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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


From<br />

£25 a month<br />

for handset<br />

and tariff<br />

Fairphone from The Phone Co-op<br />

A smarter phone for a better planet<br />

We are passionate about fairness in our products and services,<br />

which is why we are proud to be the exclusive UK telecoms partner<br />

of Fairphone.<br />

Fairphone 2, a revolutionary new handset, really is a smarter<br />

smartphone. It’s produced to the highest ethical standards and is<br />

easy for you to repair and upgrade.<br />

And with The Phone Co-op, it’s available on a fantastic monthly<br />

contract.<br />

If you believe values are as important as value, get the Fairphone 2<br />

from The Phone Co-op today.<br />

Join the movement.<br />

Visit www.thephone.coop/coopnews or call our<br />

team on 01608 434 084 quoting ‘Co-op News’.<br />

The Phone Co-op. Your voice counts.<br />

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content subject to change. Rates correct as at 01.01.<strong>2017</strong>. International and other rates, full terms and conditions, and returns<br />

policy available at www.thephone.coop


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>


join our journey<br />

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On 1 March, we relaunched our membership, giving our member-owners more<br />

opportunity to help us with our independent coverage of the co-operative movement<br />

thenews.coop/join


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 />

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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 />

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poet MIChAel SYMMonS RobeRTS<br />

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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 />

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loTS MoRe InCluDIng<br />

ChIlDRen’S & fAMIlY<br />

PRogRAMMIng<br />

YouTh VenueS<br />

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The gReAT ouTDooRS<br />

CAMPfIRe × CAMPIng<br />

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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 />

join our journey<br />

be a member<br />

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We’ve relaunched our membership!<br />

Now our member-owners have more opportunity to<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>


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