Rural COOPERAUSDA / Rural Development TIVESJanuary/February 2004 USDA / Rural Development January/February 2004 FreshFresh approachapproach atat co-opco-op produceproduce auctionauction COMMENTARY International co-op development promotes trade, democracy Cooperatives yield enormous bene- might be adopted for use in their Chinese. The U.S. style of cooperative fits not only to their member-owners in native lands. structure, where farmers are the own- the United States, but also around the Of course, USDA cooperative pub- ers and beneficiaries of a business, has world. USDA has long been active in lications are in high demand by these obvious global appeal. helping to spread the use of the coop- groups and by others around the Most direct international technical erative business structure international- world. Many of our basic cooperative assistance provided by RBS ly, a charge contained in the Cooperative Services is closely linked Cooperative Marketing Act and other to assistance efforts by other USDA legislation. This work may be accom- agencies. For example, the Nigerian plished through the exchange of educa- By helping assistance effort (reported on page 12 tional and research materials, engaging of this issue of Rural Cooperatives) is in joint activities, providing direct tech- developing nations part of an overall USDA initiative to nical assistance to agricultural produc- help the Nigerian Ministry of ers and even by stationing representa- adopt Western- Agriculture achieve broad-based rural tives at institutions or with farm orga- development objectives in agriculture. nizations in foreign countries. Technical expertise in Nigeria is also Since Congress has not specifically style cooperative being supplied by USDA’s Cooperative provided a budget for international co- State Research, Education & Extension op development work carried out by business structures Service, Foreign Agricultural Service, the Cooperative Services program of Agricultural Research Service, Food the Rural Business-Cooperative that raise farm Safety and Inspection Service, Natural Service (part of USDA Rural Resources Conservation Service, Animal Development), most of our assistance and Plant Health Inspection Service and over the years has either been through incomes, we will Agricultural Marketing Service. information exchanges and meetings or In a neighboring West African through in-country technical assistance build stronger country, cooperative development and (usually funded by international donor education work is at the centerpiece of groups). Countries receiving this assis- trading partners a partnership between USDA and tance tend to follow the thrust of U.S. Ghana’s Ministry of Food and foreign policy direction at a given time and related Agriculture. Several of the other (hence, Central and South America in USDA agencies named above are also the 1960s and 1970s, the Pacific Rim involved in a wide range of joint pro- in the 1980s and Africa in the 1990s economic jects to strengthen Ghana’s agricultural and at present). Significant historical sector. Projects are underway to events have also played a part in relationships. strengthen the farmer cooperative sys- directing these efforts, such as the fall tem in Ghana by adapting contempo- of the Iron Curtain and a resulting rary cooperative principles and busi- emphasis on developing co-ops in ness practices to that nation’s needs. In Eastern Europe. publications have been reprinted in so doing, cooperatives should become RBS Cooperative Services also hosts foreign languages and are widely dis- more effective competitors in the mar- hundreds of foreign visitors annually tributed around the globe, both in ketplace and generate more income for (usually farm organization representa- hard copies and through the Internet. their farmer members. tives and government officials) who are For example, one of our basic co-op RBS Cooperative Services-directed interested in U.S. cooperatives and primers, “Co-ops 101” by Donald projects in Ghana, done in partnership how their practices and operations Frederick, was recently translated into continued on page 35 2 January/February 2004 / Rural Cooperatives Rural January/FebruaryCOOPERA.COOPERA 2004 TIVESTIVESVolume 71 Number 1 Rural COOPERATIVES (1088-8845) is published bimonthly by Rural Business–Cooperative Service, U.S. Department of Agriculture, 1400 Independence FEATURES Ave. SW, Stop 0705, Washington, DC. 20250-0705. The Secretary of Agriculture has determined that publication of this periodical is necessary in the 4 On the front line transaction of public business required by law of Field representatives are the eyes and ears of a co-op the Department. Periodicals postage paid at By Catherine Merlo Washington, DC. and additional mailing offices. Copies may be obtained from the Superintendent of Documents, Government Printing Office, Washington, 8Wisconsin co-op offers fresh approach DC, 20402, at $21 per year. Postmaster: send address change to: Rural Cooperatives, USDA/RBS, Stop to produce auctions 3255, Wash., DC 20250-3255. By Pamela