benefits for all involved — including the industry, which hasmuch energy to gain from this proud and purposeful new breed of recruits.■

Farmer Veteran Coalition assists returning vets


Skills made for agriculture Many skills developed in the military

lend themselves to careers inagriculture. “The military is not asregimented as you’d think,” Critellisays. “Often, decisionmaking isdelegated to lower levels, allowing forflexibility and quick decisionmaking.

“After years of training, veteransdon’t want to be told what to do.Rather, we want to be told what needsto be done and then figure out the bestway to do it.

“We learned how to adapt and workunder pressure, often with no back up,”continues Critelli. “We’re trained topersevere against obstacles and see atask through, which I found to bebeneficial when I started mygreenhouse business.”

Advice from farmer veterans“Some veterans are just getting

started in agriculture, while others are

returning to existing operations, withmany a generation removed from thefarming operation. Many veteranswould like to own and farm their ownland, but realize they need to buildtheir dream. So they look for jobs onexisting operations that pay a livingwage and provide the opportunity to

work with a mentor,” says Pfannenstiel.Michael O’Gorman agreed. “Take it

step-by-step. Getting started is not easy,so don’t jump right in. Farming on yourown immediately isn’t the only route.You’ll find lots of employmentopportunities in agriculture and ways tobe involved part time to learn thetrade.”

O’Gorman encourages veterans todo their homework. He advises to firstfigure out where you’d like to live. Ifyou want to purchase land, study thesoil and weather for that area. Look ateducational and training programs infarming and entrepreneurial skills. Use

your GI benefits to find trainingprograms and to help with expenses.

He also suggests taking advantage oftraining or employment on a farm.Then, put together a small, butefficient, team of advisers. The mostcrucial player on this team should besomeone who has actually farmed.

Lemondes can attest to this advice.“It’s not as easy as just buying a farm.Actually, finding a real estate agentcompetent in purchasing farmland is achallenge,” he says. “And you need tothink through the capital expenses.Things that may seem simple takelonger than you’d expect. And you needto be prepared for them.”

Critelli agrees that planning is a keypiece of the new venture. “Be sure tohave a Plan B, C and D, in casesomething goes wrong, because it will.Agriculture is different from mosttrades. You’re not going to learn how tofarm from a textbook — you need toactually do it. And it’s tough, becauseyou have no set hours and you care forsomething that’s alive. Farming takes apersonal investment of time andresources.

“Looking back, I would have donesome things differently,” Critellicontinues. “I probably would havestarted smaller and maintained an off-the-farm job while the business grew. Inthe early stages, making ends meet wasalways a worry. But we were persistentand able to diversify to includevegetables in the mix, which helped thebusiness grow.”

Critelli says he’s learned a lot already.“You don’t need to do everything right.You’ll learn from your mistakes. Alongthe way, I learned to seek strongmentors and hire employees smarterthan me. Have a great banker andlawyer — and keep them involved.Network as much as you can and keepthat network alive.

“And make sure you have fun. Whileit’s hard work, the rewards outweigh therisks,” Critelli says. “When you find theniche that you enjoy, go after it.” ■

While in the Panama Canal Zone in 2011, retired Army Colonel John Lemondes and other WarCollege senior leaders learned about the strategic implications of the Panama Canal Zone and itshistory. Here, Lemondes examines an old rail car. Today, Lemondes farms in New York.


By Dianna Jennings,Special Projects Coordinator USDA Rural Development/Arizona

The O’odham peoplehave been gatherers andgrowers for centuries,planting bean, squash,corn, cotton, melon and

sorghum (which the O’odham call“sugar cane”) in the washes and gulliescrossing their traditional land. Theywere also sustained by hunting theregion’s plentiful game. The O’odhamhave cleverly mastered desert livingalong the Gila, Salt and Santa CruzRivers in southern Arizona by devisingsophisticated canal systems for their

agricultural endeavors.They were a people who relied on

communal cooperation to live in theharsh desert climate. But withEuropean settlement, the O’odhampeople were arbitrarily divided byinternational and reservation borders.

The splitting of the lands alsoresulted in the artificial division of

Arizona ‘Desert People’s’ co-op helps membersfind success, better health, by growing traditional foods

‘Together, we will succeed’T-w:em at o’ Nato


O’odham society. The O’odham bandswere broken into four tribes: theTohono O’odham Nation, the GilaRiver Indian Community, the Ak-ChinIndian Community and the Salt River(Pima Maricopa) Indian Community,each now politically and geographically

distinct and separate.The Tohono O’odham Nation — the

“Desert People” — was later dividedagain and the people now live in fourseparate reservations in the Sonorandesert in southeastern Arizona. One ofthose reservations, San Xavier, covers

nearly 300 square miles and is home to2,000 people.

Over time, urban growth in Tucsonand industrial activity diverted much ofthe water resources tribal membersneeded to farm. This trend —combined with the ever-more

fragmented land holdings of members— meant that farming on a meaningfulscale virtually ended by the 1950s.However, a cooperative formed in theearly 1970s — the San XavierCooperative Association (or San XavierCo-op Farm) — is helping to revivefarming here, leading to improvementsin the economic and physical health ofthe people.

Fighting for water rightsSan Xavier takes its name from the

lovely Spanish mission San Xavier delBac, known as the “White Dove of theDesert.” It was built by the TohonoO’odham people and the Franciscanpriests who settled in the area in thelate 1700s, near present day Tucson.The Presidio San Augustin del Tucsonremained under Mexican control untilthe Mexican American War of 1846.

Tucson grew to become the largestcity and commercial center in what wasthen the Arizona territory. The rapid

Facing page: These Indian women, photographed in 1907, gather the fruit of Saguaro cactuses inthe southern Arizona desert, much as members of the O’odham tribe still do today. Photos byEdward S. Curtis, U.S. Library of Congress. Above: Julie Pierson and Cie’na Schlaefli, foodproduction manager for the San Xavier Cooperative Farm, are checking on an irrigated field ofalfalfa. The historic mission is seen in the background. USDA photo by Dianna Jennings. The SanXavier Mission was completed in 1797. Photo by Gill Kenny, courtesy Metropolitan TucsonConvention & Visitors Bureau


growth and commercialization began toimpact the area’s O’odham people.

Water once ran freely in the SantaCruz River near San Xavier. But as thearea grew, Tucson, mining companiesand other users diverted water out ofthe river and the underground aquafer.The rapidly depleting water tablethreatened the traditional farming ofthe area.

