Information on setting up an Association/Coop

John Dart asked me to put this forward on the blog. He's looking for comments on this, ideas, and input. To do this, please add a comment to this post. Thanks, Chris.

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From John Dart:


I've found an excellent source for guidelines in setting up a coop. (Assocciation)

1. Discuss with small groups of producers the perceived economic need that formation of a cooperative might fulfill.

2. Hold an exploratory producer meeting. Vote whether to continue. If affirmative, select a steering committee.

3. Conduct an investigation to determine feasibility of cooperative, if so work out details of proposed cooperative. This step may require several intermediate steps such as:

a.) Conduct a producer survey as a basis for determining cooperative feasibility.

b.) Hold second general meeting to discuss results of producer survey. Vote whether to proceed.

c.) Conduct a market, or supply, and cost analysis.

d.) Hold third general meeting to discuss the results of the market, or supply, and cost analysis. Vote whether to proceed, this time by secret ballot.

e.) Conduct a financial analysis and develop a business plan.

4. Hold general meeting to hear results of feasibility study. Vote again whether to proceed. If affirmative, vote a second time on whether the steering committee should remain intact or changes should be made.

5. Draw up necessary legal papers and incorporate.

6. Call a meeting of Charter Members to adopt the bylaws. It is a good idea to invite all potential membership to ratify the bylaws. Elect a board of directors.

7. Call the first meeting of the board of directors and elect officers. Assign responsibilities to implement business plan.

8. Conduct a membership drive.

9. Acquire capital, including developing a loan application package.

10. Hire the manager.

11. Acquire facilities.

12. Start up operations.


It looks like we are at step #2. The literature states it takes 1-2 years to set this up.

We may want to consider forming local coops/associations first and then federating into one statewide organization.


I have Articles of Incorporation and bylaw examples. I would like to scan these documents and then send them on to you.

As Sue mentioned, I really wonder how many stems we can count on in the next three to five years? I am going to try to get the interior folks to attend an Understanding Cooperatives class during the month of March. If I can get an idea of whether this group is feasible, it will help tell us how many producers/stems we are dealing with here in the interior.