nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

How the Cooperatives Association Supports Member Businesses

Ramsey MargolisExecutive Director

UPDATE

D

1

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE R ATIVEE D U C ATI O N S E M I NAR nz•coop

NEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE R ATIVEE D U C ATI O N S E M I NAR

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

2

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

Two words

• Advocacy

• Education

3

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

Since 1984

• New Zealand Agricultural Cooperatives Association formed

• 1992 : new Companies Act left out cooperative business

• Through regional seminars wrote the Cooperative Companies Act

4

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

1997

• Cooperative Companies Act 1996

• NZACA changes its name

• 20 people at the 1998 AGM

5

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

Members use...• Industrial and Provident Societies Act 1908

• Incorporated Societies Act 1908

• Friendly Societies and Credit Unions Act 1982

• Companies Act 1993

• Cooperative Companies Act 1996

• Corporations Act 2001 (Australia)

• Farmers Mutual Act 2007

6

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

Why join?• Broader approach

• Principle of mutuality

• Cooperative + credit union + mutual

• Representing member-owned businesses of different types

Taking our cooperatives and mutuals

seriously

7

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

So, what have we done?

• Not everything we do is important for every member

• Watching brief on reviews of laws and regulations

• Negotiate class exemptions

• e.g. Financial adviser legislation

8

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

Accounting Standards

• A very important issue

• Members took this very seriously

• War chest : 2007 annual subscription

• IASB / FASB / JASB merge standards

9

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

Government

• Never an easy relationship

• Ministers are always busy

• Political parties do not understand needs of member-owned business

• “Neutrality” = blind to our needs

10

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

Ministers & Ministries

• Minister of Commerce

• MED + MAF + MFAT + TPK

• Must not forget smaller parties

• NZdotCoop is a business association

11

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

• Communications – very important

• Cooperatives News – award winning

• Cooperatives NEWSFlash

• Website, with public and member areas

• Media releases, letters & articles

12

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

Professional institutions

• “We advise our advisors”

• LawyersAccountantsCompany Secretaries

• Economic Development bodies e.g. Far North D.C.

13

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

Co-op Advisory Group

• Pool of different skills and experience

• Cooperation among cooperatives

• Setting up new cooperatives

• Issues within existing co-ops

• Legal + accounting + structural

14

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

Dating Agency

• Looking for a non-elected director?

• With particular skills and expertise

• Also need to know how co-ops work

15

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

• Branding – it’s your USP

• As well as .co.nz, not instead of

• New Zealand, Australia, China, Japan and the Pacific

16

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

Visiting Specialists

• Overseas co-op specialists

• From North America, Australia, Europe and the UK

• Offer forums, seminars & consultancy relationships

17

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

International Cooperative Alliance

• Where ICA activities fit the focus of New Zealand co-ops and mutuals

• Not all the work the ICA does is useful

• IAS issues + IYC + ICBA & EACB

• business opportunities – notjust for exporters

18

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

UN IYC 2012

• Celebrating the UN International Year of Cooperatives 2012

• Two aspects:

• Co-ops and mutual business in general

• Your business

19

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

U.S.A.• National Cooperative Business

Association

• University of Wisconsin + others

• USDA – Rural Cooperatives

• Cooperative Communicators Association

20

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

• Individual co-ops doing well

• Except in WA, inadequate support for state associations,

• Social Business Australia

• Using the UN International Year of Cooperatives 2012

21

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

Education• Cooperative education seminars

• Governance: The LEADing Board

• NZ tertiary institutions, e.g. Massey

• MMCCU @ St Mary’s University, Canada

• Kellogg Rural Leadership Programme

• Secondary schools

22

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

The words we use

• Shareholders –> Members

• Corporates –> Investor Owned Firms

• Capital restructure -> Profit restructure

23

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

Networking Lunches

• Two in 2010, one in 2011

• Very successful – where next?

• Opportunities unavailable elsewhere

• AGM + seminars like this

24

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

Speaking Opportunities

• Staff & member meetings at eg Capricorn Society + Fonterra + CES + Origin Agroup

• Western Farm Cooperative Forestry Co

• Federated Farmers Dairy Council + Macadamia Society + Citrus Growers

• Overseas visitors

25

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

So, how is this done?• Subscriptions = $220k

based on...

• Member revenue of >$39b

• 52 full members + 7 associates + 25 provisionals

• 1 full-timer + 1 part-timer

26

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

Other forms of income• Sell .coop domains = $2k

• The LEADing Board + seminars

• Sponsoring networking lunches

• More members – how can you help?

27

nz•coopNEW ZEALAND COOPERATIVES ASSOCIATION

2 011 COO PE RATIVEE D U C ATI O N SEM I NA R

This is your Association

•What can your business do to support your Association?

28