In 1890, Congress adopted theIndian Allotment Act, which broke upreservation land into allotmentsprovided to individuals. Each head of afamily was given a land allotment,ranging from 40 to 120 acres.

With no wills, when the head of afamily died, the allotment was

subdivided among the heirs. Over thegenerations, the allotments becamesmaller and smaller, until there wereonly small individual plots for families.

Water continued to be a problem forthe O’odham people. In the 1920s, theBureau of Indian Affairs (BIA) drilledwells in the area, but by the 1950s thecost of pumping the water was so highthat most families simply quit farming.The rich heritage of community-grown,traditional foods all but disappeared.

Diet changes result in high diabetes rate

The impact of that change in theirdiet is still evident today, with nearlyhalf of the Tohono O’odham people

suffering from diabetes — one of thehighest percentages of diabetes of anypeople in the world. An Indian HealthService report concluded that “thesolution rests in the people’s hands: thefoods that have come from the desertfor centuries.”

The report found that traditionalfoods — including prickly pear fruits,cholla buds, mesquite bean pods andtepary beans — actually reduce bloodsugar levels and improve insulinproduction.

The O’odham people understood theimportance of regaining the healthytraditional foods, but the landallotments were now very small. Andthe once-flowing Santa Cruz River had

Clockwise from upper right: Alfreda Hanier and Verna Miguel hand separate the chaff from Pima Club Wheat. Jars of traditional foods for sale at theco-op store. A basket of mesquite bean pods. USDA photos by Dianna Jennings. A woman pours wheat onto a mat in this 1907 photo. Because thewheat was heavier, it would fall directly onto the mat. The lighter chaff was carried away by a breeze. Photo by Edward S. Curtis, U.S. Library ofCongress


become mostly a dry riverbed, exceptduring periods of significant rainfall.

To maximize the yield from thefragmented allotments, San Xavier Co-op Farm was formed in 1971 with acommitment to healthy farmingpractices and traditional crops. The co-op began working to support thecultural and environmental values of thepeople while also supporting economicdevelopment within the community.

Once the cooperative beganoperating, members were able tocombine their small land plots under itsumbrella to create more viable farmingoperations. That left water access as themajor issue to tackle.

In 1975, a lawsuit was filed on behalfof the Papago Tribe (now the TohonoO’odham Nation), suing the city ofTucson, the state of Arizona, severalmining companies and other entitiesthat were pumping groundwater fromthe Santa Cruz Basin. The lawsuit wassettled out of court in 1982, when theSouthern Arizona Water RightsSettlement Act (SAWRSA) was passedby Congress and signed by thePresident.

That settlement gave San Xavier anallotment of 10,000 acre-feet ofgroundwater per year and an allocationof 27,000 acre-feet of water from theCentral Arizona Project (CAP), as wellas 23,000 acre-feet of other watersuitable for agriculture. Once again, theSan Xavier O’odham people had landand water.

Co-op improves farm, irrigation canals

This is a story that Julie Pierson hasbeen telling for years. Pierson, the co-op’s board secretary, was born here andattended the mission school. In hermany years working with thecooperative, Pierson has become awalking encyclopedia of both theTohono O’odham and co-op history.

She tells the story of how the co-ophas been working to rehabilitate thefarm, the canals and the wells. Pierson

also describes how the co-op has builtgreenhouses, developed compostingoperations and completed riverbankstabilization projects.

Inside the small co-op store near thefarm, Pierson points out the traditionalfoods being sold. These includemesquite pods, sugar cane and chollabuds, along with Pima Club Wheat,chilis, squash and melons (during thegrowing season).

In the back office of the co-op store,Alfreda Hanier and Verna Miguel sit ata table, painstakingly using their fingersto pull out individual pieces of chafffrom piles of wheat. Pierson explainsthat the co-op has a machine that doesthe initial separating, but that the

women’s handwork produces a finerproduct.

The co-op store sells not only totribal members, but also to thethousands of tourists who pass by tovisit the iconic San Xavier Mission. Atthe mission itself, ramadas provideshade and a rustic charm near theentrance of the mission where vendorssell traditional foods and handcrafted

items, further expanding the market forthe co-op growers.

Driving around the farm, amid thebackdrop of rugged mountains and theshimmering white San Xavier Mission,the co-op farm unfolds around everyturn of the road. There are irrigatedfields where precious water flows downrows of alfalfa. There are also riparianareas where mesquite bosques delineatewhere the water runs just below thesurface during rains. Long mounds ofcompost in varying stages can be seennear carefully maintained greenhouseswhere tribal members tend crops thatwill be planted or sold.

USDA assists co-opIn 2014, USDA Rural Development

awarded the co-op a Small SociallyDisadvantaged Producer Grant(SSDPG) for $188,000 and a Value-Added Producer Grant (VAPG) for$52,000.

The co-op is using the SSDPG fundsto do outreach with Tribal members,teaching them how to grow, cook anduse the traditional crops. Outreachefforts are also helping educate thepeople of the community and school-children about the health benefits ofreturning to their traditional foods.

The VAPG will be used to helpmake the food production of the farmmore profitable. Currently, the co-opsubsidizes its food production throughthe sale of alfalfa grown for cattle feed.The co-op hopes the food productionwill eventually become self-sustaining. When Alan Stephens, Arizona statedirector for USDA Rural Development,announced the awarding of the grantsto the co-op, he acknowledged awatchword of the O’odham people: “T-w:em at o’ Nato,” which translates as:“Together we will succeed.”

“The San Xavier Cooperative Farmembodies that cooperative principal thathas defined the Tohono O’odhamNation for centuries,” he said. “USDAis pleased to be a partner in thatsuccess.” ■

Basil Morrill waters chiltepin chile pepperplants in a co-op greenhouse. Below: ripeningprickly pear fruit. USDA photos by DiannaJennings


In the Spot l ightSusan Brauner: Communications Director,Blue Diamond Growers

Question: The U.S. almond industry hasexperienced phenomenal growth duringyour years at Blue Diamond. What rolehas communications – at Blue Diamondand elsewhere in the industry – played inthis expansion and the success of theindustry? Susan Brauner: The almond industrywas producing between 300 and 400million pounds of almonds in the late1970s, when I joined Blue DiamondGrowers. Today, we’re averaging about2 billion pounds annually. BlueDiamond’s corporate communicationshas always focused on communicatingthe value of belonging to the co-op. Weespecially emphasize our leadership inthe industry through our efforts to

expand markets and increase globalconsumption. Our cooperative does thisby adding value to our members’almonds in the global food ingredientmarket, as well in consumer-brandedmarkets.

