June 2017
The June edition of Co-op News: connecting, challenging and championing the global co-operative movement. This issue … celebrating 40 years of Suma Workers co-operative ... How to tell your co-op story ... Inside a £5bn agriculture industry .. and the Beatles' co-op connection.
The June edition of Co-op News: connecting, challenging and championing the global co-operative movement.
This issue … celebrating 40 years of Suma Workers co-operative ... How to tell your co-op story ... Inside a £5bn agriculture industry .. and the Beatles' co-op connection.
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JUNE <strong>2017</strong><br />
NATURE<br />
news<br />
Going beyond<br />
CSR: Putting the<br />
environment on<br />
your agenda<br />
Plus ... Suma’s 40 years ...<br />
How to tell your story ... Inside<br />
a £5bn industry ... The Beatles’<br />
co-op connection ...<br />
ISSN 0009-9821<br />
01<br />
9 770009 982010<br />
£4.20<br />
www.thenews.coop
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news<br />
CONNECTING, CHAMPIONING AND<br />
CHALLENGING THE GLOBAL CO-OP<br />
MOVEMENT SINCE 1871<br />
Holyoake House, Hanover Street,<br />
Manchester M60 0AS<br />
(00) 44 161 214 0870<br />
www.thenews.coop<br />
editorial@thenews.coop<br />
EXECUTIVE EDITOR<br />
Anthony Murray<br />
anthony@thenews.coop<br />
DEPUTY EDITOR<br />
Rebecca Harvey<br />
rebecca@thenews.coop<br />
EDITORIAL<br />
Anca Voinea | anca@thenews.coop<br />
Miles Hadfield | miles@thenews.coop<br />
DIRECTORS<br />
Elaine Dean (chair), David Paterson<br />
(vice-chair), Richard Bickle, Sofygil<br />
Crew, Gavin Ewing, Tim Hartley,<br />
Erskine Holmes, Beverley Perkins and<br />
Barbara Rainford.<br />
Secretary: Ray Henderson<br />
Established in 1871, Co-operative News<br />
is published by Co-operative Press Ltd,<br />
a registered society under the Cooperative<br />
and Community Benefit Society<br />
Act 2014. It is printed every month by<br />
Buxton Press, Palace Road, Buxton,<br />
Derbyshire SK17 6AE. Membership of<br />
Co-operative Press is open to individual<br />
readers as well as to other co-operatives,<br />
corporate bodies and unincorporated<br />
organisations.<br />
The Co-operative News mission statement<br />
is to connect, champion and challenge<br />
the global co-operative movement,<br />
through fair and objective journalism and<br />
open and honest comment and debate.<br />
Co-op News is, on occasion, supported by<br />
co-operatives, but final editorial control<br />
remains with Co-operative News unless<br />
specifically labelled ‘advertorial’. The<br />
information and views set out in opinion<br />
articles and letters do not necessarily<br />
reflect the opinion of Co-operative News.<br />
Show election candidates the<br />
co-op way<br />
World Environment Day <strong>2017</strong> is asking us to remember the value<br />
of nature.<br />
Nature can only exist through the careful assessment of our impact on<br />
the environment.<br />
The environment is an area that co-operatives are conscious of.<br />
Last year, the International Co-operative Alliance launched a<br />
special website for co-ops to pledge support for the United Nations<br />
Sustainable Development Goals.<br />
On that website, there are over 100 entries from co-ops around the<br />
world pledging to protect the environment, such as sustainable<br />
tourism co-op Costa Balenae in Italy, Australian agricultural co-op CBH<br />
and the National Co-op Grocers Association in the United States.<br />
These pledges talk about support for renewable energy, sustainability<br />
reporting and awareness campaigns.<br />
The pledges talk about the action we can do at home, where our cooperative<br />
operates. But what about our wider impact, for example,<br />
where we source ingredients from producers?<br />
Looking specifically at the UN’s goals, the conservation and<br />
sustainable use of lands, water and ecosystems is a top aim of the<br />
organisation.<br />
The wider impacts that our businesses have is the focus of our<br />
interview with Dr Jeremy Haggar from Greenwich University. Along the<br />
supply chain, businesses should be aware of the environmental needs<br />
of producers. Without this focus on corporate social responsibility,<br />
there is a threat to the sustainability of those producers, many of whom<br />
are co-operatives.<br />
By being co-operative, we are different. When looking at the larger<br />
supply chain, there is an opportunity for co-ops to ensure corporate<br />
social responsibility extends all the way from farm to fork.<br />
ANTHONY MURRAY - EXECUTIVE EDITOR<br />
@coopnews<br />
cooperativenews<br />
JUNE <strong>2017</strong> | 3
How to tell your story ... Inside<br />
a £5bn industry ... The Beatles’<br />
co-op connection ...<br />
ISSN 0009-9821<br />
01<br />
9 770009 982010<br />
THIS ISSUE<br />
CLOCKWISE FROM FAR LEFT<br />
Liverpool’s co-operative connections (45-<br />
47); The Co-op Group’s <strong>2017</strong> AGM (24-27);<br />
Celebrating four decades of Suma (28-29);<br />
and looking at the value of nature in the<br />
context of co-op business (40-44)<br />
news Issue #7284 JUNE <strong>2017</strong><br />
Connecting, championing, challenging<br />
news<br />
JUNE <strong>2017</strong><br />
NATURE<br />
Going beyond<br />
CSR: Putting the<br />
environment on<br />
your agenda<br />
Plus ... Suma’s 40 years ...<br />
COVER In the lead up to World<br />
Environment Day, how are<br />
co-ops approaching the business of<br />
nature? And what about the co-ops<br />
specifically working in this area?<br />
Read more: pages 40-44<br />
£4.20<br />
www.thenews.coop<br />
22-23 MEET… DAN McCALLUM<br />
The project manager at Awel Aman Tawe,<br />
in South Wales, discusses the challenges<br />
of community energy<br />
24-27 CO-OP GROUP AGM<br />
Members hear about ‘meaningful<br />
membership’ and a year of ‘growth and<br />
progress’ at the society’s annual meeting<br />
28-29 40 YEARS OF SUMA<br />
A look back over the changes seen – and<br />
the challenges faced – by the UK’s largest<br />
workers co-operative<br />
30-35 AGRICULTURE<br />
With volatile prices in a globalised world,<br />
there are challenges ahead ... How are<br />
agricultural co-ops reacting?<br />
36-39 TELLING YOUR CO-OP STORIES<br />
How do different organisations use<br />
stories to connect with their members?<br />
We speak with three experts who share<br />
their professional co-op views<br />
40-44 WORLD ENVIRONMENT DAY<br />
Remembering the value of nature in the<br />
context of co-op business<br />
45-47 LIVERPOOL’S CO-OP CONNECTIONS<br />
The Beatles, the Liver Building and the<br />
spirit of mutuality<br />
REGULARS<br />
6-13: UK updates<br />
14-19: Global updates<br />
20: Letters<br />
48-49: Reviews<br />
50: Diary<br />
4 | JUNE <strong>2017</strong>
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NEWS<br />
RETAIL<br />
<strong>2017</strong> results: How did the UK’s retail co-ops perform in a challenging year?<br />
UK co-operative societies have largely reported a rise in turnover<br />
for the 2016-17 year, but the sector has seen a general fall in<br />
retained profit.<br />
In their annual results, several societies said the year had been<br />
a challenging one, citing factors such as uncertainty over Brexit<br />
and the weakened pound, and competition on the high street.<br />
“Increased sales in our convenience stores and a good<br />
performance in our funeral business were offset by the combined<br />
impacts of food price deflation and continued pressure in our<br />
large stores and supermarkets,” said Martyn Cheatle, chief<br />
executive at Central England, which recorded a loss of £3.9m.<br />
At Midcounties, where retained profits were £0.7m (2016:<br />
£4.8m), chief executive Ben Reid said next year would be no less<br />
challenging. <strong>2017</strong>-18 “will also see additional costs to absorb such<br />
as increases in the National Living Wage, business rates and the<br />
introduction of the apprenticeship levy,” he said.<br />
However the year was kinder to some of the smaller societies,<br />
with Tamworth and Chelmsford Star both reporting an increase<br />
in retained profit.<br />
Chelmsford Star chief executive Barry Wood said: “As we<br />
celebrate our 150th anniversary, it is especially pleasing to see so<br />
many of our businesses and initiatives performing well.”<br />
Tamworth reported its best results for a quarter of a century.<br />
Chief executive Julian Coles said that while the food division was<br />
mainly responsible for the rise, all the society’s trading areas<br />
performed better, making it an “all round success story”.<br />
CENTRAL ENGLAND<br />
Central England lost £3.9m (2016: £3.1m<br />
profit), with increased convenience sales<br />
and a good Funerals performance offset<br />
by “food price deflation and continued<br />
pressure in [its] large stores”.<br />
CHANNEL ISLANDS<br />
Channel Islands announced increased<br />
turnover, but retained profit was down to<br />
£0.5m from £2.6m. The society said this<br />
was because of revaluations and property<br />
sales the previous year.<br />
CHELMSFORD STAR<br />
Chelmsford Star lifted its trading profit<br />
by more than 16% as it celebrated its<br />
150th anniversary. Core turnover within its<br />
grocery convenience stores rose 3.8% on<br />
a like-for-like basis.<br />
LINCOLNSHIRE<br />
Lincolnshire (which recorded its results<br />
in September 2016) revealed an £8.6m<br />
boost in sales, which reached a record<br />
total of £301m. The retailer recorded a<br />
trading surplus of £20m (up 4%).<br />
MIDCOUNTIES<br />
Midcounties’ retained profits fell to<br />
£0.7m (2016: £4.8m). Operating profit<br />
was also down despite higher turnover,<br />
with chief executive Ben Reid warning of<br />
a challenging year ahead for UK business.<br />
RADSTOCK<br />
Radstock saw retained profit down to<br />
£147,722 (2016: £213,729); operating<br />
profits also fell while turnover rose, and<br />
the society said it was committed to a<br />
growth strategy in “uncertain times”.<br />
6 | JUNE <strong>2017</strong>
Co-operative Turnover (2016-17) Operating profit 2016-17 (if stated,<br />
otherwise trading profit (TP))<br />
Retained profit (2016-<strong>2017</strong>)<br />
Central England 805.8m (down from 806.8m) 11m (down from 19.8m) -3.9m (down from 3.08m)<br />
Channel Islands 172.1m (up from 168.7m) 7.6m (down from 9.2m) 0.5m (down from 2.6m)<br />
Chelmsford Star 73.3m (up from 70.8m) 1.5m (TP) (up from 1.3m (TP)) 0.6m (up from 0.5m)<br />
East of England 347.7m (up from 338.5m) 4.4m (TP) (up from 4.1m (TP)) 1.9m (down from 4.1m)<br />
Group 9,452m (up from 9,201) 148m (up from 112m) -134m (down from 15m)<br />
Heart of England 70m (down from 82.7m) 1.7m (down from 4.6m) 1.3m (down from 3.1m)<br />
Midcounties 979m (up from 926m) 8.2m (down from 15.6m) 0.7m (down from 4.8m)<br />
Radstock 30m (up from 28.7m) 0.25m (down from 0.27m) 0.15m (down from 0.21m)<br />
Scotmid 376m (up from 370.6m) 9.7m (up from 7.8m) 6.3m (up from 4.3m)<br />
Southern 393.8m (up from 366.8m) 5.6m (up from 4.8m) 2.0m (down from 4.3m)<br />
Tamworth 22.1m (up from 20.6m) 1.1m (TP) (up from 0.81m (TP)) 0.63m (up from 0.41m)<br />
Lincolnshire (to 3<br />
September 2016)<br />
258m (up from 251m) 18.7m (up from 15.7m) 11.3m (up from 8.2m)<br />
EAST OF ENGLAND<br />
East of England saw retained profit for the<br />
financial year down 54% to £1.9m (2016:<br />
£4.2m), citing write-offs and the previous<br />
year’s figure being lifted by disposal of<br />
assets. Trading profits were up.<br />
CO-OP GROUP<br />
The Group lost £134m (2016: £15m profit)<br />
despite increased retail sales after writing<br />
down the value of its stake in the Co-op<br />
Bank to nil. It reported an operating profit<br />
of £148m (2015: £112m).<br />
HEART OF ENGLAND<br />
At Heart of England, retained profit fell<br />
from £3.1m to £1.3m, with operating profit<br />
also down, as the society pointed to<br />
competition, low consumer confidence, and<br />
uncertainties led by a weakening pound.<br />
SCOTMID<br />
Scotmid hailed a strong underlying<br />
performance with an operating profit up<br />
nearly by £2m – but warned of uncertainty<br />
over wage increases, tough high street<br />
competition and Brexit.<br />
SOUTHERN<br />
At Southern, retained profits fell to £2m<br />
(2016: £4.3m) but turnover and operating<br />
profit rose. It hailed a “milestone year”,<br />
with its highest ever week’s sales and the<br />
opening of its 200th store.<br />
TAMWORTH<br />
Tamworth recorded its best results in<br />
25 years. The society recorded a trading<br />
surplus of £1.1m for the year ended 28<br />
January <strong>2017</strong>, up 31.8%, or £257,000, on<br />
the previous year. (Image: Enigma)<br />
JUNE <strong>2017</strong> | 7
ELECTION <strong>2017</strong><br />
What do the party manifestos mean for the<br />
co-op movement? Some policies directly<br />
support co-ops, while others could benefit<br />
co-operatives and social enterprises<br />
indirectly. The parties are also addressing<br />
issues where the co-op movement has<br />
been campaigning...<br />
Read more online:<br />
thenews.coop/election<strong>2017</strong><br />
Labour’s manifesto, which sets out its<br />
vision of an economy that “really works<br />
for the many, and not only for the few”,<br />
includes a pledge to double the size of the<br />
co-operative sector with support from new<br />
regional development banks.<br />
There are also commitments on issues<br />
of concern to the movement, such as fair<br />
tax, human rights in supply chains and<br />
company pay ratios.<br />
It is possible that the co-op movement<br />
could benefit from other policies, from the<br />
return of public transport and utilities to<br />
public ownership to measures to support<br />
small and medium sized enterprises<br />
(SMEs) and protect community assets.<br />
POLICIES TO SUPPORT CO-OPS<br />
u A pledge for “legislation to create a<br />
proper legal definition for co-operative<br />
ownership”<br />
u Support for businesses across the country<br />
will come from a National Investment Bank<br />
lending £250bn via network of regional<br />
banks “charged with helping support our<br />
co-operative sector”<br />
u “Labour will aim to double the size of<br />
the co-operative sector in the UK, putting it<br />
on a par with those in leading economies<br />
like Germany or the US”<br />
u Widening ownership of economy to take<br />
it out of hands of “a narrow elite” through<br />
“more democratic ownership structures”<br />
u Introducing a “right to own”, making<br />
employees the buyer of first refusal when<br />
the company they work for is up for sale<br />
u Support for the creation of publicly<br />
owned, locally accountable energy<br />
companies and co-operatives<br />
u Give football supporters the opportunity<br />
to have a greater say in their clubs, and a<br />
wider review of fan participation in sports<br />
governance.<br />
The Liberal Democrat manifesto sets its<br />
sights on replacing Labour as the main<br />
opposition party and its main focus is on<br />
opposing Brexit, public service reform and<br />
devolution.<br />
POLICIES TO SUPPORT CO-OPS<br />
u In health and care, support innovation<br />
in how organisations can empower staff<br />
and patients, including learning from<br />
innovative social enterprises delivering<br />
community and mental health services.<br />
u Double the number of SMEs participating<br />
in the digital economy by supporting ICT<br />
capital expenditure by businesses in nondigital<br />
sectors.<br />
u Require the major banks to fund the<br />
creation of a local banking sector dedicated<br />
to meeting the needs of local SMEs.<br />
u Expand renewable energy, aiming to<br />
generate 60% of electricity from renewables<br />
by 2030<br />
u Support social investment, ensuring<br />
charities and social enterprises can access<br />
the support and finance they need to<br />
strengthen their governance and deliver<br />
innovative, sustainable solutions to<br />
challenges in their communities<br />
u Encourage employers to promote<br />
employee ownership by giving staff in listed<br />
companies with more than 250 employees a<br />
right to request shares, to be held in trust.<br />
u Strengthen worker participation,<br />
including the right for employees to be<br />
represented on the board.<br />
May <strong>2017</strong> elections<br />
A disastrous showing in the local elections<br />
for the Labour Party in early May included<br />
shock mayoral defeats for the Co-operative<br />
Party – but Andy Burnham (left) took the<br />
Manchester post by a comfortable margin.<br />
Mr Burnham has pledged measures<br />
to support co-operativism in the region,<br />
including giving it a minister for cooperatives<br />
and mutualism.<br />
Nationally, the Conservatives gained 563<br />
seats, and control of 11 councils. Labour<br />
lost 382 seats, and control of five councils.<br />
However, Labour/Co-op candidates in the<br />
council elections bucked the trend, with<br />
104 councillors elected across the UK –<br />
up from 97 when these elections were last<br />
contested in 2012 and 2013.<br />
Its share of Labour councillors has gone<br />
up to 9% from 6.3%; and nearly half of its<br />
successful candidates are women (47%).<br />
There are co-operative councillors on<br />
42 of the 89 councils elected last (47.2%);<br />
the councils with the biggest groups are in<br />
Nottinghamshire (9) and Glasgow (9).<br />
8 | JUNE <strong>2017</strong>
CONSERVATIVES<br />
The Co-operative Party’s manifesto calls<br />
for “a co-operative plan for Britain where<br />
power and wealth are shared”.<br />
The policy list includes proposals to<br />
reform the housing, banking and energy<br />
sectors by promoting community co-ops<br />
and credit unions, with regulatory changes<br />
to help co-ops in those sectors, and mutual<br />
and multi-stakeholder options for transport<br />
and public utilities.<br />
The document says: “We urgently need<br />
a more inclusive economy that distributes<br />
rewards more fairly, successfully seizes<br />
new opportunities, and effectively supports<br />
communities through the inevitable<br />
changes ahead. We are clear that the only<br />
way to build this is to put co-operation at<br />
its heart.”<br />
POLICIES TO SUPPORT CO-OPS<br />
u Doubling the size of the UK co-op<br />
sector by creating a level playing field<br />
for co-operative businesses providing<br />
tailored support, and reducing tax and<br />
regulatory burdens<br />
u Increased incentives, support and<br />
funding for employee ownership,<br />
including tax relief and statutory “right<br />
to request” legislation on business<br />
succession<br />
u Action to encourage responsible<br />
business practice, including legislation<br />
requiring profit sharing in firms with more<br />
than 50 employees, board representation<br />
for workers and stronger governance<br />
u Stronger consumer rights, such as a<br />
single consumer ombudsman and board<br />
representation for consumers<br />
Protection for workers in the gig economy,<br />
including union representation<br />
u Fair tax legislation to bring in greater<br />
transparency and country-by-country<br />
reporting<br />
u There are also proposals to support<br />
regional communities, through a network<br />
of regional banks to support co-ops,<br />
social enterprises and SMEs; improved<br />
funding for local government; and the<br />
development of local co-ops<br />
u The Party would also like to see<br />
more support for co-operative councils,<br />
a stronger Localism Act to protect<br />
community assets and the transfer of<br />
power and assets to communities.<br />
The manifesto contains few proposals for<br />
the co-operative movement, with no actual<br />
use of the word “co-operative”, although it<br />
does express the need for a more inclusive<br />
economy.<br />
POLICIES THAT COULD BENEFIT CO-OPS<br />
u To establish in law the freedom<br />
for employees to mutualise, where<br />
appropriate, within the public sector<br />
u A requirement for public listed<br />
companies to nominate director from<br />
workforce, create a formal employee<br />
advisory council or assign employee<br />
representation to a designated non<br />
executive director<br />
u Support for SMEs – simplified taxes<br />
for SMEs, a prompt payment code for<br />
suppliers, and a commitment for 33%<br />
of government purchasing to come from<br />
SMEs by the end of the parliament<br />
u Funding streams for business in<br />
investment, R&D, education<br />
u No mention of agricultural co-ops but<br />
proposes an “agri environment plan” for<br />
the UK farming system after Brexit<br />
u A UK Shared Prosperity Fund to reduce<br />
inequalities between across the nations<br />
u Protections for workers in the gig<br />
economy, pending a report<br />
u Commitment to the UN Sustainable<br />
Development Goals in the aid budget.<br />
t Co-operative Party general secretary,<br />
Claire McCarthy<br />
May <strong>2017</strong> election<br />
In the run-up to the general election,<br />
the Social Economy Alliance (SEA) has<br />
launched a manifesto for an inclusive<br />
economy. The SEA, which includes cooperatives,<br />
community groups, social<br />
enterprises and charities, wants the next<br />
government to release the potential of<br />
businesses that embody social values.<br />
The SEA wants to see laws on co-ops and<br />
community benefit societies made more<br />
user-friendly, allowing them to commit to<br />
a social purpose and asset lock, as well as<br />
prompting business founders more widely<br />
to specify the purpose of their business with<br />
Companies House.<br />
