Through Recession, Cooperationworks Members Assist
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Spring 2013 netWA news update from CooperationWorks! rks—the center of excellence for cooperative business development What’s Through Recession, CooperationWorks New Members Assist in Job Growth ook around. What’s in the news? pact of our members’ work, collecting maximizing the impact of Federal Media is flooded with stories data from 18 member Centers about funds they receive. For every $1,362 L about an unstable economy, cost business development performance Federal dollars invested in a CW CooperationWorks! of living increases and wage stagna- and job creation. This survey is a Center in 2011, a job was saved or is a member service tion, and volatile gas prices. Within continuation of a study conducted in created. With fewer staff and Federal cooperative of cooperative this economic distress are beacons 2009. resources, CW Centers’ efficiency is business development of hope, stories about the positive Between 2009 and 2011, CW comparable to the much larger Small professionals working together impact co-op development is having Centers assisted in the development Business Administration, who in 2010 to revitalize communities on our economy and within com- of 276 new businesses, of which 154 reported $1,760 of federal funds munities. It is work being supported, were cooperatives. During this period, spent for every job created. through effective cooperative in part, by members of Cooperation- 6,050 jobs were created or saved. The The ability of CW Centers to enterprise development. Works. The impact of Cooperation- projects highlighted in this issue of impact both rural and urban com- Works (CW) is not just illustrated Networks alone created over 20 jobs, munities is stretched by leveraging with stories of human triumph, but it and as important restored essential these Federal funds — $2,847,121 of is proven in numbers. services in rural communities. non-Federal funds were leveraged in To learn more about Over the past year, CW conducted The survey results proved CW CooperationWorks! a survey to measure the economic im- Centers to be highly capable at JOB GROWTH cont. on pg. 16 contact: SARAH PIKE CO-OP JOBS IMPACTED email: Jobs Saved and Created by Each Center (median) [email protected] web: 2008 2009 2010 2011 www.cooperationworks.coop 43.5 15 12 11 11 Jobs saved 2 4.75 3.75 Jobs created NATIONAL EMPLOYMENT June ‘08 Employed Labor Force (number in thousands) Source: Bureau of Labor Statistics 145,738 June ‘09 June ‘10 June ‘11 140,003 139,137 139,385 Inside: CenterNews CooperationWorks! members facilitate a broad range of critical cooperative busi- ness development activities that enhance income and economic opportunity in com- munities across the county. Some of the Centers’ current projects are detailed inside. Center News The Co-op Market Grocery & Deli is planning a soft CW OFFICERS ALASKA COOPERATIVE opening in March. A formal, grand opening, is planned Chair DEVELOPMENT PROGRAM for later in the spring. In the near future we will see how Deb Trocha For information, contact Andrew Crow at the store opens opportunities for farmers and ranchers Indiana Cooperative 907-786-5447 or [email protected] in Interior, Alaska. In the meantime, if you happen to Development Center find yourself in the land of the midnight sun, stop by the The Alaska Cooperative Development Program (ACDP) is a part round building on Gaffney Street and see the store the Past Chair of the University of Alaska Center for Economic Development at people of Fairbanks have built for themselves with some Stuart Reid Anchorage. It was organized to foster development of cooperative help from USDA. Food Co-op Initiative business enterprises in rural Alaska, and to help Alaska producers and consumers use cooperatives to provide economic base activi- Vice Chair ties that can spur rural economic development. CALIFORNIA CENTER FOR Bill Stevenson Rocky Mountain Farmers Union COOPERATIVE DEVELOPMENT Cooperative Development Center Farthest North Food Co-op Opens! For information, contact Kim Coontz at By the time you read this, the Nation’s farthest north 530-297-1032 or [email protected] Secretary food co-op will be open for business in the old Foodland Bob Noble Building in Fairbanks, Alaska. The Fairbanks Community The California Center for Cooperative Development promotes Keystone Development Center Cooperative Market is the realization of an idea sparked cooperatives as a vibrant business model to address the eco- in 2006 by Dave Lacy, a Fairbanks activist. Since then the nomic and social needs of California’s communities by provid- Treasurer project has been moved along by a host of people and ing education, coordination, and technical assistance. Sarah Tyree organizations, even surviving