Do you have a project with an economic and social vocation? The cooperative formula marries democracy and efficiency, equity and competitiveness.
The producers cooperative may be an appealing legal framework if you want to build a strong and unified network.
Producers cooperatives bring together individuals and/or legal entities who benefit by obtaining from their cooperative the goods and services they need to exercise their profession or operate their business. The aim of this kind of co-op is first and foremost to create a shared structure, to purchase equipment and to process, distribute or sell products.
The members of this type of organization can therefore be service providers (e.g. cab drivers) and producers of goods (e.g. farmers). This business model is effective in areas as varied as agriculture, agri-food, group purchasing, taxi services, the use of agricultural equipment, professional services and more.
Have you ever heard of Citadelle? This Quebec-based producers cooperative promotes and markets maple, honey and cranberry products. It carries out collection, storage, marketing and worldwide export activities.
Producers cooperatives play an essential role in various sectors in Quebec by pooling services and facilitating the marketing of their members’ products. For example, the Regard-Action cooperative brings together opticians and optometrists across Quebec. This producers co-op not only pools purchasing, it also offers its members a variety of services, thus reinforcing solidarity and efficiency in the profession. Another notable example is the Montréal-based craft cooperative L’Empreinte, which recently celebrated its fiftieth year of operation. This co-op provides craftspeople with a venue to sell their work. Its boutique in Old Montréal and an online catalogue facilitate its artist members’ access to a broader market. As a final example, La Guilde du jeu vidéo du Québec perfectly illustrates the advantages of this business model. This producers co-op brings together independent video-game studios, enabling them to share services and strengthen their competitiveness in a rapidly expanding market.
In short, these examples demonstrate the scope and diversity of producers cooperatives that contribute to economic growth and innovation in their sectors.
Agropur perfectly exemplifies the producers cooperative concept. Collectively owned by 3,000 dairy farmers who sought to add value to their operations, this cooperative is widely known for its success in Quebec. As North America’s leading dairy-processing cooperative, Agropur has garnered an enviable position in the food industry and has become one of the world’s leading players. This remarkable rise testifies to the strength and collective vision of producers cooperatives.
Les Libraires is an exemplary model of collaboration in the bookselling industry. The Librairies indépendantes du Québec cooperative gathers together more than 120 independent bookstores in Quebec, the Maritimes, Ontario and Manitoba under the Les Libraires banner. The cooperative’s underlying mission draws its strength from proximity, diversity and service. As independent entities with no more than five outlets each, the member bookstores are free of the structures of commercial chains and therefore each able to cultivate their own identity. These members are committed to books, readers and a dynamic literary community.
Furthermore, its members joined forces to overcome the challenges of the digital age. By sharing production resources, such as promotional efforts and marketing costs, they carved out a strategic position in the online market, notably through their common platform, leslibraires.ca. This initiative is much more than a website: it’s a collective response to competition from the online retail giants. By pooling the development and maintenance costs of a digital platform, members benefit from cutting-edge technology without incurring prohibitive costs for their individual businesses. By joining forces, Les Libraires members have demonstrated that cooperation is an effective weapon against the industry’s behemoths, while also preserving the very essence of independent bookshops.
In this type of organization, members share the production resources they require for their professional activities. Practically speaking, this can mean pooling or sharing rental space, promotional efforts, marketing expenses, supply agreements and much more. The Cooperatives Act stipulates that a minimum of five founders (individuals, corporations or other forms) is required to create and legally incorporate a cooperative.
The producers cooperative is also characterized by threefold member participation:
Producers cooperatives offer their members many advantages:
By joining forces in a cooperative, producers can leverage greater negotiation power. This strengthened position can lead to market conditions that are more advantageous, often translating into increased profit margins for each member.
By sharing resources and operating costs, such as facility rentals, marketing expenses and administrative fees, co-op members can reduce their individual operating expenses. Sharing expenses optimizes each member’s economic efficiency.
Producers cooperatives are often formed with a twofold aim. They are intended to generate profits and to foster collective well-being.
Cooperatives enjoy tax incentives intended to support their creation and development. Taking the form of federal and/or provincial tax deductions, these incentives strengthen cooperatives’ ability to capitalize and invest in their future growth. By choosing to join a producers cooperative, members maximize the impact of their own business. The cooperative thus becomes a natural extension of the individual company, offering an efficient, mutually supportive network to reach shared goals.
In short, producers cooperatives are an organizational structure in which people and companies come together to reap common benefits. By purchasing the goods and services they need for their businesses from the cooperative, members can reduce their costs and increase their profit margins. These members also participate in a structure that combines economic profitability with a social mission.
In conclusion, this post is part of a series exploring the five types of cooperatives. Our aim is to explain the specific features and advantages of each cooperative model, be it producers cooperatives or
In exploring this series, you’ll discover the many facets of these organizations as well as their positive impact on communities and the economy as a whole. If you’d like to learn more about the other types of cooperatives, check out the corresponding posts!