OTHER POLICY SUGGESTIONS INCLUDE:<br />
u Reward good business behaviour<br />
through tax incentives, action on tax<br />
avoidance, improved tax transparency<br />
and socially responsible supply chains<br />
u Reform state aid competition and<br />
procurement law after Brexit, taking into<br />
account the environmental and social<br />
impacts of business<br />
u A more ethical trade policy, with new<br />
trade deals maximising the potential for<br />
fair trade<br />
u A meaningful engagement with<br />
charities, social enterprises and co-ops<br />
throughout the Brexit process<br />
u Reinvest profits from outsourcing in a<br />
way that benefits society<br />
u Use more than a billion pounds of<br />
unclaimed assets to help people take<br />
local projects under community control<br />
and build local economies – for instance,<br />
through co-operative housing or co-op<br />
supporter trusts<br />
u Re-channeling tax breaks to<br />
entrepreneurs, workers and people<br />
investing in good causes<br />
u An inclusive industrial strategy<br />
inspired by the social economy.<br />
JUNE <strong>2017</strong> | 9
SUSTAINABILITY<br />
Co-ops recognised for<br />
sustainability work<br />
The Midcounties, Central England<br />
and Southern co-operatives have been<br />
recognised by Business in the Community<br />
for their work in sustainability and<br />
community action.<br />
Responsible Business Week (24-<br />
28 April), hosted by Business in the<br />
Community (BITC), is an annual initiative<br />
aimed at increasing awareness of the<br />
positive contribution of businesses to<br />
society. The Responsible Business Awards<br />
champion the most inspiring businesses<br />
taking action to build more inclusive<br />
workplaces, stronger communities and<br />
tackle environmental challenges.<br />
In an announcement during the week,<br />
Midcounties was reaccredited in the<br />
Sustainable Products and Services, and<br />
Building Stronger Communities categories<br />
of the Awards, and is on the <strong>2017</strong> shortlist<br />
in the Education category.<br />
Central England has been reaccredited<br />
in the Inspiring Young Talent category<br />
and Southern in the Building Stronger<br />
Communities category.<br />
The Co-op Group has also been<br />
shortlisted for the <strong>2017</strong> Experian Award<br />
for Building Stronger Communities.<br />
Mike Pickering, community and<br />
sustainability manager at Midcounties,<br />
p Food and drink consortium Made In Scotland have their eyes on overseas markets<br />
said: “The BITC Responsible Business<br />
Awards are nationally acclaimed for<br />
recognising businesses that drive<br />
sustainable and social change, both<br />
nationally and abroad.<br />
“To be reaccredited is a great<br />
achievement and reflective of our<br />
commitment to reducing energy, preserving<br />
the environment and providing a positive<br />
impact to those who live and work in the<br />
areas we serve.”<br />
Judges praised the society for reducing<br />
its energy usage by a further 3%, saving<br />
over 1,000 tonnes of CO2 and increasing its<br />
recycling levels to 91%.<br />
The organisation was commended for<br />
its commitment to the local communities it<br />
serves as part of its Regional Communities<br />
programme, which sees members and<br />
colleagues come together to provide support<br />
for local community groups through<br />
volunteering and fundraising initiatives.<br />
The strategy has seen Midcounties donate<br />
more than £11m to local charities and<br />
organisations over the past 10 years.<br />
Chief executive of Business in the<br />
Community, Amanda Mackenzie, said: “We<br />
want all businesses to be a force for good<br />
in the community, and being reaccredited<br />
means that these organisations can inspire<br />
many more companies to be part of the<br />
responsible business movement, so that<br />
together we can work for a fairer society<br />
and a more sustainable future.”<br />
HEALTH<br />
Plunkett to tackle rural community care<br />
The Plunkett Foundation is launching<br />
a project looking at ways to help keep<br />
people healthy, cared for and connected<br />
to their communities.<br />
The organisation, which helps<br />
communities take control of their<br />
challenges and overcome them through<br />
co-operation, aims to build on the<br />
community strengths in rural areas to<br />
focus on wellbeing and prevention, with<br />
strong links to local care and medical<br />
health services.<br />
“The project came about because of<br />
Plunkett’s real passion to help people<br />
develop co-operative solutions to the<br />
needs of today,” said Dr Kathrin Luddecke,<br />
who is leading the project.<br />
Plunkett is working with Wave on a<br />
set of tools and ideas that will act as<br />
‘stimulus materials’ for discussions and<br />
explorations with potential pioneers.<br />
These materials will be reviewed and<br />
finalised at a workshop with experts<br />
from the co-operative, health, social care<br />
and community sectors in London in<br />
May and then shared online and at three<br />
regional events for interested community<br />
entrepreneurs and groups across England<br />
in <strong>June</strong> and July <strong>2017</strong>.<br />
They will be supplemented by free<br />
specialist advice and / or study visits for<br />
10 pioneer groups who want to develop<br />
their ideas further.<br />
10 | JUNE <strong>2017</strong>
Co-op College receives grant from Unicorn 4% fund<br />
The Co-operative College has received a<br />
£5,000 grant from worker co-op Unicorn<br />
Grocery’s 4% Fund, building on the<br />
support it received in 2015. The College<br />
will use the money to support the<br />
development of co-operatives in Malawi,<br />
whose agrarian economy is vulnerable to<br />
climate shocks and high inflation.<br />
McColl’s trials Co-op Group own-brand products<br />
From <strong>June</strong>, 25 McColl’s stores in England<br />
and Wales will stock Co-op own-label<br />
products for a three-month trial. McColl’s<br />
is currently supplied by Nisa and Palmer &<br />
Harvey; the three-month pilot will replace<br />
Nisa’s own-label brand Heritage and the<br />
brand supplied by Palmer & Harvey with<br />
over 900 Co-op Group products.<br />
HISTORY<br />
The sale of an icon<br />
A Grade II listed building, the Co-operative<br />
Insurance Society tower was inspired by<br />
the Inland Steel Building, built in Chicago<br />
in the 1950s. The architects and engineers<br />
working on the project travelled to the USA<br />
to draw their inspiration for the building.<br />
Constructed between 1959 and 1962,<br />
the CIS tower was, at the time, the UK’s<br />
tallest office building, rising to 387 ft (118<br />
m) with 28 floors offering 388,000 sq ft<br />
of office space. It was also one of the first<br />
large commercial buildings in England to<br />
be air-conditioned.<br />
Its site, on Miller Street, had been hit<br />
by heavy bombing during World War II<br />
and had to be cleared; but a huge glacial<br />
boulder which was too heavy to remove<br />
remains in place beneath the building.<br />
The interior was designed by Professor<br />
Misha Black and Alexander Gibson from<br />
the Design Research Unit, one of the most<br />
significant post-war design practices in<br />
Europe.<br />
It features artwork designed by notable<br />
artists from the mid 20th century,<br />
including a large, brightly coloured<br />
plastic laminate mural by Barry Daniels of<br />
DANAD Design Associates, and a 30ft by<br />
12ft abstract sculptured fibreglass mural<br />
by the renowned artist and sculptor,<br />
William G. Mitchell.<br />
John Lewis revises profit after payroll rule breach<br />
A payroll error that breached national<br />
minimum wage rules could cost employeeowned<br />
John Lewis Partnership (JLP)<br />
£36m. The exceptional charge is related<br />
to JLP’s practice of pay averaging. Due to<br />
this error, in its latest annual report JLP<br />
has revised down its annual gross profit<br />
by £36m to £452.2m.<br />
Central England launches its first Dementia Friendly store<br />
Central England’s Ripley food store has<br />
become the society’s first to be officially<br />
designated as Dementia Friendly.<br />
Colleagues were joined by representatives<br />
from the Amber Valley Dementia Action<br />
Alliance to mark the occasion, which took<br />
place during Dementia Awareness Week<br />
<strong>2017</strong> (14-20 May).<br />
Scotmid wins ‘Most Trusted & Ethical’ award<br />
Scotmid Co-operative has been recognised<br />
as The Shopper’s Most Trusted & Ethical<br />
Convenience Retailer for <strong>2017</strong> at the CTP<br />
Awards. The award is based on shopper<br />
ratings on how well they believe a store is<br />
engaging with local community initiatives<br />
and to what extent it is actively trying to<br />
reduce food wastage.<br />
JUNE <strong>2017</strong> | 11
HISTORY<br />
Heritage grant will preserve valuable records of the worker co-op movement<br />
p The National Co-operative Archive is also home to the Robert Owen Collection, an archive<br />
of 3,000 manuscript letters<br />
The Heritage Lottery Fund has awarded<br />
the Co-operative Heritage Trust £43,000 to<br />
track down and preserve key documents<br />
from the worker co-op movement.<br />
The Co-operative Heritage Trust has also<br />
secured donations of more than £16,000<br />
from current worker co-ops and other<br />
organisations in the movement, for the<br />
long-planned Working Together initiative.<br />
The project aims to identify, preserve<br />
and make accessible for the first time<br />
records from some of the major workers’<br />
co-operatives of the 1970s, 80s and 90s,<br />
when a rapid upsurge in the idea of<br />
working co-operatively led to a new wave<br />
of worker co-ops.<br />
These worker co-ops played a significant<br />
role in their local communities but also<br />
had national significance, says the Trust.<br />
They aimed to create jobs where<br />
people were important, with an emphasis<br />
on sharing work, ownership, profits,<br />
responsibilities and decisions. The legacy<br />
from those years remains an important<br />
one for the wider co-operative movement<br />
as a whole.<br />
A trained archivist will be employed<br />
for a 12-month period to find the material<br />
and, where possible, deposit it either<br />
at the National Co-operative Archive or<br />
the relevant local county record office or<br />
public archive. An oral history element to<br />
the project will mean that recordings will<br />
also be made of the memories of some<br />
of those most involved in co-operatives<br />
during this period.<br />
Gillian Lonergan, librarian for the<br />
Trust, said: “We know that already some<br />
important records from workers’ co-ops<br />
have ended up in skips, and much other<br />
material is now stored away in individual<br />
people’s attics and cupboards. Now is<br />
absolutely the time to ensure that these<br />
records are saved.”<br />
The project will be based at the National<br />
Co-operative Archive in Manchester, with<br />
separate measures to ensure the heritage<br />
of worker co-operatives in Scotland and<br />
Wales are saved and made available in<br />
appropriate archives.<br />
Ian Snaith, chair of the Trust, said:<br />
“We are delighted that we now have the<br />
resources we need to ensure that the<br />
records of this important part of our recent<br />
history are preserved.”<br />
TECHNOLOGY<br />
New website to help co-ops and charities understand social investment<br />
A new website has been set up to help<br />
charities, co-ops, social enterprises and<br />
community groups navigate the complex<br />
world of social investment.<br />
A year of research and co-design has<br />
gone into the Good Finance website (www.<br />
goodfinance.org.uk), which has a tool<br />
to help users assess if social investment<br />
is right for them. It also includes case<br />
studies and the first ever directory of<br />
social investors and advisers.<br />
These features are as a result of research<br />
and user-focused design workshops<br />
with a wide range of charities and social<br />
enterprises across the UK.<br />
Good Finance is funded by Big Society<br />
Capital, Access and the Department for<br />
Culture, Media and Sport. There was support<br />
from sector partners including the National<br />
Council for Voluntary Organisations, Social<br />
Enterprise UK, Locality, the creative agency<br />
Matter & Co, and the social investment<br />
organisation Flip Finance.<br />
Kieran Whiteside, project manager for<br />
Good Finance, said: “While the social<br />
investment market has continued to grow,<br />
charities and social enterprises have often<br />
struggled to navigate this challenging and<br />
complex world.<br />
“Our hope is that this new website<br />
will help charities and social enterprises<br />
feel empowered to make informed and<br />
educated investment decisions that are<br />
right for them.”<br />
12 | JUNE <strong>2017</strong>
AWARDS<br />
Voting opens for the <strong>2017</strong> Co-operative of the Year awards<br />
Co-operatives UK has announced the<br />
shortlist for the <strong>2017</strong> Co-operative of the<br />
Year Awards – and voting is now open.<br />
The awards, organised annually by<br />
the sector body, celebrate the UK’s co-op<br />
sector across three categories: Leading<br />
Co-operative of the Year; Growing Cooperative<br />
of the Year; and Inspiring Cooperative<br />
of the Year. Anyone can vote<br />
online for their favourite co-ops from the<br />
shortlist, with each person getting three<br />
votes in total, one for each category.<br />
Online voting for the Co-operative of<br />
the Year Awards will run from 8 May to 25<br />
<strong>June</strong>, with the winner being announced<br />
at the Co-operative Congress in Wakefield<br />
on 30 <strong>June</strong>. You can vote online now at<br />
s.coop/25uik<br />
LEADING CO-OPERATIVE OF THE YEAR:<br />
u Chelmsford Star Co-operative, an<br />
Essex-based customer owned retailer<br />
HOUSING<br />
UK’s newest student housing co-op calls for<br />
members and begins property hunt<br />
u Suma Wholefoods, a wholesaler and<br />
the UK’s largest worker co-operative<br />
u South Caernarfon Creameries, a co-op<br />
owned by 110 Welsh dairy producers<br />
GROWING CO-OPERATIVE OF THE YEAR:<br />
u Daily Bread Co-operative, a workerowned<br />
wholefood retailer<br />
u Dulas, a renewable energy enterprise<br />
run by its employees<br />
u Outlandish, a web developers’ co-op<br />
INSPIRING CO-OPERATIVE OF THE YEAR:<br />
Students are being invited to join the<br />
newly formed Glasgow Student Housing<br />
Co-op, established to offer quality<br />
housing and fair rents in the city.<br />
The GSHC, formed by a dozen students<br />
at the University of Glasgow and Glasgow<br />
School of Art, held its first meeting in<br />
November after being inspired by a visit<br />
to Edinburgh Student Housing Co-op.<br />
So far the students have received<br />
support from Glasgow City Council’s<br />
co-operative development unit and<br />
successfully won funding from the<br />
Co-operative Glasgow Business<br />
Development Fund, which paid<br />
for training by Co-operatives UK in<br />
governance and financial management.<br />
They also getting business advice from<br />
Jobs and Business Glasgow.<br />
The co-op carried out a survey of 155<br />
students at the University of Glasgow<br />
and found 71% were interested in living<br />
in a co-op, and 27% may be interested.<br />
They are now looking for a building, with<br />
options ranging from a commercial lease<br />
to purchase via a mortgage.<br />
Member Kirstie McLean told Scottish<br />
Housing News: “It can be difficult for<br />
students to find suitable housing –<br />
rents can be high and some students<br />
experience problems getting repairs done<br />
which is frustrating.<br />
“A community-based co-op allows<br />
students to take control of their living<br />
situation, democratically make decisions<br />
about how their accommodation is run,<br />
and develop skills and build sustainable<br />
communities.”<br />
u Balsall Heath Housing Co-operative, a<br />
housing co-op in Birmingham<br />
q The co-op includes students from the University of Glasgow<br />
u The Developer Society, a web<br />
developers’ co-op<br />
u Naked Lunch Café, a co-op café<br />
in Liverpool<br />
u New Leaf Co-op, a worker owned<br />
wholefood store in Edinburgh<br />
JUNE <strong>2017</strong> | 13
GLOBAL UPDATES<br />
GLOBAL<br />
B20 final recommendations highlight co-ops’<br />
potential in employment, SMEs growth and education<br />
p Monique Leroux (centre) with co-operative<br />
representatives at the B20 summit<br />
p B20 chair, Jürgen Heraeus, hands over the B20 Policy Recommendations to German<br />
chancellor Angela Merkel<br />
The final set of policy recommendations<br />
of the B20 Summit under the German<br />
presidency to the G20 includes mentions<br />
of the role co-operatives have in<br />
employment generation, fostering smalland<br />
medium-sized enterprises (SMEs) and<br />
promoting entrepreneurship.<br />
The aim of the B20 Germany summit<br />
was to identify and then recommend<br />
elements that could help innovation,<br />
economic growth and job creation.<br />
Throughout the year, representatives<br />
from the co-operative and mutual sector,<br />
including the International Co-operative<br />
Alliance, took part in B20 meetings<br />
presenting views and examples from the<br />
co-op movement.<br />
The final summit took place in Berlin<br />
on 2-3 May under the motto “Resilience,<br />
Responsibility, Responsiveness –<br />
Towards a Future-oriented, Sustainable<br />
World Economy”. The B20 included five<br />
taskforces, which focused on: Trade<br />
and Investment; Energy, Climate and<br />
Resource Efficiency; Financing Growth<br />
and Infrastructure; Digitization; and<br />
Employment and Education.<br />
Co-ops were represented at various<br />
meetings by Alliance president, Monique<br />
Leroux, who was a co-chair of the B20<br />
Cross-Thematic Group for Small- and<br />
Medium- Enterprises and a member of<br />
the Financing Growth and Infrastructure<br />
Group. Alliance director general, Charles<br />
Gould, was a member of the Responsible<br />
Businesses Group, and policy director<br />
Rodrigo Gouveia was on the B20’s<br />
Coordination Group. Andrew Crane,<br />
from CBH co-operative in Australia, was<br />
a member of the SME group, and ICMIF<br />
chief executive, Shaun Tarbuck, was a<br />
member of the Financing Growth and<br />
Infrastructure Group.<br />
The policy paper on SMEs underlines<br />
that SMEs can help each other by<br />
combining their market power in jointly<br />
owned and managed structures – such<br />
as co-operatives. “Commonly owned<br />
structures like co-operatives might allow<br />
SMEs to maintain their independence and<br />
identity while at the same time delegating<br />
certain business functions (e.g. sourcing,<br />
marketing) to a larger entity that can<br />
negotiate better market conditions<br />
through the power of the collective,”<br />
reads the paper, which also calls on G20<br />
governments to take into consideration<br />
the differences of these structures and<br />
adapt regulations accordingly.<br />
The employment and education paper<br />
also refers to co-operative models,<br />
asking G20 governments to promote<br />
entrepreneurship as a way to boost selfemployment<br />
by reducing red tape related<br />
to business and promoting a diversity of<br />
business models, including co-ops and<br />
other social enterprises. “These allow<br />
people to mutualise risks, offering a<br />
good alternative for women, youth and<br />
other disadvantaged groups to access<br />
entrepreneurship,” reads the paper.<br />
Commenting on the final<br />
recommendations, Monique Leroux said:<br />
“The hard work of the Alliance’s policy<br />
team has paid off. We have increased the<br />
profile of co-operatives in global policymaking<br />
groups. I’m proud to have joined<br />
them in representing co-operatives as<br />
a co-chair of the SME group, where I<br />
witnessed first hand the influence our<br />
model has.”<br />
14 | JUNE <strong>2017</strong>
UKRAINE<br />
WOCCU project aims to develop Ukraine’s credit<br />
unions as agriculture lenders<br />
A four-year project funded by the<br />
United States Agency for International<br />
Development (USAID) is seeking<br />
to increase credit union lending to<br />
agriculture in Ukraine.<br />
Launched in April, the Credit for<br />
Agriculture Producers (CAP) Project is<br />
implemented by the World Council of<br />
Credit Unions (Woccu), with support<br />
from the Volunteers for Economic Growth<br />
Alliance (Vega), a network of 29 member<br />
NGOs and organisations, including<br />
Woccu. The project was designed to<br />
strengthen the credit union sector in<br />
Ukraine in order to improve the quality of<br />
the financial services and products offered<br />
to farmers and other agribusinesses in<br />
rural areas.<br />
p Senior policy advisor Pawel Grzesik and Ewa Sierzynska, CAP chief of party, at the launch<br />
As part of this, the CAP Project<br />
contributed to the development of the<br />
updated draft law on credit unions of<br />
Ukraine, working with the Ukrainian<br />
National Association of Savings and Credit<br />
Unions, the All-Ukrainian Credit Union<br />
Association, the National Commission on<br />
Regulation of Financial Services Markets<br />
and other bodies.<br />
The draft law aims to make it easier<br />
for credit unions to co-operate, and for<br />
