"Cooperatives are dead, long live cooperatives!"

Globally there are around 2.5 million cooperatives in total. Around half of those are in agriculture and horticulture. 'Cooperatives are failing at their task: the price for growers isn't better', 'Agriculture and horticulture have to innovate and auctions are old and slow'. These negative remarks are regularly heard by cooperatives. Hannes Hollebecq of Coopburo started his presentation during the event that took place on May 24 with the question, are these remarks recognisable? The audience agreed.

Hannes Hollebecq.

Cooperatives are on the rise
"Are there 2.5 million business who are done?" Hannes asked out loud. Figures show that this certainly isn't the case. Many types of cooperatives are doing well and some are joining in various sectors. Coopburo is guiding increasing amounts of workers cooperatives or small businesses working cooperatively to compete with the big players. It certainly isn't a hype and it isn't just small businesses. Take SWIFT group Meno and Ecopower for example. These are good examples of cooperatives."

Long live cooperatives!
With the cliches of cooperatives in mind there are three different option according to Hollebecq: 1. Determine cooperatives are dead. 2. Extend their life. 3. Long live cooperatives! "The final option is, of course, the one we have to choose," he emphasises. "We can be proud of our cooperatives and should show it! The market share of fruit and vegetable cooperatives was the highest in the Netherlands and Belgium in 2010. This isn't a coincidence, but also not evidence. A cooperative isn't a miracle cure, certainly in times of crisis. And working together isn't easy. But the benefits outweigh the costs. Even in a sector where scaling is the rule rather than the exception."

Click here for a photo report of the cooperative event.

What would happen without them?
Hannes indicated that it is sometime hard to prove what the economic added value of the cooperative model is for the members. This is why Cera and Boerenbon took the initiative to start a knowledge centre 'Cooperative business' at the KU Leuven. "It can, however, be explained. Let people ask what would happen without sales cooperatives or producers organisations. This is a difficult questions, but history shows answers. Why did Raiffeisen start? And if you look at the origin story of the auctions 80 years ago, the local market with tens of farmers and a few buyers, translates into the current European market with 3 million growers and only 100 large buyers, isn't this the same story? And topicality also provides possible answers, for instance breaking up supply contracts in the dairy sector."

"Finally, many aren't aware of all the work cooperatives do. Do the growers know? And in particular, do they calculate this into their calculation of the 'costs of their cooperative'?" He emphasises that cooperatives have to clearly communicate what they do and why they do it. "A lot of young growers don't really know what a cooperative is anymore and what the consequences are. This is why a lot of time should be put into communicating to members and non members. The conclusion that everyone already knows everything is often drawn too quickly. Continue to innovate as a cooperative. Look at agrarian cooperatives where, besides farmers, there are also other members, such as consumers or employees, or look at cooperatives working on vertical integration. Long live cooperatives! And work on it together."

Click here for the photo report of the cooperative event

Coopburo informs, inspires and advises on cooperative business. As a service provider for Cera Coopburo has 3 tasks:

1.Advising & guiding www.coopburo.be/diensten
2.Education, formation & meeting www.coopburo.be/vorming-ontmoeting
3.Research & development www.coopburo.be/info-en-onderzoek

For more information:
Tel. + 32 16 27 96 77
hannes.hollebecq@coopburo.be
www.coopburo.be
twitter: @coopburo @HannesHollebecq