Posted 26th June 2001

Cooperation Outlives The Competition

Collective amnesia of all events before 1985 is a serious problem in New Zealand, especially in respect of just what a leader in alternatives to `free market' `laize faire' New Zealand has been and can be, what a leader in Kiwis are in having established cooperatives that outlived anything done in the so-called socialist economies.

Cooperatives are not new to Nelson and New Zealand. Farmers especially have long recognised the financial strength gained from buying and selling collectively. New Zealand's most significant example of a successful cooperative is the Global Dairy Company. Other well known examples include Combined Rural Traders, PPCS - the Dunedin based meat processor, the PSIS and the highly successful Foodstuffs which was formed by the owners of New World and Pak 'N Save supermarkets among others.

What are not so common in New Zealand are worker and consumer co-operatives. In the case of the former, workers are part owners of the businesses in which they work. In the case of consumer co-operatives, consumers become part owners of the businesses from which they purchase goods. Apart from being able to buy goods more cheaply, consumer co-operatives serve to strengthen a feeling of connectedness within the community.

Nelson is soon to see the establishment of a consumer co-operative. Currently around 60 people/families have paid the refundable $100 investment to apply to become member-owners. Using impressively successful cooperatives in the States as models, consideration is being given to

* member-owners benefitting financially by being able purchase goods at a discounted rate and/or receive a dividend based on the volume of their purchases

* casual shop workers being able to buy goods at a discounted rate

* employees being able to become part of the co-operative.

In North Carolina, Carrboro's Weaver Street market began in 1988 and today has 3500 consumer owners. Carrboro is a town of 12,000 and adjoins Chapel Hill, a university town of approximately 40,000 people. Weaver Street Market began with a debt to equity ration of 70:1 with almost all sales to non-members. Since then, member sales have grown to almost 50% of sales of $6.7 million and the debt to equity ratio has improved to about 1:1. For further information their website is www.weaverstreetmarket.com

Bellinghams Community Food Co-op in the state of Washington began in 1970 with a store size of 800sq ft. Two relocations later the Co-op has come to occupy an area of 9600 square feet and has several thousand member owners. For further information see their website http://groups.yahoo.com/group/Co-opMemberAffairs

In many communities around the world, including places as diverse as Maleny in Queensland and Mondragon in the Basque area of Spain, a large proportion of businesses are run co-operatively. Cheticamp, a town in Nova Scotia on Canadas eastern seaboard is another example. Its co-operatives include a co-operative retail store, a fish co-operative, a Credit Union, a young workers co-operative, an insurance co-operative, a housing co-operative and a hospital that is owned co-operatively.

A recent seminar at the Nelson Marlborough Institute of Technology that was sponsored by Biz Nelson, explored the scope for co-operatives in the Nelson region in general. Tim Dyce the CEO of the Asia Pacific Co-operative Training Centre in Sydney stressed the need for communication and particularly the need to ensure that member-owners can openly debate things that are concerning them. He also stressed the need for the training of directors and illustrated the need for caution with the case of a fruit-processing co-operative in an Australian country town that went into liquidation. Copies of Tim's 16 page paper asking (and answering) where did co-operatives come from? what is a co-operative enterprise? what are the benefits of a co-operative? what are the pitfalls of a co-operative? and how might co-operative enterprises benefit the nelson region? are available for $10.00 from P. O. Box 984, Nelson.

The seminar focussed on the emerging prospect of Nelson's 7 year-old Organic Green Grocer changing its character from being owned by 2 families to being a co-operative. Looking ahead it is hoped to facilitate consumer co-operatives similar to that being developed in Nelson being established throughout New Zealand. This would have the obvious advantage of strengthening their buying power especially if linked to similar co-operatives overseas.

More information about the Nelson Co-operative development can be obtained by writing to bdyer@prout.org or PO Box 984, Nelson. .