them to reach their potential. This in turn<br />
could create more opportunities for small<br />
and medium sized producers’ to access<br />
financial resources.<br />
In addition, the CAP Project will<br />
facilitate a mentorship programme<br />
featuring 64 volunteers from the USA and<br />
Poland – including Ukrainian diaspora –<br />
which will provide high-level expertise.<br />
Speaking at the launch, chief of party<br />
for the CAP Project, Ewa Sierzynska,<br />
highlighted the importance of the adoption<br />
of new updated legal standards governing<br />
credit unions’ operations, which will<br />
encourage a greater contribution to the<br />
development of rural agriculture.<br />
SPAIN<br />
New Economy and Social Innovation Forum<br />
pledges to build a values-led system<br />
p The Forum took place in Málaga in April<br />
Over 900 new economy actors gathered<br />
in Málaga in April for the Global Forum<br />
on New Economy and Social Innovation.<br />
The event concluded with the<br />
launch of the New Economy and Social<br />
Innovation Charter, which calls for a<br />
“values-led system” based on justice,<br />
solidarity, sustainability, equality,<br />
autonomy and collaboration.<br />
The charter proposes greater cooperation<br />
and social innovation for<br />
the transition towards a new economic<br />
system to serve people and the planet.<br />
It has been co-written and signed<br />
by representatives from new economy<br />
movements worldwide and is based on<br />
international research conducted by<br />
D-Lab, the University of Barcelona and<br />
NESI Forum.<br />
Diego Isabel La Moneda, director<br />
of NESI Forum, said: “This is a key<br />
milestone for the economy.<br />
“This is the first time that all economic<br />
movements joined with the public<br />
administration, companies and NGOs to<br />
show that people should not serve the<br />
economy but that the economy should<br />
be at the service of the people and the<br />
planet.”<br />
The signatories of the charter commit<br />
to the co-creation of a new economy that<br />
integrates social purpose, ecological<br />
sustainability, collaboration, openness<br />
and justice and localisation.<br />
JUNE <strong>2017</strong> | 15
EUROPE<br />
Jean-Louis Bancel elected president of Cooperatives Europe<br />
p Jeal-Louis Bancel was elected unanimously<br />
Co-operatives Europe, the European<br />
regional office of the International Cooperative<br />
Alliance, has elected Jean-Louis<br />
Bancel as president.<br />
Mr Bancel, who was elected unanimously,<br />
is also president of Coop FR, the national<br />
apex body for co-ops in France and Crédit<br />
Cooperatif, a French co-op bank.<br />
Since 2006 he has been the chair of<br />
the Alliance’s International Cooperative<br />
Banks Association, which is involved in<br />
international matters linked with micro-,<br />
solidarity- and impact-financing.<br />
Mr Bancel is succeeding Dirk H Lehnhoff,<br />
who has led Cooperatives Europe for the<br />
past four years.<br />
“For co-operatives, legitimacy is<br />
membership,” he said upon his election.<br />
“Co-operatives are not only businesses.<br />
The women and men, members of our<br />
co-operatives, are at the heart of all<br />
Cooperatives Europe’s actions. My objective<br />
during this mandate is to raise co-operative<br />
pride in Europe.”<br />
Mr Bancel added that he would be<br />
focusing on three main objectives.<br />
“In working actively with the new elected<br />
board, which is strictly balanced in gender<br />
(seven women / seven men), we would<br />
first like Cooperatives Europe to be a real<br />
common house for national apexes and<br />
for sectoral federations.” He hopes that<br />
by working together, the knowledge and<br />
recognition of the model can be enhanced.<br />
“Secondly, we shall work to make<br />
proposals for European institutions<br />
(parliament, commission and governments)<br />
to help to set out a new future for Europe,<br />
which is going through a hard time,<br />
especially due to a lack of trust, determined<br />
by a declining room given to democratic<br />
processes,” he said.<br />
“The third topic we will focus on will<br />
be to keep the high involvement of the<br />
European co-operative movement in the<br />
global process for building a better world<br />
that was fostered by the International Year<br />
of Co-operatives.”<br />
FRANCE<br />
Emmanuel Macron pledges support for co-ops and the social economy<br />
French president-elect Emmanuel Macron<br />
has committed to growing the social and<br />
solidarity economy. Mr Macron, who at 39<br />
will be the youngest president in France’s<br />
history, took 66% of the vote, defeating<br />
far-right candidate Marine Le Pen from the<br />
Front National.<br />
In the run-up to the election Mr Macron,<br />
an independent centrist, published a letter<br />
pledging support for the social and solidarity<br />
economy, including co-operatives.<br />
The open letter highlighted the social,<br />
demographic, environmental, and<br />
democratic and technological challenges<br />
facing France. The country’s 165,000 social<br />
and solidarity economy enterprises help<br />
to address these challenges, argued Mr<br />
Macron, a former investment banker who<br />
pledged to support and help grow the sector<br />
and enable more co-operatives to emerge.<br />
France is home to 21,000 co-ops, with<br />
one million workers and a turnover of<br />
€300m. The social and solidarity economy<br />
contributes 10% of the country’s GDP,<br />
employing 2.45 million people.<br />
According to Mr Macron, over the last 10<br />
years the sector has grown the number of<br />
employees by 24%, compared to 7% in the<br />
private sector.<br />
Mr Macron promised a series of measures<br />
to help the sector, including a national social<br />
innovation accelerator, an organisation to<br />
support innovation projects. He also wants<br />
a public policy to promote and support<br />
social innovation.<br />
The president elect said he will also call<br />
for a relaunch of a European agenda to<br />
promote the social and solidarity economy<br />
across the EU.<br />
A former economy minister, Emmanuel<br />
Macron quit François Hollande’s<br />
government last year to launch his bid for<br />
presidency. He set up his own political<br />
movement, En Marche! (On Our Way) and<br />
ran without the backing of one of the main<br />
political parties.<br />
While minister of the economy, he<br />
attended the annual congress of the<br />
agricultural and retail co-ops, which he<br />
praised as institutions that have “a soul”.<br />
p Emmanuel Macron<br />
(image: Claude Truong-Ngoc)<br />
16 | JUNE <strong>2017</strong>
CECOP calls for an end to austerity measures<br />
p Melina Morrison<br />
AUSTRALIA<br />
Apex body<br />
encourages federal<br />
government to take<br />
co-ops into account<br />
The Australian Business Council for<br />
Co-operatives and Mutuals (BCCM) has<br />
responded to the federal budget announced<br />
by the government. The apex body is<br />
calling on the executive to consider the<br />
role co-operatives and mutuals can play in<br />
delivering services more efficiently.<br />
“For the last 35 years, the co-operative<br />
business model has been sidelined by<br />
bureaucracies and policies designed to<br />
entrench the company business model as<br />
the ‘mature’ option. Yet co-operatives and<br />
mutuals are still a fundamental part of<br />
the Australian economy,” said BCCM chief<br />
executive, Melina Morrison.<br />
“Seventy-nine per cent of the Australian<br />
population are member shareholders,<br />
compared with 36% of Australians that own<br />
listed investments on the Australian Stock<br />
Exchange. With some minor changes in<br />
government thinking, the inherent stability<br />
and customer-focused nature of the cooperative/mutual<br />
model can continue to<br />
deliver services cost effectively and with<br />
tremendous community benefits.”<br />
BCCM praised some measures mentioned<br />
in the budget that could make it easier<br />
to register a co-operative or mutual in<br />
Australia – and also welcomed the<br />
announcement of a $472 million investment<br />
in regional infrastructure projects via the<br />
Regional Growth Fund, which, it argues,<br />
could provide opportunities for regionallybased<br />
co-operatives and community-owned<br />
infrastructure projects.<br />
However, the apex body believes the<br />
government failed in its approach to<br />
banking competition.<br />
The European Confederation of worker,<br />
social and producers’ co-operatives<br />
active in industry and services, CECOP,<br />
argues that investment is crucial for the<br />
implementation of the European Pillar<br />
of Social Rights. The body believes that<br />
austerity programmes directly contradict<br />
the pillar.<br />
Asia-Pacific co-operative ministers commit to SDGs<br />
More than 200 participants met in Hanoi<br />
in April for the annual Asia-Pacific<br />
Cooperative Ministers’ Conference,<br />
where they pledged their support for<br />
the Sustainable Development Goals.<br />
The conference was organised by the<br />
International Co-operative Alliance’s<br />
office for Asia-Pacific.<br />
Credit unions help Canadian Red Cross during floods<br />
Desjardins and other credit unions in<br />
Canada have raised funds after the<br />
country suffered its worst flooding in<br />
50 years, with a state of emergency<br />
declared in two cities. Desjardins Group<br />
has donated US$100,00 to the Canadian<br />
Red Cross to help relief work, and raised<br />
another US$220,000 through its network.<br />
Eroski invests €300m in revamping 79 supermarkets<br />
Basque retailer Eroski aims to refurbish<br />
79 supermarkets and open four new<br />
ones in <strong>2017</strong>. Over the last four years the<br />
retailer, which forms part of Mondragon<br />
Co-operative, has invested €300m in the<br />
transformation of the shops into modern<br />
stores, which aim to reduce their impact<br />
on the environment.<br />
Dairy co-op Murray Goulburn to axe jobs and plants<br />
Problems at Australian dairy co-op<br />
Murray Goulburn have taken another<br />
turn as it announced plans axe up to 360<br />
jobs. It is also preparing to lose AU$410m<br />
in writedowns and restructuring, close<br />
three processing facilities and suspend<br />
dividend payments.<br />
u Read more on the state of the agriculture<br />
co-op sector from page 30<br />
JUNE <strong>2017</strong> | 17
FRANCE<br />
French ethical search engine investing profits in<br />
social projects and co-ops<br />
A search engine that finances social and<br />
environmental projects, including cooperatives,<br />
has reached 30 million searches<br />
per month.<br />
Set up in 2015, Lilo is a French search<br />
engine looking to take on giants like Google<br />
and Yahoo – and it has grown to 700,000<br />
users per month and a total number of<br />
searches of half a billion. It is available in<br />
English, Portuguese, German, Spanish and<br />
Italian, as well as French.<br />
It invests 50% of its total revenue in<br />
social and environmental projects and has<br />
so far distributed €220,000 to 50 projects,<br />
including social enterprises, charitable<br />
organisations and co-ops.<br />
Each time users search on Lilo they earn<br />
a symbolic drop of water, which represents<br />
the money gained from advertising linked to<br />
the web page. They are then asked to choose<br />
a project they want to support and the drop<br />
of water gets converted into money.<br />
One of Lilo’s key objectives is to address<br />
the issue of CO2 emissions. In 2007 the<br />
information and technology system’s<br />
global CO2 footprint accounted for 2% of<br />
all emissions, the equivalent of 830 metric<br />
tons of CO2. The figure, comparable to<br />
the emissions of the aviation industry, is<br />
expected to double by 2020. Lilo is looking<br />
to compensate by funding projects such<br />
which specialise in Co2 capture and storage.<br />
Other funding has gone to co-ops,<br />
including la Coopérative citoyenne pour<br />
des énergies renouvelables, which develops<br />
local renewable energy projects encouraging<br />
residents, activists, associations and<br />
enterprises to join efforts.<br />
Its collaboration with Lilo started two<br />
years ago when one of the members came<br />
across the search engine and realised the<br />
co-op could have qualified for funding. It<br />
has so far received over €2,100 from Lilo by<br />
receiving 993,960 drops of water.<br />
Similarly, Les Cooperatives Jeunesse de<br />
Services, a group of young people’s co-ops,<br />
has so far raised €35 from 16,511 drops. The<br />
co-op is made up of teenagers who work<br />
together to provide various services, from<br />
cleaning, distributing and IT support to<br />
cooking or manufacturing artisan products.<br />
The co-op will receive the donation from<br />
Lilo once it reaches €100.<br />
Another co-op adding drops to<br />
receive a donation from Lilo is La<br />
Chouette, a Toulouse-based supermarket<br />
democratically controlled by its members.<br />
The co-op has so far raised the equivalent of<br />
€90, through 41,659 drops donated. It plans<br />
to allocate any funding received through<br />
the search engine to buying required<br />
technologies such as bar-code scanners.<br />
Marc Haussaire, engineer and co-founder<br />
of Lilo explained: “We aim to empower<br />
internet users by proposing a quality<br />
alternative to Google.”<br />
La Coopérative citoyenne pour des<br />
énergies renouvelables project was<br />
started in 2008 by a group of 45 people<br />
in the town of Loubeyrat, 80 miles west<br />
of Lyon. Their main aim was to involve<br />
locals in renewable energy projects.<br />
After being officially set up in 2009,<br />
the co-op opened the first photovoltaic<br />
central in 2010, which includes 4,000 sq<br />
ft photovoltaic panels. Locals invested<br />
a total of €67,000 in the project, which<br />
is now also developing wind energy<br />
projects.<br />
“We chose the co-op model because<br />
it corresponded with our collaborative<br />
working patterns and was more<br />
democratic. It was closer to out ideas,”<br />
explained member Stéphane Lobrégat.<br />
The co-op has grown to include 301<br />
members with a board of 10 directors and<br />
one employee. Asked what were their<br />
plans for the future, Mr Lobrégat said the<br />
co-op aimed to remain local but was keen<br />
to help people in other areas start off<br />
similar projects. All profits are reinvested<br />
in the project to help it grow even more.<br />
18 | JUNE <strong>2017</strong>
SWEDEN<br />
Sweden launches<br />
national apex body for<br />
co-operatives<br />
A national apex federation has been created<br />
for Sweden’s co-ops to “modernise” the<br />
image of the business model there.<br />
Co-operatives Sweden, launched on<br />
11 May, was set up by the Federation of<br />
Swedish Farmers (LRF), the Swedish<br />
Co-operative Union (KF), the HSB cooperative<br />
housing association and the KFO<br />
Employers’ association. It brings together<br />
for the first time consumer, producer,<br />
worker and housing co-ops.<br />
Sweden’s top 100 co-operatives employ<br />
100,000 people and have an annual<br />
turnover of SEK 400bn and the new<br />
organisation’s chair, Anders Källström,<br />
wants the movement to grow beyond this.<br />
DENMARK<br />
Coop Denmark using mobile app to reduce<br />
food waste<br />
Coop Denmark is taking the campaign<br />
against food waste online via a mobile app.<br />
The retailer, a co-op owned by 1.4 million<br />
members, use the online platform Too Good<br />
to Go to enable customers to purchase items<br />
that would otherwise be thrown out, for a<br />
very low price.<br />
Coop Denmark will initially roll out the<br />
scheme in 40 Kvickly, SuperBrugsen and<br />
Daglibrugsen stores, with another 60 to<br />
follow by the end of the year.<br />
Bread, pastries and other food products<br />
that are not too old are sold at up to 75%<br />
below normal price.<br />
“Over the last three years we have<br />
been working to reduce our food waste,<br />
and reduced the price of items when<br />
approaching the expiration date,” said<br />
Coop Denmark CSR director Signe Frese.<br />
“We can still do a lot and would therefore<br />
like to work together to help both ourselves<br />
and our customers to reduce food waste. Too<br />
Good To Go is a great sympathetic concept<br />
that we believe many of our customers also<br />
think about.”<br />
Henrik Stampe, chief sales officer at Too<br />
Good To Go, added: “We are very pleased<br />
to strengthen our partnership with Coop,<br />
thereby contributing to the efforts to combat<br />
food waste in Denmark. We are confident<br />
that this co-operation will be very positive<br />
for Coop and its customers.”<br />
Too Good to Go was set up as a social<br />
enterprise in Denmark at the end of 2015 by a<br />
group of friends, and has already expanded<br />
to five other countries, including the UK.<br />
Since setting up, the platform has helped<br />
to redistribute one million meals and saved<br />
1,200 tonnes of food from retailers and<br />
restaurants from being wasted.<br />
In the UK, over 6,000 tonnes of edible<br />
food is wasted by restaurants annually.<br />
To tackle this, the app has been launched<br />
in London, Leeds, Birmingham, Manchester<br />
and Brighton. Customers can buy a full meal<br />
from restaurants for just £2 through the app<br />
and collect it from the eatery around closing<br />
time. The app has already prevented more<br />
than 14,000 meals in the UK from being<br />
thrown away.<br />
INDIA<br />
Dairy co-op Amul<br />
sponsors New Zealand<br />
cricket squad<br />
Indian co-op dairy giant Amul is to be the<br />
prime sponsor of the New Zealand cricket<br />
team in the ICC Champions Trophy, which<br />
starts on 1 <strong>June</strong> in England.<br />
This is the latest in a string of international<br />
sporting sponsorships for the Indian dairy<br />
– the largest milk brand in Asia – which<br />
associated itself with the ICC Cricket World<br />
Cup, Formula 1, and the Olympic Games in<br />
London and Rio.<br />
The Black Caps will wear the Amul logo<br />
on the sleeve of their playing jerseys and<br />
training kits, starting with a warm-up match<br />
against the dairy’s home team India.<br />
JUNE <strong>2017</strong> | 19
YOUR VIEWS<br />
ALTERNATIVES TO THE GIG ECONOMY<br />
Responding to: How should co-ops respond<br />
to global employment trends?<br />
We should be making [alternative models<br />
such as platform co-ops] more clear to<br />
everyone – more publicity, more press<br />
releases. The potential in the UK is<br />
enormous. Young people are looking<br />
for the alternative to capitalism, but the<br />
schools and colleges do not include it in<br />
their teaching. The mega-rich minority do<br />
everything they can to keep it secret. It’s not<br />
included in education, and it’s much more<br />
diffficult to start a Co-op. Every effort to<br />
teach just capitalism and encouragement<br />
to start capitalist-type firms only.<br />
John Harrington<br />
Via Facebook<br />
NORTHERN IRELAND ELECTION QUESTION<br />
Responding to: Co-op Party launches<br />
consultation on Northern Ireland<br />
Your article on the Co-op Party’s<br />
consultation on the right of Northern<br />
Ireland members to stand for election<br />
as Councillors, Assembly or MPs omits<br />
to mention that the Party EC in Northern<br />
Ireland called on the NEC to support the<br />
right to stand for elections.<br />
This was endorsed unanimously by a<br />
special general meeting of members and<br />
we asked all for their views in writing.<br />
The Co-op Party has chosen to bypass<br />
normal representative channels.<br />
For information: our past chair was SDLP,<br />
our secretary is Labour UK & SDLP, our<br />
chair is Irish Labour: most of our members<br />
are UK Labour. We have only one member<br />
a SDLP councillor. Contrary to your article<br />
we have no paid-up SDLP members of the<br />
NI Assembly.<br />
I would call on all co-operators to<br />
support the right to stand.<br />
Erskine Holmes<br />
Treasurer, NI Co-op Party (CG)<br />
MOVEMENT UNDER THE MICROSCOPE<br />
This year marks the 50th anniversary<br />
of the formation of the UK Society for<br />
Co-operative Studies.<br />
We exist to provide an independent<br />
voluntary space where members facilitate<br />
and share critical practice and engaged<br />
research on co-operatives and co-operation,<br />
and have an exciting line-up of events this<br />
year to do just that.<br />
We started this year with a first: a<br />
seminar on co-operative and community<br />
benefit society law.<br />
Working with Anthony Collins Solicitors<br />
we have developed a one-day seminar on<br />
society law, aimed at legal practitioners,<br />
those working in the movement, and<br />
anyone else who is interested. Based on<br />
the excellent feedback from the first event<br />
we are planning to deliver more of these<br />
seminars across the year.<br />
Each year we put on our annual lecture.<br />
This year we are pleased to announce Prof<br />
Stephen Yeo as our lecturer. This year<br />
Have your say<br />
Add your comments to our stories<br />
online at www.thenews.coop, get in<br />
touch via social media, or send us<br />
a letter. If sending a letter, please<br />
include your address and contact<br />
number. Letters may be edited and no<br />
longer than 350 words.<br />
Co-operative News, Holyoake<br />
House, Hanover Street,<br />
Manchester M60 0AS<br />