While we support an assessment thatgrowers’ pay to fund the Almond Boardof California — a federal marketingorder that promotes almond researchand marketing — we are committed toexpanding our co-op’s own brandworldwide. Our first national TV adcampaign — which used the tag line “ACan a Week, That’s All We Ask — waslaunched in 1987. It featured ourgrower-owners in ads that helpedpropel the United States to becoming

the world’s largest almond producer.That status has been bolstered by manynew almond product innovations, suchas Almond Milk. Blue Diamond today isthe world’s best-known brand ofalmond products.

Q. You were there when the co-opchanged its name from the CaliforniaAlmond Growers Exchange to BlueDiamond. From your point of view as acommunicator, what were theadvantages?

A. When the co-op was organized in1910 as the California Almond GrowersExchange, the growers had theforesight to brand their almondproducts Blue Diamond, named after one

After 36 years of directing the communications program of Blue DiamondGrowers, Sacramento, Calif., Susan Brauner is retiring, although she willcontinue to work part time as a consultant. In addition to corporatecommunications, marketing and grower communications, Brauner’s work has

included serving as the co-op’s government relations liaison with state and federal regulators,various industry groups, government agencies, the state legislature and U.S. Congress.

Prior to joining Blue Diamond, Brauner taught high school French, English andjournalism. She served as year-round high school administrator of academic programs.Brauner earned a master’s degree in secondary education, as well as lifetime secondaryteaching and administrative credentials.

Among the many industry positions she has held are: member of the Agricultural TechnicalAdvisory Committee, which reports to the U.S. Secretary of Agriculture; board member ofthe Almond Board of California; board vice chair for the Agricultural Council of California;board chair of the Dried Fruit and Nut Association, and member of the International TradeCommittee of the California Chamber of Commerce.

Other positions have included: chair of the Member and Public Relations Committee ofthe National Council of Farmer Cooperatives and board member of the U.S. AgriculturalExport Development Council, among many others.

Brauner recently engaged in a Q&A with Rural Cooperatives to discuss some of herexperiences and views on cooperative communications.


of the world’s rarest and most valuedgems: the “blue diamond.” Since then,the brand has become synonymous withhigh-quality, delicious almonds. Whilegrowers continued to refer to the co-opas “the Exchange,” customers referredto it by the brand name. In the 1980s,our board finally changed the officialname to Blue Diamond Growers, whichrecognized the ownership value of thegrowers, but also clearly identified thatcustomer satisfaction comes first!

Q. Can you offer any tips or “lessonslearned” that might help other co-opcommunicators in dealing with the press?

A. Thirty-six years ago, the primaryfocus of the media was on the success ofthe business in the marketplace. Now,the media often wants to connectbusiness to news events or controversy.We are very careful not to engage withoverzealous news people who want totie our brand to a controversy. Forexample, the West Coast Portslowdown was an industry challengethat we preferred not be in the newsabout with our brand. Instead weworked directly with our legislators andCongress to resolve the issue.

Q. How has the rapidly evolving realm ofsocial media impacted the co-op’scommunications efforts?

A. Social media has definitelyimpacted our branded consumerbusiness because eating almondproducts is perceived to be a lifestylechoice to eat healthy foods. Ourconsumers want to talk to each otherabout this. Social media is an extensionof our advertising and promotionalcampaign strategy to build loyal brandfollowers.

Q. How important is it for a co-op to havean up-to-date crisis communicationsstrategy/plan, and what are the essentialelements of your plan?

A. With people being instantlyengaged through the social media whena crisis erupts, it is critical to have aplan in place for immediate response.

This includes involving topmanagement, along with the foodquality and safety team, in developing asocial media response plan, and havinga “dark site” at the ready for immediateimplementation and a phone responsesystem. This involves media trainingthat covers “messaging,” as well asproducing a film about your food safetyprogram.

We engaged an outside firm thatspecializes in crisis management toassist us. This process involvesconducting a “mock trial” to test theprogram. It was the best investment weever made in crisis preparedness.

Q. How do you adjust to a new CEO andensure a smooth a transition for thecommunications program?

A. I have worked with four CEOsduring my tenure. Our focus duringthis time is on communicating to our

grower-owners and being consistentwith our messaging to all audiences,including the media. Maintaining agood working relationship with growersis key. Nearly 20 years ago, we initiateda young leader program designed toeducate about the co-op and how tobecome a leader in it. I’m proud to say

that it has paid off dividends — nearlyhalf of the board members aregraduates of the program!

Q. How do you prepare for the co-op’sannual meeting, and what types ofmessages do you hope to impart at thosemeetings?

A. We initiate a very successfulstrategic planning program every yearthat our leading managers and boardjointly participate in. From thismeeting, our annual report theme and“talking points” are established, whichthen serve as a platform forcommunications at the annual meetingand in our publications. Every year wealso develop a film that we use atmeetings with employees and othersthat captures our strategic direction.We also post this to YouTube.

Q. Blue Diamond is a large enough co-opthat is has separate membership andcommunications offices and staffs. Canyou cite some examples of how you worktogether?

A. It is critical that thecommunications messaging to growersis reflective of why growers shouldpartner with Blue Diamond. Ourcommunications team is a partner withthe membership team to deliver thismessage and to provide the tools to doso. Both teams attend the annualstrategic planning team meeting, whichallows us to be part of formulating themessaging, together with the board andmanagement, so that we are all aligned.

Q. What are your plans for retirement?A. I am currently transitioning my

position to assure a smooth transfer ofresponsibilities. However, I willeventually spend more time with myfamily and enjoy my piece of paradise inPacific Grove, near Pebble Beach. I’llbe doing what I love — riding bikes,golfing, kayaking and hanging out withfamily and friends. I will probably neverfully retire from wanting to educate andinspire others in some creative way —it’s in my blood! ■

Susan Brauner

By Jim WadsworthAgricultural EconomistUSDA Cooperative Programs [email protected]

Editor’s note: This article is largelyexcerpted from Cooperative Essentials (CIR11), published by USDA CooperativePrograms. See the full publication —available online and as hard copy — formore information on the roles played by co-op members, directors and employees, aswell as a discussion of what a co-op is.

Talented, responsiblemanagers are anabsolute necessity forany cooperative tosucceed. Given that

member-users own a cooperative, the

responsibilities of a co-op managerdiffer in some fundamental ways tothose of a manager of an investor-owned corporation. The majordifferences relate to the participatoryrole that members’ play in a co-opbusiness and the unique workingrelationship between the governingboard of directors and the co-op’smanager.

