Saskatoon Star Phoenix Co-op Week 2016

CO-OP WEEK 2016

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At the 2016 Ipsos Best Banking Awards, Canadian credit unions placed first among all financial institutions for overall customer service excellence. It’s the 12th consecutive year that Canadian credit unions received this recognition. S a S kC e n t r a l

CONNECTED TO COMMUNITY Receiving credit for dedication to customer service J o nat h a n h a m e l i n

When the IPSOS® Best Banking Awards roll around each year, you can take it to the bank that Canadian credit unions will be big winners.

In 2016, Canadians ranked credit unions first among all financial institutions in overall customer service excellence and branch service excellence for the 12th consecutive year. For the second year in a row, Canada’s credit unions also received nine total awards at the event.

For Keith Nixon, Chief Executive Officer of SaskCentral, the recognition of credit unions’ commitment to customer service is not a surprise. He noted that their motivation to provide quality customer service goes back to the very roots of credit unions (the first officially chartered credit union was formed in the province in 1937).

“From the beginning, credit unions have been focused on helping people,” said Nixon. “They began in a time when people were not able to access the kinds of financial services they needed, so they formed their own organization. In the early days, it was all about pooling deposits to lend money to local people in need of funds who couldn’t access them through large banks.”

The emphasis on the customer is evident when examining the structure of credit unions.

While banks are publicly traded corporations owned by sharehold-

ers – not necessarily users of the services – whose votes are based on the number of common shares they own, credit unions are financial co-operatives owned by members who each have an equal vote at the table. And while bank profits are paid to shareholders, credit unions pass the profits back to the members through dividends, improved services or reduced fees.

Credit unions are also committed to giving back to the community through charitable donations.

“Because credit union members have an ability to elect directors or vote on fundamental change, credit unions by their nature are very consultative and engaging of members,” said Nixon. “Credit unions also run local member committee meetings and give their members a chance to volunteer their time in the community.”

Nixon noted that the most common misconception surrounding credit unions is that they are small.

While he said they may be financially smaller than a larger charter bank, credit unions also belong to a large co-operative network provincially, nationally and internationally. In Saskatchewan, SaskCentral is a financial services co-operative that provides research, support, consulting services and financial liquidity management to the province’s 46 credit unions.

Credit unions also follow the seven international co-operative principles, which include: voluntary and open membership, democratic member control,

member economic participation, autonomy and independence, education, training and information, co-operation among co-operatives and concern for community.

“Credit unions are often dismissed as being not as sophisticated as banks, but they have the ability to provide pretty much anything that is available in a financial services environment,” said Nixon.

In fact, Nixon added, credit unions have actually been pioneers in the financial sector in many ways. Credit unions were the first financial institution to lend to women in their own names in the 1960s. They launched the first fullservice ATM network in the 1970s, first debit card service in 1982 and first mobile banking service.

Today, their innovative efforts are continuing.

“Over a year ago, some of our credit unions launched mobile remote deposit access, the ability to take a picture of a cheque with your cell phone and deposit it into your account. This year, two of our credit unions are participating in the launch of a mobile app payments technology using android cell phones,” explained Nixon.

“Even though their roots are local and they are very responsive to local needs, credit unions have an ability to be nimble in determining what members want and respond to those needs in a local way.”

At the IPSOS® Best Banking Awards, credit unions also received first in the “values my business” (ninth consecutive year)

About a year ago, credit unions began to launch mobile remote deposit access which allows members to take a picture of a cheque with their cell phone and deposit it into their account. S a S kC e n t r a l

and “live agent telephone banking excellence” categories, while finishing tied for first in: mobile banking excellence; financial planning and advice (ninth consecutive year); ATM banking excellence; online banking excellence (second consecutive year); and automated telephone banking excellence.

When it comes down to it, Nixon said credit unions are “very connected to what the needs of their local membership and communities are.

“In Saskatchewan, credit unions

tend to be very connected with agricultural communities – given the rural nature of Saskatchewan – and are active in providing financial services to small business owners throughout the province,” he said.