letters@thenews.coop<br />
@coopnews<br />
Co-operative News<br />
marks the 200th anniversary of the birth<br />
of George Jacob Holyoake, so it is fitting<br />
that Prof Yeo’s lecture in Birmingham is<br />
titled “George Jacob Holyoake (1817-1906):<br />
a usable figure from a usable past”. The<br />
event takes place on Friday 23 <strong>June</strong> at<br />
7pmin Birmingham, with details available<br />
on our website for those who want to book<br />
their place.<br />
Our annual conference takes place on<br />
1-3 September at Northumbria University in<br />
Newcastle. Building on the success of last<br />
year’s event, we are pleased to announce<br />
that with the help of Midcounties<br />
Co-operative we have been able to secure<br />
an international speaker. Arjen van<br />
Nuland, CEO of the Co-operative Council<br />
of the Netherlands, will be headlining our<br />
conference. Visit our website for further<br />
information and to book your place.<br />
Over our 50-year history, the Journal<br />
of Co-operative Studies has been the<br />
bedrock of our activity. This year we plan<br />
to look back over previous editions, pulling<br />
together a collection of the best work<br />
through the decades.<br />
Moving from the past, to the present<br />
and the future, the Journal team have been<br />
working hard pulling together a number of<br />
issues of the Journal, now available online<br />
for everyone to view.<br />
We hope people can join us in<br />
celebrating our 50th anniversary, and in<br />
building for the years ahead.<br />
p Co-ops can offer alternative models of employment in the digital economy<br />
Ian Adderley<br />
Chair, UKSCS<br />
20 | JUNE <strong>2017</strong>
GREENBELT <strong>2017</strong><br />
THE COMMON GOOD<br />
IDeAS<br />
Campaigner JACk MonRoe<br />
Craftivist SARAh CoRbeTT<br />
eConomist Ann PeTTIfoR<br />
Journalist PeTeR oboRne<br />
baroness SAYeeDA WARSI<br />
lawyer ClIVe STAffoRD SMITh<br />
thinker ChARleS hAnDY<br />
theologian ChRISTenA CleVelAnD<br />
green politiCian nATAlIe benneTT<br />
writer JenDellA benSon<br />
lITeRATuRe<br />
novelist ChIbunDu onuzo<br />
poet MIChAel SYMMonS RobeRTS<br />
writer & aCtivist khuluD khAMIS<br />
performanCe poet hARRY bAkeR<br />
CoMeDY<br />
Rob neWMAn × bIlAl zAfAR<br />
JonnY & The bAPTISTS<br />
MuSIC<br />
neWTon fAulkneR<br />
kATe RuSbY<br />
JoAnne ShAW TAYloR<br />
SPeeCh Debelle × 47Soul<br />
MAhAlIA × luke SITAl SIngh<br />
Sk ShloMo × WIll VARleY<br />
CC SMuggleRS<br />
lA ChIVA gAnTIVA<br />
CleAn CuT kID<br />
kIng PoRTeR SToMP<br />
lee bAInS III & The<br />
gloRY fIReS<br />
PeRfoRMIng ARTS<br />
Sh!T TheATRe<br />
loRDS of STRuT<br />
loST Dog DAnCe × PIf PAf<br />
MARY bIJou CAbAReT &<br />
SoCIAl Club<br />
bIbI AnD bIChu<br />
25 28 AUGUST<br />
BOUGHTON HOUSE<br />
GREENBELT.ORG.UK<br />
PluS<br />
ReD TenT women’s venue<br />
AMAl@gReenbelT showCasing<br />
muslim art, ideas & Culture<br />
The exChAnge enterprise<br />
for the Common good<br />
CITIzenS uk Community<br />
organising workshops<br />
PAnel DebATeS on brexit,<br />
religion & violenCe, free speeeCh,<br />
Climate Change & finanCe<br />
loTS MoRe InCluDIng<br />
ChIlDRen’S & fAMIlY<br />
PRogRAMMIng<br />
YouTh VenueS<br />
TRAIlS × SPoRTS<br />
SPIRITuAlITY<br />
The gReAT ouTDooRS<br />
CAMPfIRe × CAMPIng<br />
In gRADe I lISTeD<br />
PARklAnD<br />
Ticket deals until midnight 30 <strong>June</strong>: Under 18s: £50 18-25s: £92 Under 5s go free<br />
A Greener Festival Award A Rainbow List Award Attitude is Everything Gold Standard<br />
ARTISTRY<br />
ACTIVISM<br />
GBF Coop News Full Page Ad 8.5.17 PN.indd 1 11/05/<strong>2017</strong> 21:57
MEET...<br />
... Dan McCallum, community<br />
energy expert<br />
Project manager Dan McCallum is in charge of day-to-day operations at Awel<br />
Aman Tawe, a community energy charity based in South Wales since 1998.<br />
AAT has many years’ experience of developing renewable energy schemes<br />
including wind, solar, biomass and hydro; and implementing energy efficiency<br />
measures across thousands of homes and community centres in south Wales.<br />
It set up a solar power co-operative, EGNI, and has also pioneered an £8m<br />
community wind farm project, Awel Co-op, which is backed by over 800 people<br />
via a community share offer.<br />
q The turbine blades<br />
arriving in the village;<br />
and Dan during the<br />
construction<br />
WHY DID YOU TAKE ON THE ROLE?<br />
I have been in the job 18 years and was one of<br />
the founding members of AAT. We started in<br />
1998 following a Local Agenda 21 meeting about<br />
sustainable development projects – and wind energy<br />
was suggested. At that time it was a very new idea,<br />
so we started to look at funding and consulted with<br />
the community. We asked 8,000 homes in a local<br />
referendum, secured more funding from the EU and<br />
carried out an impact assessment on the wind farm.<br />
We applied for planning permission for five turbines<br />
and eventually got consent for two, but they have<br />
only been constructed this year. It’s been a long time<br />
but I have always been committed and determined.<br />
In the meantime we developed other renewable<br />
energy projects, set up EGNI and installed solar PV<br />
panels on seven different community buildings.<br />
CAN YOU DESCRIBE A TYPICAL DAY?<br />
At the moment, because we are doing the community<br />
share offer for the wind farm, we are publicising that<br />
and learning more about things like social media.<br />
Over the last year it’s been more about managing<br />
construction as the turbines have been getting built.<br />
It’s my job to make the project happen, co-ordinate<br />
everything and make sure everyone is doing their<br />
jobs, so I’ve been liaising with the engineers,<br />
technical consultants, community funders and<br />
lawyers. It’s been really hectic, a massive job.<br />
WHAT’S YOUR CO-OP’S DIFFERENCE?<br />
The idea was born right here in the Swansea Valley<br />
where the coal mining industry was around for<br />
hundreds of years. A lot of people supported the<br />
project because they knew what devastation the<br />
mining industry brought here through diseases<br />
like silicosis. We are still surrounded by slag heaps.<br />
AAT is a community benefit society so profits are<br />
spent on local environmental projects, renewable<br />
energy schemes and promoting cycling walking and<br />
running. Another difference is our commitment to<br />
the project – given the length of time it has taken,<br />
most commercial developers would have walked<br />
away. It is the largest community share offer ever<br />
done in Wales, in one of the most deprived parts of<br />
the UK . In addition to developing practical solutions,<br />
we are also committed to raising awareness of<br />
climate change through a sustained programme of<br />
information, communication and consultation with<br />
hundreds of schools and community groups.<br />
WHAT IS THE BEST THING ABOUT THE JOB?<br />
The support we have had through the community<br />
share offer – and the excitement when the turbines<br />
22 | JUNE <strong>2017</strong>
got delivered! People are really pleased to see the<br />
wind farm project happening.<br />
AND THE HARDEST?<br />
The hardest thing has been the length of time it has<br />
taken. My daughters have now left home and are 19<br />
and 21. They were babies when we started. I joke<br />
that we have replaced them with wind turbines...<br />
join our journey<br />
be a member<br />
WHAT ACHIEVEMENT ARE YOU PROUDEST OF?<br />
Getting local support for the wind farm, which<br />
manifested itself in people becoming interested<br />
in the share offer – and raising the amount of<br />
money we did in a former coal mining community.<br />
Over the course of construction there were some<br />
40 jobs on site and there are going to be four jobs<br />
directly maintained by the wind farm with over 800<br />
members of the co-op and some charities that have<br />
joined as well, so that is pretty positive.<br />
IF YOU COULD SET UP A BRAND-NEW CO-OPERATIVE<br />
TOMORROW, WHAT WOULD IT BE?<br />
I would like to expand the work we do with EGNI<br />
and try to find more sites for solar panels, working<br />
with the Wales Co-operative Centre. I am also<br />
interested in housing co-operatives so that is<br />
something I might look at in the future. A lot of the<br />
housing round here is not very good quality and we<br />
need more affordable homes.<br />
WHAT DO YOU NOW KNOW ABOUT CO-OPS THAT<br />
YOU WISH YOU KNEW ON YOUR FIRST DAY?<br />
It’s been a most dynamic structure and given us<br />
a lot of members who are very knowledgeable. It<br />
would have been good if we had set up the co-op<br />
sooner so we could have had more expertise drawn<br />
in earlier on. We had to learn everything as we went<br />
along, from legal speak to contracts. It’s been very<br />
challenging learning about different aspects of the<br />
wind project, so it would have been good to get<br />
advice earlier.<br />
WHERE WOULD YOU LIKE TO SEE AAT IN THE NEXT<br />
FIVE YEARS?<br />
I am speaking to you from my house, where I can<br />
see the turbines turning. I would like to see another<br />
10 turbines up on the hill! There has been more and<br />
more support for the project since we started and<br />
there is plenty of space. There are some people who<br />
have not joined the community share offer this time<br />
and I would like to build more local confidence in<br />
the project.<br />
news<br />
We’ve relaunched our membership,<br />
offering member-owners more opportunity to<br />
help us plot the future of our independent coverage<br />
of the co-operative movement.<br />
Find out more at:<br />
thenews.coop/join<br />
JUNE <strong>2017</strong> | 23
CO-OP GROUP AGM<br />
ANTHONY MURRAY,<br />
REBECCA HARVEY and<br />
MILES HADFIELD report<br />
from the <strong>2017</strong> Co-op<br />
Group annual meeting<br />
p This year’s AGM<br />
highlighted the Group’s<br />
commitment to sourcing<br />
100% British meat in its<br />
products, with farmyard<br />
seating, food stalls and<br />
a bandstand<br />
‘Together we can create a strong<br />
and much-loved co-op’<br />
Opening his first annual meeting as chief executive,<br />
Steve Murrells said the Co-op Group has “made<br />
membership meaningful again”.<br />
“Last year we announced that our Co-op was<br />
back to being Co-op,” he said. “We are back to<br />
putting our members and communities first. It’s<br />
important to understand that we’re strong again.<br />
We brought back an iconic look from our past last<br />
year, but the change in our new-look was not just<br />
a high street makeover, we’ve done this to bring<br />
attention to our membership awards.”<br />
The membership scheme gives 5% back to<br />
members on own-brand products, and 1% to local<br />
causes. At the time of the AGM, the Group had given<br />
back £37m to members and more than £9m to local<br />
causes. Mr Murrells highlighted how the Group<br />
has raised £6m for the British Red Cross and has<br />
launched ‘community recovery vehicles’, which<br />
responds to natural disasters in communities.<br />
Looking ahead, Mr Murrells said that now the<br />
Co-op’s businesses are profitable, it’s not just about<br />
fixing the basics any more. And he warned that<br />
there are cost challenges due to rising inflation and<br />
the potential impact of Brexit.<br />
On his long-term vision, he said: “I want to<br />
encourage young people to shop with us. I want<br />
our Co-op to be a great place to work that celebrates<br />
the diversity. I want to find new ways to create coop<br />
value for you, our members. I want us to show<br />
leadership in the movement and around the world.<br />
We are here to make things better for our members<br />
and communities. Together we can create a strong<br />
and much-loved co-op.”<br />
Nick Crofts, president of the members’ council,<br />
praised the collective knowledge of council<br />
members, who together have more than 1,000 years<br />
of membership experience.<br />
“This has been a year of growth and progress,” he<br />
said. “The council has offered a robust challenge,<br />
setting a new benchmark for how members can<br />
make decisions.”<br />
Mr Crofts announced that the board has agreed<br />
to recruit 1,500 Member Pioneers, who will make<br />
connections in the communities around food stores<br />
and funeral branches.<br />
Author and broadcaster Lemn Sissay has been<br />
recruited as a member pioneer ambassador. He<br />
said: “The nature of the co-operative is a family,<br />
with all the arguments, resolution and making up. I<br />
was getting emotional when I was hearing the chief<br />
executive speak. It has to come from inside your<br />
heart. I believe in the nature of the co-operative.<br />
I’m really honoured to be here today.”<br />
Stevie Spring, director and chair of the<br />
remuneration committee, provided an overview of<br />
the Group’s pay policies over the past year.<br />
24 | JUNE <strong>2017</strong>
The motions<br />
u 1. Received annual report and accounts for the<br />
year ended 31 December 2016.<br />
Carried by 98%<br />
u 2. Approved Directors’ Remuneration Report.<br />
Carried by 93%<br />
u 3. Authorised the Remuneration Committee to<br />
simplify executive pay.<br />
Carried by 94%<br />
u 4. Elected Steve Murrells as an executive director.<br />
Carried by 96%<br />
u 5. Elected Allan Leighton as an independent nonexecutive<br />
director.<br />
Carried by 95%<br />
“Executive pay is still very much in the<br />
headlines,” she said, “especially in what has<br />
become the growing gap between the highest and<br />
lowest paid.”<br />
Ms Spring added there was no executive pay<br />
increase in the last year, but major changes<br />
were made to some packages, which included a<br />
reduction in pension contributions from 40% to<br />
10%. People who replaced executives did not take<br />
their pay.<br />
On staff in stores, Ms Spring said workers have<br />
received an equivalent rise of 10.5% and that the<br />
Co-op pays above the £7.50 minimum wage. It also<br />
pays the same rate for all staff members, regardless<br />
of their age or whether they are an apprentice.<br />
The Group is looking at how it can pay the<br />
Living Wage Foundation’s rate of £8.45 (and £9.75<br />
in London) she added, but warned: “We’d love to<br />
be the first retailer to do that. But we have to be<br />
realistic. By raising pay to that level we’d need to<br />
find another £45m for each of the next three years.<br />
It’s hugely ambitious in a cut-throat market. It’s a<br />
big hairy audacious goal, but we want to find a way<br />
to get there.”<br />
Looking ahead, Ms Spring said it is conducting<br />
a full review of how the Group rewards executives<br />
and will start reporting on pay by gender in 2018. u<br />
“”<br />
THE NATURE OF THE<br />
CO-OPERATIVE IS A FAMILY,<br />
WITH ALL THE ARGUMENTS,<br />
RESOLUTION AND MAKING UP<br />
u 6. Elected Sir Christopher Kelly as an independent<br />
non-executive director.<br />
Carried by 96%<br />
u 7. Re-appointed Ernst & Young LLP as auditors.<br />
Carried by 95%<br />
u 8. Approved political expenditure to political<br />
parties not exceeding £750,000 for the year<br />
commencing January 2018. The Group will continue<br />
to be a subscribing member of the Co-op Party.<br />
Carried by 78%<br />
u 9. Ordered a review of the pay ratio and a strategy<br />
to narrow this, including progress towards a real<br />
living monthly wage for the lowest paid staff.<br />
Carried by 97%<br />
u 10. Welcomed the Group’s support for Fairtrade<br />
but called on it to “provide an assurance of stability<br />
to its Fairtrade suppliers and to explore additional<br />
ways of supporting them”.<br />
Carried by 98%<br />
u 11. Support for extending the Bright Future<br />
partnership with City Hearts to other organisations<br />
who support victims of modern slavery; agrees the<br />
Co-op should raise awareness; and encourages<br />
the Co-op to campaign with members for greater<br />
support and opportunities for victims.<br />
Carried by 97%<br />
u 12. Supported the Co-op’s aim to make 100% of<br />
its packaging easy to recycle, with an interim target<br />
of 80% by 2020; encouraged it to work with the<br />
industry to seek better ways to package food and<br />
maximise recycling; and agreed the Co-op should<br />
inform and guide shoppers.<br />
Carried by 99%<br />
JUNE <strong>2017</strong> | 25
What were members looking forward to?<br />
Cindy (Co-op Group Member Pioneer):<br />
“I’ve never been to a Co-op AGM before – there’s<br />
a real buzz in the room already! I’m really looking<br />
forward to visiting the stalls and finding out more<br />
about the Co-op and meeting members.”<br />
Louise (Co-op Group Member Pioneer):<br />
“I’ve just become one of the Co-op’s Member<br />
Pioneers after being involved in a lot of community<br />
work at home. I’ve never been to an AGM before so<br />
I’m looking forward to seeing how it all works. So<br />
far it looks amazing!”<br />
Fighting the<br />
scourge of<br />
water poverty<br />
Gareth (Co-operative and Mutual Solutions):<br />
“I’ve been a Co-op member for many, many years<br />
and I’m looking forward to taking part. The last<br />
AGM I was at was the year before last, when things<br />
were a bit difficult – this time there’s a real sense<br />
of renewal.”<br />
Where should the Group<br />
place its press ads?<br />
In response to a campaign by Stop Funding Hate (SFH) calling on the Group<br />
to rethink its advertising in the Daily Express, which the SFH campaign says<br />
is “notorious for its relentless campaign against minority groups”, the Group<br />
hosted a fringe event chaired by Hazel Blears, member-nominated director.<br />
The panel comprised Lord Victor Adebowale (Co-op Group director), Richard<br />
Brooks (vice-president, National Union of Students), Helen Carroll (Co-op<br />
Group director of brand) and Phil Smith (director general of ISBA, the Voice of<br />
British Advertisers).<br />
“We’re a broad church,” said Lord Adebowale. “I know of members who<br />
have voted Conservative. I know of members who have voted UKIP. Yes, we’ve<br />
met with the Sun and the Mail about some of their content – but we’re not<br />
going to change the editorial views of the press by withdrawing adverts.”<br />
Mr Smith highlighted how advertisers never want to be seen to influencing<br />
editorial. “At the same time they have always said ‘we retain the right to decide<br />
who we advertise with’,” he said.<br />
Vivian Woodell, chief executive of the Phone Co-op, said: “It is right for an<br />
organisation to not want to be associated with a publication that is associated<br />
with hate crimes. We can discriminate about who we advertise with.”<br />
Helen Carroll highlighted that the Sun and Daily Mail are the newspapers<br />
with the highest circulation among Co-op Group shoppers. She said: “Because<br />
we are a co-operative, we don’t have the luxury of thinking whether something<br />
will make our brand look good or not. The fact that we are having this debate<br />
makes it an important difference.”<br />
Mr Smith believes that if the Group really wants to make a difference, it<br />
needs to thrive as a business. “To deny ourselves use of such a broad platform<br />
is potentially a problem for the viability of the business.”<br />
p Fairbourne Springs, the Group’s charity water brand<br />
The Co-op Group is stepping up its efforts to tackle<br />
global water poverty.<br />
The Group has been working with the One<br />
Foundation for more than ten years to champion<br />
the need to invest in water sanitation and hygiene<br />
projects in countries such as Kenya and Malawi.<br />
The programme already sees the Group donate<br />
3p from every bottle of its own-brand Fairbourne<br />
Spring Water. Head of food policy Cathryn Higgs<br />
told members at an AGM fringe event that this<br />
would now apply to flavoured waters – and that 1p<br />
will be donated to clean water projects from every<br />
litre of non-own brand of bottled water it sells.<br />
“If we can give one person access to clean water,<br />
that has to be worth it,” said Ms Higgs.<br />
Figures from the United Nations show that 663<br />
million people do not have access to clean drinking<br />
water and more than 2.4 billion lack access to a<br />
basic, hygienic toilet.<br />
Nicky Armstrong, from the One Foundation, told<br />
the fringe event that the number of people without<br />
access to water had been cut from 1 billion to 663<br />
million thanks to development work.<br />
But the situation still means two million people<br />
die a year from water-borne diseases, mostly<br />
children under five. Families forced to spend four<br />
hours a day collecting water, walking miles - and<br />
the burden of this falls on women and children.<br />
“Water is life, water is fundamental to everything<br />
you need,” said Ms Armstrong.<br />
“We want to see a world where everyone has<br />
access to clean water forever.”<br />
26 | JUNE <strong>2017</strong>
Hope for modern slaves<br />
A fringe meeting updated members on the Group’s efforts against modern<br />
slavery, which have seen it monitor supply chains and join Bright Futures, a<br />
partnership with charity City Hearts which offers work placements to survivors<br />
of modern slavery, with the possibility of a job at the end of it.<br />
Anne Reid, from the Salvation Army, the government’s contractor for helping<br />
victims of slavery, said safe houses are operated around the country, where<br />
survivors stay an average of 93 days. After that time, the support runs out.<br />