Co-op managers must communicatewell and forge good relationships withmembers. This is because the managerneeds help from the members,including their participation in thegovernance process, feedback on howwell the co-op is serving them, whatthings are working well and what needsimprovement.

Beyond the communication

relationship between members and themanager, a strong, direct workingrelationship is needed between themanager and the board of directors.Indeed, the success of a co-op oftenhinges on how well this relationshipworks. Mutual respect and a crystal-clear understanding of the differingresponsibilities of managers anddirectors are vital to a co-op’s success.Co-op managers have responsibilitiesthat differ from those of directors.Understanding these differences in aco-op is a key requirement for aneffective and harmonious relationshipbetween the manager and the board.

A co-op manager does not share inownership of the business and shouldnot be a member of the board (notethat this differs in a workercooperative). This produces a clearseparation between the responsibilitiesof managers and directors (with thelatter having ownership stakes in theco-op).

Major responsibilities of a co-op manager

The main jobs for co-op managersare to:

Implement board policy. Policiesare set by the board of directors andimplemented by the manager. Allbusiness operations and resources of theco-op must be managed within theboundaries of the board’s set policies.

Manage daily business operations.The manager supervises andcoordinates — under board direction —the business activities of the co-op bymanaging the people, capital andphysical resources.

Hire staff. Hiring and maintaining acompetent staff is a critical job of a co-op manager. How well the managerselects, trains and supervises employeeshas a direct bearing on how well the co-op performs. The board provides themanager with tools to assemble aneffective staff, including a wage andsalary plan, attractive benefits and safeworking conditions. Once employeesare hired, the manager provides them


The Essential Rolesof Co-op Managers

Co-op managers must communicate well andforge good relationships with members.


with leadership, training, direction andmotivation. He or she also appraisestheir performance.

Set tactical goals and implementaction plans. Significant operationalplanning occurs as managers direct thedaily affairs of a co-op. The managerdevelops tactical goals in line with theco-op’s major long-term objectives, asset by the board. The manager developsand implements action plans to reachthe tactical goals.

Advise the board. While manymembers and their elected directorsoperate their own businesses or areemployed by other businesses, theoperations of a co-op usually greatlydiffer. The manager therefore has aresponsibility to advise the board onhow the co-op can be operated moreeffectively, offering direct technicaladvice in such areas as:

• Competitive strategy, includingpricing policy, cost cutting, servicepackages, member benefits andcompetition issues;

• Financial management, includingcredit control, debt load, cash-flow andmember equity.

• Operational efficiency, includingproduct storage and handling, pickupand delivery schedules, administrativeprocedures, facility organization,purchasing and marketing strategies andstaffing;

• New technology, includingindustry innovations, improvedmachinery and equipment, bettercomputer systems and results ofrelevant outside research;

• New products and services, such asadditions or replacements and productand service information;

• Policy changes, which may benecessary because of problems withimplementation of plans or by changesin the business environment;

• Regulatory changes, such aschemical use, worker safety, hazardouswaste restrictions, environmental lawsand standards;

• Governmental affairs, includingnew or changed legislation,governmental assistance programs andinvolvement in public policy.

Formal reporting occurs at monthlyboard meetings. The manager sendsfinancial statements and information onmajor issues to directors in advance ofboard meetings so they can review thematerials. Accurate reports to the boardare necessary for good businessmanagement and help build mutualrespect and trust between the managerand the board. These reports ofteninclude:

• The statement of operations, withbudget comparisons;

• The balance sheet, with compar-isons to one or more previous years;

• The status of accounts receivableand notes about delinquent accounts;

• An update on progress madetoward planning goals;

• A summary of operational activityduring the most recent period;

• Any necessary proposals forimmediate or longer term considerationby the board or membership.

• Information on special issues andcircumstances;

Managers also need to be able tocontact board members at any time.Outside of board meetings, managersmust keep the board president andother officers apprised of significant

events that may call for immediateaction.

Communicate with members. Co-op bylaws often require a formal annualreport be distributed to members andan annual meeting to be held. Themanager often distributes acomprehensive annual report to theboard and creates a summary ofhighlights given to members at theannual meeting. The manager presentsthe report to the membership and

discusses operational highlights, issuesand problems encountered, specialactivities and the co-op’s outlook for thecoming year. Any major strategicplanning changes should be discussed.

For other member communication,managers sometimes write individualletters to members, or visit them one-on-one. Some managers write a columnin the co-op’s newsletter and/orwebsite. Managers also hold district orregional meetings to reach out togroups of members. In addition, themanager will often have daily informalcontact with some members as they visitor transact business at the co-op.

Represent the co-op. As the personin charge on a day-to-day basis, themanager represents the cooperative inmany ways. That representation is oftenguided by the co-op’s policies andspecific board directives. The manager’sown interests may also influence thetype and extent of his or herrepresentation on behalf of the co-op.The manager carries this representationto at least four areas: community,cooperatives, industry and government.

In the community — as a businessleader, the manager may be called upon


“The board of directors decides what the cooperative will do; the manager and key staff decide how it can best be done –

subject to board review.”


DeVelder and Meshke will lead AMPI

Leaders of Associated MilkProducers Inc. (AMPI) have chosen totake a team approach to fill thecompany’s top management spot. Thedairy co-op has appointed longtimeemployees Donn DeVelder and SherylMeshke as co-presidents and CEOs.

“Transitioning to a partnership is anatural decision for us because AMPI,by its very nature as a cooperative, isabout teamwork,” says Steve Schlangen,board chairman and a dairy farmer fromAlbany, Minn. “In Donn and Sheryl, wehave a combined half-century of serviceto the dairy farmer-owners of AMPI.Their individual skills and knowledge ofthe company’s operations arecomplementary. This gives us a muchbroader set of experience and ideas withwhich to chart AMPI’s strategies forsuccess.”

DeVelder and Meshke wereexecutive senior vice presidents beforebeing named acting co-presidents andCEOs in December. The movefollowed the resignation of Ed Welch,who had been with the dairy marketingcooperative for 31 years and had beenpresident and CEO since 2008.

“Throughout their careers withAMPI, Donn and Sheryl havedemonstrated a high level ofcompetence and cooperation andoffered a powerful and thoughtfulvision for AMPI’s future,” Schlangensays.

