Cooperative Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness Notes Page
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Determine the need for the cooperative
What are the goals/motives of forming a cooperative?
What problems are critical to solve before forming a cooperative?
How would cooperative business principles help solve and reach a
common goal?
Cooperative Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness Notes Page
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Voluntary and Open Membership
Democratic Member Control
Member Economic Participation
Autonomy Independence
Education, Training, and Information
Cooperation among Cooperatives
Concern for Community
Cooperative Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness Notes Page
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Hold an exploratory meeting
Select a steering committee
Analyze the Opportunity and Gain Commitment
Conduct a member-use analysis
Conduct an initial market analysis
Cooperative Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness Notes Page
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Conduct a feasibility study
Prepare a business plan
Develop legal papers and hold the first meeting
Articles of Incorporation
Bylaws
Cooperative Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness Notes Page
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Patronage Initial Steps for the Cooperative First meeting of Board of Directors Hold a membership drive Hire a manager Acquire capital Conduct ongoing member relations
Coopertive Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness CE2.1
Piece It Together
01
02
03
04
05
06
07
Cooperative Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness CE2.2
Match the Principles
Concern for Community
Education, Training, and Information
Autonomy and Independence
Voluntary and Open Membership
Cooperation Among Cooperatives
Member Economic Participation
Democratic Member Control
Make cooperatives voluntary; open to all
persons able to use their services and willing
to accept the responsibilities
Select leaders to serve as elected
representatives to be accountable for
membership
Members contribute equitably to capital of
their cooperative
If members enter into agreements with other
organizations, including governments, or
raise capital from external sources, they do
so on terms that ensure democratic control
by their members and maintain their co-op
autonomy
Inform the public-especially young people
and opinion leaders
Strengthen the cooperative movement by
working together through local, national,
regional, and international structures
Work for the sustainable development of
their communities through policies accepted
by members
Cooperative Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness
CE2.2 Key
Match the Principles Key
Concern for Community- Work for the sustainable development of their communities through
policies accepted by members
Education, Training, and Information- Inform the public-especially young people and opinion
leaders
Autonomy and Independence- If members enter into agreements with other organizations,
including governments, or raise capital from external sources, they do so on terms that ensure
democratic control by their members and maintain their co-op autonomy
Voluntary and Open Membership- Make cooperatives voluntary; open to all persons able to
use their services and willing to accept the responsibilities
Cooperation Among Cooperative- Strengthen the cooperative movement by working together
through local, national, regional, and international structures
Member Economic Participation- Members contribute equitably to capital of their cooperative
Democratic Member Control- Select leaders to serve as elected representatives to be
accountable for membership
Cooperative Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness CE2.3
Determine A Common Need
The fundamental reason for establishing a cooperative is to enable a group of people to
accomplish a goal or meet a shared need by working together. Answer the following
questions/prompts to help your cooperative determine a common need.
What are the cooperatives goals? What problems are critical for the cooperative
to solve?
How would cooperative business principles
help to solve problems and reach a common
goal?
How does this differ from other business
structures?
Cooperative Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness CE2.3
Select A Steering Committee
If there is a strong interest in working together to solve a problem, your group is ready to explore
the formation of a cooperative by electing a temporary steering committee. The entire class or
FFA chapter will be too large to plan, shape and draft a proposal for organizing a cooperative to
achieve specific goals, so a smaller group of dedicated people should be selected.
Steering Committee Members
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Cooperative Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness CE2.4
Obtain Support and Approval
A cooperative can succeed only when the majority understand and share a commitment to make
it work. The potential members need to discuss the specific goals, suggest changes and finally
approve the plan. Following a meeting of the class (potential cooperative members), record a
summary of the following:
Specific goals discussed
Suggested changes made by members
Revised goals
Final approval
Cooperative Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness CE2.5
Cooperative Organizational Meeting
Date of meeting:
Members present:
Bylaw adoption:
Board of Directors:
______________________________________________________________________________
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Member Sign-Up:
______________________________________________________________________________
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Cooperative Manager:
______________________________________________________________________________
Policies Guiding Cooperative Activities
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Cooperative Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness CE2.6
Carrying Out The Functions of the Cooperative
In this step, the manager carries out the day-to-day operation of business and ensure that the
policies adopted by the board are followed. The manager hires the staff to conduct the business
operation. The board monitors the operation and initiates any changes in the policies necessary
to strengthen the cooperative. Work with cooperative members to determine a plan for this step:
What are the day-to-day operations the manager will need to carry out?