“What the Co-op are doing as a member of Bright Futures is providing a path<br />
into employment, without that you cannot survive,” said Phil Clayton, from<br />
City Hearts. He called on Group members to lobby the government to do more<br />
to help slavery survivors – and said they could also volunteer to help.<br />
Paul Gerrard said the task now was to lobby other businesses and the<br />
government to do more. “The Co-op can only do so much,” he said. “The test of<br />
our success is what do other businesses do.” He added: “Our ambition should<br />
be that the co-op sector is the most hostile to slavery.”<br />
Increasing the<br />
Fairtrade factor<br />
The Co-op Group is a recognised leader in Fairtrade,<br />
and its retail sales of Fairtrade products increased<br />
by 18.4% in 2016 against a national figure of 7.6%.<br />
At the AGM, the Group reconfirmed its<br />
commitment to Fairtrade, saying its focus would<br />
remain on “the seven core Fairtrade categories<br />
where we can make the biggest difference”.<br />
The Group’s Cocoa for Change report made a<br />
commitment that 100% of the cocoa it buys for its<br />
all of its own-brand products will be Fairtrade. It<br />
switched its entire own-brand chocolate bar range<br />
to Fairtrade in 2002, but the new commitment<br />
means that over 200 Co-op products will use<br />
Fairtrade cocoa, from the chocolate chips in its<br />
cookies to the cocoa used in cooking sauces – and<br />
will increase Fairtrade cocoa purchases five-fold.<br />
The next stage is to extend this 100% Fairtrade<br />
ingredient approach to bananas, tea and coffee.<br />
What did members think?<br />
Commitment<br />
to recycling<br />
One million tonnes of recyclable plastic packaging<br />
goes to landfill or incineration every year, and by<br />
2050 there will be more plastic than fish in our<br />
seas. According to the Co-op Group, this is because<br />
consumers don’t understand what they can and<br />
can’t recycle and because some local authorities are<br />
unable to process it.<br />
The Group plans to change this, aiming for all<br />
packaging to be recyclable, with an interim target<br />
of 80% by 2020.<br />
A fringe event which explored the wider<br />
recyclability issue, the recycling journey and the<br />
issue of recyclability vs convenience. “We want<br />
you to help find ways to encourage more members<br />
and communities to recycle waste,” says the Group.<br />
“By telling us what matters to you most and giving<br />
us feedback on our plans you can help shape the<br />
role that the Co-op plays in tackling the problem of<br />
recycling in the UK.”<br />
Nick Matthews, chair of Co-operatives UK:<br />
“Today has been encouraging. The business is<br />
in the best place it has been for a long time and<br />
we can see the fruits of some of the decisions we<br />
took earlier. The executive is taking the values and<br />
principles and turning them into concrete actions.”<br />
Vivian Woodell, director or Midcounties Co-op:<br />
“The Group has come a huge way. The fact they<br />
are putting campaigning – on subjects that are not<br />
necessarily fashionable – at the centre of their work<br />
is inspiring. Using their economic muscle in this way<br />
is exactly what a co-op should be doing.”<br />
Elaine Dean, president of Central England:<br />
“The AGM was well produced - I’m pleased that<br />
people got to have their say. The presentations on<br />
modern slavery and Fairtrade were excellent… but<br />
I’m very disappointed that the motion on modern<br />
slavery didn’t carry with 100% of votes!”<br />
JUNE <strong>2017</strong> | 27
40 YEARS OF<br />
SUMA WHOLEFOODS<br />
ANNIVERSARIES<br />
BY REBECCA HARVEY<br />
Suma is the largest independent wholefood<br />
wholesaler in the UK. It is also the country’s largest<br />
workers co-operative, with 166 members and a<br />
turnover of £48m – £12m of which is own-brand<br />
products.<br />
It was started in 1975 by Reg Taylor, who saw a<br />
gap in the market and started selling pulses and<br />
rice, allowing small independent health food shops<br />
in the area to be able to buy together in bulk. Two<br />
years later, he sold the business to seven employees,<br />
who decided to run it as a workers co-op.<br />
<strong>2017</strong> marks the organisation’s 40th anniversary.<br />
So what changes have members seen over the last<br />
four decades? And what have been the biggest<br />
challenges?<br />
A WHOLEFOOD PIONEER<br />
Suma was one of the pioneers of organic foods,<br />
and has benefited from growing consumer interest.<br />
It started with items that were harder to get hold<br />
of – brown rice, dried fruit, lentils, chickpeas, figs,<br />
walnuts, as well as porridge, oat flakes and muesli<br />
mixing ingredients.<br />
Today the range has expanded to include a lot<br />
of free-from, gluten-free and vegan produce – and<br />
Suma also works with co-operatives, Fairtrade, and<br />
organic sources.<br />
One of the most popular products is vegetarian<br />
beans and sausage in a tin. “People had this when<br />
they were kids – now we do a vegan option and<br />
it’s one of our most popular items!” says Emma<br />
Robinson, worker member at Suma. Suma has<br />
adapted and stayed at the forefront by innovating<br />
more and keeping on top of food trends – and<br />
tinned beans and sausages are just one of over<br />
7,000 different products now stocked.<br />
Suma was the first to bring organic canned<br />
tomatoes and organic canned beans to the UK<br />
market, and was also the first to bring in 100%<br />
recycled toilet roll and kitchen paper. In the 1980s,<br />
it launched the UK’s first vegan sunflower spread.<br />
“Originally, our core market was a network of<br />
co-operatively run wholefood shops,” says Geoff<br />
Price, who joined Suma 35 years ago, making him<br />
the current longest-serving member.<br />
“We also sold to food groups – people and<br />
communities who wanted to eat healthily but<br />
couldn’t find what they wanted in the main stores,<br />
so clubbed together with friends to get a delivery.<br />
We still service those groups, but have also evolved<br />
into serving ex-pats, we’ve dabbled with the<br />
multiples, we have a presence in the Co-op.”<br />
GROWTH AND CHANGES<br />
As the business has grown, Suma has moved site<br />
several times. “Keeping up with the level of growth,<br />
keeping on top of a rapidly expanding market,<br />
looking at new routes to delivery and adapting the<br />
co-op to keep the same co-operative model and<br />
principles have all been challenging,” says Emma.<br />
“Originally our structure was based on total<br />
consensus,” adds Geoff. “Every Wednesday<br />
28 | JUNE <strong>2017</strong>
afternoon we would shut down and have a meeting.<br />
I remember one particularly heated discussion<br />
about the price of flour!”<br />
While this system worked for a group of 8-20<br />
people, 150+ members meant that things have had<br />
to change. Now there is a management committee<br />
who work on a business plan, and department coordinators<br />
who re-apply every three years – and<br />
work for consensus with colleagues.<br />
But importantly there is still no ultimate authority<br />
figure, and everyone is still paid exactly the same<br />
(£15.60 an hour). Suma has a rigorous selection<br />
process, with a six-month trial membership before<br />
you can become a full member.<br />
The original seven members were a number<br />
of like-minded, politically minded people who<br />
wanted to change the world. “It was people<br />
taking control of their own lives, managing and<br />
owning collectively,” says Geoff. “This still isn’t a<br />
conventional workspace, and there is no restraint<br />
on personalities, but we are bound together by<br />
political and social aims.<br />
“When there’s a crisis, this set-up works well.<br />
We had a flood in our last premises and lost half<br />
a million pounds worth of stock, but because<br />
everyone could work together we were up and<br />
running within 10 days!”<br />
A few years ago, Suma opened a hub just outside<br />
London, and this has also proved a new challenge.<br />
“Now we’re recruiting members in London, another<br />
issue is making sure the trial membership is fair<br />
compared with headquarters,” says Emma.<br />
Communication is also monitored closely. Suma<br />
is testing Loomio and looking at other different<br />
options and has quarterly meetings for the whole<br />
co-ops – and making sure everyone has chance to<br />
participate is more difficult as Suma has grown.<br />
But, adds Emma, all of this has meant the<br />
organisation has enjoyed a period of intense<br />
learning as the co-op is forced to look at the best<br />
ways to adapt and grown.<br />
“Being involved with Co-operatives UK and<br />
working with other co-ops has been a great way<br />
to share and learn about different models and<br />
communication styles, for example,” she says.<br />
In 2014 Suma was named Co-operative of the<br />
Year by Co-operatives UK (they are shortlisted<br />
again for <strong>2017</strong>) – and earlier this year it gained the<br />
Queen’s Award for Enterprise in the International<br />
Trade category.<br />
A BIRTHDAY YEAR<br />
To mark its 40th birthday, Suma is having a year<br />
of celebration. It is partnering with a local school,<br />
setting up an allotment and other food links, while<br />
members are volunteering in the local community<br />
during Suma time. As part of the celebrations, Suma<br />
is investing in coffee producers in Peru, supporting<br />
the building of a wet mill and drying patio that will<br />
increase efficiency and reduce crop diseases for six<br />
small producers.<br />
A collaborative book looking at its history, as<br />
well as recipes and anecdotes, is launching in<br />
September, and throughout the year the co-op is<br />
selling its special anniversary beer.<br />
“We’re proud of our beer range anyway,” says<br />
Emma, “but we’ve not had an IPA before. It’s brewed<br />
by Little Valley Brewery, who we have strong links<br />
with anyway, and has a real celebratory feel.”<br />
Suma’s limited edition birthday<br />
beer is the ‘77 Strength in<br />
Numbers organic IPA, brewed in<br />
Yorkshire by Little Valley Brewery<br />
to celebrate its 40th birthday.<br />
Suma describes the strawcoloured<br />
IPA as “robust, enduring<br />
and perfectly blended; the liquid<br />
embodiment of our co-operative<br />
heritage. It’s our way of raising a<br />
glass to the many who help to make<br />
us who we are; a unique, quirky and<br />
pioneering collective.”<br />
JUNE <strong>2017</strong> | 29
Farmers face the<br />
AGRICULTURE<br />
BY MILES HADFIELD<br />
The UK’s leading players<br />
INTRODUCING THE AGRI-CO-OP SECTOR<br />
According to Co-operatives UK’s figures for 2016,<br />
the UK has 416 co-ops in agriculture, with 134,566<br />
members and a collective turnover of £5.8bn.<br />
As a whole, agriculture is facing difficult times,<br />
with farmers struggling to cope with the uncertainty<br />
of Brexit, volatile commodity prices, regulation and<br />
increasing costs of employment.<br />
Co-operative Members Turnover<br />
1 Openfield Group Ltd 2,693 £743,751,000<br />
2 Fane Valley Co-op Society 2,020 £553,888,000<br />
3 First Milk Limited 1,317 £460,087,000<br />
4 Arla Foods UK 3,200 £454,263,000<br />
5 United Dairy Farmer Ltd 1,619 £421,482,000<br />
6 Mole Valley Farmers Ltd 8,000 £407,793,000<br />
7 Anglia Farmers Ltd 3,500 £247,446,783<br />
8 Berry Garden Growers Ltd 59 £212,851,452<br />
9 Fram Farmers Ltd 1,126 £184,536,378<br />
10 GrainCo Ltd 1** £165,587,658<br />
Co-operatives UK, 2015<br />
“In certain sectors, the most prominent of which<br />
is the dairy industry, this is having a devastating<br />
effect on farmers,” warns Co-operatives UK, the<br />
umbrella body for the country’s co-op sector.<br />
This uncertainty has sparked a crisis in the global<br />
dairy industry, which is also facing a changeable<br />
market marked by globalisation and innovation.<br />
In the UK, this led to a restructure at First Milk Cooperative,<br />
which was forced to make redundancies<br />
and reduce payments to farmer members after<br />
hitting trouble in 2015.<br />
There have also been governance reviews at New<br />
Zealand dairy Fonterra and Australia’s CBH and<br />
Murray Goulburn (see box, facing page).<br />
And in Argentina, SanCor dairy co-op has<br />
been working with the government to develop<br />
a new device, the credit invoice, and set up a<br />
countercyclical fund of 800m pesos to help farmers<br />
weather price volatility.<br />
But there is still expansion in the dairy sector.<br />
Ireland’s Glanbia Co-op voted last month to<br />
establish a joint venture with a plc to expand its<br />
global reach. The co-op has agreed to pay €112m<br />
to acquire a 60% shareholding in Glanbia plc’s<br />
30 | JUNE <strong>2017</strong>
WITH VOLATILE PRICES IN A<br />
GLOBALISED WORLD, THE FARMING<br />
INDUSTRY FACES CHALLENGING TIMES.<br />
HOW ARE AGRI CO-OPS REACTING?<br />
future<br />
Dairy Ireland division, which consists of Glanbia<br />
Consumer Products and Glanbia Agribusiness. The<br />
joint venture, Glanbia Ireland, will offer a diverse<br />
portfolio of ingredients, leading agri and consumer<br />
brands, in a global market.<br />
It will operate a 2.4 billion litre milk pool, with<br />
revenue of €1.5bn, 11 processing plants, 54 agri<br />
branches and over 1,800 employees.<br />
And it will own a range of leading consumer<br />
and agri brands such as Avonmore, GAIN Animal<br />
Nutrition, Kilmeaden Cheese, Premier Milk,<br />
mymilkman.ie and Wexford.<br />
There is also positive news outside the dairy<br />
sector, with co-ops in arable farming enjoying an<br />
upturn. GrainCo, East of Scotland Growers and<br />
United Oil Seeds have all enjoyed standout years,<br />
says Co-operatives UK, with the latter growing by a<br />
third and now turning over £165m a year.<br />
The other main sectors are agricultural suppliers,<br />
such as Mole Valley Farmers and Fram Farmers,<br />
and horticulture. Produce-marketing co-ops and<br />
producer organisations play an important role in the<br />
fresh produce sector, with co-op businesses such<br />
as Berry Garden Growers turning over £212m. u<br />
Troubled times at Murray Goulburn<br />
Australian dairy co-op Murray Goulburn is to axe 360 jobs, lose AU$410m in<br />
writedowns, close three processing plants and suspend dividends.<br />
Last April, the co-op, hit by market volatility, announced a price cut to<br />
suppliers under its Milk Supply Support Package, which made payments<br />
above the farmgate price but required farmers to repay the difference from<br />
future milk payments.<br />
Murray Goulburn now says it will forgive these debts – and although the<br />
forecast farmgate milk price for <strong>2017</strong> has been downgraded from $4.70 per<br />
kilogram of milk solids to $4.60, it is committed to paying the average of<br />
$4.95 which it promised in October 2016.<br />
About 360 jobs at its Edith Creek facility in Tasmania, and its Rochester and<br />
Kiewa facilities in Victoria, will be affected by the closures over the next two<br />
years, saving $40-50m a year.<br />
Victoria state premier Daniel Andrews pledged to work with the company to<br />
save jobs but said workers had been treated poorly.<br />
He said: “I’ll work with the company, absolutely, but I will call it as I see it.<br />
I just don’t think our dairy farmers have been treated particularly well by this<br />
company for quite some time.”<br />
He added: “MG have to have a fresh look at this. If that means the<br />
Government needs to get involved to facilitate that or support it I stand ready<br />
to do that. I think our dairy farmers were very, very badly treated.”<br />
JUNE <strong>2017</strong> | 31
u Another important player, the Green Pea<br />
Company, was created in 2006 from a merger of<br />
five smaller growers to supply Birds Eye. Its 240<br />
members annually harvest 5,000 tonnes peas over<br />
approximately 10,000 hectares (25,000 acres) in<br />
East Yorkshire and North Lincolnshire.<br />
Co-operatives UK sums up the benefits of the<br />
co-op model to agriculture as:<br />
• Control over crucial parts of the supply chain<br />
• Cost savings through economies of scale<br />
• Tax efficiency through ‘mutual trading status’<br />
• Sharing knowledge and best practice<br />
“Joint ventures, share/contract farming and<br />
producer organisations (POs) are all different forms<br />
of co-operation and will offer opportunities and<br />
benefits to different owners,” it says.<br />
James Graham, chief executive of the Scottish<br />
Agricultural Association (SAOS), the umbrella body<br />
for Scottish agri-food co-ops, agrees.<br />
“Farmers co-operate to gain scale advantages not<br />
available to an individual farmer – be that buying,<br />
selling, or taking a stake or ownership in other parts<br />
of the supply chain to cut out intermediaries – and<br />
co-operate to pool resources and risks,” he said.<br />
“The more concentrated supply chains become,<br />
the more necessary it is for farmers to react to<br />
strengthen their position to satisfy markets and<br />
retain some negotiating leverage. The more volatile<br />
the world market becomes, the more farmers need<br />
to act to increase their resilience.”<br />
And the sector will have to remain dynamic.<br />
Co-operatives UK predicts more consolidation for the<br />
industry, as changes to markets, climate, regulation<br />
and institutions call for better understanding of<br />
supply chains, export opportunities, marketing and<br />
how to add value to products and services.<br />
“Globally, agricultural co-ops account for 32% of<br />
the top 300 co-ops and are the second largest subsector<br />
behind insurance ... this part of the industry<br />
has plenty of scope for the future,” it adds.<br />
James Graham’s governance<br />
u Common goals and united commitment among<br />
members, requiring sound strategy and two-way<br />
communication between board and members<br />
u Ambition and leadership among members and<br />
directors, and a concern for the future<br />
u Active participation in democracy and<br />
accountability<br />
u High standards of governance, and professional<br />
management that understands the primary purpose<br />
of members in co-operating<br />
u Commercial success, satisfying members’ needs<br />
of their co-op, and rewarding them in proportion to<br />
their participation.<br />
28 | APRIL <strong>2017</strong>
In focus: Openfield Group<br />
The UK’s biggest agricultural co-op with<br />
a turnover of more than £7m, Openfield<br />
offers services in seed, fertiliser, grain<br />
and storage.<br />
Launched in 2008 following the merger<br />
of Centaur Grain and Grainfarmers,<br />
the co-op can trace its history back to<br />
1907 with the formation of the Southern<br />
Counties Agricultural Trading Society.<br />
The most recent development in its<br />
history came in 2015 when it acquired<br />
Countrywide Farmers. It is now owned by<br />
around 3,500 arable farmer shareholders<br />
and markets 4.6 million tonnes of grain<br />
each year, exporting 1.2 million tonnes.<br />
It operates from eight office locations,<br />
ranging from Bridgwater, Somerset<br />
in the south-west to Montrose in<br />
Angus, Scotland.<br />
Openfield recently voted non-executive<br />
director Philip Moody as group chair,<br />
following the retirement of Richard<br />
Beldam after nearly 20 years.<br />
Mr Moody helped set up Openfield’s<br />
ongoing grain supply arrangement with<br />
breadmaker Warburtons.<br />
p Openfield is the UK’s biggest agri co-op<br />
GOVERNANCE REFORM<br />
Crucial to agri-co-ops’ ability to meet<br />
any challenges is governance. The SAOS<br />
produced a governance code for agri<br />
co-ops with Co-operatives UK and James<br />
Graham says: “Effective governance is the<br />
number one critical success factor for an<br />
agricultural co-op. The components are<br />
easy to identify, but know-how is required<br />
to put all these in place and maintain their<br />
performance.<br />
“Directors must learn their role and<br />
understand and occasionally learn the<br />
behaviours that contribute to a functional<br />
board, and be prepared to permit external<br />
independent governance evaluation<br />
from time to time. The most effective<br />
co-op leaders understand this, and lead<br />
accordingly.”<br />
Looking at recent restructures in the<br />
global dairy sector, he says: “With the<br />
governance reviews at Fonterra, Murray<br />
Goulburn and CBH, capital is a central<br />
issue – how to raise sufficient to maintain<br />
their position as milk-based product<br />
manufacturers in a rapidly concentrating<br />
and innovating industry that is becoming<br />
more global every year.<br />
“Each has been innovative and taken<br />
risk in addressing capitalisation needs, out<br />
of necessity. They are to be congratulated<br />
on their leadership in attempting to come<br />
up with durable solutions. Members were<br />
consulted and supported their boards.<br />
“First Milk is a different scenario, where<br />
an independent governance review found<br />
insufficient expertise on the board, and<br />
made recommendations to remedy the<br />
situation very quickly as the business was<br />
in some difficulty. That difficult moment<br />
has now passed, and the members adopted<br />
a two-tier model.”<br />
Pekka Pesonen, secretary general Copa-<br />
Cogeca, the umbrella body for farmers<br />
and agri-co-operatives in the EU, agrees<br />
governance is crucial.<br />
“When coping with their capital and<br />
innovation in co-op ownership, agri<br />
