NAICAM, Sask. – Local co-ops are as common to small prairie towns as grain elevators.
Yet today, the small, independent stores that make up the co-op system are feeling the pressures of declining markets and rural consolidation, just as many smaller country elevators were closed as grain handling consolidated business into larger concrete facilities.
For one co-op in northeastern Saskatchewan, it is not a question of downsizing and survival, it is a question of successfully managing growth.
“Planned growth. If we plan for it, it happens and we are able to properly control it,” said co-op manager Gord Dmytruk.
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Patronage payouts
The Naicam co-op has seen a three-fold increase in sales during the past decade. Sales have risen by $1 million over last year to a record high of $9 million for 1996. The $275,000 in patronage payouts has also gone a long way to maintaining a strong membership base in the community, said Dmytruk.
The Agro department provides traditional supplies from fuel to fertilizer and pesticides. Fuel supplies are stored in partnership with the Spalding co-op, 10 kilometres to the south and the fuel depot is located half way between the communities.
Outside the partnership, Naicam offers services like custom combining, custom anhydrous and fertilizer application, and custom spraying.
In just its second year, the demand for custom combining proved greater than the co-op could supply. Two John Deere combines, a 9600 and CTS, provided the backbone to a harvest system that included a Global Position System based field/yield mapping service.
“We want to provide services to smaller farmers that couldn’t otherwise afford to own some of the larger equipment. Not everybody can afford to own all the machinery they need. We are also available to help out members with larger operations who need some extra capacity,” said Dmytruk.
The co-op charges custom harvesting fees in the $12 per acre range and anhydrous rates of $5 per acre. That’s competitive with the lowest custom rates of about $11 for harvest and about $4.50 for anhydrous applications. However, prices can be higher than that depending on demand.
New services
The changing shape of the farm economy has driven the co-op to adapt and the success of the new services will force it to lease two additional CTS machines for 1997.
Other operations include a food store, hardware, lumber yard and a ready-to-move home business. The Naicam co-op employs 40 people in a community of 850.
