Co-operatives: An Overview - Martin Meteyard

Co-operatives: An Overview

Martin MeteyardCo-operative Consultant (Scotland)

[email protected]

1www.nrn.ie


• 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


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


“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)


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


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

Co-operatives: An OverviewCase 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


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

Co-operatives: An OverviewCo-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


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?


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.


Some useful websites:

International Co-operative Alliance www.ica.coopThe Co-operative Group www.co-operative.coopMondragon Co-operative Corporation www.mondragon-corporation.comGujarat Co-operative Milk Marketing Federation www.amul.comNational Rural Electric Co-operative Association www.nreca.orgEnergy4All www.energy4all.co.ukOklahoma Food Co-op www.oklahomafood.coopDublin Food Co-op www.dublinfood.coopUK Fairtrade Foundation www.fairtrade.org.uk