co-ops shall not expose the key elements<br />
of their model, which is characterised as<br />
a ‘member-owned’, ‘member-controlled’<br />
and ‘member-benefit’ business,” he says.<br />
“Moreover, new business models, the<br />
innovative ways to use information and<br />
computer technologies, as well as new<br />
analytical capabilities enabling agri<br />
co-ops to maximise performance, could<br />
be the new drivers towards an improved<br />
proximity to members’ needs and more<br />
efficient governance.”<br />
Relations with stakeholders and<br />
national administrations are also crucial,<br />
adds Mr Pesonen.<br />
“Several cases, around the globe and<br />
in different co-operative sectors, have<br />
indicated that we must be more resilient<br />
when defending the co-operative model<br />
of enterprise,” he warns. “Regulatory or<br />
political interventions can indeed easily<br />
jeopardise democratic structures built<br />
and developed over a long period of time,<br />
p Pekka Pesonen of Copa-Cogeca<br />
which have benefited their members as<br />
well as local and rural economies.”<br />
WEIGHING UP THE BREXIT FACTOR<br />
Added to the uncertainties facing farmers<br />
is the UK’s decision to withdraw from the<br />
EU. Mr Pesonen warns there are “serious<br />
concerns about the potential trade and<br />
budget impact” of Brexit.<br />
He adds: “The UK is well integrated into<br />
the EU single market, is a net importer u<br />
“”<br />
JUNE <strong>2017</strong> | 33<br />
POLITICAL INTERVENTIONS CAN EASILY<br />
JEOPARDISE DEMOCRATIC STRUCTURES
u of agri-food products to the extent of<br />
€57bn. Furthermore, 60% of UK agri-food<br />
exports (beef, lamb, poultry, dairy, cereals)<br />
worth £11bn are traded with the other EU-27.<br />
“We believe farmers and agribusinesses<br />
on both sides will be hit hard. Consumers<br />
who have up until now enjoyed a good<br />
choice of quality produce from across the<br />
EU will also feel the impact.”<br />
He says there are also complications<br />
for several transnational European agrico-ops<br />
which have farmer members in the<br />
UK, who will face economic, commercial<br />
and legal implications.<br />
“Finally, the UK is also a net contributor<br />
to the EU budget,” he adds. “Ways to<br />
maintain the current budget for the<br />
Common Agricultural Policy must be<br />
found. Any disruption to agricultural<br />
trade should also be avoided. Otherwise,<br />
farmers and their co-operatives, both in<br />
the UK and in the EU-27, will end up paying<br />
twice for Brexit.”<br />
But one alternative path agriculture<br />
could take after Brexit is liberalisation – a<br />
path taken by New Zealand in the 1980s.<br />
The country suffered after the UK – its<br />
main market for dairy exports – joined the<br />
Common Market in 1972.<br />
At first, New Zealand opted for<br />
protectionism, with subsidies and a<br />
controlled economy, but in 1984 the<br />
government moved to deregulation, the<br />
removal subsidies and free trade.<br />
Critics of this policy have pointed<br />
to immediate effects of job losses and<br />
hardship but supporters say it eventually<br />
revived the country’s economy.<br />
Now, Dr Francis Reid, trade strategy and<br />
stakeholder affairs manager at Fonterra,<br />
says his country’s example could point the<br />
way for Britain once it leaves the EU.<br />
Speaking to the Semex Dairy Conference<br />
in Glasgow, he said Fonterra and New<br />
Zealand had shown how successful open<br />
markets could be, offering a lesson for<br />
post-Brexit Britain.<br />
If New Zealand and the UK could<br />
establish an open trading and economic<br />
relationship post-Brexit, he argued, they<br />
could build on their strengths, including<br />
their proximity to markets in the Asia-<br />
Pacific region and the EU.<br />
For the SAOS, James Graham has been<br />
in “ongoing discussion” with the Scottish<br />
and Westminster governments. He predicts<br />
a move away from continuous subsidy but<br />
hopes for measures to help farmers, and<br />
says he has received “recognition of the<br />
more challenging circumstances of hill<br />
farmers and remote area farmers”.<br />
“My reading of [the two governments’]<br />
position is that in their future policies,<br />
In focus: Fonterra goes global and shakes up its structure<br />
New Zealand dairy Fonterra is working to<br />
expand its co-operative structure abroad<br />
under its Dairy Partners America venture,<br />
in a bid to secure milk supplies from<br />
South America.<br />
Chair John Wilson has told the press<br />
he would like to see “some sort of<br />
sub-co-operative structure”, tailored to the<br />
needs of each country.<br />
“It’s not something that is going to<br />
happen over the next few days,” he said,<br />
“but we certainly believe in the importance<br />
of Fonterra being able to secure globally<br />
from farmers who feel part of the wider<br />
co-operative.”<br />
Any changes would maintain the rights<br />
of New Zealand farmers who have an<br />
average of NZ$900,000 invested in<br />
Fonterra, he added.<br />
Fonterra has reported a 2% lift in its net<br />
profit after tax to NZ$418m for the half year<br />
to January 31, with director John Monaghan<br />
sounding a confident note despite the<br />
turbulent market. “We talk now about<br />
volatility in global milk prices being the<br />
new normal,” he told reporters, “But this<br />
means opportunity for Fonterra.<br />
“China is our largest market. The<br />
countries that don’t have enough milk will<br />
always look to the countries that have more<br />
milk than they need to close the gap.”<br />
The co-op – owned by<br />
13,000 farmers and the<br />
world’s largest exporter<br />
of dairy products – is<br />
innovating in a bid to<br />
take advantage of these<br />
opportunities.<br />
It has invested in<br />
efficient new plants;<br />
moved to flexible<br />
production to match<br />
changes in demand<br />
and fluctuating costs;<br />
switched production<br />
from low-margin to<br />
high-value products;<br />
and is aiming for $35bn<br />
revenue in 2025.<br />
The company is also working to innovate<br />
new products, and is currently a finalist in<br />
the Ingredient of the Year – Infant Nutrition<br />
category at the NutraIngredients Awards<br />
in Geneva for its work. It developed a milk<br />
lipid ingredient which replicates some of<br />
the benefits of breastfeeding in cow’s milk.<br />
Last year, the dairy received a food and<br />
beverage innovation award at the New<br />
Zealand Innovation Awards for its research<br />
in infant nutrition.<br />
Fonterra has also changed its<br />
governance after a nine-month review,<br />
p Fonterra’s Kauri plant in Northland<br />
reducing the size of its board and bringing<br />
in a new election process for farmer<br />
directors. Candidates are now selected<br />
by an independent selection panel and<br />
approved by the board’s nominations<br />
committee and Fonterra’s Shareholders’<br />
Council before they are put forward to<br />
shareholders for their vote.<br />
Candidates can also stand outside<br />
this process and be self-nominated as<br />
long as they are supported by 35 other<br />
shareholders. A first past the post majority<br />
voting system means all candidates now<br />
need at least 50% farmer support.<br />
34 | JUNE <strong>2017</strong>
p Technology is increasingly important to agri-businesses working in a volatile industry<br />
they want to support farmers to help<br />
themselves rather than provide support<br />
through continuous direct subsidy type<br />
payments,” he adds.<br />
“They want to support developments<br />
that will strengthen farmers’ position in<br />
supply chains and increase transparency<br />
of markets, and they want to support the<br />
adoption of agritech that enables farming<br />
to be competitively productive, and<br />
efficient in use of resources. These will<br />
increase farmers’ resilience to shocks.”<br />
He says the governments are also<br />
researching schemes, such as insurance, to<br />
help farmers manage extreme downturns<br />
in market prices.<br />
“SAOS proposals are getting a positive<br />
hearing because we appealed to all these<br />
drivers in the measures we suggested.”<br />
But he warns: “It’s early days in the<br />
policy formulation process, and both EU<br />
market access and WTO regulations may<br />
limit what is feasible.”<br />
As for what agri-co-ops themselves can<br />
do to cope with the transition, he says:<br />
“Co-ops are already responding to intense<br />
change drivers through their governance<br />
processes, regardless of Brexit. Change is<br />
a normal state.<br />
“But with respect to Brexit in particular,<br />
I suggest boards should be looking at new<br />
scenarios and opportunities, and all the<br />
time be identifying how to strengthen<br />
the resilience of their farmer members’<br />
businesses and their co-op.<br />
“I predict that farmers will need to cooperate<br />
more through their co-ops in<br />
future, and they will need their co-ops to<br />
provide the leadership.”<br />
NEW TECHNOLOGY<br />
One area where co-ops can show such<br />
leadership after Brexit, argues Mr Graham,<br />
is in technology.<br />
“At SAOS,” he says, “we are pursuing<br />
opportunities for co-op ownership and<br />
management of data related to members’<br />
farm production via agritech, and<br />
using this in connecting with market<br />
requirements and opportunities. There is<br />
new potential for competitive advantage<br />
in which co-ops are essential, and through<br />
which farmers retain ownership and<br />
control of their data.”<br />
One UK organisation looking at agritech<br />
innovation is farmer-owned grain<br />
processing network Camgrain, which<br />
recently held a masterclass on how to<br />
trade in a changing global market.<br />
The session revealed how global events<br />
can shake the market: a drought in the US<br />
in 2012 saw a sharp rise in wheat prices as<br />
supply dropped – but the westernisation<br />
of the Chinese diet has seen record levels<br />
of production and wheat prices fell.<br />
Technology also moves to the fore as a<br />
growing population and environmental<br />
changes force farmers to increase<br />
production while reducing their footprint.<br />
Speakers told co-ops to provide good<br />
apprenticeships to create a workforce<br />
which could use this new technology.<br />
Echoing James Graham’s view on the<br />
importance of data, in the US a new co-op<br />
is being created to give farmers a neutral<br />
space to safely store and share their<br />
information.<br />
AgXchange is the brainchild of Grower<br />
Information Services Co-operative (GISC)<br />
and the Agricultural Data Coalition, a nonprofit<br />
formed by a group of universities<br />
and farm businesses.<br />
GISC founder Billy Tiller says the new<br />
system fills “a need many growers may not<br />
have recognised yet – neutral and secure<br />
data storage”.<br />
He said many growers were failing<br />
to make best use of their data or were<br />
unknowingly signing away the rights to<br />
third-party providers.<br />
Chief executive Jason Ward said:<br />
“When a grower gains complete control<br />
of their data, the grower will then be able<br />
to maintain complete control of their<br />
operation from the present to the future.”<br />
GISC – which is rebranding as Growers<br />
Agricultural Data Co-operative under the<br />
new project – is governed by a board of<br />
directors composed of the growers’ peers,<br />
to ensure data rights are protected and the<br />
information is safely stored.<br />
It’s a sign that even as technology<br />
changes, basics such as good co-op<br />
governance remain as important as ever. •<br />
JUNE <strong>2017</strong> | 35
Telling your<br />
co-operative story<br />
Expert views:<br />
How do you use stories to<br />
connect with your members?<br />
CONNECTING WITH MEMBERS: HOW DO YOU<br />
DO IT?<br />
Sarah: We use a variety of methods to engage<br />
with customers and members. A mix of expertise<br />
in journalism, marketing and PR are used to find<br />
out exciting and interesting stories which are<br />
then used in a variety of methods from traditional<br />
press releases to bespoke films. Our engagement is<br />
amplified with our use of social media platforms<br />
such as Facebook and Twitter, which includes<br />
everything from offering customer competitions to<br />
hosting native video based on a variety of subjects<br />
from recipes to the community. We also continue<br />
this journey by talking about our stories in and<br />
around our stores, funeral homes and travel shops<br />
via posters and with our members’ newspaper and<br />
also by communicating via targeted emails.<br />
Katie: We connect with our members at our nearly<br />
300 branches around the globe, online, on the<br />
phone via our 24/7 contact centre, and through our<br />
mobile app and social media channels. We listen to<br />
our members’ stories and provide them financial<br />
help and guidance to meet their unique needs.<br />
“” BLOGS AND SOCIAL MEDIA.<br />
WE CONNECT WITH CUSTOMERS<br />
THROUGH OUR WEBSITES,<br />
WE ENCOURAGE MEMBERS<br />
TO SHARE THEIR LOCAL STORY<br />
THROUGH THESE AVENUES TOO<br />
Howard: We connect with customers through our<br />
websites, blogs and social media. We encourage our<br />
members to share their local story through these<br />
avenues as well. We know through research that<br />
consumers respond to stories 40 times more than to<br />
facts. With that in mind, we aim to connect through<br />
inspiring stories. We connect with our customers<br />
through everything from engaging social content<br />
to stellar charitable programs that create a sense of<br />
community and really make a difference.<br />
GOALS: WHAT ARE YOU TRYING TO ACHIEVE<br />
WHEN YOU SPEAK TO MEMBERS?<br />
Sarah: We are trying to educate about co-op values<br />
and principles and how our aims and objectives<br />
align with them. We also aim to encourage our<br />
membership to take an active part in the many<br />
benefits the society offers to members and the wider<br />
community, whether that be by highlighting the<br />
products we have for sale, new or refitted stores or<br />
the activities and events we are hosting to support<br />
or boost the area.<br />
Howard: Our number one goal is to help them<br />
be as successful as possible. Helping the member<br />
understand the ‘why’ behind our recommendations<br />
is essential so that they’re not only benefiting from<br />
the co-operative’s programs but understanding the<br />
benefits. As we speak with members, we want to<br />
make a lasting connection with them and help in<br />
any way that we can.<br />
Katie: Our goal is to make sure we provide the best<br />
member service, experience, and the best financial<br />
products to fit our members’ needs. That way they<br />
can go about their busy lives knowing their finances<br />
are being taken care of by a financial institution<br />
they can trust.<br />
36 | JUNE <strong>2017</strong>
For Co-operatives Fortnight <strong>2017</strong> (17 <strong>June</strong> to 1 July), Co-operatives UK is encouraging people to<br />
share stories of how working together has made a difference. Connecting with members is one of<br />
the most important tasks of a co-operative. Our panel of experts, who connect with members each<br />
day, share their ideas on how co-ops can reach out to stakeholders...<br />
Howard Brodsky, chair and chief executive<br />
of CCA Global Partners: More than 3,500<br />
locations in North America and abroad<br />
benefit from CCA’s 14 purchasing co-ops,<br />
which sell flooring, lighting products,<br />
biking and more.<br />
Katie Miller, senior vice president of<br />
membership at Navy Federal, the biggest<br />
credit union in the world: Since 1933, Navy<br />
Federal has grown from seven members to<br />
over seven million members and operates<br />
over 300 branches globally.<br />
Sarah Ashton, PR manager at Central<br />
England Co-operative: One of the largest<br />
retail co-ops in the UK, with over 400<br />
trading outlets, a family of around 8,600<br />
colleagues and more than 330,000 regular<br />
trading members.<br />
SHARING: HOW CAN MEMBERS SHARE THEIR<br />
STORIES? OR HOW DO YOU COLLECT MEMBER<br />
STORIES?<br />
Howard: We find that having members share<br />
their stories at conventions and through other<br />
communications is the best way to communicate<br />
so we encourage this any time it is possible.<br />
Our members participate on panels, share best<br />
practices and help each other through networking<br />
opportunities available through the co-operative.<br />
We actively reach out to members to collect stories<br />
and encourage them to share during networking<br />
events and through social networking.<br />
Katie: We encourage our members to share their<br />
stories with us and other members. For example,<br />
many of our members share their stories through<br />
social media channels. Our members share<br />
everything from why they’re proud to serve, to how<br />
Navy Federal helped them get their first car or buy<br />
their dream home.<br />
Sarah: We regularly interact with members via<br />
a variety of methods. We regularly survey our<br />
customers and members in order to ensure we<br />
are always listening to their feedback and provide<br />
a relevant membership offering to all areas<br />
of the society. This activity has recently been<br />
supplemented by our new customer feedback<br />
platform, My Co-op Voice, which allows for instant<br />
feedback and reaction from colleagues, customers<br />
and members of new products, new concepts and<br />
decisions by the society. This is supported by social<br />
media to gauge opinion, reaction and interaction,<br />
in-store POS and till receipt footers.<br />
HOW DO YOU TALK TO MEMBERS?<br />
Katie: Knowing our members better than anyone<br />
enables us to connect with our members. We’ve<br />
served military families for over 80 years and many<br />
of our employees have also served. As a result, we<br />
truly understand our members, and we’re able to<br />
form a partnership with them based on shared<br />
values and experiences. When speaking with<br />
members, we’re able to understand their challenges<br />
as a military family, and their distinct approach to<br />
financial planning and decision making.<br />
Sarah: Keeping it simple. If you are trying to<br />
inform people about membership benefits, then<br />
the message has to be clear about benefits and<br />
value – segmentation of your audience is key, as is<br />
understanding the needs and aspirations of your<br />
communities. The same methods can also be u<br />
JUNE <strong>2017</strong> | 37
whereas if you are speaking to existing members<br />
they will most likely know of the benefits and are<br />
more interested in what is happening within the<br />
society and how it impacts them as a member.<br />
p Co-operatives UK’s<br />
Co-operative Fortnight<br />
campaign is encouraging<br />
organisations to share<br />
their stories of cooperation<br />
using the<br />
hashtag #coopstories<br />
u Navy Federal’s<br />
#proudtoservechallenge<br />
campaign on Instagram<br />
u Opposite page:<br />
CCA’s Design for a<br />
Difference campaign; a<br />
#ProudToServeChallenge<br />
submission; and the<br />
story of Central England<br />
member Mary Norton<br />
u applied when encouraging members to take a<br />
more active role in their communities. You need to<br />
find out what really matters to people locally and<br />
find ways to build co-operative links and networks<br />
for members to join and thrive within. This is why,<br />
when it comes to community, the best way to<br />
encourage participation and inspire membership is<br />
through the use of real life human interest stories,<br />
featuring relatable people and backed up with<br />
strong imagery, video and promotion.<br />
Howard: It has to be a combination – members<br />
take in information differently. In most instances,<br />
we are not their number one priority so we must<br />
hit them with a combination of communication<br />
vehicles to get the most engagement. We find that<br />
bringing our members together to support a cause<br />
is also very compelling. By sharing stories of those<br />
in need that we as a group are able to help, we find<br />
that our members are more passionate and driven<br />
to work together and help.<br />
WHAT DOESN’T WORK?<br />
Howard: Live webinars are hard to get our<br />
members to attend because they all have different<br />
schedules and don’t want to take time away from<br />
their business during working hours.<br />
Sarah: There is no right and wrong when it comes<br />
to stories that illustrate your membership message,<br />
but it is important to keep your messaging clear,<br />
timely, relevant and emotive. So, for example, if<br />
you are talking about membership who are you<br />
aiming at – are you looking to recruit new members<br />
or speak to existing members? An approach for<br />
new members would be to provide more context,<br />
YOUR BOARD GIVES YOU AN UNLIMITED BUDGET<br />
TO CONNECT WITH MEMBERS.<br />
WHAT DO YOU DO?<br />
Sarah: With an unlimited budget, it would be great<br />
to showcase the excellent films we put together<br />
on everything from community dividend to our<br />
funeral business on a wider scale via mainstream<br />
television and social media and showcase us as a<br />
co-operative and what we do in the very best light.<br />
Howard: We would encourage more face-toface<br />
interactions between members and with<br />
