Co-operatives: An Overview

1. Co-operatives: An Overview Martin Meteyard Co-operative Consultant (Scotland) martin.m@pop3.poptel.org.uk www.nrn.ie

2. Co-operatives: An Overview • Tried and tested business model going back more than 200 years • Over 800m co-op members worldwide • Co-ops provide more than 100m jobs • Aggregate turnover of top 300 co-ops in world = 1.1 trillion USD • Business model based on TRUST

3. Co-operatives: An Overview Co-operatives operate according to seven principles as agreed by the International Co-operative Alliance (ICA) • Voluntary and Open Membership • Democratic Member Control • Member Economic Participation • Autonomy and Independence • Education, Training and Information • Co-operation among Co-operatives • Concern for Community

4. Co-operatives: An Overview “Co-operatives are a means to provide goods and services which members need and which they cannot obtain individually at similarly favourable conditions, or at all.” (Prof. Hans-H. Munkner)

5. Co-operatives: An Overview Case study 1: The Co-operative Group (UK) • Established 1863 as Co-op Wholesale Society • Dominant food supplier up till WW2 • Almost continuous decline till early 1990s • Decline halted with greater emphasis on membership and values – ethical positioning • Strong support for rural retailing • Now largest consumer co-op in world – Somerfield takeover & Britannia BS merger

6. Co-operatives: An Overview Case study 2: Mondragon (Basque country, Spain) • Catholic priest set up technical school 1943 • First industrial co-operative with 24 workers 1956 • Caja Laboral bank established 1959 • Retail co-ops form Eroski chain 1969 • Importance of multi-stakeholder model • Role of members’ capital • Now 90,000+ employees worldwide • ‘Green jobs’ initiative in USA with USW trade union

7. Co-operatives: An Overview Case study 3: Amul (India) • First dairy co-op union in Gujarat formed 1946 • Indigenous R&D and technology development • Success led to formation of other dairy co-ops • Apex co-op formed 1973: Gujarat Co-operative Milk Marketing Federation • Now jointly owned by 2.8m milk producers via more than 13,000 village dairy co-ops • Largest food brand in India, turnover of 1.5 bn USD • Strong consumer branding, now export to 37 countries

8. Co-operatives: An Overview Other co-op success stories: • US rural electricity co-ops – 930 co-ops with 40 million consumer members covering 75% of land mass in 46 states • Renewable energy: Denmark and Scotland • Co-operative banks and credit unions • Agricultural co-ops

9. Co-ops can also unite producers and consumers Oklahoma Food Co-op started November 2003 Only sells food and non-food products made in Oklahoma Membership open to producers & consumers Co-op charges each 10% to finance operating costs Now more than 2,000 members, with 3,800 items offered every month, and $1m annual sales Co-operatives: An Overview

10. Co-operatives: An Overview Other examples: • Farmers’ markets – notably Dublin Food Co-op! • Fairtrade system, based on consumers supporting producers – UK sales in 2008 rose 43% to more than £700m • Can UK and Irish agricultural co-ops (e.g. milk producers) learn from this?

11. Co-operatives: An Overview In the wake of the financial crisis, people are looking more than ever for business models that embody accountability and trust. An opportunity that co-operatives should seize! Thank you.

12. Co-operatives: An Overview Some useful websites: International Co-operative Alliance www.ica.coop The Co-operative Group www.co-operative.coop Mondragon Co-operative Corporation www.mondragon-corporation.com Gujarat Co-operative Milk Marketing Federation www.amul.com National Rural Electric Co-operative Association www.nreca.org Energy4All www.energy4all.co.uk Oklahoma Food Co-op www.oklahomafood.coop Dublin Food Co-op www.dublinfood.coop UK Fairtrade Foundation www.fairtrade.org.uk