J. Karg Mention in Rural COOPERATIVES of company and brand names does not signify endorsement over 11 Agribusiness, co-ops awarded $28 million other companies’ products and services. in USDA grants Unless otherwise stated, contents of this publication are not copyrighted and may be reprinted freely. For 12 Boosting the giant noncopyrighted articles, mention of source will be USDA assistance effort helping Nigerian producers appreciated but is not required. By J. Haskell, G. Ely & J. Jobe The United States Department of Agriculture (USDA) prohibits discrimination in all its programs and 15 African ag co-ops leading fight activities on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual against HIV/ AIDS orientation, and marital or family status. (Not all prohibited bases apply to all programs). Persons By Susan G. Schram with disabilities who require alternative means for communication of program information (braille, large 16 Meeting the test print, audiotape, etc.) should contact USDA’s TARGET 8,200 service calls in 24 hours tests mettle of Center at (202) 720-2600 (voice and TDD). Adams Electric Co-op To file a complaint of discrimination, write USDA, By Steve Thompson Director, Office of Civil Rights, Room 326-W, Whitten Building, 14th and Independence Avenue, SW, Washington, D.C. 20250-9410, or call (202) 720-5964 21 Co-op leaders focus on strategies for success (voice or TDD). USDA is an equal opportunity provider and employer. By Kimberly Zeuli Ann Veneman, Secretary of Agriculture 23 How business culture drives Gilbert Gonzalez, Acting Under Secretary, economic behavior in co-ops USDA Rural Development By Julie A. Hogeland John Rosso, Administrator, Rural Business- Cooperative Service 28 Farmer co-op sales, income fall in 2002 By Eldon Eversull James Haskell, Acting Deputy Administrator, USDA Rural Business-Cooperative Service Dan Campbell, Editor DEPARTMENTS 2 COMMENTARY Vision Integrated Marketing/KOTA, Design 10 VALUE-ADDED CORNER Have a cooperative-related question? 20 FOCUS ON… Call (202) 720-6483, or Fax (202) 720-4641, Information Director, 30 MANAGEMENT TIP 32 NEWSLINE This publication was printed with vegetable oil-based ink. On the Cover: The goal of the Badgerland Produce Co-op Auction in Montello, Wis., is to United States Department of Agriculture sell produce at a fair price – for both farmers and buyers. Article on page 8. Photos by Pamela J. Karg Rural Cooperatives / January/February 2004 3 On the front line Field representatives are the eyes and ears of a co-op By Catherine Merlo hood of his silver Dodge Durango, Minnesota dairy producer. miles from the headquarters of Each of these men is a field repre- Editor’s note: Merlo is a Bakersfield, California Planting Cotton Seed sentative for an agricultural coopera- Calif., based freelance writer and editor Distributors (CPCSD), his employer. tive, a role that’s vital as “the liaison who is a frequent contributor to this and Larry Seamans regularly reports to between management and member,” other co-op publications. work for Maryland and Virginia Milk according to Dave Baker, director of Producers at a dairy barn or milk member relations for Blue Diamond n any given day, Bill Van hauler’s station. Growers, the almond co-op based in Skike’s office might be a It’s not unusual for Land O’Lakes’ Sacramento, Calif. California cotton field, a Ray Cherry and one of his field staff to Although their specific responsibili- O coffee shop or even the meet at the kitchen table of a ties vary from co-op to co-op, field Tom Burlando, field representative for Diamond of California, guides a camera crew through a California walnut orchard during filming for a cable TV food show. Photo courtesy Diamond of California 4 January/February 2004 / Rural Cooperatives about the co-op,” says Richard “There’s a lot of flexibility and free- Stadden, a cotton grower from Tulare, dom in the job,” says Jeff Bitter, vice Calif., who belongs to two co-ops and president with Allied Grape Growers, serves on the board of one. “A member a 500-member co-op based in Fresno, has to have confidence in the field rep, Calif. Bitter oversees the co-op’s four- who not only needs to know the nuts member field staff. “A field representa- and bolts of the co-op but have real tive needs to be active in the grower enthusiasm for it.” community, to regularly provide new A background in agriculture, biolo- information and insight, to take the gy — even finance — helps co-op field initiative to gather information from representatives provide expert service buyers.” to members. But personality may count most of all. Necessary knowledge “I can teach a person what he or she Soliciting new memberships, keep- needs to know about the co-op and the ing farmer-members informed on state “I can teach a person what he or she needs and federal regulations and reporting to know about the co-op and the industry. industry,” says Van Skike, who is also But I can’t give them the personality that president of the 1,600-member on marketing conditions are part of farmers relate to,” says Bill Van Skike, here CPCSD.