Starting a co-op
Resources you may find useful if you are considering starting a cooperative
THIS INFORMATION IS FREELY OFFERED
IT IS NOT ADVICE
What we mean by a cooperative
A simple definition, available here. Simple, but vital to understanding whether or not a cooperative business will offer what you are looking to accomplish.
Five Simple Steps to Start a Cooperative
Useful information can be found on this page, to be found in the menu on the left. Well worth looking.
Provisional membership
We ask those wanting to form a cooperative to become provisional members of the Association, for which there is no cost for the first year. Go to the Membership page to find out more on provisional membership.
Our expectation is that provisional members become full members once the business has started to trade.
Find out about the cooperatives people are looking to start here (in development).
Cooperative Advisory Group
This body of people is made up of directors and executives from member businesses who are happy to talk to individuals and groups wanting to start a cooperative. It also includes legal and financial professionals.
In the first instance, phone the association office on 04 472 4595.
Cooperative Principles
The cooperative is the only business model with its own set of principles. Drawn up by the International Cooperative Alliance, cooperatives the world over use these seven principles as the basis of their business:
1 – Voluntary and open membership
2 – Democratic member control
3 – Member economic participation
4 – Autonomy and independence
5 – Education, training and information
6 – Cooperation among cooperatives
7 – Concern for community
Download these principles as a PDF, expanded with more explanation: International Cooperative Alliance – Seven Principles
Information of cooperative organisations from the Ministry of Economic Development
A useful pamphlet issued by the Ministry of Economic Development in 2004 on the different kinds of cooperative entities, available for download as a PDF:
Cooperative Organisations: Establishing a Cooperative Company or Industrial and Provident Society
The Ministry of Economic Development’s Companies Office web pages on the different kinds of cooperative organisations:
Companies Office info on cooperative companies
Companies Office info on industrial and provident societies
Reinventing Co-operation, the challenge of the 21st century
A must read for all cooperative directors and senior executives – and for anyone hoping to set up and run a successful cooperative business.
This 300-page book dispels the myths and misunderstandings that surround the cooperative business model and sets out – in straightforward language – the essentials of understanding and organising a cooperative.
To get your copy
Useful documents
Until recently an industrial and provident society, Ashburton Lyndhurst Irrigation reconstituted themselves as a cooperative company. The co-op’s constitution, certificate of inforporation, investment statement and prospectus can be found online here. These is useful information for those considering starting a cooperative company.
In Washington, the United States Department of Agriculture has produced a Guide for the Development of Purchasing Cooperatives, which can be found here.
Thinking of starting a consumer and producer-run food co-op?
This manual has been put out by the US Cooperative Grocers Information Network. Worth reading also if you are considering starting another kind of cooperative.
From Britain, a website which offers a simple guide to setting up food co-ops
And from Canada here’s an excellent guide to local food co-ops you can download as a PDF.
Working Together For Local Food
Local Roots is a food co-op in Wooster, Ohio. The web page where members can sign up to join is clear and may well be of use. Find it here.
CDS Consulting Co-op is a US cooperative which assists food cooperatives get off the ground and develop. Their website contains a number of resources, such as this 36 page Patronage Dividends for Food Co-ops which is an excellent read.
How to start a cooperative
Written with the North American situation in mind, this online guide from the USDA has limited use in the New Zealand context but is worth reading.
How to Start a Cooperative
For advice, assistance and more useful documents, phone 04 472 4595 or send an email. Info on provisional membership for individuals and groups in New Zealand wanting to start a cooperative can be found on the Membership page.
