Otter Co-op

Last updated
Otter Co-op
Type Consumers' cooperative
IndustryRetail
Founded1922 (1922)
Headquarters,
Area served
Langley, British Columbia and surrounding Fraser Valley, Okanagan
Revenue$199,599,406
+ $24,646,403
$5,334,747
Members53,000
Number of employees
350-400
Website otterco-op.crs
Footnotes /references
Statistical information from 2015 [1] and [2]

The Otter Co-op is a consumers' cooperative in Aldergrove, British Columbia, Canada. It placed 37 by revenues on Canada's Top 50 Co-operatives in 2007. [3]

Contents

Organization

Management is divided into seven different departments: Administration, Petroleum, Animal Feed, Hardware & Family Fashions, Retail Food, Human Resources, and Credit.

The General Manager who oversees all departments is hired permanently, unlike the Board of Directors.

Membership & Patronage System

Anyone wishing to join the Otter Co-op must fill in an application and pay the $10 lifetime membership fee. Upon acceptance, members will be assigned a membership number as well as a membership card. Memberships can be passed on to anyone of the age of majority. Each dollar spent by a member is totaled and at the end of the year, members are issued a patronage refund of equity, in proportion to this total. The rate of the patronage refund is determined by the finance committee and changes yearly.

In fiscal 2007, the Co-op's sales exceeded $98 million and the percentage projected patronage allocation for 2008 was set at 6.97%.

Each year, a fixed minimum of purchases is also set and members whose purchases surpass that minimum will be awarded a portion of their refund in cash and the rest allocated to their equity account. Members whose purchases totaled less than that minimum have their entire refund added to their equity account. In 1999, the minimum was set to $295 and any member spending more that year would receive 55% (minus taxes) back in the form of a cheque.

Entire equity repayments are made to members who have died, who have turned 69 years of age or who have moved out of the area and are no longer able to make use of the Co-op. Also, no single member may hold more than $25,000 in equity. Any accounts surpassing that limit will receive a cash refund.

History

The Otter District Farmers' Institute (ODFI) incorporated on November 13, 1922. The twenty-five original members, both men and women, had a mandate to promote agricultural awareness and improve life so that settlement would be permanent and prosperous. [4]

In the early part of the twentieth century, the Otter District of British Columbia was sparsely populated and heavily forested. The few hundred farmers attempting to clear the land for agriculture needed stumping powder to blast out tree stumps after the trees had been felled. Costs for the blasting powder and for its transportation were quite high, so the Farmers' Institute began to buy bulk and sell locally to its members, greatly reducing the price. Membership increased and with it, demand for cheap farming products. In 1926, the ODFI began selling animal feed to area farmers. By the end of the decade, the Institute was still selling stumping powder, but also carried hay, clover, barbed wire and fertilizer. By 1946, the number of retail items had increased enough that the ODFI built a grocery and hardware store on 248th street. Starting in 1950, a bulk petroleum plant sold gas and diesel for farm use, as well as home heating oil and propane. The ODFI also organized for monthly speakers to make presentations in the hope of educating local farmers. By 1945, the Co-op had over 160 members in the area. The need for food preservation was brought to their attention, and in 1946, Co-operative Cold Storage Lockers were made available. [4]

While the bulk petroleum plant had been in use since 1950, it was not until 1972 that a gas bar was purchased to sell for gas for automobiles. Trying to maintain relevance in what was fast becoming a modern world, the ODFI converted to an official Co-operative on June 22, 1979 under the Cooperative Association Act. The organization had long encouraged Co-operative values, until this point it was officially considered a society. A new name was chosen to reflect the new status: the Otter Farm & Home Co-operative. On January 17 the following year, they would open a new 50,000-square-foot (4,600 m2) shopping center.

The 1980s were a hard decade for the Otter Farm & Home Co-operative. High interest rates and a nationwide recession lowered consumer confidence and sales were way down. Business became so bad that fears rose as to the Co-op's survival, since mortgage payments on the new shopping center still needed to be made. The former general manager came out of retirement to help keep things going, and employees willingly accepted a reduction in wages in order to help save the Co-op from impending demise. Federated Co-operatives Ltd., the wholesale supplier did what it could to help. By 1983, members were informed that the Co-op had lost $1,891,500.