Dave’s death to cancer. On CoBank Using Cooperatives to Transform Communities the eve of its opening the co-op has 1500 members, who A testament to the adaptive use of the cooperative have raised nearly $1.6 million dollars. The store has Member at-Large business model is the upsurge of worker cooperatives hired 7 employees, and expects to have 19 on staff when Emily Lippold Cheney developed to create jobs in underserved communities. Independent Consultant they are fully open, but its potential The California Center for Cooperative Development has impact is much greater. embarked on the creation of such cooperatives in two More than 90 percent of Fair- CIRCLE CHAIRS California communities: Richmond, an urban commu- bank’s food is imported from Leadership nity near San Francisco, and Lompoc, a rural community other states. All this imported Deb Trocha about 250 miles northwest of Los Angeles. food comes thousands of miles Indiana Cooperative Besides their urban/rural differences Richmond and either through one port, or Development Center Lompoc are surprisingly alike. Both communities have over one road through Canada. unemployment rates that are among the highest in the Networking Alaska’s agricultural sector is the nation and both are distinguished by distinct inner-com- Emily Lippold Cheney smallest in the nation and is domi- munity income disparities. They are also ethnically and Independent Consultant nated by small farming operations which can’t get much racially diverse, with no distinct majority group. space in large grocery chains. Rob Leach, the co-op’s Susan Davis The cooperative model used in each community is a board chair, expressed the co-op’s approach in comments Independent Consultant non-traditional build and recruit model. Community to the Fairbanks News Miner; “We need to be locally members, who may or may not ultimately be cooperative Membership self-sufficient. If you’re going to wait for government to members, are intricately involved in every aspect of devel- Jan Tusick solve these problems, it’s going to be a long, long wait. We opment—from business idea, economic feasibility study Mission Mountain need to do it locally, and we need to do it for ourselves.” and launch. Cooperative members enter the cooperative Food Enterprise & The co-op has been the vehicle to do just that. The News at the very end of the process. This model is used with Cooperative Development Center Miner pointed out that “[T]he new store has something groups who have very few resources to devote during the Advocacy the other stores never did — a dedicated band of hungry development process. Besides financial constraints, the Tom Pierson locavores willing, literally, to put their money where their most significant resource target members lack is control Independent Consultant mouths are.” over their schedules. They often take casual jobs when Not waiting for the government is not the same as not Professional Development they become available or they have jobs that announce working with government. And the Fairbanks Market has Teresa Young work schedules weekly, or more commonly, one day at Northwest Cooperative made good use of government resources. Over time they Development Center have turned to the Northwest Cooperative Development Center and the Alaska Cooperative Development Program for assistance with basic organization, and have moved on to get more specialized assistance from CDS Consult- ing and the Food Co-op Initiative. All of these organiza- tions receive support from the USDA Rural Cooperative Development Program. The co-op has also worked with Golden Valley Electric Association, the local electric coop, to set up a revolving loan fund with a grant from USDA’s Rural Economic Development Loans and Grants program. 2 This has let the co-op get the most from its efforts and to Lompoc community members created a video and launched a crowd- overcome challenges more quickly. funding campaign through the web-based program Indigogo. They raised more than $7000. a time. This complicates many aspects of their everyday family lives, and also makes commitment to cooperative Lee Ruth: Certified Cooperative Hero development meetings almost impossible. “In development, CCCD contributes the cooperative Lee Ruth, a key leader in the development strated over and over again by his innovative development expertise, partners with local community of CooperationWorks! will be inducted into leadership in so many roles in the cooperative leaders and draws on the best practices from other coop- the “Cooperative Hall of Fame” on May 8, world. erative incubator programs to create unique opportuni- 2013. The Cooperative Hall of Fame award According to longtime cooperative activist, ties for people who would never have the opportunity to was established by the National Cooperative