HISTORY

Walgett Special 1 Co-operative Ltd is grain co-operative registered under in Co-operatives Act 1992 (NSW).

During the harvest of 1987, 30,000 tonnes of high protein, high screenings grain was produced due to a hot, dry finish to the growing season. The price offered to individual growers was a low $65.00 per tonne which substantially affected the incomes of the local growers. Dissatisfied with this price, 40 local growers formed the Walgett Special One Co-operative Ltd to maximise returns to the growers, and to provide a body that would lobby the wheat industry for recognition of the Walgett grain as separate class for grading purposes.

During the first year of operation the Co-operative was able to achieve $95.00 per tonne, $30 per tonne higher than what was originally offered by the Co-operative's competitors. From that time one the grower members realized that a great mutual benefit could be achieved by working together.

In 1994 the Co-operative appointed its first full time manager to supervise the marketing of members grain. This was followed in 1995 by the Co-operative obtaining a seasonal harvest facility through Rabobank Australia Ltd. This allowed the Co-operative to pay growers at the time harvest independently of any other marketing organization. It also allowed the Co-operative to market its grain without being subject to financial pressure from other parties.

During the five years from 1995 tonnages handled by the Co-operative increased from 170,000 tonnes in 1995/96 to 340,000 tonnes in 1998/99. The Co-operative had established itself in the marketplace as a high quality service provider to its members. The introduction of very flexible pool payment options has assisted the members in the development of their businesses.

By the end of 1999 staff numbers had expanded to four to service the needs of the members. Late in 1999 the Co-operative, in partnership with Jossco Australia, formed a new company called "Special One Grain Company". This company constructed a new 126,000 tonne storage facility at Beanbri, midway between Walgett and Cryon. This new silo represented the Co-operative's first step into the storage and handling section of the wheat market. It also allowed the Co-operative to attain a reduction in transport costs through competition between existing service providers for the movement of Co-operative's grain.

The Co-operative now has over 500 members and has branched in to the niche marketing of Chick peas and sorgum

The Co-operative is committed to the professional Delivery of Excellent Solutions which meet Customer Nees based on Innovation, sustainability, traceability and wealth creation

To increase the value of membership to its growers, the co-operative has established a presence in the growing and marketing sections of the value chain. It has also been influencial in reducing the transport cost associated with the marketing of grain.

The Co-operative is committed to working to establishing long term customer relationships with particular emphasis upon providing a high quality product. By supplying an exact product to their customer, value is created for members and long-term supply relationships evolve. The vision for WSOC is "Special Grain to the World".

Working closer with end users and manufacturers is a major focus in the co-operative's planning and development. In addition to this, the co-operative has become involved in the genetics and research part of the market as well as in the storage and handling sector. With the exception of seed retailing, the co-operative is becoming directly involved in all sections of the value chain up to early stage processing. From this section forward, the development of alliances and business relationships with groups at the top end of the value chain will ensure our presence right up to the final customer. By working with its service providers to increase their efficiencies, and reducing the risks of their businesses, efficiencies can flow to all participants. Removing waste will lead to lower costs of doing business and ultimately higher net returns to the grower.

The storage facility at Beanbri has given the Co-operative a capacity to store grain to its own specifications and to the specifications of its customers. It has also allowed to the Co-operative to grade, brand and market its products in a way that differentiates them from the products of the Co-operative's competitors.

The Co-operative has been progressive and innovative in the implementation of Quality Assurance Programs. Recently the Co-operative adopted rule amendments to enable the board to make by-laws in relation to the implementation and enforcement of its QA Programs. The aim of these programs has been to been to enable member growers segregate variety specific, QA assured grain in their own storage facility. This has led to greater customer satisfaction through compliance with specified standards set by the co-operative.

The Co-operative has formed the "Special One Research Company" to focus solely on researching better ways of producing grains to meet both economic and environmental objectives. The company is open to all grain growers of New South Wales to join in and develop their farming operations. A close link has being established between growers and agronomists in the Walgett area, the Gilgandra Marketing Co-operative, the University of Western Sydney, the Grains Research Development Corporation and the Department of Agriculture to form a unified group with unparalleled expertise in crop production. The results that will come out Special One Research Company will greatly assist the ongoing development for all farmers in the Northern New South Wales and South Eastern Queensland.

In 2000 the co-operative launched a capital raising program using an innovative form of Co-operative Capital Unit called a Co-operative Patronage Unit. Under the terms of issue members are entitled to a minimum core interest payment and may obtain bonus interest based on dealings with the co-operative. The CPU is redeemable at the option of the holder on the person ceasing membership.

This instrument allows the co-operative to reward members capital contributions whilst recognising their valuable support through the supply of grain. To date the co-operative has raised approximately $200,000 from the initial issue despite floods affecting the 2000 harvest. A further $275, 000 to be issued by way of a profit distribution from the last financial year.

During 2001 amendments were made to the CPU terms of issue to enable self managed superannuation funds, with an active member connection, to invest in CPUs. This is an innovative form of fund raising in that trustees of a fund may obtain bonus interest by nominating an active member on which to determine patronage for the calculation of the bonus interest.

One of the co-operative's strategies has been to add value to membership by taking advantage of available business opportunities. The co-operative is currently looking at a number of options to broaden its revenue base including the provision of farm inputs and household requisites. The Co-operatives is well positioned to take advantage of commercial opportunities within the Walgett community.

To visit Walgett Special 1 Co-operative's website, click here.