What staff will the manager need to hire to conduct the business operations of the cooperative?
How will the board monitor the operations of the manager and cooperative?
If needed, how will the board initiate any changes in policy as they see fit?
Cooperative Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness CE2.7
Create Your Own Cooperative Evaluation
Use the documents completed through this lesson to develop a new cooperative proposal. This
proposal should document the following steps taken to create your own cooperative:
Determine a common need
Select a steering committee
Analyze the opportunity and gain commitment
Draft bylaws
Conduct an organizational meeting
Carry out cooperative’s function
Keep members informed
Although your group or class has created these documents, for this evaluation they need to be
transferred into a final document that can be presented to classmates, school administration,
cooperative representatives, etc. as the teacher sees fit. Final documents may include but are not
limited to: PowerPoint presentations, tri-fold display boards or a mock Facebook page.
Use the scoring guide on CE2.8 to guide the development of your document and presentation.
Cooperative Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness CE2.8
Create Your Own Cooperative Evaluation Rubric
Organization, neatness,
completion
Create Your Own
Cooperative Components Presentation
25
points
The presentation tool used
to display the information
is typed, neatly organized
so information can easily
be found and is easy to see
from a distance.
All 7 Create Your Own
Cooperative components are
completed and present in the
deliverable.
All cooperative members
participate in the
presentation and can answer
questions pertaining to the
cooperative and its plan for
creation.
20
points
All 7 Create Your Own
Cooperative components are
present in the deliverable,
but not complete.
All cooperative members
participate in the
presentation, but it is
apparent that there are one or
two leaders in the group.
15
points
The presentation tool used
to display the information
is typed, neatly organized
so information can easily
be found, but is difficult to
see from a distance.
5-6 of the Create Your Own
Cooperative components are
completed and present in the
deliverable.
All cooperative members
participate in the
presentation, but do not
answer questions fully and
completely.
10
points
3-4 of the Create Your Own
Cooperative components are
completed and present in the
deliverable.
Not all cooperative members
participate in the
presentation, but when asked
questions even those who did
not participate can answer.
5 points
The presentation tool used
to display the information
is typed, but the content
lacks organization.
1-2 of the Create Your Own
Cooperative components are
completed and present in the
deliverable.
Not all cooperative members
participate in the
presentation, and have
difficulty answering
questions.
0 points
The presentation tool is not
typed, lack organization
and is difficult to see from
a distance.
The Create Your Own
Cooperatives components are
incomplete or not present.
Presentation was ineffective
at sharing the plan for
creating the cooperative.
Cooperative Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness
CE2.9
Cooperatives in Agribusiness Evaluation
1. Which of the follow is NOT an economic goal or motive of a cooperative?
a. Risk Reduction
b. Achieve Additional Market Gains
c. Provide Missing Services
d. Gain Community Trust
2. What cooperative principle works to strengthen the cooperative movement by working
together through local, national, regional, and international structures?
a. Concern for Community
b. Cooperation Among Cooperatives
c. Member Economic Participation
d. Democratic Member Control
3. (The) __________________ give(s) the cooperative legal standing.
a. Bylaws
b. Patronage
c. Articles of Incorporation
d. Board of Directors
4. This principle operates by using equal voting rights (one member, one vote).
a. Voluntary and Open Membership
b. Autonomy and Independence
c. Education, Training, and Information
d. Democratic Member Control
5. List four of the eight components that make up a business plan.
a.
b.
c.
d.
6. What are three ways cooperatives can acquire capital?
a.
b.
c.
7. Give two examples of ways to communicate with members.
a.
b.
Cooperative Essentials CE2 Cooperatives in Agribusiness
Cooperative Essentials: Cooperatives in Agribusiness
CE2.9
8. Describe the cost-benefit analysis.
9. Explain the role and responsibilities of the Board of Directors.