GOVERNMENT PLANS COULD SEE UK CO-OPERATIVES DOUBLE IN NUMBER
The Labour Government has pledged to double the number of co-operatives and mutuals from the current level of around 800. From farming to retail to credit unions, co-operatives contribute over £38bn to the UK economy, according to Co-operatives UK.
The volatility and uncertainty currently facing UK agriculture means farmers are already looking to alternative business models including joint ventures, share/contract farming, and Producer Organisations (POs).
"Government's aim to double the size of the co-operative and mutual sector is ambitious but very achievable,” said James Wright, Policy and Development Lead for Co-operatives UK. “Success will be transformative, not only for our movement, but for communities across the UK."
Approximately half of UK farmers are currently members and co-owners of these businesses, which play an important role in the UK’s agricultural sector by giving farmers more control over the supply chain.
The new Government plans to support its initiative by introducing measures designed to encourage the formation and growth of co-operatives and mutuals including financial incentives, education and training and marketing support. Labour aims to establish a dedicated task force to work closely with industry in order to identify and overcome any potential barriers to the creation and expansion of co-operatives.
According to national law firm, Clarke Willmott, the incoming Agricultural Minister stated that “doubling the number of co-operatives and mutuals is not just a target; it's a necessary step towards a more resilient and self-sufficient agricultural sector. By empowering farmers through co-operation, we can build a future where they have greater control, security, and prosperity.”
Susie Emmett, AF Group Chief Communications Officer, believes that there are signs that a new era of co-operation is about to begin.
“We have fewer co-operatives per capita in the UK than just about anywhere else in the world,” said Emmett. “Co-operatives may not be as numerous here as on the continent of Europe but our rural landscape is peppered with stories and new examples of when co-operation is key, and even saves the day.”
SAOS’s recent AGM, saw Rory Christie appointed as Chairman; a passionate co-operator, he believes that working together is vital for tackling many of the challenges facing the farming and food sector. Indeed, he worked closely with SAOS to form the Milk Suppliers Association, bringing together over one hundred dairy farmers to strengthen their power in the supply chain.
“SAOS and their subsidiaries have a joined-up approach to tackling vital issues and turning a problem into an opportunity,” said Christie. “And I’m keen to help spread the word to a wider audience.”
The United Nations has declared that 2025 will be the International Year of Co-operatives. Today, there are 3 million co-ops around the world, with 1.2 billion members, employing more than 280 million people.
The UK boasts over 7,000 co-operatives. National names include Arla dairy co-operative, Openfield whose orange lorries take wheat to Warburtons, and, of course, The Co-operative Group of supermarkets.