DeVelder has more than 30 yearswith AMPI, beginning as a fieldrepresentative providing on-farmconsultation and assistance to the co-op’s dairy farmer-owners. He then

joined the corporate staff at thecooperative’s New Ulm, Minn., office.In his position as executive senior vicepresident, he was responsible for fluidmarketing and member services.DeVelder is a graduate of theUniversity of Northern Iowa.

Meshke has been with AMPI fornearly 25 years. During that time, shehas served as vice president of publicaffairs and strategic planning. Followingappointment as executive senior vicepresident, she focused on humanresources and strategic initiatives aimedat strengthening the Midwest dairycooperative’s performance and value.

Meshke holds a bachelor’s degree inagriculture from South Dakota StateUniversity and a master’s degree inbusiness from the University of St.Thomas.

AMPI, owned by 2,600 Midwestdairy farm families, annually marketsabout 5.8 billion pounds of milk andhas $2 billion in annual sales.

CoBank net earnings top $904million; will pay $467.5 millionin patronage

CoBank — a cooperative bankserving U.S. agribusinesses, ruralinfrastructure providers and Farm

NewslineSend co-op news items to: [email protected]

Co-op developments, coast to coast

AMPI Chairman Steve Schlangen, left, with new Co-Presidents/CEOs Sheryl Meshke and DonnDeVelder. Photo courtesy AMPI


Credit associations — had net incomeof $904.3 million for 2014, up 6 percentfrom $856.5 million in 2013. Theincrease was primarily driven by highernet interest income, which increased 6percent, to $1.2 billion, driven byhigher average loan volume andincreased earnings from the bank’sbalance sheet. Average loan volume rose7 percent, to $76.6 billion.

“The bank recorded its 15thconsecutive year of growth inprofitability on behalf of our customer-owners, an accomplishment matched byfew, if any, other financial institutions inthe world,” says Robert B. Engel,CoBank’s CEO. “Our credit qualityremains strong and our capital andliquidity levels remain solid. Mostimportantly, we continue to fulfill ourmission of service to rural America.”

The bank saw higher loan volumefrom a range of rural industries,including agricultural cooperatives,food and agribusiness companies,electric distribution cooperatives, powersupply customers and communicationsservice providers. The bank’s wholesaleloans to its affiliated Farm Creditassociations also increased, due toheavier borrowing from theiragricultural producer-members.

“We continue to benefit from thediversification of our customer base,”Engel says.

In March, the bank distributed arecord $467.5 million in totalpatronage, including $378.8 million incash and $88.7 million in commonstock. For most customers, that willrepresent 100 basis points of averagequalifying loan volume during the pastyear, effectively lowering their overallnet cost of debt capital from CoBank.

Forum to focus on co-opsuccesses models

“Replicating Success in CooperativeDevelopment” is the topic of the annualCooperative Development Foundation’sIssues Forum, to be held in conjunctionwith the 2015 Cooperative Hall ofFame induction dinner on May 6. Both

events will be held at the National PressClub in Washington, D.C.

The Issues Forum begins with adiscussion on how to replicatesuccessful co-op development strategies,which runs from 1:30 to 3:15 p.m.Dennis Johnson, president ofCooperative Housing Resources LLCin Shoreview, Minn., will serve as themoderator, with panelists Hilary Abell,co-founder of Project Equity inOakland, Calif., and Kevin Edberg,executive director of CooperativeDevelopment Services in St. Paul,Minn.

It will be followed by a second panel,from 3:45 to 5 p.m., in which the 2015Hall of Fame Inductees (see relatedNewsline item) will reflect on theircareers in the co-op sector. Mike Beall,president and CEO of NCBA/CLUSA,will serve as the moderator.

There is no fee to register for theIssues Forum. While “walk-ins” arewelcome, registration is encouraged.Tickets must be purchased for thedinner. Learn more and register at:http://heroes.coop/.

The Issues Forum is sponsored bythe Ralph K. Morris Foundation Fund.

Blanding to succeed Paige atFederation of Southern Co-ops

Cornelius Blanding has been selectedas the new executive director of theFederation of SouthernCooperatives/Land Assistance Fund.The leadership change became effective

March 1.Blandingsucceeds RalphPaige, whoretired afterserving in thepost from 1985to 2015. Blanding

praised Paige as a “mentor and friendwho worked untiringly with greatdedication for three decades to buildthe Federation and support ourmembership to realize the vision ofsocial and economic justice in the South

through cooperatives, credit unions andcommunity-based development.”

Blanding has worked with theFederation for the past 17 years invarious program and leadershipcapacities, including serving as deputydirector of the Federation for most ofthe past year. He has spearheadedseveral of the Federation’s specialinitiatives, including its internationalwork in Africa, the Caribbean andaround the world.

He also helped lead the Federation’sdisaster-relief efforts after HurricaneKatrina, the Alabama tornadoes and theHaiti earthquake. Blanding directed aU.S. Department of Labor-funded ruralworkforce development project throughcooperatives and headed a project withUSDA’s Natural ResourcesConservation Service (NRCS-USDA)that focused on conservation practicesand easements for Federation member-farmers.

“I am looking forward to serving themembership of the Federation andmoving our cooperatives forward sothey may better serve the communitiesin the South where they are working.”A native of Montgomery, Ala., hereceived a liberal arts and businesseducation degree from Stillman Collegein Tuscaloosa, Ala., and the Universityof Florida in Gainesville, Fla.

California co-ops seek to join federal milk marketing order

The three largest dairy cooperativesin California have submitted a jointproposal to the U.S. Department ofAgriculture (USDA) petitioning formilk producers in the state to beginoperating under a Federal MilkMarketing Order (FMMO). CaliforniaDairies Inc. (CDI), Dairy Farmers ofAmerica Inc. (DFA) and Land O’LakesInc. submitted the proposal in earlyFebruary.

Under existing regulations,California dairy farmers operate understatewide milk pricing plans. Themajority of farmers in other states



■ Ann A. Hoyt — A consumer cooperativeadvocate/educator and a retired professor and departmentchair of the University of Wisconsin-Madison Department

of Consumer Science, Hoytis an internationally knownexpert on cooperatives. Shebegan her career in the1960s as a member of theBerkley Consumer FoodCo-op. Her academicinterest in cooperatives tookroot in graduate school atthe University of Californiaat Davis, where her master’sthesis focused on theConsumer Cooperative ofSacramento.

Hoyt was elected to theboard of the National

Cooperative Bank in 1982 and in 1985 she joined theUniversity of Wisconsin (UW) at Madison’s Department ofConsumer Science and the UW Center for Cooperatives.In 1992, she joined the board of the National CooperativeBusiness Association, where she served as chair from 2004-2006.