“Small business is a big deal in Saskatchewan. Credit unions have a unique understanding because of their local nature and their local connection to members, so there are some unique kinds of relationships that play out within the make-up of credit unions.”

THIS SECTION WAS CREATED BY CONTENT WORKS, POSTMEDIA’S COMMERCIAL CONTENT STUDIO.

The difference is clear!

Credit unions and banks both provide financial services.

The similarity ends there. Credit unions stand out because they put people first.

This is seen in their personalized service, member ownership, and close connection to community. Find out for yourself why over 470,000 people have chosen the unique difference of a Saskatchewan credit union.

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Farmer Direct answering demand for quality organics C a ro l T o d d

A Regina-based co-operative has the winning combination for Canadian and American consumers increasingly concerned with the food they eat.

The members of the Farmer Direct Co-operative produce highquality oilseeds, grains and pulses, such as lentils and peas, sold to a growing number of buyers. With consumers becoming more demanding in the ways in which the food they buy is grown and distributed, Farmer Direct aims to address those concerns with certified fair trade, organic products that come from a farmer-owned co-operative. “That’s one of the reasons why we’re having such success at the retail shelves because retailers appreciate that. They like the attributes of the co-op which is farmer-owned, organic and domestic free trade all in one brand,”

CO-OP WEEK 2016

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WINNING THE FOOD TRIFECTA said Jason Freeman, founder of the co-op and its current marketing director.

Farmer Direct Cooperative was founded by Freeman and three farmers in 2002. He had been operating a small organic food company in Vancouver, and upon its sale was approached by the farmers to market more of their crops. The farmers faced unfair pricing, poor logistics and a lack of transparency.

They collaborated with Freeman to build a cooperative that would let them sell their crops, which included flax seed, lentils, hemp seed and peas, in a fair and direct way.

Freeman says the co-operative business model was the logical way to go. “Consumers like to support co-ops. They like the idea of farmers working together,” he said.

“From a supply side, it’s really an effective way to organize and it’s a democratic decision-making governance model.”

With its head office in Regina, the co-op now has more than 60 member farmers across the Prairies and a burgeoning market in Canada and into the United States. While the Canadian retail market for sales is largely confined to southern B.C. and Ontario, the American market took off with the introduction of the Farmer Direct brand in 2012.

Now, its products are sold in 96 per cent of the Whole Foods Market stores in the U.S. “Up until then, we would deliver truck-loads to mills for example.

Then, we sold 25-pound bags of grains and processed grains, which

Organic Direct Co-op member Margaret George farms near Shellbrook. Fa r m e r Di r e c t c o - op

the retailer would repackage,” Freeman said, pointing to the one local buyer, Old Fashion Foods, as an example.

“The retail is going really well for us. It’s really encouraging to see that consumers want to support organic farms, ”said Freeman.

He stresses that the Farmer Direct Co-op brand not only indicates

organic production and farmer ownership, it is also the first business in North America to receive Domestic Fair Trade certification, ensuring workers are treated fairly and farmers receive a fair price for their products.

Freeman believes the co-op will only continue to grow into the future. “That’s what the future

holds – more packaged goods, more processed products and greater growth for the co-op and that’s the exciting part,” he said.

With the three-pronged approach of organic, farmer-owned and fair trade, Farmer Direct is poised to win, place and show in the North American food market.

Enjoy food? Thank a farmer!

October is AGRICULTURE MONTH Let’s celebrate our great Saskatchewan food and the farmers & ranchers who grow it.

The Co-operatives First team (small but growing): Audra Krueger, executive director; Kyle White, community engagement co-ordinator; Merle Massie, communications officer. c o - ope r at i v e s F i r s t

CO-OPERATIVES FIRST Creating a co-operative environment in rural and Aboriginal communities J o naT h a n h a m e l i n

A couple years ago, Federated Co-operatives Limited came to the Centre for the Study of Cooperatives at the University of Saskatchewan with one question, “Is the co-operative model still viable today in rural and Aboriginal communities across Western Canada?”

