The key differences between a co-operative and a company show that both business structures have their benefits, however the following reasons make a co-operative structure the best choice for Yenda Producers.
The Principles of a Co-operative
All co-operatives are generally governed by the same seven core principles, which were adopted by the International Co-operative Alliance in 1995. The principles, listed within Section 10 of the Co-operative Nation Law, are:
1 Voluntary and Open Membership;
2 Democratic Member Control;
3 Member Economic Participation;
4 Autonomy and Independence;
5 Education, Training and Information;
6 Co-operation among Co-operatives;
7 Concern for the Community.
Further information on the seven principles can be located via the following links: http://ica.coop/en/whats-co-op/co-operative-identity-values-principles http://www.legislation.nsw.gov.au/maintop/view/inforce/act+29+2012+cd+0+N/
Adoption of the Co-operative National Law (2012,) (CNL) Co-operatives are administered by the regulatory body within their respective state. In the instance of NSW, this body is the Department of Fair Trading. Each state traditionally had their own Act which gave rules and guidance to their state. In 2012, the CNL was introduced and superseded any State Act if that state adopted the CNL. As it stands, the states of New South Wales, Victoria, South Australia, and Tasmania have adopted the CNL with the remaining states electing to continue using their existing Act. The main purpose of the CNL is to allow for a uniform Federal Act to preside over all states equally, aimed at easing cross-border trade.
a) Allowing members to collectively achieve a goal. This can be demonstrated through the use of a combined buying power which passes on the better prices to the member, and investment into capital items such as fertiliser spreaders and trucks for the benefit of the members.
b) Ownership and voting power in a business. The low cost of membership allows for anyone to have equity in the Yenda Prods. In addition, membership allows a member to vote on the direction of the Yenda Prods at the AGM, and
c) Financial returns. A member is rewarded in 3 ways; (i) through dividends, (paid on current shareholding) (ii) rebates (% return based on annual dealings with the co-op) (iii) reinvestment by the co-op into improved assets and member services. Dividends and rebates are paid annually based on the performance of the co-op for the current financial period and at the discretion of the board. All members must maintain active trading with the co-op ensuring all members contribute to the success of the Yenda Prods.
A co-operative provides returns to other stakeholders within the community. This is achieved by employment of local staff, support to local education centres, charities and sporting groups. As a business that relies on local members for support, the Yenda Prods endeavours to source the majority of its business supplies locally.
Joining the Yenda Producers Co-operative is a low-cost, mutually beneficial choice.
As a member, you are part of the success of the Yenda Prods and in return you share in that success. The interconnected journey of the Co-op ensures that members have an opportunity to contribute to and shape their Co-op.
The key benefits:
YPC has historically paid its members a rebate and dividend. The level of benefit is directly related to the performance of the Co-op in any financial year. Between 2015 – 2017, YPC has paid its members a rebate of 2% and a dividend of 5%, culminating in a return to its members in excess of $2.5M for the two years. Recently, there has been only one year in which a rebate was not paid. This was in 2003 and was directly attributed to the drought.
Buying Power & Discounts
YPC has direct accounts with all major suppliers for fertiliser and chemicals. This allows members to source almost all products at a competitive price, equal to if not better than national sized competitors.
Services: Through YPC’s investments in trucks, spreaders, and loaders, the members are able to source services that would not normally be feasible as an individual investment. This allows the members to increase efficiency in their farming practice while also increasing the emphasis on being a member.
Support Local Charity, Education and Associations
As a member-based business, YPC recognises that the majority of its owners live locally. Thus, the Co-op supports numerous community groups through donation of services (e.g. spreading of fertiliser for local sporting grounds), financial support through sponsorship, and providing donations for fundraising activities.
To become a member, please download and fill out this application form and then submit it in person at one of the Yenda Producers branches in Yenda, Leeton, or Griffith.
Join Yenda Prods
To become a member of the Yenda Producers Co-operative, please download and fill out the application form and then submit it in person at one of the Yenda Producers branches in Yenda, Leeton or Griffith.
For questions or information on the Rules and Guidelines of the Co-operative, please call (02) 6961 3300.