+ THE WA PRODUCERS’ CO-OPERATIVE - WHAT IS IT?
A commodity supply Co-op focussed on supplying premium quality WA niche lamb, beef and niche grain direct to processors and end customers.
+ WHY IS THE CO-OP NEEDED?
- Collective bargaining and negotiation on behalf of farmers for higher prices
- Aggregated supply of product to specification = MARKET POWER
- Assistance for members to improve productivity and uptake new technology on farm through support programs and training
- Opportunities to seek out new, high value markets for members
- Traceability, provenance of products to help differentiate, segregate and brand for niche premium markets.
+ WHAT WILL IT DO?
- Supply aggregation and logistics co-ordination: aggregating lamb and beef sales and distribution (logistics) with meat processors and exporters on members’ behalf.
- Branding, QA and traceability: develop, certify and maintain WA (Co-op) brand and quality assurance products with full digital traceability and developing new premium market opportunities.
- Contract farming: matching young lamb availability with under-utilised feed resources between members farms.
- Supplementary feeding and nutrition program: including the purchase of low-cost grain, mixing into a highly nutritious feed mix *(suitable for lambs) and distributing to members’ farms on a fee for service basis. Farms provide their own hay and silage.
- On-farm support programs: Develop and manage programs for lamb finishing e.g. backgrounding, supplementary feeding, lot feeding etc.
- Market development: Working collaboratively with processors and agents, the Co-op will pursue new market opportunities on behalf of its members for high value commodities.
+ WHAT WILL THE CO-OP DO FOR MY BUSINESS?
- You will have access to premiums for supply of livestock to specifications
- Return surplus profits generated to members and their communities through dividends and rebates (min $600k between 200 farmers in years 5-10)
- Access to research and development productivity programs and grant funding
- Assist with adapting to future trends & influences
- Create long term partnerships with processor/end customer’s for in-demand products; Platform for consistent product marketing and branding information
+ WHO WILL RUN IT?
- The Co-op is forecasting a combination of 9 staff and contractors to provide services to members and perform the functions associated with operating the Co-op.
- The appointment of staff is forecast to be staggered over the establishment 1-5 years according to operational needs and actual scale of business operations.
+ WHERE IS THE MONEY COMING FROM TO ESTABLISH THE CO-OP?
The Co-op will secure startup capital for equipment and tools, wages and other inputs through:
- $500,000 will be secured as a government funding grants
- Share capital from members $12,500 x 20 members = $250,000
- Bank credit facility $250,000
It is assumed that asking members to invest in the co-op (total initial call for $250,000) will encourage commitment and support for the Co-op.
+ WHY IS GRANT FUNDING REQUIRED TO ESTABLISH THE CO-OP?
There is an inherent difficulty and risk in developing a long-term forecast budget beyond 3 – 5 years for a new Co-op service model due to the number of unknowns and lack of operating historical records or industry benchmarks from which to base forecasts upon.
Therefore, as far as possible, government funding is to be targeted to assist to de-risk the establishment operations of the co-op for the overall benefit of producer members that seek to co-operate to achieve scale, integrate value chains and aggregate supply and collectively bargain and negotiate with strength in numbers.