Quentin Burdick Center for Cooperatives

QBCC---Update on Recent Activities, January to December 2000

This has been a year of writing numerous proposals, with low level of success. A major effort was tied to the USDA/IFAFS program in May, 2000. QBCC was part of four major proposals submitted, two originated from NDSU, one from Iowa State University and one from University of Wisconsin. None were funded.

North Central Regional Aquaculture Center (NCRAC)---Marketing proposal--hybrid striped bass--submitted statement of interest and qualifications, May 26, 2000. The final proposal submitted in September 2000, includes an analysis of a market information cooperative.

USDA/Rural Business/Cooperative Services---We submitted a proposal, "Factors Leading to Success and Failure of NGCs", to this program in June 2000. Funding is very limited this year, $300,000. This proposal was not funded, however two NDSU proposals were funded, a continuation of the NGC financial strategies project (Njange, Nelson) and a niche, "identity preserved" marketing project (Wilson).

Several other marketing and feasibility project proposals were prepared and submitted, and not funded in 2000. A four university (two U.S. and two Ukrainian) collaborative proposal also was submitted and not funded.

ONGOING RESEARCH

USDA/CS funded project on the "Training Needs of Traditional Local Cooperatives". This project is conducted in collaboration with University of Wisconsin and Montana State University. Two phases are nearly completed, a survey of directors and an analysis of changes in industry structure. The final phase, development of training materials has been initiated. This is aimed at development of strategic planning materials to be used by local cooperatives in planning their long-term strategies.

USDA/CS funded project on the "Evaluation of Financial Strategies of New Generation Cooperatives(NGC)". The purpose of this project is to evaluate alternative equity management strategies upon the long term financial performance and stability of NGCs. A spreadsheet model for estimating cooperative financial statements over a ten year or more time period has been completed and was reviewed for accuracy. Background information on processing efficiencies, input costs, and output volumes and prices from cooperatives are being collected. It will be entered into the model to estimate the range and probability of profit potential.

USDA/CS funded project on the "Equity Management Issues in New Generation Cooperatives". This project was recently initiated under the leadership of William Nganje. It focuses on stock values of NGCs, their relationship to income allocation decisions of the cooperative, and long term equity management issues.

USDA/CS Project on "A Comprehensive Feasibility Study of Production Level Cooperatives. A summary of current research and current production level cooperatives has been completed. Analysis of the production enterprises and functions which have potential is being conducted.

Agricultural Information and Technology Cooperative(AgIT)--Working with the Center for Innovation, UND, to assist the Steering Committee in market and feasibility studies.

Aquacare International Manure Waste Management Project--Conducted a marketing study for composted and pelleted animal waste products to be used as organic fertilizers and soil enhancements.

North Central Regional Aquaculture Center--Conducting a "Marketing study on the demand for Hybrid Walleye and Sunfish" in conjunction with Michigan State University and Illinois State University.

Sustainable Agriculture Research & Extension(SARE)--Conducted a "Marketing study on marketing procedures and demand for organic vegetables."

Training NIS Faculty in Free Enterprise Economics and Business--Low level of continued involvement with five Ukrainian agricultural universities as they modify their teaching curriculum and research to a market economy.

EDUCATION & OUTREACH

A. QBCC NGC Training Programs--The last of the Strategic Financial Planning Training Programs was conducted in March, 2000. A planned training program on marketing was canceled in December 2000 due to low enrollment. A program was offered in March 2001 on Financial Danger Signals and Alternative Sources of Capital.

B. Cooperatives 374--Dickinson SU in fall, 2000: We are teaching this course. We are combining funds from Farmers Union Education Foundation with funds from the Cooperative Foundation to complete the process of converting the course to be offered as a pure Internet course.

C. It appears that we will be offering four one day or less training programs this spring. These programs are offered in collaboration with Minnesota Association of Cooperatives, CoBank and two cooperatives.

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PLANNED FUTURE EFFORTS

A. We plan to continue to seek funding to support training, technical assistance, and research to assist currently operating cooperatives to survive and grow. This is particularly important for the New Generation Cooperatives as it appears that most are struggling for economic survival. Major problems differ among cooperatives, however the basic problems can be grouped in three areas: 1. Market demand and marketing processes necessary to generate sufficient revenue; 2. technology problems which prevent production efficiencies necessary to compete; and 3. input quality and costs including labor and major commodity inputs. This is consistent with the university mission of education, research and outreach.

B. We will continue to respond positively to training and research requests/opportunities from individual cooperatives and associations to the extent possible.

C. There are several initiatives related to development of a value-added center at NDSU. We will work with these efforts regardless of the status of our involvement. It is possible that the role of QBCC will expand to provide an administrative home for value-added research and training.

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Last Updated:08/05/2003