In 1994, Hoyt was elected to the board of the Universityof Wisconsin Credit Union, which she chaired from 1996to 2005. Her love of teaching led to work in boardeducation and governance and the launch of an intensiveeducation program for food cooperative managers, theCooperative Management Institute (CMI).

■ Daniel T. Kelley — An authentic leader and championof cooperative development, Kelley spent more than threedecades serving the cooperative sector. He recently retired

as board chairman andpresident of GROWMARKInc., an agriculture supplycooperative. Kelley’s rootsin the co-op movementbegan in 1970, when, as afull-time farmer, he joinedhis local cooperative,Evergreen FS, serving as itspresident from 1985 to2008.

A champion of new ideasand innovation, Kelley iswidely credited for shapingGROWMARK Inc. into the

Hall of Fame inductees announcedFour outstanding cooperative leaders will receive the co-op community’s highest honor

when they are inducted into the Cooperative Hall of Fame. These cooperative leaders willbe recognized at the annual Cooperative Hall of Fame dinner and induction ceremony atthe National Press Club in Washington, D.C., on May 6.

In conjunction with the induction ceremony, a public forum on cooperativedevelopment and leadership issues will be held the afternoon of May 6 (see relatedNewsline item, page 35).

“Induction into the Cooperative Hall of Fame is reserved for those who have madegenuinely heroic contributions to the cooperative community,” says Gasper Kovach Jr.,board chair of the Cooperative Development Foundation (CDF), which administers theHall of Fame.

“The 2015 inductees join a host of extraordinary Hall of Fame members who havesignificantly contributed to the advancement of the cooperative movement.”

The new inductees are:


organization it is today. AgriVisor — a grain and livestockmarketing analysis and brokerage service — was initiatedduring his tenure. A joint venture between GROWMARKand Illinois Farm Bureau, the venture has since expandedto serve Farm Bureaus in Iowa, Wisconsin, Indiana,Missouri and Ohio.

In the 1980s, Kelley shouldered efforts to reform theFarm Credit Banks, creating a foundation for success thatco-ops, the Farm Credit System, its member-owners andrural communities enjoy today. He is currently on theboard of Nationwide Mutual Insurance Co., CoBank andthe Illinois Agriculture Leadership Foundation, which hechairs.

■ William J. Nelson — Vice president of CorporateCitizenship and president of the CHS Foundation.Nelson’s involvement in cooperative education began inthe 1970s while serving as community education directorfor the Minneapolis public school system, where hefocused on connecting urban and rural schools aroundfood and hunger issues. In this role, Nelson was firstintroduced to a new wave of food cooperatives in the TwinCities. He went on to spend 13 years at the University ofMinnesota-Waseca, teaching courses on cooperatives,agriculture, entrepreneurship and leadership.

In 1992, Nelson joined CHS Inc. to revitalize itscooperative education grants program. Now in its 22nd

year, the program continuesto support a variety ofprojects that enhance theunderstanding ofcooperative business. Theprogram works closely withthe newly established CHSCenter for CooperativeGrowth. Nelson providesleadership to CHSStewardship activities,including support ofuniversities, rural leadershipdevelopment, cooperativeeducation and agriculturesafety programs.

Nelson has been instrumental in developing the CHSUniversity Initiative on Cooperative Education, whichincreases the understanding of the co-op business modelthrough education, development and practical experience.He is a founding member and director for the Ralph K.Morris Foundation and has brought stable leadership and

financial support to the Association of CooperativeEducators.

Through his long tenure as president of TheCooperative Foundation, Nelson helped expand supportfor cooperative development, extension, education andresearch. Nelson also serves on the National Council onFarmer Cooperatives’ executive education committee, aswell as the board of directors for the National CooperativeBusiness Association and the Farm Foundation.

■ Judy K. Ziewacz — Former executive director of theCooperative Development Foundation, Ziewacz has formore than 35 years championed cooperative development.

An early career in politicssaw her, at age 26, namedthe youngest female chief ofstaff on Capitol Hill, whereshe became well versed inrural development,agriculture and farm credit,including the myriadcooperative enterprises thatsupport them.

Ziewacz later worked aschief lobbyist for WisconsinFederation of Cooperatives,where she played a key rolein advancing legislation to

foster cooperative growth and helped propel passage ofmajor revisions to Wisconsin’s co-op statute. In 1985, shewas instrumental in launching the Wisconsin CooperativeDevelopment Council, now known as CooperativeDevelopment Services.

Ziewacz was a driving force behind the creation offavorable federal policy for dairy co-ops and theestablishment and funding of USDA’s Rural CooperativeDevelopment Grant (RCDG) Program in the 1990 FarmBill. In 1996, she became executive director of theCooperative Development Foundation and later led theapplication process to secure “DotCoop” as a new top-levelInternet domain for use by the international cooperativecommunity.

Ziewacz currently serves on the boards of the NationalCooperative Bank and Capital Impact Partners, and chairsthe cooperative development committees of bothorganizations. Her clear vision, strategic thinking andacumen for consensus building have enriched thecooperative community. ■

operate under an FMMO, whichprovides uniform dairy prices for milkbased on market prices. Shifting to anFMMO for California supports thedesire of these cooperatives’ dairyfarmers to receive more equitable,market-based milk prices, the co-ops say.

Changes made to the California stateorder before 2011 resulted inCalifornia’s dairy farm familiesenduring unsustainable pricing for theirmilk, the co-ops say in a press releaseannouncing the proposal. Cooperativeleaders from CDI, DFA and LandO’Lakes began advocating for anFMMO to work with the CaliforniaDepartment of Food and Agriculture tocorrect pricing disparity.

As the first step in the process, theproposal requests USDA to announce aregulatory hearing that will provideample opportunity for other dairyindustry organizations, companies andproducers to provide input.

Murr named new VP at NCB National Cooperative Bank (NCB)

has selected Stephanie Murr as assistantvice president and relationship manager

for the bank’sProjectFinance/TaxCredit lendingdivision.

“Stephaniebrings a uniquebackground inboth financeand law,” saysCharles E.

Snyder, NCB president and CEO. “Wehave been fortunate to have workedwith her in our business relationshipwith Strata Solar, where NCB hasfinanced 36 solar projects totaling $156million and 212 megawatts.”

Murr will be responsible forportfolio and relationship management,serving as a primary contact forborrowers, and will work closely withthe loan servicing and closing teams toensure all servicing requirements areproperly understood and accurately

documented. In addition, she willmanage deal flow and business develop-ment as well as work on special projects.