the management team. To reach our customers<br />
with the co-operative message, a full awareness<br />
campaign with media support would certainly be<br />
beneficial and help our customers understand our<br />
business. We would also highlight each and every<br />
member of our co-op. Our members all have such<br />
inspiring stories and we’d like to tell them. Their<br />
lives and legacies deserve to be shared with the<br />
world especially in their surrounding communities.<br />
We would create more video stories of our members<br />
and know that by hearing how other members have<br />
been successful, the entire membership would<br />
benefit. We would also create a dedicated app for<br />
our members to share stories and best practices.<br />
38 | JUNE <strong>2017</strong>
SHARING BEST PRACTICE: HOW HAVE YOU<br />
CONNECTED WITH MEMBERS?<br />
Howard: One of our most successful initiatives is<br />
Design for a Difference. This one really hits home<br />
in our members’ local communities. Design for<br />
a Difference is the first-ever community-driven<br />
designer movement that brings our socially<br />
conscious showrooms together with interior<br />
designers and other businesses to makeover<br />
spaces at local charities. The makeovers have been<br />
performed in well over 20 local communities – and<br />
this number is growing.<br />
Katie: We’re currently celebrating Military<br />
Appreciation Month with a special social media<br />
challenge. Members and prospective members are<br />
sharing videos with us on Instagram for a chance to<br />
win up to $5,000. It’s our #ProudToServeChallenge,<br />
and we’re receiving creative submissions sharing<br />
stories of service and thanking those who serve.<br />
Sarah: The story that has had the most impact<br />
and reaches for the society recently involved our<br />
member Mary Norton. Mrs Norton has been visiting<br />
the same food store in Leicester every day for 80<br />
years. She spoke to us about her story and we used<br />
a press release, media pitching and social media<br />
to talk about her story. The story was picked up<br />
by regional and national print media, radio and<br />
television. The story also resonated with our online<br />
audience as over 10,000 people reacted to the story<br />
via Facebook and Twitter from just one post. Mrs<br />
Norton’s family were the ones to contact us via our<br />
enquiries team to tell us her story, as they wanted<br />
to show their appreciation for the store colleagues<br />
who interact with her every day and make her<br />
membership meaningful. It was a great way of<br />
interacting with a long-standing member to hear<br />
their story and then using that message to showcase<br />
our co-operative values and the importance of<br />
membership to people.<br />
WRAP-UP:<br />
EXPERT<br />
TIPS<br />
Talking to your members<br />
u Make sure you know and understand your membership – what matters to them?<br />
u Keep it simple. Talk about your co-op’s benefits and value<br />
u Tailor your message based on their knowledge – are they an active or passive member?<br />
What gets members talking?<br />
u Share timely and emotive stories that connect with your membership message<br />
u Get members to come together to support a cause<br />
Getting member stories<br />
u Collect member stories from social media or events<br />
u Provide ways for members to contact your co-op<br />
JUNE <strong>2017</strong> | 39
ENVIRONMENT<br />
BY SUSAN PRESS<br />
The co-operative business of nature<br />
World Environment Day – held each year on 5<br />
<strong>June</strong> – aims to raise worldwide awareness of the<br />
challenges we face in ensuring the future of the<br />
planet. Organised by the United Nations since<br />
1972, its theme in <strong>2017</strong> is ‘Connecting People to<br />
Nature – in the city and on the land, from the poles<br />
to the equator’.<br />
Leading academic Dr Jeremy Haggar, head of the<br />
department of agriculture, health and environment<br />
at Greenwich University’s Natural Resources<br />
Institute, is the author of a recent study into smallscale<br />
farmers and climate change. The report was<br />
backed by TWIN, which works with 43 producer<br />
organisations representing over 300,000 coffee,<br />
cocoa and nut smallholders in 17 countries across<br />
Latin America, Africa and Asia. It evaluated ways<br />
in which major players in the Fairtrade market not<br />
only guarantee livelihoods in developing countries<br />
but are enabling producers to protect their local<br />
environments.<br />
“The initiatives reviewed for this study mostly<br />
started out as corporate social responsibility<br />
programmes that supported general social and<br />
environmental projects,” says Dr Haggar. “Now,<br />
ensuring the sustainability of the ecosystems their<br />
businesses depend on is part of their business<br />
plan. Taylors of Harrogate is an organisation<br />
taking a lot forward – and the TWIN climate<br />
change programme is working with co-ops<br />
and the Solidaridad development agency<br />
in the Netherlands to bring together<br />
best practice for businesses wishing<br />
to engage with the producer base<br />
and make it become more<br />
resilient and resistant to<br />
climate change.”<br />
Taylors of Harrogate, a family business based in<br />
Yorkshire, deals directly with coffee co-operatives<br />
in South America and Kenya. Its projects have<br />
directly enhanced local environments by reducing<br />
soil erosion and flooding and improving water<br />
conservation.<br />
It has also played a key role in combating climate<br />
change; supporting families and communities<br />
by providing food and enhancing livelihoods;<br />
and promoting environmental education. Taylors<br />
also runs a small grants scheme to suppliers to<br />
support the costs of Fairtrade certification, which<br />
is essential to long-term sustainability.<br />
Cafédirect, which brought the first Fairtrade<br />
coffee to the UK, works with more than 40<br />
producer organisations in 14 countries and reinvests<br />
a third of its products with producer communities.<br />
In northern Peru it has helped coffee suppliers in<br />
small villages lessen the impact of deforestation<br />
by investing in tree planting and other community<br />
projects.<br />
In other developing countries, producers are<br />
learning how co-operative ways of working can<br />
help both them and their local environment.<br />
Dr Haggar has recently been working with coffee<br />
farmers and community organisations in Sierra<br />
Leone, where Fairtrade is still developing. “They<br />
are still learning about farming as a social business<br />
and it is a skill set change,” he says.<br />
“Once you start getting bigger, informal<br />
communication does not work so well and the<br />
opportunities for misunderstanding increase.<br />
It can happen because there are very<br />
few with the skills to run the<br />
organisation. The Fairtrade<br />
labelling and certification<br />
process helps with a<br />
40 | JUNE <strong>2017</strong>
set of rules to manage the relationship between<br />
membership and hierarchy. It’s the only structure<br />
trying to address that, and the link between<br />
membership and organisation ensures the supply<br />
market with the quality of product it demands. It’s<br />
a big learning curve for farmers and organisations.<br />
“Consistency of supply means you can see who<br />
is paying more for social value. This is particularly<br />
true in the UK which is the biggest Fairtrade<br />
market in world. The Fairtrade Foundation has<br />
done a good marketing job and is very effective in<br />
selling content to big retailers, but co-ops develop<br />
awareness themselves. In the beginning all the<br />
consciousness was developed by NGOs working<br />
with producer groups, but it is now an inherent<br />
part of the philosophy Within Latin America there<br />
is a strong environmental movement – and also to<br />
a degree in Africa.”<br />
More than 80% of Fairtrade goods are provided<br />
by small-scale farmers whose contribution has<br />
been key to the phenomenal rise of the Fairtrade<br />
market – most significantly in the UK where its<br />
market value is heading for £2bn every year. The<br />
bigger the market, the more which can be done to<br />
protect the environment.<br />
“Growing the market is the most fundamental<br />
thing that’s been substantially advanced in the UK,”<br />
says Dr Haggar. “If it could be replicated in Europe<br />
and North America that would be transformational.<br />
It’s already starting in places like Mexico, Brazil<br />
and South Africa. It’s about building from success<br />
in a broader range of countries to develop.”<br />
He believes future initiatives should be closely<br />
aligned with the environmental needs of producer<br />
organisations, with a long-term commitment<br />
from the alliance of companies and producer<br />
organisations. And he says greater impact can be<br />
achieved through alliances between organisations<br />
who recognise the threat to the supply chain from<br />
environmental degradation – and the steps they<br />
must take to address that.<br />
“Corporate Social Responsibility is about doing<br />
the right thing, but increasingly it is part of a central<br />
business plan because of concerns about supply<br />
– and the realisation that climate change and<br />
degradation of the environment affects consistency<br />
of supply. Companies see sustainability as part of<br />
ensuring supply of cocoa and coffee into the future.<br />
Climate change, for example, is very difficult to<br />
slow down per se, but it is one area where action<br />
could improve and protect local environments.”<br />
Much of the focus on protecting the environment<br />
may be in developing countries, but closer to<br />
home there are initiatives like the Ecological Land<br />
Co-operative. Based in Sussex, it was set up to<br />
address the lack of affordable sites for ecological<br />
land-based livelihoods in England – and bridge<br />
the disconnect between the combined cost of land<br />
and rural housing, and the income that is usually<br />
derived from sustainable rural livelihoods. In the<br />
past few years it has carried out research into the<br />
future of eco-agriculture in the UK and purchased<br />
sites in East Sussex and Devon with plans for<br />
several more by 2020. u<br />
p The Ecological Land<br />
Co-operative tackles the<br />
lack of affordable sites<br />
for ecological land-based<br />
livelihoods in England<br />
“”<br />
INCREASINGLY, CSR IS PART OF<br />
A BUSINESS PLAN BECAUSE OF<br />
CONCERNS ABOUT SUPPLY<br />
JUNE <strong>2017</strong> | 41
q The open-burning of<br />
wood, coal or animal<br />
dung is a pollution<br />
issue in Kenya<br />
“Sustainable rural livelihoods – such as smallscale<br />
ecological food production – protect the<br />
environment and reduce greenhouse gas emissions<br />
by reducing fossil fuel use,” says operations<br />
manager Sonia Sinanan. “Such businesses help<br />
build a vibrant, living countryside in which people<br />
flourish alongside our cherished landscapes and<br />
natural biodiversity, and have a important role to<br />
play in ensuring food and energy security. They<br />
also provide employment, access to local food and<br />
crafts, and educational opportunities for urban<br />
visitors, helping to maintain rural skills and to<br />
improve ecological literacy.”<br />
The ELC’s mission, she says, is to increase access<br />
to land for such livelihoods.<br />
“As well as land, we provide smallholders with<br />
permission to build their own sustainable home,<br />
and help with utilities and road access,” she adds.<br />
“Our model allows us to keep costs low, both<br />
through buying larger sites at a lower price per acre,<br />
and through distributing the cost of infrastructure,<br />
planning applications and subsequent site<br />
monitoring across a number of smallholdings.”<br />
Not everyone can live close to the land, but urban<br />
consumers are also being encouraged to do their<br />
bit for climate change. Co-op Insurance recently<br />
announced a new carbon offset programme, which<br />
means for each motor policy it will offset 10% of<br />
CO2 emissions in the first year by supporting the<br />
provision of cookstoves in Ghana that are up to<br />
50% more efficient.<br />
The cookstoves replace less efficient cooking<br />
methods such as the open-burning of wood, coal<br />
or animal dung which cause more indoor pollution<br />
and release more greenhouse gases such as carbon<br />
dioxide and methane, as well as contributing to<br />
deforestation through the need for higher levels of<br />
wood for charcoal fuel.<br />
Since 2006 it has been offsetting customer<br />
emissions through its specific ‘Ecoinsurance’ motor<br />
policy, through which Co-op customers have offset<br />
more than a million tonnes of CO2 to date.<br />
For each home policy, Co-op Insurance is also<br />
offsetting 10% of customers’ home energy CO2<br />
emissions in the first year by helping to fund<br />
LifeStraw water filters that provide safe drinking<br />
water to families in Kenya, require no electricity,<br />
and mean there is no need to boil water to purify<br />
it. This protects families from waterborne diseases<br />
like typhoid, cholera and diarrhoea – the third<br />
leading cause of death among children and adults<br />
in Kenya.<br />
The Co-op also sources 99% its electricity from<br />
renewable sources (including its own wind farms)<br />
and has reduced its direct carbon footprint by 43%<br />
since 2006.<br />
“We were one of the first businesses to recognise<br />
and respond to the impacts of climate change,”<br />
says Mark Summerfield, chief executive of<br />
Co-op Insurance. “Since then we have reduced<br />
our greenhouse gas emissions from our<br />
operations and purchased renewable electricity.<br />
We are now offering a carbon offset as standard on<br />
all home and motor policies in the first year, at no<br />
extra cost to our customers. We are also making<br />
sure to choose offset projects that are checked to a<br />
stringent standard and have added benefits in the<br />
developing world, whether that’s contributing to<br />
the local economy, protecting people’s health, or<br />
reducing deforestation.”<br />
42 | JUNE <strong>2017</strong>
10 CO-OPERATIVES<br />
THAT CONNECT US WITH THE PLANET<br />
From green tourism leaders to urban farms and eco-friendly housing<br />
schemes, there are may co-ops looking for a healthier relationship<br />
with nature. We take a look at some examples.<br />
FARMER PIRATES<br />
This US urban farming co-op was<br />
established in New York state in 2008,<br />
buying 30 vacant lots – about three<br />
acres – on the east side of the city of<br />
Buffalo. It runs the land as a community<br />
trust to keep it safe from speculators<br />
and developers. Membership is open to<br />
anyone in the city who wants to farm. Workers are paid in portions of the day’s harvest,<br />
and only surplus food is sold. The Pirates offer services to<br />
people who grow food in the city, whether it’s in their backyard<br />
or a community garden, sharing resources and information<br />
and supplying compost, and every October they host a harvest<br />
celebration to celebrate the natural food they grow.<br />
ROUND THE BEND<br />
uwww.farmerpirates.com<br />
p Members of the co-op at work composting onions<br />
t Farmer Pirates hoist the flag for urban farming<br />
Established in 1971 in Kangaroo Ground,<br />
near Melbourne, Australia, this residential<br />
co-op works to preserve 132 hectares of<br />
native Australian forest. It is owned by<br />
32 shareholders with a membership of<br />
about 50 adults and their children, living<br />
in 22 houses on the site. Residents work at<br />
managing the land, listing and protecting<br />
a wealth of flora and fauna, including the<br />
brush-tailed phascogale – an endangered p A forest work team takes a break<br />
marsupial – the powerful owl, koalas and<br />
flying foxes. Duties include weed control, track repairs, surveying and planting. All members<br />
are also members the Bend of Islands Conservation Association, which works to preserve the<br />
wildlife and natural beauty of the area.<br />
uwww.roundthebend.org.au<br />
p Visitors taking a homestay with<br />
Edge of India can work on local farms<br />
EDGE OF INDIA<br />
Based in two remote areas, Uttarakhand<br />
and West Bengal, this eco-tourism coop<br />
network of villages in India offers<br />
homestays with an “extraordinary cultural<br />
and natural heritage”. The network was<br />
developed through a programme funded<br />
by the Scottish government – because it is<br />
based on the principles of Robert Owen’s<br />
New Lanark community, and on practices<br />
drawn up by Scottish environmental<br />
tourism consultant Dunira. The co-op<br />
works to ensure access to remote natural<br />
environments in a non-damaging way.<br />
u www.edgeofindia.com<br />
p Clearing the Lea Valley allotment site<br />
ORGANICLEA<br />
Established in the Lea Valley, on the edge<br />
of Epping Forest, in 2001, this workers’<br />
co-op began with an organic allotment<br />
farm. They rescued an acre of derelict<br />
allotment, clearing bramble, building<br />
raised beds and planting a forest garden<br />
with apple trees, worcesterberries and<br />
blackcurrant bushes, with a pond, willow<br />
dome and compost toilet. Annual and<br />
perennial veg were planted using organic<br />
and permaculture principles, working<br />
with nature to grow food in a sustainable<br />
way. Volunteers were invited to work<br />
on the farm, which now runs a food<br />
distribution scheme and market stall, and<br />
supports a cafe. Its vision is of “a socially<br />
and environmentally just food system<br />
where the means of production and<br />
distribution are controlled not by markets<br />
or corporations but by the people”.<br />
uwww.organiclea.org.uk<br />
JUNE <strong>2017</strong> | 43
UGANDAN CO-OP TREE-PLANTING INITIATIVE<br />
Last July, Uganda’s co-op ministry launched a<br />
tree-planting initiative to combat climate change,<br />
reverse deforestation and provide income from<br />
fruit, coffee and timber. Since then, co-ops<br />
have planted trees in 87 districts. Then, in April<br />
<strong>2017</strong>, the Plant A Co-op Tree competition was<br />
launched to promote commercial forestry as a<br />
viable investment option for co-ops. A total of<br />
10,000 seedlings were planted and the trees<br />
HAPPY GREEN CO-OPERATIVE<br />
will be evaluated after one year. And in May, the<br />
Uhuru Institute for Social Development signed a<br />
Memorandum of Understanding with the National<br />
Forest Authority, to strengthen collaboration<br />
on forestry management. Co-ops in West Nile,<br />
Acholi, Lango, and Karamoja have been allocated<br />
60,000 seedlings for Community Tree Planting,<br />
with more to be sent out in the next rain season.<br />
u Tree-planting is key to sustainability projects<br />
in Uganda (Photo: Laura Elizabeth Pohl)<br />
EARTH HEART HOUSING CO-OPERATIVE<br />
Established in Bhutan in 2013, Happy Green is owned and controlled by its members<br />
and comprises 18 farming households (with 52 active farmers and 125 family members)<br />
and 19 youth members. It is based on Gross National Happiness, a Bhutanese<br />
development philosophy centred around<br />
economic self reliance, environmental<br />
conservation, cultural preservation<br />
and good governance. Projects include<br />
community forests to provide extra<br />
income and a farming library to share<br />
information on local soil conservation<br />
methods with the world.<br />
p Happy Green farmers in Drachuka<br />
THE SEED CO-OPERATIVE<br />
ECOSULIS<br />
u home.happy.bt<br />
Founded in 2014 and based<br />
at Gosberton Bank Nursery,<br />
near Boston, Lincs., this<br />
co-op was created to protect<br />
biodiversity. Now 250<br />
members strong, it breeds of p Preparing the land at Seed Co-op’s nursery<br />
“open-pollinated seeds that<br />
everyone can grow, everyone can save for the next year, and everyone can afford”.<br />
Warning of the takeover of seed production by agribusiness, it adds: “Our food<br />
system depends on viable, living seeds, capable of reproducing themselves.”<br />
u www.seedcooperative.org.uk<br />
Established in 1997, Ecosulis has been employee-owned since 2006. With a head office<br />
in Bath, and offices in London, Chester and Exeter, it offers ecological consultancy<br />
and contracting on developments to benefit wildlife and people. Expertise includes<br />
habitat surveys, protected species licensing and habitat creation and it has worked<br />
q Ecosulis worked with Croydon<br />
Council to create this pond habitat<br />
on schools, hospitals, universities<br />
and defence sites. For instance,<br />
where protected species such as<br />
bats or newts are found where a<br />
development is planned, Ecosulis<br />
can devise a way for work to<br />
continue without causing harm.<br />
uwww.ecosulis.co.uk<br />
Established in 1997 near<br />
Ashbourne, Derbyshire,<br />
this co-housing<br />
community is freeholder<br />
of a Grade II listed<br />
farmhouse and barns. It lives in an eco-friendly<br />
manner, with a communal woodpellet boiler,<br />
a reed bed waste-water treatment system and<br />
a green electricity supplier. The surrounding<br />
21 acres of organic land is managed for nature<br />
conservation, with parkland, a brook, small<br />
grazing pastures and woodland. The co-op runs<br />
a community orchard and allotment, and offers<br />
guided tours.<br />
u s.coop/25v06<br />
