New book co-edited by U of S and U of Wisconsin researchers offers insight into agricultural co-op failures

Posted December 17, 2009


FOR IMMEDIATE RELEASE – December 17, 2009
2009-12-06-JSGS

Saskatoon, SK. -- The names of companies on the prairie agricultural scene once contained words like wheat pool and co-op. Today, those names are more likely to end in “Inc.”

What has happened to the agricultural co-ops that once served farmers in Canada and the United States? A new book, Cooperative Conversions, Failures and Restructurings, published by the University of Saskatchewan-based Knowledge Impact in Society (KIS) project, provides research findings that may have an impact on how today’s co-operatives make decisions.

The 13 research case studies in the book are the work of 22 researchers from across Canada and the U.S. These experts explain why some agricultural co-operatives have failed, while others have persevered and thrived through the challenges that have faced the industry.

At the end of the 20th century, many agricultural co-ops in North America underwent significant restructurings. They converted to publicly traded firms, were bought out by corporations or claimed bankruptcy protection. The book’s authors analyze whether these were isolated events, or part of a wider systemic change.

“We hope that this book will help co-operatives think through the question ‘What can we do to ensure our co-operative is successful and doesn’t succumb to the same problems?’” said Murray Fulton, an expert in co-operatives who is co-editor of the book, principal investigator for the KIS project, and a faculty member of the Johnson-Shoyama Graduate School of Public Policy at the U of S and the University of Regina.

“Broadly speaking, the changes to co-operatives were the result of one of two factors,” says Fulton. “Either the co-op was successful in addressing the problems for which it was established and could thus restructure to take on different challenges, or the management of the co-op took on an aggressive approach in setting strategy, which often led to an organizational failure and subsequent transformation.”

He noted that it was important to document this important piece of the history of co-operatives given that many of the key individuals associated with the early agricultural co-operatives are retired or about to retire.

The KIS book, co-edited by Brent Hueth of the University of Wisconsin, is funded by Advancing Canadian Agriculture and Agri-Food Saskatchewan, the University of Wisconsin’s Center for Cooperatives, and the University of Alberta’s Co-operative Chair in Agricultural Marketing and Business.

The KIS project, which aims to improve the transfer of knowledge on agricultural issues between universities and the non-academic community, is funded by the Social Sciences and Humanities Research Council, the University of Saskatchewan, and the Canadian Agricultural Innovation Network.

The book is available for downloading on the KIS website at: www.kis.usask.ca/CoopBook.html. Hard copies of the book can also be ordered from that location.

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For further information, contact:

Kathy Larson
KIS Project Coordinator
(306) 764-3929
kathy.larson@usask.ca

Joanne Paulson
Research Communications Officer
Johnson Shoyama Graduate School of Public Policy
(306) 966-8393
joanne.paulson@usask.ca