Appendix re Aims
Australian Beekeepers Cooperative Ltd Group
Relationship and long term objectives of structure.
The original query came from a grower wishing to export honey. As he had only a few hives it seemed obvious that he should secure supply from like minded bee keepers. This led to the plan to establish a cooperative of growers who would mutually give security of supply and share in the value adding process of packing ,marketing,local sales and export.
Given the sorry history over the last 50 years of primary producers selling off their hard earned and quite often visionary value adding assets to “money men” only to be reduced to peasant farmer status by them. We decided on a model suited to and protected for the producer in an equal partnership of capital and producer of goods. The traditional corporate model which has to service a shareholder base remote from the base wealth of the operation is not dishonest but is a base not answerable to the producer. It operates full control of the value adding component. Our objective is to create a structure to be proof against future generations selling the value adding asset when beguiled by promises such as made to Dairy,Sugar,Cotton to name the most prominent of the recent stories.
Attached is a chart outlining the structure which in essence is a Cooperative employing a partly owned Pty Company which will be the processing and marketing arm of the growers. This structure has been brought to concept maturity by a group of profressionals who have agreed to pool their various skills free of charge in return for a free and carried 10% share in the resultant structures.
The company share structure is outlined in a separate section but is designed to ensure that the Founders company together with the Cooperative can avoid the investor group in the company at some future time taking control. In essence the structure is designed to create a long term partnership between investors and primary producers in a balanced arrangement delivering profits equally between the creators of wealth and the owners of capital.
The beekeepers Cooperative : Australian Beekeepers Cooperative Ltd
We have identified a group of beekeepers who wish to join. These include medium to large enterprises to the smaller units who wish to grow and who want a fair price for their honey over time. Our basic criteria for membership is that they understand that this is a long term venture designed to ensure that control of the group will always be in the hands of beekeepers. Membership will be open to people or businesses who serve the cooperative but the rules will be stricly observed in their admission.
External investors in ABC Honey Pty Ltd
5 0% of the Company shares( A Shares) will be issued to non beekeeper investors or beekeeper members who wish to have a larger share in the value added profits of the enterprise. We do envisage that many of the beekeeper members will also become independent shareholders in the company. Our structure will make clear to speculator investors that this is a company designed to maintain the parities between the parties. We stress that there are real long term benefits to capital in having a prosperous beekeeper component providing the product to be used in the venture in partnership.