Co-op News October 2019: Sustainable Development

CANADA
Calgary Co-op pulls its business out of co-op distribution network
Canadian retailer Calgary Co-op is to
cease purchasing from procurement
and distribution co-op Federated
Co-operatives Ltd (FCL), which warns the
decision will have a “significant” impact
on its business.
Calgary Co-op, which reported $1.3bn
in sales in 2018, said in an email to
its 400,000 members that will switch
suppliers to the Alberta-based distribution
arm of supermarket chain Save-On-Foods,
a private company.
The move takes effect in April 2020,
although the retailer will still obtain
gasoline and convenience store products
from FCL. Calgary Co-op says the move
will “better serve members and ensure
long-term sustainability”, and allow it to
add exclusive private brands to its range.
Calgary Co-op spokeswoman, Sage
Pullen McIntosh, said its food business
“operates in an increasingly challenging
economic and competitive market.
“Positioning our food business model
for unique differentiation will allow us
to reflect our members’ needs. We are
accountable to them.”
Calgary Co-op will continue to work with
an increasing number of local producers
and stocking more local produce, she
added, and will be hiring staff to deal with
the change
But FCL, which is collectively owned
by 170 retail co-ops across the prairies
of western Canada, said its largest
wholesale customer’s decision to take its
grocery business elsewhere will have a
“significant” impact on its operations in
Calgary and cut into its bottom line.
FCL’s executive vice president for
customer experience and stakeholder
engagement, Vic Huard, said around 200
jobs will be affected in Calgary, and there
would also be impact on jobs at its head
office in Saskatoon.
“It puts Calgary Co-op in a situation
where they’re sourcing from a direct
competitor, which for us, to be honest,
raises all sorts of questions about the long
term,” Huard said.
But while Calgary Co-op’s decision
is “disappointing”, Mr Huard says the
business will recover. “We’ll weather this
and come out the other side,” he added.
Academic and co-op specialist
Murray Fulton from the University of
Saskatchewan told the Calgary Herald the
switch to a private supplier is an unusual
move for a co-op.
“It’s certainly necessary for co-ops to
be constantly adapting,” he added. “But
under a co-op model, you’re part of a
system and your success is dependent on
the success of the entire system. And in
this case, Calgary Co-op has decided to go
out entirely on their own.”
Toronto housing co-op receives $2.2m from Canadian government
A housing co-op in Toronto has been
awarded CA$2.2m (£1.3m) from the
Canadian government’s National Housing
Co-Investment Fund (NHCF).
Harmony “B” Housing Co-operation
Corp is a 78-unit rental co-op in the
heart of the city. The construction of
its apartments and town houses was
completed back in 1981, and the funds
will enable the property to undergo repair
and modernisation.
The National Housing Co-Investment
Fund (NHCF) is a pillar initiative of the
Canadian government’s National Housing
Strategy – and the largest programme of
its kind in Canadian history.
With a budget of $13.2bn (£8.1bn),
NHCF gives priority to projects that help
those in greatest need, including women
and children fleeing family violence;
indigenous peoples; veterans; young
adults; people with disabilities and those
dealing with mental health problems
and addictions.
The National Housing Strategy (NHS)
is a 10-year, $55bn (£34bn) plan to create
125,000 new housing units; lift 530,000
families out of housing need; repair
and renew more than 300,000 housing
units and reduce chronic homelessness
by 50%.
Adam Vaughan, parliamentary
secretary to the minister of families,
children and social development, said:
“Our government continues to invest in
affordable housing here in Toronto and
across Canada to improve the quality of
life of those who need it most. With this
funding, we are able to give a helping hand
to individuals in need, and in doing so,
we are contributing to the economic and
social wellbeing of the entire community.”
Vit Hrdlicka, treasurer of Harmony
“B” Housing Co-operative, said:
“We are pleased to receive $2.2m in
financial commitment from the federal
government under the National Housing
Co-Investment Fund programme. Access
to this funding will allow us to complete
urgent repairs.”
OCTOBER 2019 | 17