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In a news release
dated September 30, 2005, the Department of Innovation, Trade and
Rural Development and the Newfoundland and Labrador Federation of
Cooperatives announced a new partnership to advance the key priorities
of a new regional cooperative development strategy. The partnership
will focus on enhancing the development and promotion of the
cooperative model to support business growth in rural communities
throughout Newfoundland and Labrador.
Throughout the history
of Newfoundland and Labrador, people have banded together to weather
difficult times. They
formed buyers clubs, savings clubs, unions, development associations
and fishers committees- all in an effort to work together and to
improve their livelihood. In
cases where particular services were needed, communities often formed
co-operative businesses such as credit unions, farmers’
co-operatives, and fishers’ co-operatives, that realized by working
together they could solve their many economical and social challenges.
According to the
Newfoundland-Labrador Federation of Co-operatives’ web site (www.nlfc.coop),
it is believed that the first co-op formed was an informal buying club
at Burgeo in the late 1870’s. The fishers on the Northwest Coast,
for example, formed and operative a lobster marketing co-op which
shipped millions of pounds of lobster to Boston.
The communities of Fogo Island, faced with challenges came
together to co-operatively build a new economy and future for their
people. They began in a
modest way, building boats together and ended with a multi-species
processing operation - all
owned entirely by the people of the island.
A co-operative is a
legally incorporated business that is owned and controlled by the
people who use its services. Co-ops
can be established in any sector of the economy depending on the need. They can provide a business structure which primary
producers, such as farmers and fishers, can work together to reduce
costs and maintain a fair price for their product.
The primary objective
is to provide employment for their members, while maintaining business
success. Co-ops combine financial and social planning in their
business interest. They provide stable economic development, by
working as a group, thus enabling them to accomplish things that could
not have been achieved individually.
They generate community investment and organize local control
of their resource development. Co-operatives offer a variety of products and services in the
agricultural, fisheries, manufacturing, retail, housing and daycare
sectors.
The co-operative
sector in Newfoundland and Labrador plays a significant role in both
provincial economic development and local community development.
Information obtained
from the Canadian Co-operatives Association
stated that there are currently over 70 co-operatives operating in the
province, with approximately 57,000 members.
Together they employ over 1,400 people and have sales of $132
million dollars (in 1998). Members
include fish plant workers on the Labrador coast, fishers on Fogo
Island, vegetable farmers in central Newfoundland, egg producers on
the Avalon Peninsula, carpenters and taxi drivers.
Co-operatives have
demonstrated a longer survival rate than other forms of business
enterprises. Studies have
shown that 64% of co-operatives still exist after the first five years
compared with 36% of other business.
Co-operatives in Newfoundland have been in business news since
the 1950s. The Rising Sun
Independent Fisheries Co-operative is a new co-op that was formed, in
June 2005, by small boat shrimp harvesters on the Northern Peninsula
to counter the effects of the local plant closure.
Since its starting, the co-op membership has grown from 14 to
more than 40. The co-op
markets members’ shrimp at a fair price and provide saving to the
fish harvesters through volume purchasing of fuel, bait, insurances,
marine services, and supplies.
Co-operatives have
demonstrated their success in a variety of sectors within the province
of Newfoundland. Within
the fisheries, community participation ensures that the resource is
managed for the long term benefit of the fishers.
Co-ops can provide a mechanism for farmers to work together to
revitalize vegetable production and by achieving the volume required
to access new markets. Regional co-ops can provide a structure for
business operators in the tourism and craft sectors, by helping them
to market their services and products.
There are many
fascinating co-operative initiatives in Newfoundland and Labrador;
Fogo Island Co-operative Society Ltd,
Eagle River Credit Union, Torngat Fish Producers Co-operative
Society Ltd, North Shore Central Ambulance Co-op, Odyssey Housing
Co-operative and the Extension Community Development Cooperative.
Co-ops are efficient, competitive enterprises
that contribute to the success of a communities’ future by providing
an effective way for individuals to invest in the economic and social
well-being of their communities while benefiting themselves.
If you wish to discuss
a cooperative opportunity that might be of benefit to any sector,
contact any of the staff at the Coast of Bays Corporation at
709-538-3552 or toll free at 1-800-205-0799.
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