Co-ops: New ways of doing business spurred by survival instinct

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Published: May 6, 1999

Manitoba egg producers like Jake Kasdorf are trying to hatch a plan to make more money from their industry.

In the process, they would become pioneers in the next generation of prairie co-operatives.

Kasdorf and his partners want to organize a new generation co-op, hoping it will add marketplace value to the eggs they produce.

As many as 120 egg producers would pool their resources to tap the market for processed egg products. They hope to find a partner in the processing industry.

Producers of other commodities also have been considering the new generation option and co-op watchers expect the interest to grow.

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Kasdorf, an egg producer from Niverville, Man., sees it as a way to make more money and as a back-up plan for his farm if supply management is eroded or destroyed.

“It looks promising,” Kasdorf said. “There are opportunities out there.”

They are considering a relatively new co-operative idea on the Prairies. Unlike traditional co-ops, new generation ones limit membership to those who invest in the venture and commit to selling at least a portion of their production to the plant.

If Kasdorf is one of the faces in the latest co-operative movement, 72-year-old James Cinnamon is the face of tradition.

He understands Kasdorf’s instinct to turn to a co-op as a form of self-help, even if he doesn’t know much about the new generation movement.

Half a century ago, the Carnduff, Sask., farmer was one of the first members when the local co-op store opened. Soon, he was serving on its board of directors.

Fuel and feed were the main products sold by the Carnduff co-op. Hardware and lumber were added, followed by groceries.

Cinnamon served on the board for 37 years, including almost two decades as president. His belief in the co-op is unshakable. He recites his co-op number from memory.

“I just liked the principle of people working together and helping themselves.”

Kasdorf and his colleagues are trying to put that principle to work again, with a new form of co-op.

Murray Fulton, director of the University of Saskatchewan’s Centre for the Study of Co-operatives, sees it as a sign of the future.

He expects more producers will examine the potential of new generation co-ops as they look for more market power.

“It’s not for everybody and it’s not for all enterprises, but in some instances I think it’s another part of the puzzle,” he said.

“My feeling is that farmers and agriculture are moving to the point where independent, isolated farmers are going to have a very difficult time making a go of it.”

About the author

Ian Bell

Brandon bureau

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