The Co-op survived, however, due mostly to the heightened support of members even during hard economic times. The increase in sales both at the gas bar and at the bulk petroleum plant also helped to stem the tide of the recession. As the Co-op's financial situation began to turn around, much needed improvements went underway. A new oil storage warehouse was opened in February 1990. In 1997, the gas bar was totally rebuilt for both speed and functionality, and because of environmental concerns. The Co-op celebrated its 75th Anniversary the same year with large-scale festivities and a special supplement in a local newspaper commemorating Co-operative involvement in the community. The Co-op's mortgage was finally paid off in 1998, and much needed renovations on the shopping center were started immediately. The improvements were completed in October 1999 without the need for another loan. A new deli was built, the grocery area was enlarged and a fashion boutique was installed.

Principles

See also

Related Research Articles

<span class="mw-page-title-main">Cooperative</span> Autonomous association of persons or organizations

A cooperative is "an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-controlled enterprise". Cooperatives are democratically controlled by their members, with each member having one vote in electing the board of directors. Cooperatives may include:

<span class="mw-page-title-main">Husky Energy</span> Canadian energy company

Husky Energy Inc. was a Canadian company engaged in hydrocarbon exploration, headquartered in Calgary, Alberta, Canada. It operates in Western and Atlantic Canada, the United States and the Asia Pacific region, with upstream and downstream business segments. In the 2020 Forbes Global 2000, Husky Energy was ranked as the 1443rd-largest public company in the world.

<span class="mw-page-title-main">REI</span> American consumer cooperative

Recreational Equipment, Inc., doing business as REI, is an American retail and outdoor recreation services corporation. It is organized as a consumers' co-operative. REI sells camping gear, hiking, climbing, cycling, water, running, fitness, snow, travel equipment, and men, women and kids clothing. It also offers services such as outdoor-oriented vacations and courses.

<span class="mw-page-title-main">Housing cooperative</span> Type of housing development that emphasizes self-governance and quasi-communal living

A housing cooperative, or housing co-op, is a legal entity, usually a cooperative or a corporation, which owns real estate, consisting of one or more residential buildings; it is one type of housing tenure. Typically housing cooperatives are owned by shareholders but in some cases they can be owned by a non-profit organization. They are a distinctive form of home ownership that have many characteristics that differ from other residential arrangements such as single family home ownership, condominiums and renting.

A building co-operative is a co-operative housing corporation where individuals or families work together to directly construct their own homes in a cooperative fashion.

<span class="mw-page-title-main">Mountain Equipment Co-op</span> Canadian co-operative formed to sell outdoor equipment

Mountain Equipment Co-op is a Canadian co-op that started the MEC outdoor gear retail brand. The MEC brand name, assets and store leases were purchased by the American private investment firm Kingswood Capital Management's subsidiary Mountain Equipment Company in October 2020. 1077 Holdings Co-operative remains active to deal with the remaining claims by creditors and will be wound up at some point in the future.

<span class="mw-page-title-main">The Co-operative Group</span> British group of retail businesses

The Co-operative Group Limited, trading as Co-op, is a British consumer co-operative with a group of retail businesses including grocery retail and wholesale, legal services, funerals and insurance retailing.

The United Kingdom is home to a widespread and diverse co-operative movement, with over 7,000 registered co-operatives owned by 17 million individual members and which contribute £34bn a year to the British economy. Modern co-operation started with the Rochdale Pioneers' shop in the northern English town of Rochdale in 1844, though the history of co-operation in Britain can be traced back to before 1800. The British co-operative movement is most commonly associated with The Co-operative brand which has been adopted by several large consumers' co-operative societies; however, there are many thousands of registered co-operative businesses operating in the UK. Alongside these consumers' co-operatives, there exist many prominent agricultural co-operatives (621), co-operative housing providers (619), health and social care cooperatives (111), cooperative schools (834), retail co-operatives, co-operatively run community energy projects, football supporters' trusts, credit unions, and worker-owned businesses.

<span class="mw-page-title-main">Consumers' co-operative</span> Autonomous association owned and managed democratically by its clients

A consumers' co-operative is an enterprise owned by consumers and managed democratically and that aims at fulfilling the needs and aspirations of its members. Such co-operatives operate within the market system, independently of the state, as a form of mutual aid, oriented toward service rather than pecuniary profit. Many cooperatives, however, do have a degree of profit orientation. Just like other corporations, some cooperatives issue dividends to owners based on a share of total net profit or earnings ; or based on a percentage of the total amount of purchases made by the owner. Regardless of whether they issue a dividend or not, most consumers’ cooperatives will offer owners discounts and preferential access to good and services.