p Argyll Forest Park (Photo: AleGranholm)<br />
ARGYLL AND THE ISLES TOURISM<br />
COOPERATIVE<br />
Established 2012, Scotland, this co-op brings<br />
together local marketing and sectoral groups<br />
to promote the region’s tourist industry on a<br />
local and national level. It represents around<br />
1,200 business interests, with a focus on the<br />
area’s natural heritage. Initiatives include Wild<br />
About Argyll which promotes nature tourism.<br />
It also promotes nature tourism through its<br />
Nature’s Paradise page. Supporters of the co-op<br />
include Scottish Natural Heritage and Forestry<br />
Commission Scotland. To promote Wild<br />
About Argyll, it filmed endurance adventurer<br />
Mark Beaumont on a 12 day trek around the<br />
mountains, waters and isles of the region.<br />
42 | JUNE <strong>2017</strong>
WITH A LITTLE<br />
HELP FROM MY<br />
FRIENDS...<br />
The Beatles, the Liver Building<br />
and the co-op spirit<br />
This year marks the<br />
50th anniversary of<br />
the high water mark<br />
of the Beatles’ career<br />
– the release of their<br />
era-defining Sgt.<br />
Pepper’s Lonely Hearts<br />
Club Band album<br />
and equally revered double A-side Penny Lane/<br />
Strawberry Fields Forever.<br />
Those two songs saw the band memorialise the<br />
Liverpool of their youth – and when Ringo Starr<br />
sang, on Sgt Pepper, “I get by with a little help from<br />
my friends,” I’m reminded of the Liver Building,<br />
the city’s great symbol of co-operation, where the<br />
young mop tops had been photographed a few<br />
years earlier.<br />
In 2015, a statue of the Beatles walking along<br />
the Liverpool waterfront was unveiled close to the<br />
Royal Liver Building – and now new generations<br />
take photos of the Fab Four with the iconic building<br />
in the background.<br />
But little do most of them know that the Royal<br />
Liver Building was a beloved mutual providing over<br />
a century of help to millions of Liverpudlians.<br />
The Royal Liver Building (pronounced Liever),<br />
overlooking the Mersey, is among the most<br />
recognisable in the country. It is crowned with two<br />
Liver Birds, one facing out to sea watching over<br />
every ship that sails in and out of the port. The<br />
other watches inland over everybody in the city of<br />
Liverpool and the land beyond.<br />
YOU’LL NEVER WALK ALONE<br />
The Liver Bird is also the emblem of Liverpool<br />
Football Club. When 54,074 Liverpool fans sing<br />
You’ll Never Walk Alone for a home game at<br />
Anfield, there is no sound like it. The sound of the<br />
crowd after a home goal being scored can be easily<br />
CULTURE<br />
BY DAVID THOMPSON<br />
David is president of the<br />
Twin Pines Cooperative<br />
Foundation (www.<br />
community.coop).<br />
He emigrated from<br />
Blackpool, England, to<br />
the US in 1962. Both<br />
his parents worked for<br />
the Blackpool Industrial<br />
Co-operative Society.<br />
David has worked in the<br />
co-operative sector in the<br />
USA since the 1960s.<br />
JUNE <strong>2017</strong> | 45
q In 2015, a statue<br />
of the Fab Four was<br />
unveiled close to the<br />
Royal Liver Building,<br />
which is topped with<br />
statues of two 18 feet<br />
high Liver Birds. Legend<br />
has it that if they were<br />
to fly away, Liverpool<br />
would cease to exist. The<br />
Liver Birds are therefore<br />
ceremoniously chained<br />
tightly to the domes on<br />
which they stand<br />
heard from the roof of the Royal Liver Building.<br />
The building was also home to the Royal Liver<br />
Assurance Company which, as a mutual, never let<br />
any of its members “walk alone”.<br />
One of the crown jewels of mutualism, the Royal<br />
Liver Building was a palace of the people – built by<br />
the nine Liverpool members who established the<br />
mutual and the million poor Liverpool families who<br />
joined as members. Its 1911 opening commemorates<br />
an era in British history when ordinary people built<br />
and owned a great deal of their own local and<br />
regional economies.<br />
MUTUAL MERGERS<br />
Nine working class men founded The Liverpool<br />
Lyver Burial Society in 1850 at the Lyver Inn.<br />
While the society was initially founded to provide<br />
honourable burials, it went on to provide numerous<br />
forms of insurance.<br />
In 1856, it changed its name to the Royal Liver<br />
Friendly Society. By 1905, the society had one<br />
million members and needed a new head office.<br />
The board decided the locally owned mutual<br />
should make its mark on the world by building a<br />
modern and majestic building on the banks of the<br />
River Mersey. Britain’s first skyscraper, it was the<br />
tallest office building in Britain for a half century –<br />
until, in 1962, it was surpassed by the Co-operative<br />
Wholesale Society’s CIS Tower in Manchester.<br />
At its height, Royal Liver Assurance had 1.7<br />
million members.<br />
Since the millennium, British government<br />
regulations have imposed additional stringent<br />
capital requirements on mutual insurers meaning<br />
that many mutuals had to merge.<br />
Royal Liver merged into Royal London (another<br />
mutual) in 2011. Fortunately, many of the Royal<br />
Liver brands were retained and they continue in<br />
commercial use.<br />
But in many other countries, mutual and cooperative<br />
insurers are critical economic partners.<br />
The International Co-operative and Mutual<br />
Insurance Federation (ICMIF) reports that there<br />
are over 5,000 mutual and co-operative insurance<br />
companies in over 75 countries serving over 955<br />
million members/policyholders around the world.<br />
They hold 27% of the world market share and,<br />
since the recent recession, have grown at twice the<br />
rate of the overall industry.<br />
For over 100 years, the Royal Liver Building has<br />
remained the unforgettable first face of Liverpool.<br />
It is now part of the UNESCO designated World<br />
Heritage Site, called Liverpool Maritime Mercantile<br />
City. For centuries to come, the Royal Liver Building<br />
will continue to remind us of the power that comes<br />
when ordinary working people put their money<br />
together to help each other.<br />
In an earlier Beatles song, John Lennon sang<br />
about his memories of Liverpool.<br />
“There are places I remember all my life<br />
Though some have changed<br />
Some forever, not for better<br />
Some have gone and some remain”<br />
The Royal Liver Building remains, as does our<br />
memory of the Beatles.<br />
46 | JUNE <strong>2017</strong>
q Holyoake Hall, named after co-operator<br />
George Jacob Holyoake, was opened in 1914<br />
by the Liverpool Co-operative Society. It later<br />
became a live music venue.<br />
CO-OPERATION IN OUR EARS AND IN OUR EYES...<br />
Penny Lane, the street immortalised in song by Paul McCartney,<br />
has a number of co-op connections to the Beatles. It was<br />
destination of bus routes 46 and 80, terminated at the now famous<br />
bus shelter “in the middle of a roundabout” where Smithdown<br />
Road crosses the top end of Penny Lane, at Smithdown Place.<br />
In their youth the Beatles often took the 46 from the bus<br />
terminus down Smithdown Road to the centre of the city.<br />
About 600 feet from the roundabout on Smithdown Road on<br />
the way to the centre of Liverpool is Holyoake Hall, named after<br />
George Jacob Holyoake, a revered writer about co-operatives and<br />
a champion of their efforts.<br />
Holyoake Hall was opened in 1914 by the Liverpool Co-operative<br />
Society as one of its flagship buildings. You can still see its<br />
classic red bricked architecture with co-op mottoes embedded<br />
in each of the cornices at the crown of the building. There were<br />
numerous co-op departments on the<br />
spacious ground floor.<br />
On the second floor was an elegant<br />
ballroom and a large meeting venue<br />
for the co-operative’s members. The<br />
ballroom could hold over 400 people,<br />
and during and after World War II it was<br />
well patronised by the city.<br />
In the late 1950s Holyoake Hall found<br />
a new life as one of the few venues<br />
in the city which could be rented and<br />
allowed people to put on jive and rock<br />
and roll events. The promoter who rented<br />
Holyoake Hall was Wally Hill, who employed Bob Wooler as the<br />
master of ceremonies. One night after a performance at Holyoake<br />
Hall, Wooler remembers first meeting John Lennon and Paul<br />
McCartney at the bus shelter. It was there in 1959 that Wooler<br />
offered them their first booking at the Cavern. They turned Wooler<br />
down then saying they did not have a drummer.<br />
The Beatles first played the Cavern on Friday 13 July 1961,<br />
immediately after their successful gigs on Hamburg.<br />
The following Sunday they played at Holyoake Hall and then<br />
again the next Sunday, 22 July. If eventual manager Brian Epstein<br />
had gone to see them at Holyoake Hall instead of the Cavern,<br />
history would have made the Liverpool Co-op’s Holyoake Hall a<br />
key part of the Beatles legacy. But Holyoake Hall is the closest<br />
that the Beatles ever played to Penny Lane, just 200 yards away.<br />
Gerry Marsden of Gerry and the Pacemaker remembers<br />
Holyoake Hall as having a grand stage, a sprung dance floor<br />
and elegant columns in the ballroom that supported an upstairs<br />
balcony. Many of the Merseybeat bands preferred to play<br />
Holyoake Hall above the other venues; the Quarrymen, Lennon’s<br />
first band had played there in the late 1950s.<br />
When the Beatles were growing up, the Liverpool Co-operative<br />
Society was one of Britain’s largest co-ops with almost 200,000<br />
member families. In the late 1950s and early 1960s, the Liverpool<br />
Co-op operated 172 mostly little local shops. John Lennon’s sister<br />
remembers that he loved to play Co-op Shop.<br />
Today, Liverpool is home to many co-ops. The Co-operative<br />
Group runs 128 shops and there many other co-op enterprises<br />
within 20 miles of Liverpool city centre. The city is also home to<br />
over 40 housing co-ops, many credit unions and a number of<br />
worker and producer co-operatives.<br />
JUNE <strong>2017</strong> | 47
REVIEWS<br />
A History of<br />
Fairtrade in<br />
Contemporary<br />
Britain<br />
By Matthew Anderson<br />
(Palgrave Macmillan<br />
UK, 2015)<br />
When Fairtrade wasn’t on the co-op<br />
agenda<br />
History generally attributes the growth of Fairtrade<br />
down to consumer demand and the desire to buy<br />
more ethical products.<br />
But, in his book, Matthew Anderson, senior<br />
lecturer at the University of Portsmouth, argues<br />
there has been a century of campaigning from<br />
charities and co-operators behind the eventual<br />
acceptance of Fairtrade in the market today.<br />
The emergence of Fairtrade, he says, “has only<br />
partly been the result of ‘the market’ responding<br />
to consumer demand. Of greater significance,<br />
although often overlooked, was the role of the social<br />
movement that successfully began to integrate<br />
political consumerism within its international<br />
development campaigns.”<br />
He says that public surveys of consumer<br />
behaviour focus on the “ethical consumer” by<br />
focusing on socio-demographic factors such as<br />
age, gender and social class. But studies should,<br />
in fact, concentrate more on their political views,<br />
religious beliefs or the extent of their involvement<br />
with related organisations and networks.<br />
The author is evidenced by looking at the impact<br />
consumer justice movements had on the eventual<br />
rise of Fairtrade, which has led to global sales of<br />
€7.3bn (2015):<br />
Oxfam first started the fair trade movement in<br />
Britain in 1959 when it sold pincushions made by<br />
Chinese refugees in Hong Kong.<br />
Religious groups, such as Christian development<br />
agencies, established many of the North-South<br />
links that created fair trade industries.<br />
Turning to the role of the Trades Union Congress,<br />
the book looks at a discrepancy between the ideals<br />
of international trade unionism and the reality of<br />
the TUC’s international programme that prioritised<br />
the job security of its members, sometimes at the<br />
expense of workers in the developing world.<br />
A chapter on the co-operative movement looks<br />
at the sector’s impact on fair trade. Today, cooperatives<br />
are at the forefront of Fairtrade. The<br />
Co-op Group is the world’s largest Fairtrade wine<br />
retailer and its bananas, cocoa, coffee and tea are<br />
100% Fairtrade.<br />
But it wasn’t always this way. When fair trade<br />
was the focus of activists in the 1960s/1970s,<br />
managers at co-ops around the country were<br />
instead busy competing with other supermarkets.<br />
One of the movement’s dabbles in international<br />
trade led to controversy when in 1973 the World in<br />
Action television programme, The Cost of a Cup of<br />
Tea, exposed “intolerable working conditions on<br />
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48 | JUNE <strong>2017</strong>
the tea plantations in Sri Lanka, owned by major<br />
household brands including the Co-operative<br />
Wholesale Society.”<br />
The CWS continued a campaign of vigorous pricecutting<br />
over the next decade, ignoring the views of<br />
co-op activists.<br />
And this disconnect with members, the author<br />
believes, is one of the factors which limited the Coop’s<br />
support of fair trade over that period.<br />
Other reasons were the retail sector’s focus<br />
on competition from major supermarkets; the<br />
complex structure between independent societies;<br />
and its failure to recognise the significance of<br />
the consumer/producer dynamics within the<br />
movement.<br />
It was not until the early 1990s that the Co-op<br />
management recognised that Fairtrade was a viable<br />
proposition and had the potential to reconnect<br />
the movement with the ideals of international cooperative<br />
trade.<br />
A tipping point followed the release of the Cooperative<br />
Bank’s Ethical Policy, following consumer<br />
research that revealed 84% of members backed<br />
such a move. In May 1992, two years before the<br />
launch of the Fairtrade Mark in the UK, Co-op stores<br />
began stocking Cafédirect coffee.<br />
It wasn’t until some years later than Fairtrade<br />
started to become more commercially viable. In<br />
1998, Fairtrade sales in Co-op stores were reported<br />
as £100,000 to over £100m in 2011.<br />
Concluding, the author believes that Fairtrade, as<br />
we know it today, was brought about by activism –<br />
not just consumer demand. For Fairtrade, there is<br />
more to do, adds Mr Anderson. He says there may<br />
now be value in addressing the question of the<br />
living standards of Fairtrade producers.<br />
He believes it is this issue of “fairness” that has<br />
defined the movement, alongside its ability to<br />
adapt and evolve to modern day issues. He wants<br />
to see the fair trade movement open up debates<br />
over prices and living wages – and there is also<br />
an opportunity for those involved in Fairtrade<br />
to look more at the impact, empowerment and<br />
development of producers.<br />
q In the 1970s, the<br />
Co-operative Group was<br />
criticised for the working<br />
conditions in its tea<br />
plantations in Sri Lanka<br />
Principles of<br />
a Pluralist<br />
Commonwealth<br />
By Gar Alperovitz<br />
(Available online at<br />
s.coop/<br />
pluralistcommonwealth)<br />
Principles of a Pluralist Commonwealth outlines<br />
the vision of a new political economy, in which<br />
democratically owned enterprises, like co-ops, play<br />
a central role.<br />
Looking at the idea of decentralisation, the<br />
book explores the flaws of centralised power and<br />
contemporary development in the direction of<br />
decentralisation such as Cleveland’s Evergreen<br />
Cooperatives.<br />
These co-ops use the purchasing power of<br />
large non-profit institutions such as universities<br />
and hospitals, to create economic opportunity<br />
for co-ops in poor urban communities. A political<br />
economist and historian, Gar Alperovitz argues that<br />
this is an example of how to decentralise economic<br />
planning.<br />
The book also looks at the role of co-ops in<br />
promoting equality. Alperovitz describes the<br />
Pluralist Commonwealth as encouraging the<br />
development of co-operative and other economic<br />
institutions that support a culture of community less<br />
driven by competition. Worker co-ops are featured<br />
as enterprises able to self-manage themselves in a<br />
democratic fashion.<br />
Another issue addressed is access to capital,<br />
particularly in terms of managing investment in<br />
democratic directions. A chapter on investment<br />
looks at community development financial<br />
institutions such as Shared Capital Cooperative,<br />
which in 2014 has made USD $3.1m in loans to cooperatives<br />
in 31 states.<br />
The author also highlights the potential for cooperative<br />
market economies such as the region<br />
of Emilia-Romagna in Italy, where 8,000 co-ops<br />
account for about 40% of the region’s GDP.<br />
In addition to co-ops, Alperovitz stresses the<br />
importance of ownership forms that inherently<br />
integrate worker and community (neighbourhood or<br />
municipal) concerns in more complex relationships.<br />
While the book’s official launch takes place on<br />
1 <strong>June</strong> at a bookshop in Washington, it is already<br />
available online for free, to enable activists,<br />
organisers and practitioners working at grassroots<br />
levels to access it.<br />
JUNE <strong>2017</strong> | 49
DIARY<br />
CLOCKWISE FROM LEFT<br />
Baroness Thornton chairs a panel on<br />
reimagining the economy at this year’s<br />
Co-operatives Congress; Congress is held<br />
at Unity Works, Wakefield, from <strong>June</strong> 30-July<br />
1; George Jacob Holyoake is the subject<br />
of this year’s Co-operatives Fortnight<br />
lecture on 23 <strong>June</strong>; and Cllr Sharon Taylor,<br />
leader of Stevenage Council, will speak at<br />
the Co-operative Party Local Government<br />
Conference on 24 <strong>June</strong><br />
5-17 Jun: ILO Labour Conference <strong>2017</strong><br />
17 Jun - 1 Jul: Co-operatives Fortnight<br />
Nationwide celebration of the movement.<br />
20-23 Jun: <strong>2017</strong> Committee of<br />
Co-operative Research Conference<br />
Exploring the role and potential of<br />
co-ops as inclusive, collaborative and<br />
responsible businesses.<br />
WHERE: University of Stirling, Scotland<br />
INFO: s.coop/25uij<br />
23 Jun: Co-operatives Fortnight Lecture<br />
The UK Society for Co-operative Studies<br />
presents a lecture by Professor Stephen<br />
Yeo, “George Jacob Holyoake (1817-1906):<br />
A usable figure from a usable past”.<br />
WHERE: The Warehouse, Birmingham<br />
INFO: www.ukscs.coop<br />
24 Jun: Co-operative Party – Local<br />
Government Conference<br />
Includes the launch of a short publication<br />
on community wealth. Speakers include<br />
council leaders Sue Jeffrey (Redcar and<br />
Cleveland), Sharon Taylor, (Stevenage)<br />
Peter Rankin (Preston).<br />
WHERE: IET Birmingham<br />
INFO: membership@party.coop<br />
24 Jun: Housing Crisis: Community<br />
solutions <strong>2017</strong><br />
Find out about housing co-ops and learn<br />
how to access support for community-led<br />
housing in Brighton & Hove.<br />
WHERE: Brighton Steiner School<br />
INFO: mais@riseup.net<br />
24 Jun: Community Energy Conference<br />
Looking at successful projects, and new<br />
business models and technologies.<br />
WHERE: University of Manchester<br />
INFO: events@communityenergyengland.<br />
org<br />
28 Jun: Co-operatives East Midlands AGM<br />
Followed by the launch of the FairShares<br />
Institute for Co-operative Social<br />
Entrepreneurship.<br />
WHERE: Sheffield Business School<br />
INFO: jdevilliers@btinternet.com<br />
30 Jun - 1 Jul: Co-operative Congress<br />
Co-operative sector’s annual conference.<br />
looks at the gig economy and<br />
collaborative trends. Keynote speakers<br />
include John Park (Community), Andy<br />
Wightman (Green Party MSP) and Sarah<br />
de Heusch Ribassin (SMart). Baroness<br />
Thornton will chair a panel on reimagining<br />
the economy, and there will be Dragons’<br />
Den-style pitches for co-op funding.<br />
WHERE: Unity Works, Wakefield<br />
INFO: www.uk.coop/congress<br />
30 <strong>June</strong>: Co-op News AGM<br />
Annual meeting at 1.30pm, followed by<br />
the Big Debate: Caring for the community<br />
in the face of crisis. Communities have<br />
to be more self-reliant in the face of<br />
austerity – but what role can co-ops play?<br />
WHERE: Unity Works, Wakefield<br />
INFO: www.thenews.coop/agm<br />
LOOKING AHEAD<br />
1 Jul: International Day of Co-operatives<br />
5 Jul: Plunkett Foundation AGM<br />
23-26 Jul: Woccu Conference (Vienna,<br />
Austria)<br />
1-2 Sep: UKSCS Conference<br />
19 Oct: Social Cooperatives International<br />
School <strong>2017</strong> (Naples, Italy)<br />
14-17 Nov: ICA Global Conference and<br />
General Assembly (Malaysia)<br />
50 | JUNE <strong>2017</strong>
Discover the Difference<br />
THE PREMIER GLOBAL EVENT FOR CREDIT UNIONS<br />
Join us for four days of unmatched learning against the backdrop of<br />
Austria’s capital at the <strong>2017</strong> World Credit Union Conference.<br />
Team building environment perfect for networking<br />
Top-class exhibition hall filled with solution providers<br />
Big speakers tackling trending topics<br />
www.WCUCVienna<strong>2017</strong>.org