Montana Cooperative Development Update August/September 2002, Volume 1, Issue 3

Cooperatives Battle Poverty In Montana

MCDC http://www.mcdc.coop. Executive Director Ty Duncan recently met with the Northwest Area Foundation’s Community Venture Task Force to investigate ways in which cooperatives may be able to reduce poverty in Montana. The Task Force is looking for ways to: reduce poverty; involve diverse interests in poverty solutions by community; create realistic strategies for accomplishing community goals; and develop local capabilities to achieve long-term community goals.

The 11 Montana Counties aided by the poverty reduction program include Phillips, Blaine, Hill, Liberty, Toole, Glacier, Pondera, Teton, Choteau, Judith Basin and Cascade Counties. The plan will be based on each community’s social, economic and ecological values.

The plan is currently in the development stage, but will soon move into community assessment, followed by vision and goal development, strategizing, definition of benchmarks and plan assessment and initiation. Plan development is estimated to take 18 months. The Center will be an integral part of the planning process since the cooperative business model builds communities in three distinct ways: Co-ops are user-owned; user-controlled; and all economic benefits return to community members. The cyclical process the Executive Committee has envisioned will make the battle against poverty an on-going fight and help keep it on the community agenda.

Cooperatives Play An Important Role In Sustainable Economic Development

Communities throughout the state are considering the cooperative business model as a way to sustain community and business growth. MCDC plays an important role in supporting these community efforts by providing many of the tools that are needed to start cooperatives. Cooperatives enhance sustainability because they involve large portions of the community, which creates a sense of ownership among members. Co-ops also draw from many community funding sources. The end result is a sustainable business model that feeds directly into the community, benefiting all who are involved. As a result, cooperatives create new higher-paying jobs, improve the economy and strengthen community infrastructure.
MCDC attended the Sustainability Fair in Livingston last month to demonstrate the important role cooperatives play in sustainable economic development in Montana.

Co-ops Work Together To Improve State Economy

Co-ops throughout the state are working together to facilitate economic development throughout the state, and MCDC currently is planning its Second Annual Statewide Cooperative Conference and Cooperative Day to bring together resources and ideas to support cooperatives in their economic development efforts. The event will include panel discussions, workshops and seminars enabling cooperatives to learn from each other and share ways to continue to expand their businesses, create jobs and enhance business development. MCDC will be on hand to provide information and training. For more information, contact the center at 406-265-3771.

Support For Environmental Alternatives Continues

The Montana Cooperative Development Center gave continuing support to Environmental Alternatives based in Harlowton, MT, in August by helping the group attain additional funding for its projects. Environmental Alternatives is working to economically develop Wheatland County by bringing in an outside business that will create jobs and boost the economy. MCDC’s Carmen Fike has written grant applications and advised the group on beneficial courses of action to garner financial support to achieve their goals. The current business being reviewed has the potential to benefit farmers in the area and bring in up to 10 new jobs.

MCDC Conducts Feasibility Study For Native American Art And Craft Cooperative

Montana Native American artwork soon could have broader distribution throughout the Northwest, based on the results of a feasibility study MCDC is conducting for the Native craft cooperatives throughout the state. The goal of the project is to provide new outlets for Native American artists and create additional production, distribution and sales jobs in Montana. The study underway at MCDC assesses art and craft products currently on the market, and includes reviews of the most successful products. Pricing and distribution methods also are being studied. This research will help MCDC recommend products the cooperative could sell, acceptable price ranges, markets most receptive to those products and the best ways to distribute products. The feasibility study will help create a framework for successful, culturally based businesses in Montana.

First Responder Kit Is Ready For Co-op Action

No, these are not the red bags in which emergency medical technicians carry all of their life-saving tools, but they are lifesaving kits in the eyes of emerging cooperatives. The First Responder Kit is an all-inclusive guide to cooperative development created by the Montana Cooperative Development Center. The kit is a necessary tool for assisting cooperatives in getting organized, setting goals, prioritizing those goals and staying future focused throughout the process. It will be utilized by local cooperatives as well as the center’s Technical Assistance Network as a primary tool in initiating economic development efforts in Montana. The Technical Assistant Network includes cooperative development specialists around the state who can help businesses and communities form cooperatives. The kit is available in hard-copy, cd-ROM and also downloadable online at the MCDC website http://www.mcdc.coop. To find the Cooperative Development Specialist nearest you, call the MCDC at (406) 265-3771.

MCDC Writes Grants for Two Montana Co-ops

The Montana Cooperative Development Center wrote two grants this month to help producers add value to Montana agricultural products. The co-ops are Northwest Natural Beef and a Bio-Diesel Cooperative.
The grant for Northwest Natural Beef would help the cooperative conduct a feasibility study due diligence, develop a business plan, and obtain the legal assistance necessary for acquiring part of an existing beef processing business that would help Montana producers vertically integrate and retain ownership of their beef longer, increasing the final sales price producers would receive per pound.

The grant requested for a Montana Bio-diesel Cooperative would enable the cooperative to create a business plan for the production and distribution of field-produced oils. The co-op sees this opportunity as a way to support Montana growers, as well as create new jobs in Saunders County.

Fiesta Day Offers Fun & Excitement For All

October is Co-op Month, and you’re invited to attend the Co-op Fiesta Day, Oct. 19, at the Expo Park in Great Falls. In addition to free Mexican Food and non-stop entertainment, the event is a great opportunity to meet movers and shakers from Montana’s agricultural, rural electric and telephone cooperatives. Information about state and federal cooperative programs and cooperative
development assistance programs also will be available. The festivities start at 9 a.m. and continue until 5 p.m. For more information, contact the Montana Council of Cooperatives at (888) 576-2296.

Montana State Fair: MCDC Educates The Public

The Montana State Fair hosted a Co-op Day on July 31. MCDC’s booth was designed to help inform and educate the public about economic benefits derived from co-ops, and the economic development opportunities that can be created through the cooperative business model.
For example, co-ops provide more than $8 million dollars in taxes each year in Montana and $29.7 million in payroll. In addition, co-op profits return directly to members. More than 3,500 people passed through the display area. Demonstrations, educational literature as well as conversations with the fair participants helped the MCDC team pass along their knowledge about issues facing Montana businesses. Last year, Co-op Day at the Fair Exhibit received the “Best Educational Exhibit” prize.

Carmen Fike and Tiffany Stingley, MCDC employees, hosted a booth at the Montana State Fair in Great Falls during Co-op Day that helped educate the public about the role cooperatives play in Montana. Other Co-op Day activities included educational dis-plays by other cooperatives around the state illustrating the types of services provided to Montanans through Co-ops, such as electrical power, telephone service, farm supplies, and credit union services, just to mention a few. Safety demonstrations showed safe ways to handle electricity to protect your home and family. More than 3,500 people saw the displays.

The Montana Cooperative Development Center is a statewide resource for community-based development and assistance in Montana. The Center develops, promotes and coordinates educational programs, technical assistance and research on the cooperative form of business. The Center focuses on cooperatively organized enterprises that implement “value-added” processing of Montana’s raw agricultural, forestry, energy and mineral products. MCDC is a state-funded resource, hosted by the Dept. of Business at MSU-Northern. MCDC & MSU-Northern are AA/EEO, ADA and Veteran’s Preference compliant in all hiring and programming practices.