<span class="mw-page-title-main">Midcounties Co-operative</span> British consumer co-operative

The Midcounties Co-operative Limited, trading as Your Co-op, is a consumer co-operative in the United Kingdom with over 700,000 members. Registered in England under the Co-operative and Community Benefit Societies Act 2014, it is a member of Co-operatives UK and Federal Retail Trading Services.

The Aldergrove Credit Union was a credit union in Aldergrove, British Columbia, Canada with approximately 20,000 members and assets around $807m CAD.

<span class="mw-page-title-main">Co-op Insurance</span>

Co-op Insurance is the trading name of CIS General Insurance, a general insurance company, which is part of the Co-operative Group, based in Manchester, United Kingdom. Co-op Insurance Services, an insurance intermediary incorporated in 2017, is a wholly owned subsidiary of CIS General Insurance.

<span class="mw-page-title-main">Lothian, Borders & Angus Co-operative Society</span>

Lothian, Borders & Angus Co-operative Society Limited , founded in 1839 in the Scottish Borders, was the oldest independent consumer co-operative in Scotland until it merged with The Co-operative Group in December 2008. It operated over 50 food stores in the south and east, as well as some other retail businesses, and funeral services. At the time of the merger, Lothian Co-op was owned by 65,000 consumer members on a one member one vote basis.

<span class="mw-page-title-main">Calgary Co-op</span> Canadian retail cooperative

Calgary Co-operative Association Limited is a retail cooperative operating in Calgary, Alberta, Canada.

<span class="mw-page-title-main">Co-op Food</span> British brand of consumer co-operative supermarkets

Co-op Food is a brand used for the food retail business of The Co-operative Group in the United Kingdom.

The Co-op Refinery Complex (CRC), formerly known as Consumers’ Co-operative Refineries Limited (CCRL), is an oil refinery spread over 544 acres (2.20 km2) located in the city of Regina, Saskatchewan, Canada, owned and operated [source needed] by Consumers Co-operative Refinery Limited, an affiliate of Federated Co-operatives Limited (FCL). The refinery provides oil products to the member co-operatives of Federated Co-operatives Limited as well as most other petroleum retailers in the region including major national and regional brands. The complex completed a CA$2.9 billion upgrade project in 2012 to increase operations up to 145,000 barrels per day (23,100 m3/d)

<span class="mw-page-title-main">Federated Co-operatives</span> Canadian co-operative federation

Federated Co-operatives Limited (FCL), operating as Co-op, is a co-operative federation providing procurement and distribution to member co-operatives in Western Canada. It was established in 1944 after a series of amalgamations of smaller cooperatives, starting in Saskatchewan, including the Saskatchewan Co-operative Wholesale Society and a fuel production and distribution co-op, the Consumers’ Co-operative Refinery Limited. Federated had expanded to Manitoba, Alberta, and British Columbia by 1970. Federated Co-operatives is owned by about 160 member co-operatives across the region. Some are large co-operatives, such as Saskatoon Co-op and Calgary Co-op, while others are small co-ops based in small towns, such as Abernethy Co-op.

Central England Co-operative, trading as Central Co-op, is a regional consumer co-operative in the United Kingdom, based in Lichfield and which trades from over 400 sites across the English Midlands and East Anglia. The business is owned and democratically controlled by its members who can stand for election to the board and who also share in the society's profits. A proportion of the profits of the business are also invested in local community groups through its community dividend grants programme and its more than 60 member classes.

<span class="mw-page-title-main">Dairygold</span> Irish dairy co-operative

Dairygold Co-Operative Society Limited is an Irish dairy co-operative based in Mitchelstown, County Cork, Ireland. With its catchment area mostly in the Golden Vale, Dairygold processes an annual volume of approximately 1.43 billion liters of grass fed pastureland milk, making it Ireland's second largest dairy co-operative and the island's third largest milk supplier. Formed after the 1989 merger of the Mitchelstown and Ballyclough co-ops, by 2020 it had 7000 shareholder members and reported an operating profit of €26 million from a turnover of €1.02 billion.

References

  1. Federated Co-operatives Limited auditor's report
  2. Top 50 Canadian Co-operatives (2007) and the Co-operatives Secretariat
  3. Top 50 Canadian Co-operatives (2007) - Co-operatives Secretariat
  4. 1 2 Terry-Lynn Stone, "Otter District Farmers' Institute/Otter Co-op, 1922-2000," in The Place Between Vol. 2 ed. Aldergrove Heritage Society (Langley: Friesen Co., 2001)