Co-op Atlantic

Buying locally  David Hendricks learns how Eastern Canadians, using the co-operative business model of Co-op Atlantic, are making a positive difference in the lives of their fellow citizens by helping to meet their economic, cultural and social needs, while improving their own lives as well.  The concept of a co-operative, or co-op, goes back centuries and is loosely defined as an association of people who choose to unite to meet common economic, social and cultural needs through a jointly owned, democratically controlled enterprise. In the case of Co-op Atlantic, based in Moncton, New Brunswick, its business model is essentially meant to provide members of the organization with quality products and services at minimal cost. The legal control of its business is in the hands of its member-owners, who each have one vote, regardless of how much value theyÔÇÖve accumulated in share capital. Co-op Atlantic was established in 1927 as the Maritime Livestock Board, then changed its name in 1930 to the Canadian Livestock Co-operative of the Maritimes. It was known as Maritime Co-operative Services Ltd. until the end of the Second World War, when it became Maritime Co-operative Services until 1978, when it adopted its current name. Why the name changes? In part, to reflect the times: it was founded among a group of mostly farmers and their relatives, who wanted to keep their livestock prices at a uniform level locally, so that their neighbor-members could rely on and take advantage of meat and dairy products that tended to cost more when transported to regional markets. So ÔÇ£buy locallyÔÇØ became an early refrain. As the organization evolved, it expanded to include other geographical areas, such as the province of Quebec, other foods, and other services offered by its members. The intention was always to keep the costs of these goods and services as low as possible for members. An important aspect of its business model was its democratic team approach, which demonstrated that people from a cross-section of social, economic and cultural backgrounds who live together in communitiesÔÇöfarmers, fishermen, teachers, accountants, trades people, artists, small business owners, homemakers and retireesÔÇöcan work together in a co-operative atmosphere to achieve a mutually beneficial result for all participants. Today Co-op Atlantic is more than a wholesaler; it also sells a variety of agricultural, petroleum and consumer goods, and it owns real estate and housing developments that in total generate annual sales of around C$500 million, via its network of 129 member co-operatives scattered throughout Eastern CanadaÔÇöthe provinces of Quebec, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador, as well as the Magdalen Islands. Collectively these co-op community businesses employ more than 5,000 people and serve about 200,000 member families. There isnÔÇÖt really a typical co-op in terms of goods and services, since those depend on what the members require. For example, fields of business activities can include retail grocery stores with gas bars, truck fleets, industrial and commercial production, banking and credit union institutions, and daycare facilities. One area of significant growth has been the independent wholesale business, also known as private independent sales. In terms of procedure, each co-op branch holds an annual general meeting at which its members exercise their democratic right to elect or appoint its board of directors, as well as auditors, from among members, and the previous boardÔÇÖs report and financial statements are reviewed. Each board appoints, from its own members, a chairperson, a secretary and a treasurer, as well as subcommittees, if necessary; it also appoints a manager, who in turn hires employees and is responsible for the day-to-day operation of the co-operative. The board meets monthly to discuss matters relating to the co-opÔÇÖs affairs and business, which might include loan approvals, membership applications, investments and so on. Since agriculture was the original business of Co-op Atlantic, it has remained one of the foundations of the organization. The agriculture division works with member farmers to ensure that respective producers have the information, products such as feed (the co-op owns four feed mills located throughout the region), seed, farm equipment and so on, as well as the services they need to operate their farms successfully, with the offered assistance of feed representatives providing innovative, customized feeding programs, or animal nutritionists armed with the latest advances in science. Co-op Atlantic has a lab thatÔÇÖs been providing feed testing and analytical services for about 40 years. Its crop specialists attempt to improve performance with high-yield crops. And when theyÔÇÖre made available, Co-op Atlantic purchases the farmersÔÇÖ products (meats, dairy, vegetables, fruits, etc.) and makes them available for members and consumers in member-owned Co-op Country Stores, which carry farming supplies including equine feed, as well as premium pet foods, other pet supplies and wild birdseed; several locations offer drive-through service. Co-op Country Gardens carry plants and materials for landscapers and home gardeners. Cover-All Atlantic is also a part of the agriculture division, as a dealer for Cover-All modular buildings in New Brunswick and Prince Edward Island. Since 1962, Co-op Fuels and Petroleum has provided farmers in Eastern Canada with fuel and energy to plant, cultivate, harvest and transport their crops and livestock, and to power irrigation pumps, heat barns, operate machinery, store crops, and transport products to co-op stores. It also provides the energy to power its grocery and Co-op Country and Co-op Garden stores, and to operate Co-op AtlanticÔÇÖs feed mills. It supplies gas and diesel products, home heating fuel, heating equipment, lubricants and related products to members, who get member discounts on furnace oil delivery. Currently under the co-op banner, members operate eight home heating branches and 39 gas bars. Co-op Fuels operates six home heating branches and four gasoline/convenience outlets; member co-ops directly operate an additional seven Co-op Fuels branches. Avide is Co-op AtlanticÔÇÖs real estate division. It has developed single- and multi-family nonprofit housing, condominiums, and facilities for seniors and people with special needs. It can also design and build neighborhoods. AvideÔÇÖs property management offices, located in Moncton, New Brunswick, and Charlottetown, Prince Edward Island, provide services to 28 independent co-operative and not-for-profit housing groups.