She was a closing and complianceofficer for Strata Solar, where she wasresponsible for closing $103 million instate tax equity, $185 million in federaltax equity, $78 million in term debt and$50 million in bridge debt financingtransactions. She earned a law degreefrom the University of North Carolinaat Chapel Hill and a B.A. in history andpolitical science from Elon University.

Winters is interim CEO at PCCAPlains Cotton Cooperative

Association (PCCA) in Februaryappointed Lonnie Winters as interimpresident and CEO upon theretirement of Wally Darneille, effectiveMarch 1. “Lonnie Winters has spent his

entire career inthe cottonbusiness, and heis highlyrespected in thecotton industryand amongagriculturalcooperatives,”says PCCA

Board Chairman Eddie Smith. “He is astrong, co-op-minded leader, andPCCA will be in good hands while ourboard conducts its search for a newpresident and CEO.”

Winters joined PCCA’s marketingstaff in 1993, and he was promoted tovice president of marketing in 2004.Previously, he worked for HohenbergCotton, now a division of Cargill, andfor W.R. Moore Cotton Co. He alsomanaged Granite Farmers Co-op Ginand farmed in Oklahoma. Winters is apast president of the Lubbock CottonExchange and currently serves on theboard of directors of The Seam, anInternet-based cotton marketing systemthat is co-owned by PCCA.

Founded in 1953, PCCA is a farmer-owned cotton marketing andwarehousing cooperative serving about15,000 members. It is one of the largest

suppliers of U.S. cotton to textile millsaround the world.

Ohio to host Co-op Boot CampMany people who decide to start a

cooperative business do a great jobplanning for the cooperative aspects ofthe business. But they may need helpwith the business aspects of the venture.

The Cooperative Business BootCamp has been thus designed by theOhio Employee Ownership Center tofill the need for the business planningthat is integral for a sustainable andpowerful cooperative business. The 5thannual event will be held April 28 at theAkron/Fairlawn Hilton in Akron, Ohio.

Among the session topics are:“Launching a (Cooperative)Business/Understanding Your Market,An Overview of Business PlanningBasics, Cooperative Business Finances,and Human Resources/RegulatoryBasics for Your Startup CooperativeBusiness,” among many other sessions.

To register, visit:www.oeockent.org/cooperative-development/ohio-cooperative-forum/. To register for the both the Co-op BootCamp and the 29th Annual OhioEmployee Ownership Conference,contact Kelley Fitts at: [email protected] general questions, contact RoyMessing at: [email protected].

NCB real estate loans hit $951 million

National Cooperative Bank (NCB), afinancial institution serving cooperativesnationwide, provided $951 million inreal estate lending during 2014. Thebank arranged more than $593 millionin financing for housing communities,$186 million in new loans for 744individual unit owners and $172 millionfor other commercial real estateprojects across the country.

“2014 was another great year forNCB, as it experienced successfulfinancing throughout the commercialand residential real estate industrynationwide, particularly in the NewYork cooperative housing market,” says


Charles E. Snyder, president and CEOof NCB. “We also experienced loangrowth in other commercial real estateproperties nationwide with the hiring oftwo new commercial real estate businessdevelopment officers.”

Fairmont residents purchase community

Residents of a manufactured housingcommunity in Fairmont, Minn., joinedthe ranks of about 1,000 other suchcommunities around the country bypurchasing their community. Resident-members of Five Lakes Cooperativeworked together to form a Minnesotacooperative corporation, an entityowned and controlled by itshomeowner-members. Cooperative

members, represented in day-to-daydecisionmaking by an elected board,will run the 94-site community for theirmutual benefit.

This new resident-ownedcommunity is the latest suchcooperative among many emergingacross the Upper Midwest. “This hasbeen an amazing experience,” saysKendall Gray, Interim President of theFive Lakes Cooperative. “As a group,we’re committed to owning and

managing our community successfully.There are so many people who live inthis community with so much tocontribute, we’re so happy to havetaken this step of taking control.”

Northcountry CooperativeFoundation (NCF), Minneapolis,Minn., supported the residents’ effortsto organize a new cooperative andprovided governance support andtraining. It also supported thecooperative’s transaction-related duediligence and helped the co-op securefinancing from a national lenderspecializing in such transactions.

NCF is a ROC USA-certifiedtechnical assistance provider, aprofessional network of nonprofitorganizations performing this kind of

community development activityaround the country. NCF works withseven resident-owned cooperatives inMinnesota and Wisconsin, communitieswhose conversion has permanentlypreserved 456 homes as affordablehousing.

“Five Lakes Cooperative residentshave better secured their futures bytaking over ownership and control oftheir community,” says NCF ExecutiveDirector Warren Kramer.

Congress increases funds for international co-opdevelopment

President Barack Obama inDecember 2014 signed legislation thatincreases annual funding for theCooperative Development Program(CDP) to $10.5 million, up 5 percentfrom the last spending bill. ThroughCDP, the U.S. Agency for InternationalDevelopment (USAID) supportscooperative development programs andprojects overseas implemented by U.S.cooperative organizations.

The CDP is a competitive-grantsprogram that responds to the needs oflocal cooperatives and other group-based businesses by drawing on theexpertise and resources of long-

established U.S. cooperativeorganizations, their members andvolunteers. In 10 current grants, theprogram focuses on developing,implementing and extending workable,sustainable solutions to keydevelopment challenges andopportunities in 19 countries.

The CDP impacts 5.7 million peoplein more than 30,000 cooperatives,according to a survey conducted earlierthis year at the request of the Senate


Resident-members celebrate the creation of the Five Lakes Cooperative in Minnesota, one of the nation's newest resident-owned manufacturedhousing communities. It joins the ranks of about 1,000 other such communities around the nation.

Foreign Operations AppropriationsSub-Committee. “The survey confirmsthe impact CDP has on the lives ofmillions of people. CDP demonstratesthat cooperatives can reach the size andscale to lift millions of people out ofpoverty,” says Paul Hazen, OCDCexecutive director.

“The CDP is the only federalprogram that is exclusively focused oncooperatives in the developing world,”says Paul Clark, Overseas CooperativeDevelopment Council (OCDC) boardchair. OCDC’s member organizations,he adds, are helping to “give millions ofotherwise marginalized people theopportunity to own a piece of economicprosperity and join the mainstream ofeconomic and social development.”

