Cooperatives Online

Editor's note: Miller is a freelance writer based in Minneapolis, Minn., who has broad experience working for and with cooperatives.

By the end of 1999, it's estimated that 300 million people will be using the Internet, and that it will rack up revenues of $3 billion. So how do cooperatives - especially rural cooperatives - fit into this electronic marketplace? Fire up your computer, grab your mouse and let's surf !

        Cooperatives, whether they are large or small, already have staked their claim in the boomtown called the Internet. The list of online co-ops reads like a cooperative Who's Who, with rural electrics, telephone cooperatives, farm supply, grower, dairy and service cooperatives and their national trade organizations well represented.
        But what are they doing online? First and foremost, they're creating a presence - letting members, consumers and the general public know they're out there. They're telling their story - of their business, their products, services and history - to a brave new audience that may know them well, or not at all.
        Many co-ops will admit they first launched a Web site because everyone else was doing it. But they quickly point out the business goals and strategies behind their sites. These aren't placeholding sites, they're hardworking sites that are evolving as the co-ops learn more what their growing online audience needs and expects from them.

Farmers like Chris Dunsmore from Renville, Minn., learn about-and often access- new products and services offered through co-op Web sites.
(Photo by David Lundquist, Cenex Harvest States/Land O'Lakes)

"A Web site isn't like a brochure that once it's printed, its done," says Lydia Botham, director of public relations for Land O'Lakes. "A Web site is a communication piece that is constantly changing to meet the needs of the audience and to keep them coming back. Changing, updating - it's what they expect from this technology, and it's our challenge to meet their expectations while advancing our business goals."
In addition to providing information, co-ops now conduct real-time livestock auctions, sell products, allow members to check their financial accounts, sign up for new services and much more. Here are what some online cooperatives have to offer.

Here's an easy reference list for those co-op Web sites featured in this story. Please note that USDA does not warrant the information contained on the cooperative's Web sites, nor does it recommend the products or services of these co-ops over any other products and services in the marketplace.

Producers check the Cenex Harvest States and Land O'Lakes Web sites for everything from emerging agricultural technology to producer financing.
(Photo by David Lundquist, Cenex Harvest States/Land O'Lakes)

Almond growers may see their crop firsthand as they drive past their orchards, but for brokers and buyers, the next best thing is Blue Diamond Growers' Web site. It offers a new photo every day to show the trees' all-important bloom progress.
(Photo by Catherine Merlo)

        Blue Diamond Growers, Sacramento, Calif., is one of a host of grower/producer co-ops on the Net. Along with Sunkist, Welch's and others, it provides general information about the cooperative as well as specific information for growers. One of the newest additions is the "Bloom Report Web Cam."
        Every day, the site posts photos of four almond trees - one in each of the co-op's growing regions - to show the progress of the bloom, which in large part will determine the success of the upcoming crop. The same trees are featured every day and will be followed on the site through harvest. Along with the "bloom cam," there's a weather report, which includes bee activity and a chart showing bloom progress.
        "It's being used by everyone right now - brokers, buyers, growers, school kids," says Diana Manges, public relations and advertising coordinator. "The idea came from our sales and marketing department based on the large volume of daily calls requesting information about the progress of the crop. Now people can check it out for themselves."
        Manges says the Web site adds value for members, customers, consumers and employees because information is accessible when they need it. "We want to be the No. I almond handler and we want to be seen as the No.1 Web site to come to for almond information."

Becky Lyle, a grain producer from Ritzville, Wash., can use her laptop computer to access up-to-the-minute information offered by her local farm supply co-op.
(Photo by David Lundquist, Cenex Harvest States/Land O'Lakes)

        The smell of the sale ring and the call of the auctioneer may be absent, but that's all that is missing from Equity Cooperative Livestock Sales Association's online, real-time livestock auctions. The co-op launched its first nationwide online sale in mid-1998.
        Bidders register for the sale, which begins precisely on time. The livestock is described in writing, then the bidding begins. Following each bid is a 10-second bidding "window." Anyone interested in upping the bid hits the "bid" icon on their screen and watches to see the bid accepted. The auction continues until 10 seconds elapse without a new bid. Just like in a "live" auction, the livestock goes to the highest bidder. Buyers are billed for the animals on delivery.
        "Our Internet auction is an extension of the electronic marketing system we've had in place for 20 years," says Dave Johnson, vice president of marketing. "This was the logical next step as we looked at ways to make the auctions more efficient and reduce marketing costs for both buyers and sellers. The online auction also helps determine a fair market weight, is very competitive and very anonymous. And it's easier on the animals because they're not moved from the farm or feedlot until the online auction is complete." For customers looking to improve their herd genetics, Select Sires offers its stock of semen and embryos for sale online. Customers can browse through the online catalog of dairy and beef sires and dams.

        One of the biggest obstacles for rural areas is access to the Internet. In 1995, Logan Telephone Cooperative of Auburn, Ky., became an Internet Service Provider (ISP) and launched a Web site to offer tips and technical support for Internet use. The co-op, which has about 7,000 customers, now has nearly 1,400 Internet subscribers.
        "Until recently, we were the only ISP for this area," says Stacey Biggs, public affairs and marketing coordinator for Logan. "Our customers can access the Internet for the cost of a local call. We never expected to have so many subscribers, and the service just continues to grow. In December we signed up nearly 170 new users."
        Biggs says customers also can use Logan's Web site to get billing information, switch long-distance carriers and more. "The site, and being an ISP, gives us great exposure in our community," she adds. "Logan's home page is the default for our ISP customers when they log on to the Internet, and I use it to publicize new services and features."

