Frequently Asked Questions about Yenda Producers Co-operative
We have compiled answers to Frequently Answered Questions (FAQs) below. If you still have questions that are not covered by the following information, please contact our staff at (02) 6961 3300.
What is a Co–operative and who owns the Co–operative? Co-operatives are people centered organisations that are owned, controlled and used by their members. A co-operative’s main purpose is to benefit its members. People who join the Yenda Producers Co–operative become members of the Co-op and as such, own the Co–operative.
The structure allows members to collectively achieve a goal through the use of a combined buying power which passes on the better prices to the member, and investment into capital items such as fertiliser spreaders and trucks for the benefit of the members.
How do I become a member? To join the the more than 1,500 members of Yenda Producers, you simply fill out an application form which is available by clicking here or visiting the Resources Tab on the home page of our website. Completing the membership form is the first step. A minimum purchase of 10 shares is required. Each share is worth $1. An applicant must be over 18 years of age and can apply in an individual name or in the name of their trading structure (e.g. company / partnership etc).
Does the share value fluctuate and is there a minimum and maximum level of shareholding? The share price of a $1 does not fluctuate. Shares can only be traded back through the Co–operative and cannot be exchanged or traded in any other way. The minimum level of shares that can be purchased is $10 (10 x $1 shares) and a maximum shareholding, also referred to as a share cap, is $35,000 (35,000 x $1). Any rebates or dividends earned by a shareholder that has reached the shareholding cap will be paid to them on an annual basis.
What does being a member mean? Being a member of the Yenda Producers Co-operative means allows you to have equity in the Yenda Prods as well to vote on the direction of the Yenda Prods at the Annual General Meeting. While a majority of Yenda Producers members are directly involved with farming, the member based also encompasses Corporate Businesses, Professional and Trades people along with Residential people.
What benefit do I receive for being a member? Being a member has a number of benefits. The main benefit is that you become an instant owner of a locally owned and established business. Being a member means that you also have a vote and a say in the progress of the Co–op. As a member, you will receive financial rewards including rebates and dividends. Rebates are paid on the amount of trading you do with the Co–op and the dividend is based on the amount of shares held at the start of each financial year.
Are there any requirements to be met to maintain membership? All Co–operatives must have an active membership provision within their rules. The Yenda Prods’ active membership provision is for all members to purchase goods and services to a minimum value of $100 per financial year. Any member who does not meet this requirement will receive a letter advising them of this. The letter will provide them a list of options to either maintain or cease membership.
Key benefits of being a member of YPC include:
– Financial Benefits. YPC has historically paid its members a rebate (% return based on annual dealings with the Co–op) and dividend (paid on current shareholding). Dividends and rebates are paid annually based on the performance of the Co-op for the current financial period and at the discretion of the Board. The level of benefit is directly related to the performance of the Co-op in any financial year. Over the past two years, YPC has paid its members a rebate of 2% and a dividend of 5%, culminating in a return to its members in excess of $2.5M for the two years. Recently, there has only been one year in which a rebate was not paid. This was in 2003 and is directly attributed to the drought. Members are also rewarded through reinvestment by the Co–op into improved assets and member services. All members must maintain active trading with the Co–op ensuring that all members are contributing to the success of the Yenda Prods.
– Buying Power and Discounts. YPC has direct accounts with all major suppliers for fertilizer and chemicals. This allows members to source almost all products at a competitive price equal, if not better than national sized competitors.
– Services. Through YPC’s investment into trucks, spreaders and loaders, the members are able to source services that would not normally be feasible as an individual investment. This allows the members to increase efficiency in their farming practice whilst also increasing the emphasis on being a member.
– Support of Local Charity,Education and Sporting Associations. As a member-based business, YPC recognises that the majority of its owners live locally. Thus, the Co-op supports numerous community groups through donation of services (e.g. spreading of fertilizer for local sporting grounds), financial support through sponsorship or providing donations for fund raising activities.
How do I apply for a credit account? Yenda Prods caters to its members who are primarily involved in the farming sector. Yenda Prods also understands that purchasing inputs is a frequent activity and tries to make it easy on the members by providing a credit account. A credit account can be applied for by completing this credit application form. All sections must be completed and lodged at any of the branches in person, email or post. From there, we ask that all applicants allow up to four weeks for your application to be processed. If the account is approved, a letter will be sent to the applicant outlining the details and terms.
What are the trading terms of the Yenda Group? The Board of Directors have adopted a credit policy defining the applicable trading terms. Trading terms can vary so we ask that you contact the relevant branch manager to discuss your options.
Is my account accessible at each branch? Yes. The Yenda Prods branches are linked via a wide area network. Branches are located in Yenda, Leeton and Griffith.
What businesses are part of the Yenda Group? The Yenda Group is currently made up of four businesses. The Yenda Prods Co–op is the parent company within the Yenda Group. Spencer & Bennett – Yenda Prods P/L deals with livestock, real estate, clearing sales, insurance and water trading. Yenda Prods – Irrigation Pty Ltd T/A Riverina Water Engineering provides a holistic approach to irrigation systems and caters to all industries (e.g. primary) and sectors (private, government etc). Yenda Prods Grain Pty Ltd is the fourth business within the group, focusing on grain accumulation and linking growers produce to markets for its members.
What advantages does the Co-op have over its competitors and why is it better? The word local is used frequently when describing the Yenda Prods. Put simply, it is because we are local. Local owners, local members, local staff, local knowledge and information, supporting local businesses and sponsoring local organisations. Combined with the fact that Yenda Prods offers expert advice from its team of technical staff, provision of truck services and prices that are equal to the corporates makes the Yenda Prods the number one choice for the farming community. Yenda Prods also prides itself in being able to give back to the community through financial rewards and sponsorship of a large range of education providers, charities, associations and team sports.