BRUNKILD, Man. – A funny thing happened when a bunch of rebellious farmers here pulled their grain handling facility out of one of the largest co-operatives in the country.
It sparked a co-operative revival in this community, the likes of which hasn’t been seen for generations.
And it has rekindled a simmering debate over how large a co-operative can get before losing member loyalty.
It highlights one of the toughest challenges modern co-operatives face as they balance efficiency with member service.
“The biggest change I’m noticing in the elevator now is there’s always activity in there,” said Gary Epler, president of the Brunkild Co-operative Elevator Association.
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The association was one of seven in the Manitoba Pool Elevators network that retained ownership of facilities when Pool amalgamated into the line company during the late 1960s.
Last year, members voted to end 67 years of affiliation with the Manitoba Pool over disagreements between the local board and head office. They are now affiliated with the U.S.-based grain marketing firm Benson Quinn Commodities Ltd.
Handling amounts double
And business is booming. Despite plenty of competition in the area, the Brunkild elevator expects to double its annual handling amounts within the first two years of independent operation.
Farmers who hadn’t taken their business to the elevator for years have returned with loaded grain trucks and membership has grown to 150.
“We’ve gained 20 new members who are hauling here, who have never hauled here before,” Epler said.
The break with the Pool was a long time coming.
The local board felt the viability of the elevator was being eroded by head office decisions on staffing and pricing.
The last straw was when area farmers received a letter offering a premium to haul their grain to the pool’s new high throughput facility in Starbuck, about 25 kilometres north.
The Brunkild association was told it couldn’t offer a similar premium, even though it would come from their own earnings.
“They thought they were going to force us to haul our grain to Starbuck,” said farmer Harlan Bestland. “Well, we decided.”
Senior Manitoba Pool officials call the Brunkild pull-out an unfortunate, but isolated incident, caused in large part by misunderstanding.
Chief executive officer Greg Arason said the Starbuck incentive was offered because that facility can load 50-car unit trains.
However, he conceded the decision to build in Starbuck highlights the delicate balancing act between maintaining the company’s long-term viability and serving member needs.
Arason said farmers wouldn’t like the alternative either. “You could take the other approach and sit and wait and not do anything. But when things did happen, you’d be criticized for not being prepared.
“Our responsibility is in making decisions that are in the best interests of Manitoba Pool Elevators as an organization – the company, so to speak.”