Headed up by Murray Fulton, the Co-operative Retailing System Chair in Co-operative Governance, researchers underwent a two-year intensive and consultative process called the Co-operative Innovation Project before delivering an answer.

“We concluded that there is indeed a future for co-ops in rural and Aboriginal communities across Western Canada, but there needs to be a particular way of approaching the development of co-ops in order to realize that potential,” said Murray Fulton, a professor in the Johnson Shoyama Graduate School of Public Policy.

The research process involved conducting around 2,000 telephone interviews with people in rural and Aboriginal communities across Western Canada, from senior administrators to Aboriginal band leaders to random citizens.

Researchers hosted 26 community events, which saw 13 Aboriginal and 50 rural communities attend.

The team also consulted material from the Plunkett Foundation, a United Kingdom organization that promotes and supports co-operatives and social enterprises in rural communities.

Fulton and his team then developed a model for establishing co-ops in these areas, built around

We all have our differences, whether they’re ethnic, religious, urban or rural.

Part of the creative aspect that goes into the formation of co-ops is imagining a way to work around those differences and not make them the central focus. the concept that “you have to look to these communities as both the source of what they see as being needed, as well as the source of the expertise needed to solve those problems.

“This is very much a model built around the idea that people in the rural communities know what their problems are, whether it’s water quality, health care facilities or transportation. It’s also built around the idea that these communities can then come together and find a way to address these problems through a co-operative venture,” said Fulton. “If a community or group of communities need a fire protection service, the best solution may be for them to join together and form a co-operative organization that would be a vehicle to provide those services.”

The model also addresses the

importance of embracing diversity when forming co-ops.

“We all have our differences, whether they’re ethnic, religious, urban or rural. Part of the creative aspect that goes into the formation of co-ops is imagining a way to work around those differences and not make them the central focus,” explained Fulton. “I think one of the advantages of the co-op model is that, by its very nature, it has that sense of basic equality. Theoretically, every member gets one vote regardless of how they identify.”

Based on this research, Federated Co-operatives Limited recently decided to move forward on an exciting project. On Jan. 27, 2016, it announced a $5 million commitment to provide start-up funding for Co-operatives First, an organization that will facilitate a new wave of co-operative development in Western Canada. Co-operatives First was incorporated in March.

Today, the team consists of executive director Audra Krueger, communications officer Merle Massie (who was involved in the Co-operative Innovation Project) and community engagement coordinator Kyle White.

“When a community group is trying to solve a problem, we want to make sure one of the business models they’re considering is the co-operative model,” Krueger said.

Since its formation, Co-operatives First has hit the ground running. The organization has been hosting community meetings, bringing people together to discuss how the co-op model can help them address needs they have in their community.

Saturday, October 22 is “Meet a Farmer Day” at your local Co-op Food Store!

See farmfoodcaresk.org for participating stores.

Share your connection to food. Learn more. farmfoodcaresk.org ourfoodhasastory.ca realdirtonfarming.ca

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Star Egg is proud to be a supplier to Saskatchewan’s Co-operative Network. We work diligently every day to maintain the healthy relationship which allows us to provide Co-op Gold Eggs and GoldEggTM/MC products to egg lovers across Saskatchewan.

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co-op week 2016 Rooftop solar panels will meet about 40 per cent of the electricity demand for the Two Twenty building in Saskatoon. S E S S ol a r C o - opE r at i v E

BRIGHT IDEA

Saskatchewan’s first solar co-operative C a ro l T o d d

A Saskatoon co-operative has flipped the switch on Saskatchewan’s first solar power co-operative.

The SES Solar Co-operative is the brainchild of the Saskatchewan Environmental Society. President Joe Schmutz says the co-op is a natural extension of the SES philosophy. “SES has a tradition, we like to think, of action-oriented projects.

At SES, we have always been keen about energy and improving things in the energy area,” he said.

