3c hapter - Index of

From Brown Rice to Biofuels 173
that drew upon the strengths of all of its stakeholders, so they designated
four classes of membership representing producers, customers,
employees, and investors. Producers still have a dominant
role—they elect four of Maple Valley’s seven directors, with the
other member groups each electing one—but the cop- op believes
that the participation of the other groups makes for a stronger,
more resilient organization.
William Neil, a fi nancial planner in LaCrosse, embodies the
mutual and overlapping interests of many co- op members. He
produces a small amount of syrup from a stand of maples on his
property, which is sold by Maple Valley. He’s also a customer—
although lately he has been cutting down on his sugar intake. And,
he is an investor. Like many cooperatives, Maple Valley is tapping
its members for capital to expand. Its goal is to raise $300,000 by
2013. It is offering Class B preferred shares, priced at $25, that
pay a 6.5 percent annual dividend. Neil, a registered principal
with brokerage fi rm LPL Financial, considers that an excellent
investment—the equivalent of a B- rated corporate bond. “As a
fi nancial planner, I’m looking for stability and steady returns—
that’s hard to fi nd these days. The rate of return relative to risk with
a cooperative is very good,” he says. Co- ops, and local investments
in general, he believes, are a good way to diversify. “ Co- ops, at their
best, develop a level of insulation from global economic volatility.”
Neil especially likes the multi- stakeholder approach.
“Knowing that the power is fairly equally distributed among the
members fosters trust,” he says. And input from various groups
help the business stay nimble and responsive to market changes,
for example, by turning a producer surplus of sap into a product—say,
maple candy—that customers are enthusiastic about.
That gives Neil confi dence as an investor. So much so, he believes
that cooperatives “are the investment of the future.”
Other cooperatives are taking a similar multi- stakeholder
approach. The Producers & Buyers Co- op in Chippewa Valley,
Wisconsin, brings together local farms and institutional buyers,
such as hospitals and schools. And the Black Star brewpub in Austin
combines worker and consumer membership and control. Fifth
Season Cooperative, formed in 2010 in Viroqua, Wisconsin, is going