The annual conference 2011 of the IGA takes place on Friday, November 18th, 2011 in Meran/Mais (South-Tyrol). Topic:
conflict of honorary post between cooperative tradition and contemporary business management more

14th Annual IGA Convention 2009

The 14th IGA Convention took place on November 13th 2009 in Grainau

At the 14th convention of the International Research Institute for the Cooperative System in the Alps (IGA) in November 2009 which took place in the academy of the GVB in Grainau near Garmisch-Partenkirchen the question of the distortion of competition has been discussed from a total different point of view as usual –from the view of the supply markets. To the mind of Arnulf Perkounigg – the president of IGA – this view has wrongly been neglected in former discussions. However, to avoid distortions of competition on delivery markets it is necessary to make sure that within supply markets basic conditions are the same and constitutional disadvantages may be neutralised. Due to their legal assignment for promotion cooperatives are burdened additionally and hence disadvantaged when comparing enterprises from the economic view.

The reaction of Univ.Prof. Dr. Peter Welzel from the University of Augsburg to these claims was censorious from a general economic view. In his opinion there is almost no need for action that justifies special demands to competition policy for cooperative enterprises. Possible competition disadvantages due to cooperative adjustment need to be accepted and balanced with other advantages gained from cooperative acting.

In his pragmatic approach Hans Tremesberger, executive of the Pinzgau Milch in Maishofen (Salzburg), takes the conditions leading to discrimination of dairy farming in the Alpes (higher transportation costs, small business organisations and so on) as given and sees chances in differentiation possibilities (e.g. nature based initial production, particular customer care). In this environment, cooperatives only have the possibility to exist in the market due to quality leadership instead of cost leadership. In his point of view, the demand for compensation of competitive disadvantages e.g. regarding gathering of milk is justified if one approves area-wide grassland cultivation.

The assistant representative chairman of the Bavarian Cooperative Association Erhard Gschrey handles this issue from the view of the credit services sector in which - due to the actual financial crises - the support benefits by public authorities led to substantial competition distortions. The business model of local oriented operation of credit cooperatives played an essential role as stability factor in overcoming the crises and may not be discriminated by governmental intervention.

At the closing panel and audience discussion moderated by advocate Regina Wenninger the different positions have been discussed intensively and supplemented by Dr. Klaus Alois Hein, head of department “Consulting Milk Goods Services” at the Bavarian Cooperative Association, as well as by Dr. Heiner Nicolussi-Leck, chairman of the Raiffeisen Association South Tyrol.

The annual brochure of the cooperative series (volume 15) respective this convention is in process.

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