In Saskatchewan, most of the electricity comes from coal-fired power plants. But, with the province enjoying an average of more than 2,000 hours of sunlight a year, the SES Solar Co-operative had a better idea. “It was really kind of an evolution,” Schmutz said, with

the initial idea followed by the establishment of a committee and a small infusion of cash. “I think most people recognize that we need to go to renewable energy sources, because we are really taxing the planet with carbon. That’s the high priority and the high benefit. People recognize that and came forward quite nicely,” he said.

That was two years ago, and now the co-op has more than 100 members and two major projects on the go. Membership is $50 plus $950 for a preferred share, which includes one solar panel and its link to the power grid. Additional Class B preferred shares are available for $950 each. While Schmutz expects that investment to eventually return at least between two and four per cent, the real draw is the fact that anyone can be a member, whether or not they are able

to install the panels on their own buildings. “That’s one of the great benefits. You don’t have to have the right house with the south exposure, because we will find one for you, and you can invest as much or as little as you want,” he said. Having “your” panel part of another project also allows for economies of scale, with more panels creating more useable energy.

The Two Twenty, a trend-setting commercial and retail centre in Saskatoon’s Riversdale neighbourhood, features 90 solar panels on its roof, with any excess power not used by the building’s occupants sold back onto the main power grid.

Another major project, slated to get going this fall, will see SES teamed with Saskatoon Light and Power’s Gas Collection and Power Generation System at the City of Saskatoon landfill. “The landfill

Co-operativeS FirSt

is interesting, because Saskatoon Light and Power for some years have had a methane extraction project. They have these compressors and these coolers and, apparently, the coolers use a lot of energy. So, while they produce energy, they also buy energy,” said Schmutz, adding that using solar power to offset that energy need was a natural next step.

While the environmental benefits of using solar power are the main power behind the SES Solar Co-op’s initiatives, the co-operative model is also a key component, Schmutz said. “The beauty of this co-op is community ownership of energy production. ‘I have a stake in the production. I have an influence in how this will go.’ Members of a community can be vigilant about a project. They have a say, and I think that is really wonderful.”

It’s the kind of forward thinking that he says reflects the current world view. “I think we are, as a global community, moving more

to decentralized smaller projects with community involvement and more forward looking than the big projects.”

Schmutz says the co-op is in discussions with a number individuals and communities that have expressed interest in the coop’s solar power initiative. “We would like to see separate co-ops across the province, all community owned,” he said. The SES Solar Cooperative has even developed what Schmutz calls a “manual” to help others follow the lead. “It was kind of the first, so we learned a lot in the process.”

The future looks bright for SES Solar Co-operative, with Schmutz saying the next step is to look at the issue of energy storage, as well as examining other ways to produce electricity, “Because we can’t always rely on solar in Saskatchewan,” he said. Maybe not today, but with projects like the SES Solar Co-operative as the model, the sun or its equivalent can always shine.

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Where you put your money says a lot about you.

“Davidson, for example, came to us because they’re looking at the concept of aging in place,” said Massie. “They had way too many seniors who had to move to Saskatoon because they didn’t have local accommodations that were meeting their needs. People also wanted to stay in their houses a little bit longer. We’ve been working with them to explore the parameters of that particular problem and think of some of the solutions, which could be something as simple as asking their local co-op grocery store to package things smaller for local seniors.

“We’ve also been doing work with Pelican Narrows, which lost its only store to fire. They’re very interested in using a co-op model to build a new community store.”

In addition to these larger meetings, Co-operatives First has also been meeting with business and economic development officers to build knowledge about the co-op model.

“We’re finding that economic and business development officers don’t have robust training on cooperative business. In some cases, information about co-ops is completely absent on their website or info they’re handing out to groups,” said Massie. “We’re finding ways to support these officers so they have the ability to recognize co-op opportunities and confidence to work with these businesses.”

Co-operatives First is supported to work with rural and Aboriginal communities across western Canada. For more information on Cooperatives First, visit https://cooperativesfirst.com. To learn more about the Co-operative Innovation Project, visit https://coopinnovation.wordpress.com/final-report.

The Co-operatives First team has been talking with residents of Pelican Narrows about using a co-op model to build a new community store. The village lost its only store to fire. Co - opE rati vE S F i rSt

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