Advances in Pork Production (2002) Volume 13, pg. 121 New Generation Partnerships: Is the Future Co-operatives? Ellen Goddard Dept Rural Economy, 515 Gen Serv Bldg, Univ Alberta, Edmonton, AB T6G 2H1; Email: ellen.goddard@ualberta.ca Concepts related to the initiation and structure of cooperatives, specifically New Generation Cooperatives, will be presented in this paper. Discussion of the relevance of New Generation Cooperatives (NGC) for the hog sector in North America, and specifically Canada will be presented. n Cooperatives In Alberta very few individuals are not related, in some way, to cooperatives. Cooperatives exist in retailing (food, clothing, farm supplies), housing and farm output marketing throughout the province. In the agriculture sector the genesis of cooperatives has traditionally been for two reasons: • collective action was required to bring economic balance under control, usually in response to low commodity prices • collective action is required to countervail market power and provide missing services when markets fail (Cook,1995). The initiation of cooperatives, or first stage in cooperative life cycle is, thus, defensive in nature. Cook (1995) has proposed that the second stage in the life cycle concerns the survival of the entity. Based on vast American experience, if the cooperative was initiated in response to low prices it has a low chance of survival, but if it was initiated in response to market failure then the organisation usually survives, with some success. With the success comes the third stage in the life cycle, a stage that res ults directly from the ill-defined property rights associated with open membership in traditional cooperatives. Cook (1995) has defined the property rights issues that arise as follows: • Free Rider problem- members and non-members use or benefit from cooperative resources without benefiting from/paying for the full profits/costs.