1. Co-operatives: The Changing Landscape
CBU Community Innovation & Social Enterprise Conference
July 2017

2. Are co-operatives still relevant in an age of globalization?
Two theories: 1. Co-ops are outdated and becoming obsolete:
Cooperation is a congregation of "too many", unnecessary in an environment congenial for competition. It promotes inefficiency and wastage.
Despite bulge in number of membership, provision for capital often falls short of sufficiency.

3. Theory 1: Lack of state of the art technology is often experienced
Inefficiency brings about lower profitability leading to poor incentives
Members don’t see a Co-op as their “business” and therefore don’t support it accordingly

4. Theory 1:
The “democracy” co-operation is said to promote and sustain, is a myth
Inside the operations they are controlled and manipulated, and led by incompetent management just as much as private sector enterprises

5. Theory 2: Co-operatives are more relevant than every before.
In the face of fierce competition in the age of globalization, co-operatives provide a soothing, stable effect in society by creating an atmosphere where individuals can help each other
Capital & technology is no more a constraint in a co-operative than it is in any business. On the contrary, co-operatives provide the opportunity for successful mobilization of resources for better management of economic activities.

6. Theory 2:
Democracy is not perfect but it gives one a chance to shape their own destiny
Co-operatives uphold certain values, it underlines the need for a making a decent living, in collaboration with others, based on mutual help and trust.
Co-operatives lift the poor
Examples abound where co-operation has been proved a huge success.

7. So, What’s Happening?
Significant consolidation: Agropur (Quebec) had 11 acquisitions in the last 5 years, including Nova Scotia’s Scotsburn and Farmers Co-operatives

8. Agropur Largest Dairy Producer in Canada 5th in North America
20th in the world

9. Supply Management will have an impact.
135 American farms and 5 plants produce and process as much milk as all of Canada
40% of output at risk
$2-3.5 billion reduction in Canada’s GDP
24,000 jobs lost

10. So, What’s Happening?
Competition is tough. Little consumer loyalty. Price drive. Trends towards sell out & mergers.
Atlantic Canada had 128 retail co-operatives in Today, there are 60.

11. An opportunity exists for the 60
To get back to their roots of being a true community owned grocery store – living their Co-op values.
Be part of the local food, and food security challenge

12. Credit Unions Mergers and consolidations to gain economies of scale
Digital age – few customers are interested in bricks and mortar
Can no longer use the word “Bank”

13. NS Landscape Large scale changes at the macro level
Large scale interest at the micro level
Incorporating on average between 15 – 20 new
co-operatives annually
Millennials are disruptors: not business as usual. Socially and community conscious. Values based. They are embracing collective solutions and ownership, double and triple bottom lines.

14. Emerging Co-operatives
Health care
Senior care
Transportation
Communications (internet, wireless)
Social Services (housing, addiction services, daycares)
Resource industries (forestry, fishery, farming, green energy)
Investment/Capital

15. Social Enterprise Sector
Is maturing and is naturally aligned with the co-operative business model (such as Ability Wood Products Co-operative)

16. Global Dynamics….
People are looking for sanity – a way to be meaningfully connected – in a world that is so uncertain at this time.
Co-operatives are a natural “go to” solution.

17. Discussion… What do you think?