The cooperative model is still not widely used in the entrepreneurship field. It’s nevertheless a business model that has proven itself. Flourishing cooperatives of all types exist, from small businesses to large international operations. It’s interesting to wonder what their place will be in the future Quebec economy, especially when considering that cooperatives generally have a higher survival rate than private businesses throughout time. Knowing that this business model distinguishes itself from others by its collective approach—because it unites its members according to common values and shared aspirations—, could agricultural cooperatives offer an interesting opportunity to young Quebecers who are thinking of starting a business in agriculture? Fulfilling the members’ needs is at the core of the cooperative concept. This means that they sometimes focus on objectives centred around profits, but sometimes it’s more about specific working conditions or employees’ quality of life.

3 answers to the most common questions about cooperatives

What is an agricultural cooperative?

A cooperative is an association of people that come together to create a business project built on a shared vision. The enterprise’s aspirations are clearly defined and shared by all members.

Who runs a cooperative?

Practically speaking, the structure of a cooperative may be very similar to that of a private company. It may also have similar structures for the allocation of tasks. However, the enterprise is collectively owned by its members. It's controlled by a democratic board of directors, which can range from 3 to 15 people. Business decisions therefore always go through a democratic decision-making process before they are implemented. Cooperative members thus actively participate in the decision-making process.

What are the internal challenges of a cooperative?

It was pointed out that the potential pitfalls are often related to management and governance. Since all decisions must be made as a group, each member’s communication skills are at the forefront of the business. This is why it’s essential to have a set of rules and policies, approved by the members, in place. An organized structure can prevent many conflicts.

Clearly, the new generation proudly holds human and environmental values, and often put them ahead of monetary profit in terms of importance. The cooperative then offers a great opportunity, as meeting the members’ needs is at the core of its success.