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

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.coopwww.ica.coop The Co-operative Group www.co-operative.coopwww.co-operative.coop Mondragon Co-operative Corporation www.mondragon-corporation.comwww.mondragon-corporation.com Gujarat Co-operative Milk Marketing Federation www.amul.comwww.amul.com National Rural Electric Co-operative Association www.nreca.orgwww.nreca.org Energy4All www.energy4all.co.ukwww.energy4all.co.uk Oklahoma Food Co-op www.oklahomafood.coopwww.oklahomafood.coop Dublin Food Co-op www.dublinfood.coopwww.dublinfood.coop UK Fairtrade Foundation www.fairtrade.org.ukwww.fairtrade.org.uk