Wisconsin co-op offers fresh
approach to produce auctions
By Pamela J. Karg
Editor’s note: Karg is a freelance writer
based in Baraboo, Wis., with extensive
experience working with cooperatives.
rowers are hauling professionally
boxed fruits,
vegetables and flowers
into a large metal auction
building, where they
line up their goods on neat rows of
pallets. Keeping a watchful eye on the
action is Juanita McDowell, manager
of Badgerland Produce Co-op Auction
near Montello, Wis.
“We really stress that the auction be
fair for both the sellers and the buyers,”
McDowell says of the newly
formed sales outlet. At precisely 10
a.m., she welcomes the growers and
the auctioneer goes to work, selling
everything from raspberries and sweet
corn to gladiolas and mums.
“We’ve had a lot of growing pains,”
McDowell says. “But we really keep
encouraging each other because we
know it’s going to take time.”
The project began when a grower
shared an article on an Ohio produce
auction with Laura Paine, an agricultural
agent for the University of
Wisconsin (UW)-Extension in
Columbia County. “I thought it was
an interesting idea,” says Paine, “but it
was the grower’s persistence that made
it a reality. He wanted to see this happen
for Columbia County growers.”
After several grower meetings, a
core group emerged and decided to
form a cooperative. Completing its
first year, the co-op continues making
small steps toward success.
Farmer-driven co-op
“It’s been the same evolution you’d
see with any new business,” Paine says.
“The strength of the organization is
that it’s farmer driven and directed.
That’s the weakness, too, because these
members are also trying to run their
farms. It’s hard to juggle both.”
The auction is the third of its kind in
Wisconsin and the first with open coop
enrollment. Its organizers learned
about produce auctions, structure
options, capital requirements and other
start-up issues from similar operations
at Withee, Wis., which organized as a
limited liability corporation, and at
Cashton, Wis. The latter is a cooperative
of Badgerland Amish growers who
obtained information from Amish
friends and relatives involved in produce
auctions in Indiana.
Badgerland received an $18,000
Agricultural Development and
Diversification grant from the
Wisconsin Department of Agriculture,
Trade and Consumer Protection, and
another small grant from the UWExtension
Central District. In addition
to UW-Extension assistance, growers
spent hours with UW Center for
Cooperatives staff.
“I was very impressed by the speed
with which the farmers acted this
spring to set up the auction,” says the
UW Center’s Greg Lawless. He
advised growers on the fundamentals of
creating a cooperative. Center staff
provided initial legal assistance for the
co-op.
“Despite the reluctance of some of
the more conservative but supportive
producers, who wanted to wait a year
and get more ducks in line, a core
group said ‘it’s now or never,’ and they
just plowed forward,” Lawless says.
Starting in mid-June, auctions were
held two to three times per week. In
October, auctions were held only on
Fridays. Lawless attended auctions several
times this past year.
“While supply and demand still
aren’t where they need to be, it’s very
impressive what they’ve accomplished
so far,” he says. “While a common
opinion of co-ops is that they are too
slow and clunky due to their democratic
nature, this group was definitely an
exception.”
More buyers needed
“Just the fact that the auction exists
is an incredible success, but they do
need to seek out more buyers,” says
Kathleen Haas, county UW-Extension
community development agent. She
and ag agent Paine are local resource
people to the co-op. “The first year
has been rough, but it’s given the coop
time to figure out roles for people
like Juanita, as the manager, and the
expectations members have for the
auction.”
On the buyer side, produce stand
operators, supermarket owners and
restaurateurs participate. On any day,
however, it’s guesswork who will show
up. Everyone agrees more buyers are
needed to strengthen this weakness.
To that end, McDowell makes
buyer reps available if buyers are too
busy to attend. These substitute buyers
have sold to wholesale warehouses
and know top-quality produce. The
buyer rep gets the limit an absentee
buyer is willing to go and then bids
accordingly.
Although membership in the cooperative
is not required to sell there, it
is encouraged through reduced commission
rates. Badgerland membership
spans the gamut of the local community.
Amish and Mennonite farmers participate
as both buyers and growers.
Other members include Hmong and
Hispanic people.
Growers come from down the road
or across several counties to participate.
Each grower comes as an equal partner,
willing to support and encourage the
other as they sort out this new business.
“We really have a nucleus of support
and almost a family feel,”
McDowell says.
“It’s an excellent example of different
cultures and groups having a common
interest and working together to
make something happen,” Haas says.
Recognizing that diversity, producer
user fees are set on a sliding scale.
Non-Amish growers decide at what
level they want to buy in. A parallel fee
structure respects the Amish growers’
reluctance to join formally organized
groups, yet it provides them with similar
co-op benefits.
Clean produce, boxed or packaged
professionally and picked fresh within
the previous 18 hours, are marks of
quality.
Striving for fair prices
While several Badgerland members
had wholesale experience and knew
these expectations, a series of grower
meetings helped ensure all producers
brought quality wares to market.
Certified organic produce requires that
documentation be presented before
each auction.
Some days, the price of
sweet corn is low. Other
days, colorful pepper prices
soar.
“We’re really striving for
fair prices for every farmer
and every buyer. It’s that
simple,” McDowell says,
adding that their own first
experiences at an auction
were “interesting.”
“Even though we still go
to the Dane County
Farmers Market (on
Saturdays in Madison,
Wis.), we wanted to know
how an auction worked, just
to get more familiar with it.
So we drove to Withee,” she
says. “Coming home, I realized
that I only got $2.50
for 20 pounds of tomatoes. I
wasn’t going back. But it
was a good thing it was such
a long ride home.”
During that ride, she
realized that other produce
brought average-to-good
prices. Moreover, there were
many tomatoes for sale the
day she marketed hers. The
McDowells went back a few more
times. Sometimes, prices were good.
Other times, they were OK. Overall,
though, the experience was good and
convinced the McDowells and others
that an auction could work in central
Wisconsin.
“Many of our growers had wholesale
experience, but that market is
changing,” McDowell explains.
“Through a lot of mergers, buyers
are getting bigger and changing how
they do business. They don’t mean
to, but some are squeezing out the
smaller farmers who have been selling
to them for years.” She said the auction
brings together farmers seeking
a viable new market outlet and buyers
who want to emphasize local farm
produce.
Through another small grant,
county agent Paine wrote and
received from the UW-Extension
Emerging Agricultural Markets Team,
Badgerland organizers plan to “fellowship”
this winter with Cashton and
Withee members. Paine says the
meetings will focus on education as
well as explore ways in which the
three auctions might cooperate further,
such as bulk-buying packaging
materials.
For more information about the
auction, contact McDowell at
608-297-8989 or e-mail her at jmcdwll
@maqs.net or http://www.ccedc.com/ag/
badgerland.asp or Laura Paine at
608-742-9682 or e-mail her at
laura.paine@ces.uwex.edu.
