Report shows more farmers are joining co-operatives despite declining turnover

Agricultural co-operatives have seen membership increases, but turnover has declined by 5 per cent
Agricultural co-operatives have seen membership increases, but turnover has declined by 5 per cent

The number of farmers who are members of agricultural co-operatives has increased to over 150,000, according to the UK co-operative economy 2017 report.

The report attributes the rise to people wanting to have more control over their economy and to have their voices heard.

The rise in farmer membership mirrors a trend in the wider co-operative sector - covering everything from dairy farmers to digital start-ups - which has seen 700,000 members join in the last year.

Despite the increase in membership, agricultural co-ops have seen a 5% downturn in turnover due a challenging year for UK agriculture.

However, the turnover totalled £7.4 billion last year and remains a large part of the UK co-operative sector.

Ed Mayo, Secretary General of Co-operatives UK, the trade body for the sector said: "Underlying the political surprises over the last year appears to be a desire from many parts of the population for an economy over which they have more of a say and from which they get a fair share.

"Agricultural co-ops are an effective way for farmers to get leverage and cut costs in competitive global markets, and as we move into Brexit, negotiations will become even more important for the industry."

'Global market opportunities'

One agricultural co-operative, OMSCo (Organic Milk Suppliers Cooperative), has seen membership increase beyond the sector average of 2%.

Because of innovation, the development of international markets, and strong performance of its core domestic business, there has been a requirement for more organic milk and as a result OMSCo's membership has increased by 26% over the last two years.

"Being an innovative and flexible co-operative has allowed us to take advantage of global market opportunities," said OMSCo's managing director, Richard Hampton.

"The development of export markets has helped us to balance any fluctuations in UK organic milk consumption, which has enabled members to receive a stable and sustainable milk price."

Last financial year, OMSCo's exports grew by 58% to 20% of their total revenue.

"Our members are critical to the success of our co-operative, they all share a vision and aren't afraid to try something to develop markets and take advantage of opportunities," said Mr Hampton.

"We have a flat structure, so everyone has a say, and the senior management team pride themselves on being accessible."