Oliver Moore: Co-op model ideal for snail farming
Whatever about interest levels, there are only a handful of snail farmers in Ireland at present. In that context, I was asked to make a presentation on co-ops, on behalf of the Centre for Co-operative Studies in UCC, where I’m also a part-time lecturer.
Farming is both a solitary business and something we in Ireland have a long tradition of co-operating about. It’s worth unpacking how a co-op could benefit farmers interested in this new market opportunity.
Here’s a scenario for an initiative: Several farmers come together with a shared need. They form a co-op to do specific tasks for their collective benefit. However — and this is crucial — they remain as individual, independent farmers for most of their activities and for their core farm-based business.
The co-op is formed to serve as a ‘vehicle’ for set purposes. For example, the co-op could be established to assess and develop export markets. Nothing short of 100 tonnes at a time of product will be of any interest to a French or Italian buyer, and no Irish producer could supply that level alone.
The democratic dimension to co-ops — that’s one member, one vote — concerned some in conversation at the event. This is because different farms operated on different scales, and it’s ‘unfair’ for small producers to have the same clout as a big producers. However, if the co-op is established with a specific and tight remit, there is no real worry here.
One member, one vote for generating and finalising an export sales contract for the co-op, for example, will not disproportionately impact a bigger farm. A bigger farm can still supply more product and make more money.
All successes will be proportional. So each of, say eight members will have one vote in the co-op, but they are still individual business people supplying produce based on the scale and capacity of their operation. Again provided the co-op is established with a specific, tight remit.
The co-op could also organise for a market development trip by applying for and achieving Erasmus funding for study trips to places where the market is more developed.
Similarly, a co-op could quite easily reach the magic €100,000 turnover per year level, which gives the organisation access to a different level of Bord Bia supports. This in turn could lead to more Bord Bia supported study and market development trips.
All benefit equally from these activities, and the scale of each individual farm is not affected.
Other initiatives could also be undertaken. For example, there are no set standards as of yet for snail farming.
It would be far easier now to establish these than try to do it retrospectively. Witness the confusion about free range pork as a cautionary tale in this regard. A co-op could undertake to do this work.
Similarly, a co-op could work on shared tasks such as sourcing inputs at better prices. This is a crucial area where a co-op may have an advantage over the more typical producer group.
Co-ops — like all limited companies — have limited liability. This means no one individual member would be liable for any mistakes made in advice, sourcing and so on.
What about cost? Joining ICOS — the Irish Cooperative Organisation Society — and using their ‘Model Rules’ costs €400 plus Vat at 23%. There is also a cost of €100 for addition to the Registry of Friendly Societies.
Another option is setting up a company and integrating co-operative principles into the memos and articles of association (the rules) of the company.
- For any advice on starting a co-op, you can contact ICOS at 01-6764783 or info@icos.ie
