Funding boosts support for British Columbia farm co-operatives
February 29, 2020 - Victoria, British Columbia - Agriculture and Agri-Food Canada
Enhanced guides on starting and financing farm co-operatives in British Columbia (B.C.) will help farmers build their businesses by providing information on how to pool resources and market their products collectively.
The recently updated Agricultural Co-operatives Start-Up Guide outlines an easy five-step process to help farmers create a new local co-op, while the Financing Agricultural Co-operatives Guide provides funding options for co-op farms. Supports specific to agricultural co-operatives are unique and the updated guides will help farmers throughout B.C. work together to build their businesses and develop new markets.
Co-operative business models help groups of farmers by increasing their bargaining power, creating new market opportunities, lowering costs, decreasing business risks and taking advantage of economies of scale. Co-ops are often managed by members, and each member maintains their autonomy and independence, allowing farmers to support each other while also working toward a common business goal.
Farmers operating small or medium-sized farms benefit from a strengthened presence in the marketplace by working with other growers facing similar challenges and opportunities and achieving efficiencies together. The co-op model helps producers of different sizes and locations enhance and grow economies in smaller B.C. communities.
Originally produced in 1997, the updated guides include case studies to illustrate the types, benefits and impacts of agricultural co-ops; guidelines for business operations; financing practices; and references to additional resources that will benefit farmers interested in starting their own co-operative business.
The guides are funded in part by Grow BC, a mandate commitment of the Ministry of Agriculture that supports new and existing farmers to develop their careers, expand local production and access affordable land. Additional funding to support the guides was provided by the governments of Canada and British Columbia through the Canadian Agricultural Partnership, a federal-provincial-territorial initiative to strengthen the agriculture, agri-food and agri-based products sector.
"There are many leading examples of co-ops in British Columbia, and across Canada, but it can be hard for a group of producers to know how to go about creating one. Our Government is pleased to be teaming up with the province to provide this guidance to producers, because the rewards of forming a co-op can be great. Co-ops continue to make important contributions to the sustainable development of our rural areas – they offer producers the advantages of large-scale business, while benefitting many individual producers."
- The Honourable Marie-Claude Bibeau, federal Minister of Agriculture and Agri-food
"We’re creating more opportunities for farmers to get into the field and bring additional farmland into production. With the updated guides, farmers can learn about the benefits of co-ops and how this model can help grow their businesses."
- Lana Popham, B.C.’s Minister of Agriculture
"Co-ops have a long history of being part of B.C.’s agricultural sector. As a member services organization dedicated to supporting co-ops across the province, we’re pleased that resources such as the updated guides are available to support farmers interested in exploring co-operative solutions."
- Andrea Harris, Executive Director of the B.C. Co-op Association
"Co-operatives provide an alternative business structure that helps producers access services, resources and markets for their operations. It is a positive sign that B.C. is supporting a business model that helps to empower producers, reinvest profits in local communities and develop capacity within the sector."
- Chris Bodnar, Manager, Close to Home Organics
In 2019, there were approximately 86 active agri-food co-ops in B.C.
An online survey of 34 B.C. agri-food co-ops conducted by Kwantlen Polytechnic University in 2019 noted that:
- 47% of respondents grow, process and/or market products produced by their members.
- 81% of respondents sell agri-food products and related farming supplies.
- 89% of respondents received $50,000 in net profits in 2018, approximately three co-ops received more than $100,000, and two received more than $5 million in net profits.
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