COMMENTARY
Working for the long term
Editor’s note: as part of an interview with Blue Diamond Almond
Growers leaders that appears on page 8 of this issue, Rural
Cooperatives asked whether there had been any ramifications at
Blue Diamond when one of its sister tree-nut co-ops voted about two
year ago to convert to an investor-owned corporation. The answer of
Board Chairman Clinton Shick deserves special attention, and is
printed below.
As a former member of the walnut cooperative that converted
— and one who continues to grow walnuts (as well as
almonds) — it remains unclear whether the conversion helps
the walnut industry long term. If anything, it confirmed in my
mind that I am on the Blue Diamond board to serve in a way
that benefits all growers in the almond industry.
Still, the conversion required us to evaluate their action as
a significant event in the co-op world. Blue Diamond didn't
get to be the world’s largest almond processor and marketer
over night. We've been working at it for 96 years, and the success
we may enjoy today is made possible by standing on the
shoulders of a lot of folks who worked hard way before us.
As a director of a cooperative, the lure
of short-term gains that may be possible
because of preceding, long-term endeavors
is seductive and tempting. But what
about the future stability of an industry
that has been served well by the cooperative
business model?
At Blue Diamond, we think the cooperative
business model, when properly
managed, can continue to serve not just
today’s member-owners, but those who
will follow after us.
At a recent Young Co-op Leaders
meeting, I made the comment that, in and
of itself, there is nothing special about a
cooperative. But when you have the right
management with a long-term outlook, and you have an
engaged board, and you have the best people in every discipline,
some magic happens. When you enjoy success, all the
benefits flow directly through to the member-owners.
In the walnut co-op’s case, there have been short-term benefits
in the form of a payout for selling the co-op's facilities
and brand. But at what long-term cost? Have future growers
been placed at a
disadvantage
because of this
action? The business
is now owned
by stockholders
whose economic
motivation may be
sharply divergent
from the growers'
interests. The
"rest of the story"
is still to be written,
and who can
say how it will
turn out?
But for Blue
Diamond, it has
caused our members
to reaffirm their support of the
cooperative business model that is
focused on building strong markets with
profitable returns to members. We
believe we have proven, and can continue,
to be highly successful conducting
business as a cooperative in which all
members are treated fairly and equitably
over the long term.
When I started growing almonds,
there were about 300,000 acres of
almonds in California. Today, there are
680,000 acres, and California dominates
the world almond market with an 80-percent
share. I simply do not believe that
this type of sustained industry growth
would have been possible without the
presence of a grower-owned cooperative
leading the industry in so many crucial ways, from processing
to marketing. These gains have resulted in large part from
growers working together in a cooperative for their common
good and the good of the industry.
Clinton Shick, Chairman
Blue Diamond Growers
