Cooperative federation

A co-operative federation or secondary co-operative is a co-operative in which all members are, in turn, co-operatives.^[1] Historically, co-operative federations have predominantly come in the form of co-operative wholesale societies and co-operative unions.^[2] Co-operative federations are a means through which co-operatives can fulfill the sixth Co-operative Principle, co-operation among co-operatives. The International Co-operative Alliance notes that “Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.”^[3]

Retail

According to co-operative economist Charles Gide, the aim of a co-operative wholesale society, which is owned by retail consumer co-operatives, is to arrange "bulk purchases, and, if possible, organise production".^[2] The best historical examples of this were the English and Scottish Co-operative Wholesale Societies, which were the forerunners to the modern Co-operative Group.

Co-operative union

A second common form of co-operative federation is a co-operative union, whose objective (according to Gide) is “to develop the spirit of solidarity among societies and... in a word, to exercise the functions of a government whose authority, it is needless to say, is purely moral.”^[2] Co-operatives UK and the International Co-operative Alliance are examples of such arrangements.

Banking

See also: Cooperative banking, Credit union, History of credit unions, and European Association of Co-operative Banks

• Austria's Raiffeisen Banking Group includes many cooperative banks in Austria as well as operations (not organized as cooperatives) in eastern Europe.
• Germany's Volksbanken and Raiffeisenbanken are cooperative banks within the German Cooperative Financial Group.
• France's Crédit Agricole is a multi-tiered network of primary and secondary co-operatives and hybrid co-operatives.
• In the UK, The Co-operative Bank is a joint-stock retail and commercial bank, whose stock is wholly owned by The Co-operative Group, a hybrid primary and secondary co-operative.
• In the US, credit unions co-operatively own payment networks and financial advisers.
• In South Korea, National Agricultural Cooperative Federation is a multi-purpose agricultural cooperatives' federation.
• Mexico, a, Loan and savings cooperative with more than 1.8 million members.

Agriculture

Regional agricultural co-operatives, such as Land O'Lakes and the former Farmland Industries, are co-operative federations owned by local farmers' co-operatives. Like the Co-operative Group (above), Land O'Lakes is actually a hybrid of a primary and secondary co-operative.^[4]

Co-operative party

In some countries with strong co-operative sectors, such as the UK, co-operatives have organized parliamentary political parties to represent their interests. The British Co-operative Party is an example of such an arrangement.

Other uses

Co-operatives whose member owners are businesses, such as retailers' co-operatives, are sometimes called secondary co-operatives, even when their members are not themselves co-operatives.^[5]

See also

• List of co-operative federations

References

1. "How to set up a Secondary Co-operative" (PDF). Archived from the original (PDF) on 2009-03-20. Retrieved 2008-05-27. A secondary co-operative is a co-operative business democratically controlled by its members, all of whom are themselves co-operatives and share certain aims or values in common. The secondary co-operative can be a way for these co-operatives to do things that help achieve their aims that they would not be able to do by themselves. Secondary co-operatives have been used in a number of sectors already – Credit Unions, Housing Co-operatives and Social Change Co-operatives for example.
2. Gide, Charles; as translated from French by the Co-operative Reference Library, Dublin, Consumers' Co-operative Societies, Manchester: The Co-operative Union Limited, 1921, p. 122, ISBN 1-116-75261-1
3. Statement on the Co-operative Identity Archived February 4, 2012, at the Wayback Machine. International Co-operative Alliance.
4. Phil Kenkel; Amy Hagen (2004). "Impact of the Farmland Bankruptcy on Oklahoma Cooperatives" (PDF). via Kansas State University. Archived from the original (PDF) on September 1, 2006. Retrieved 2008-05-22.
5. "What is a co-operative?". Wales Co-operative Centre.