Co-Operatives
This section discusses tree growers co-operatives. Topics discussed in order include:- what is a co-operative, need for collaboration, benefits and function. Tree growers co-operatives are successful mechanisms for improving the market position of small scale forest growers. They assist growers by being able to plan and aggregate harvests and therefore attain the volume and reliability of supply that is generally required by the buyer.
What Is A Co-Operative
'A co-operative is a business enterprise organised, owned and controlled by the persons who use its services. It enables individuals and businesses to gain the benefits of joint endeavour while maintaining their independence. (Gill, 1999)
Co-operatives are given legal standing and effect in Australia through State Government legislation. In Queensland the legislation involved is the Co-operative Act 1997 and Co-operative Regulations 1998 (Gill, 1999). To be recognised by these legislations co-operatives must be guided by seven internationally recognised principle (Gill, 1999) . These principles are:
1. Voluntary And Open Membership
- Open to all persons able to use their services and willing to accept the responsibilities of membership
2. Democratic Member Control
- Democratic organisations controlled by members.
- Elected representatives are accountable to the membership.
- Members have equal voting rights.
3. Member Economic Participation
- Members contribute equitably to, and democratically control, the capital of their co-operatives.
4. Autonomy And Independence
- Co-operatives are autonomous, self help organisations controlled by their members.
5. Education, Training And Information
- Co-operatives provide education and training for their members.
- Inform the public about the nature and benefits of co-operatives.
6. Co-Operation Among Co-Operatives
- Co-operatives serve their members and strengthen the co-operative movement by working together through local, national, regional and international structures.
7. Concern For The Community
- Co-operatives work for the sustainable development of their communities through policies accepted by their members.
Need For Collaboration
Many individual tree growers have tried unsuccessfully to secure markets at satisfactory returns for their forest product. The following factors identified by Gill, 1999 have contributed to the mixed success of farm forestry. The problems associated with these factors may be reduced by collaboration and co-operative formation by tree growers (Gill, 1999).
- Small farm plantations and irregular supply have been of limited value to buyers of forest products.
- Tree growers often lack the capital resources and technical knowledge necessary to ensure the production of high quality marketable timber.
- Most tree growers only plant, tend and harvest once in a lifetime, therefore often lack forest management and marketing expertise.
- Small tree growers cannot take advantage of professional forestry services as readily as owners of large plantations can.
Benefits
To Tree Grower
- Generate economies of scale in marketing and purchases.
- Provide opportunities for exchange of information.
- Inform members of opportunities for targeting niche and commodity markets.
- Investigation of new markets and value adding opportunities.
To Industry
- Overcome the problems of organising supply from a multitude of small growers within a region.
- Increase and diversify resources.
- Influence the planting of timber species and management practices that meets their future needs.
- Reduce the need for industry capital to be invested.
Function
Gill, 1999 identifies a diverse range of services that co-operatives can providers to tree growers . These include:
| Market Development | A function of a tree growers co-operative should be to research the long term needs, wants and preferences in existing and new markets. |
| Supply Information | Information supply is a critical function of a tree growers co-operative. It can sponsor field days and seminars |
| Forest Management Plans | Prepare forest management plans including forest improvements, management and harvesting activities. |
| Resource Inventory | Development of an inventory and valuation of all the timber resources of the co-operative. |
| Timber Marketing | Secure sales and negotiate contracts on behalf of its members. The co-operative may purchase from tree growers and then resell or may act as an agent, organising direct transactions between tree growers and buyers. |
| Plantation Establishment | Assist in establishment of plantations by organising forest supplies and contractors. |
| Managing Forests | Plant and manage forests for a landholder on a contract basis. |
| Harvesting and Transport | Co-ordinate and supervise the harvesting and transport of timber to buyers, ensuring this is done in accordance with prescribed forestry practices. |
| Holding Depot | Establish and operate holding depots for timber as required. |
| Value Adding | May purchase members timber and process it, either through its own facilities or with a joint venture partner. |