Land O'Lakes to acquire FLM+ Land O'Lakes Inc. is acquiring the

assets of FLM+, a leading marketingcommunications and strategicconsulting company with expertise inthe agribusiness and rural communitysector. Land O’ Lakes says theacquisition aligns the growth strategies

of both companies in serving theagricultural industry.

“This partnership with FLM+ willprovide valuable resources within ourfederated co-op system to drive thegrowth of our member-owners,” saysChris Policinski, president and CEO ofLand O’Lakes. FLM+ will become awholly owned subsidiary of LandO'Lakes and “will retain its employeebase.” The marketing communicationsand consulting services of FLM+ willnow be available to Land O’Lakesmember co-ops to help them bettermeet their own growth goals andrespond to emerging marketopportunities.

“Five years ago, Phillip Farmer, JohnLumpe and I set out to create a newkind of marketing and communicationscompany, focused on meeting the needsof agribusiness and rural communities,”says Rob McClelland, FLM+ presidentand CEO. “This new partnership willonly accelerate our commitment topositively impact our valued clients.” ■

fees from USDA’s Farm Service Agency,and they may receive interest rateassistance.

• FarmStart assists farmers in theearly stages of their business when thedemands for capital and financialmanagement skills often make itdifficult to establish their businesses.The program invests working capital ofup to $50,000 to help beginningfarmers’ businesses become operational.Each FarmStart participant is requiredto complete a business plan andmonthly cash flow that serve asroadmaps for their startup business. AFarmStart advisor works with eachparticipant to help the new businessstay on track toward achieving theirbusiness objectives.

• GenerationNext is a seminarseries focused on boosting the overallbusiness knowledge and managementability of participants. GenerationNextis optimal for young people, ages 20 to35, who are involved in the agricultureindustry and are the middle managersor the managers of a farm oragricultural business.

These are just some of the waysFarm Credit East and other FarmCredit associations around the nationare striving to open the doors to careersin agriculture for America’s armedforces veterans. Many othercooperatives are engaged in similaractivities because they know that of allthe great resources found in America,none are more important than itshuman resources.

For more information on Farm CreditEast’s programs to help veterans get startedin agriculture, visit: FarmCreditEast.com/startup. ■

Commentarycontinued from page 2


Following his duty as an Army infantrymanand paratrooper, Pete Frizzell enlisted in theConnecticut National Guard and served as asquad leader with the 29th Infantry Division,during which time his unit deployed toAfghanistan.

Indianapolis to host CCACommunications Institute

Indianapolis, Ind., will host theannual Communications Institute of theCooperative CommunicatorsAssociation (CCA) May 30 – June 2.“Fueling High Performance” is thetheme of this year's conference.Sessions will cover a wide variety oftopics — including writing and editing,photography and social media, amongmany others — all designed to helpsharpen the skills of communicators ofall skill levels and backgrounds.

Attending the CCA Institute is thebest way for co-op communicators tomake connections and networkthroughout the year with others doingsimilar work.

CCA members represent agriculture,utility, credit, food/grocery and manyother types of co-ops. For moreinformation, visit:www.communicators.coop.

workers, which is a topic of growinginterest.”

Beyond statistics, the Monitorincludes several descriptive profiles ofinnovative cooperatives from aroundthe world.

Data for this year’s World Co-operativeMonitor was collected through an onlinequestionnaire addressed directly tocooperative and mutual organizations.

This data then was integrated withexisting databases and data collected bynational associations, research institutes,sectoral organizations and others.

In presenting the study, ICADirector General Charles Gould said“With $2 trillion in annual revenueamong the 300 largest cooperativesalone, this is a sector that is no side-player, but a major, global, economicforce.”

Euricse and the ICA are calling oncooperatives to contribute to the nextedition of the World Co-operativeMonitor. The annual index gathers data

on cooperatives of all sizes across allcontinents, demonstrating theimportant role of co-ops in the worldeconomy. It also aims to create anetwork between cooperatives andmutuals within the World Co-operativeMonitor for greater sharing ofinformation, business intelligence andbusiness opportunities. Submissions arenow being accepted for the 2015edition. For more information, visit:http://www.euricse.eu/en/monitor/quest.

The 2014 World Co-operative Monitoris available at: http://www. euricse.eu/en/worldcooperativemonitor. ■

Global co-opcontinued from page 5

to participate in a variety of communityactivities, such as helping raise funds forcharities, speaking at business and socialevents and becoming a member of thechamber of commerce and/or othercommunity service organizations.

To other cooperatives — the board ofdirectors may select the manager to bethe co-op’s voting delegate or officialrepresentative to other co-ops orcooperative organizations. At theboard’s discretion, the manager mayserve on the boards of other co-ops,such as a federated cooperative of whichthe co-op is a member.

To industry — most industries haveprofessional or trade associations toprotect or enhance their businessinterests. The manager may getinvolved in one or more of the keyorganizations that are closely related tothe co-op’s operational functions.

In governmental matters —

managers who are particularlyconvincing speakers are often calledupon to speak to regulatory officials andpolicy-makers on issues affecting theco-op or its members.

Personal life — even in themanager’s personal life and activities,many people see the manager asrepresenting the co-op. Thus, therepresentative responsibility requires

constant and careful attention at alltimes.

Hiring the right personLike any other business, co-ops

attempt to hire the best manager,offering competitive wages and benefits,performance incentives and retirementprograms. Managers hired by the boardneed sound business judgment,management skills, knowledge of theindustry and an ability to employresources effectively.

When interviewing managercandidates, the board must look for thistype of unique individual. Priorcooperative experience is an advantage,

given that successful cooperativemanagers must understand and embracethe unique principles and practices ofcooperatives and be able to operate thebusiness within that framework.

The board of directors decides whatthe cooperative will do; the managerand key staff decide how it can best bedone — subject to board review.

The manager of a co-op wears many

hats and fulfills a unique positionbetween members, employees and theboard of directors. It is extremelyimportant that the manager and thedirectors on the board all understandtheir distinct responsibilities.

Managing a co-op requires a clearunderstanding of cooperative principlesand business acumen. They need to bewell versed in the fundamentals ofcooperation, as well as in co-opstructure and business operations.Managers must recognize membershipinterests as paramount and fullyunderstand their role andresponsibilities in meeting thoseinterests. ■

Co-op Managerscontinued from page 33


“Mutual respect and a crystal-clear understandingof the differing responsibilities of managers and directors

are vital to a co-op’s success.”

42 January/February 2015 / Rural Cooperatives

Rural Cooperatives / January/February 2015 43

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