According to research conducted by the Business Council for Co-ops and Mutuals (BCCM), many members who are part of a co-operative (co-ops) don’t actually realise they are part of one.
Co-ops can be really powerful in allowing a group of people, or members, to pursue an economic, social or cultural need.
At the final BCG farmer data workshop in Berriwillock recently, BCCM CEO Melina Morrison explained how prolific co-ops are in Australia without many people realising.
“If you are a member of RACV, you are a member of a co-op.” Ms Morrison said.
Co-operatives are associations in which members unite to meet their common economic, social and cultural needs through a jointly-owned and democratically controlled enterprise.
They can be not-for-profit or can trade and distribute profits to members.
In Australia there are 2000 co-operative businesses, with 15 of the top 100 being agricultural co-ops.
Ag co-ops in Australia have a combined turnover of $8.9 billion and combined assets of $4.7 billion.
Australia’s largest is Western Australian co-operative bulk handling limited (CBH) with an annual turnover of $3.62 billion.
The CBH Group began in 1933 and now has 4,200 independent grain growers in WA as their membership base. Continued growth after the demise of AWB has seen CBH grow as a business along the supply chain.
But, it hasn’t all been smooth sailing with a group of members teaming up with GrainCorp to try and force CBH to demutualise and be listed on the Australian Stock Exchange.
“The transparency of the performance of the board and management is a big point of difference between a co-op and a listed entity through its share price.” Brian McAlpine, CBH Director said.
In March 2016, a Senate inquiry on co-ops concluded by finding that co-ops “to be a vital part of the Australian economy contributing to a diverse, sustainable and competitive economy.” In 2016, the Federal Government announced the Farm Co-operatives and Collaboration Pilot Program in which $14 million was set aside over two years to provide farmers with knowledge, skills and materials on co-operatives, collective bargaining and other forms of collaboration.
According to Professor Joseph Stiglitz, Nobel Prize in Economics (2001) winner “The rules of the game are being set by those who are at the table, for their own interest, so it’s very important to have the co-op movement there as a reminder to big corporations about the dangers of excessive selfishness – and to keep the idea there that there are alternative forms of organisations that ought to be discussed, that isn’t just the issue of government versus private sector.”
BCG is undertaking a feasibility study to determine the need for a farmer data co-op. If you are interested in learning more, please phone the BCG office on 03 54922787.