        Increasingly, cooperatives are including a "members only" section on their Web sites, accessible only by password. Several dairy cooperatives - including Dairylea, Darigold and Land O'Lakes - offer these secure pages so producers can access test results or milk check information. Agway Inc. recently added a secure site just for its board of directors.
        "Our Web site is a major vehicle for marketing and information about our cooperative," says Steve Hoefer, vice president of public affairs for Agway. "It represents the phenomenal change in the marketplace, and the need for everyone in the coop to be constantly learning and adapting. We saw that our board needed to be part of this process, too."
        So, Agway developed a directors-only Web site as part of its expanded board education program. Each director received a laptop computer, and Agway provided them with Internet access. On the site, directors find minutes of board meetings, a current calendar, PowerPoint presentations they can adapt for their own use and more.
        "We've found the site really facilitates communication with and for the board members," Hoefer says. "It encourages them to learn new things and share that information fast."

        The Pennsylvania Rural Electric Assn. first launched its Web site in response to changes in the energy industry. The co-op knew consumers would be facing a bewildering array of choices as the industry becomes more deregulated, and PREA wanted to provide them with up-to-date and easy-to-understand information about the changes.
        "Being able to keep our customers informed justified the initial expense of the site," says Perry Stambaugh, editor and director of communications for PREA, which serves 600,000 consumers of 13 member co-ops in Pennsylvania and New Jersey.
        Stambaugh says the site's new Y2K section also has been attracting attention from users and the key graphic on the home page - a lineman at work - follows through with PREA's latest image campaign.

        Whether customers are looking to lease agricultural equipment, apply for a home equity loan, check their bank statements or make an insurance claim, they now can secure these services on the Internet.
        Farm Credit Services not only allows customers to apply for loans online, but the organization soon will allow online payments as well. The home page for Farm Credit Services also links customers to local branches.
    Need a tractor, Terragator or milking parlor equipment? Farm Credit Leasing offers a wide variety of equipment for lease to agricultural customers.
        Customers can read descriptions of the new and used equipment online and arrange for the lease as well.
        For insurance services, customers can turn to Nationwide Insurance's site. Some of the services include auto insurance quotes, claims information, the location of the agency nearest you, plus descriptions of the company's full line of insurance policies.

To learn what's new in the cooperative world, members can visit sites provided by trade organizations such as the National Council of Farmer Co-operatives and National Milk Producers Federation. These groups not only explain their mission, but keep members up-to-date with legislative matters.

        Food marketing cooperatives such as Sunkist, Farmland Industries and Land O'Lakes all give consumers a helping hand when it comes to preparing great-tasting meals - featuring their products, of course.
        At the Land O'Lakes site, not only can consumers create their own "recipe box," but they also can choose a menu, complete with shopping list. One new feature of the site allows harried cooks to check their pantry, type in the ingredients they have on hand and then receive suggested recipes using those ingredients.
        "Consumers come to our site because they want information on products, they need help with meal planning or they're looking for a special-occasion recipe," says Lydia Botham, director of public relations for Land O'Lakes. "And they want to do it on their time, when its convenient to them, not when our 800 number is in service or when the information finally reaches them by mail."
        Visitors to the site also can purchase cookbooks and Land O'Lakes-identified merchandise.

Cooperatives' presence on - and their business use of - the Internet will only continue to grow as customers, members and employees demand it, and as they look to the future direction of their business and see how the Internet can help them achieve their goals.

While many cooperatives will admit they launched a Web site to "keep up with the Joneses," they're also quick to outline the thinking and strategies that provide the business foundation of their site. Jana Bourne, of Avatar Digital Media (www.avatar.net/cca), frequently advises cooperatives on developing and improving their Web sites. Here are some tips she offers to help make your Web site a valuable addition to your business toolbox.

Know your audience. As with any communication tool, it's essential to know whom your Web site - and each of its sections - is targeting. Develop the content, as well as the design, to fit that audience. For instance, there's nothing fancy about Equity Livestock's live auction page. It just needs to provide the basic information for participating in the auction, with no frills or glitz tacked on.

Form a team. One of the best models for a Web site team is: product managers (who know the audience); marketing communications specialists (who know the company and understand content creation); and technology professionals (who know the technology and its capabilities).

Develop a strategic business plan. Whether you're just launching a site or are expanding an existing one, your Web site should have its own business plan. As you develop a plan, clarify the site's purpose, what messages you want to communicate and how you want to position your cooperative. Identify goals and set priorities.

Set a budget. Your budget should encompass: graphic design and writing; HTML programming and advanced software applications, including forms and security; bandwidth, marketing your site; and content and programming maintenance.

Measure success. Your goals and objectives will help you determine the success of your site. There are a number of surveying instruments available that can measure not only the number of visitors coming to your site, but how long they stay and where they go.