Cooperative federation
Encyclopedia
A co-operative federation or secondary co-operative is a co-operative
in which all members are, in turn, co-operatives.
Historically, co-operative federations have predominantly come in the form of co-operative wholesale societies
and co-operative unions. 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.”
, 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.” 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.
are examples of such arrangements.
, Credit union
, History of credit unions, European Association of Co-operative Banks
(EACB)
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.
to represent their interests. The British Co-operative Party
is an example of such an arrangement.
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
in which all members are, in turn, co-operatives.
Historically, co-operative federations have predominantly come in the form of co-operative wholesale societies
Co-operative wholesale society
A Co-operative Wholesale Society, or CWS, is a form of Co-operative Federation , in this case, the members are usually Consumers' Co-operatives...
and co-operative unions. Co-operative federations are a means through which co-operatives can fulfill the sixth Co-operative Principle
Rochdale Principles
The Rochdale Principles are a set of ideals for the operation of cooperatives. They were first set out by the Rochdale Society of Equitable Pioneers in Rochdale, England, in 1844, and have formed the basis for the principles on which co-operatives around the world operate to this day. The...
, co-operation among co-operatives. The International Co-operative Alliance
International Co-operative Alliance
The International Co-operative Alliance is a non-governmental co-operative federation or, more precisely, a co-operative union representing co-operatives and the co-operative movement worldwide. It was founded in 1895. The ICA maintains the internationally recognised definition of a co-operative...
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.”
Retail
According to co-operative economist Charles GideCharles Gide
Charles Gide was a leading French economist and historian of economic thought. He was a professor at the University of Bordeaux, at Montpellier, at Université de Paris and finally at Collège de France.- Academic work :...
, the aim of a co-operative wholesale society
Co-operative wholesale society
A Co-operative Wholesale Society, or CWS, is a form of Co-operative Federation , in this case, the members are usually Consumers' Co-operatives...
, which is owned by retail consumer co-operatives, is to arrange “bulk purchases, and, if possible, organise production.” The best historical examples of this were the English and Scottish Co-operative Wholesale Societies
Co-operative wholesale society
A Co-operative Wholesale Society, or CWS, is a form of Co-operative Federation , in this case, the members are usually Consumers' Co-operatives...
, 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.” Co-operatives UK and the International Co-operative AllianceInternational Co-operative Alliance
The International Co-operative Alliance is a non-governmental co-operative federation or, more precisely, a co-operative union representing co-operatives and the co-operative movement worldwide. It was founded in 1895. The ICA maintains the internationally recognised definition of a co-operative...
are examples of such arrangements.
Banking
see also: Cooperative bankingCooperative banking
Cooperative banking is retail and commercial banking organized on a cooperative basis. Cooperative banking institutions take deposits and lend money in most parts of the world....
, Credit union
Credit union
A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
, History of credit unions, European Association of Co-operative Banks
European Association of Co-operative Banks
The European Association of Co-operative Banks is the supranational body for co-operative banks, with member national governing bodies in 23 countries and an associate member in Switzerland....
(EACB)
- Austria's Raiffeisen Zentralbank is a Cooperative bankingCooperative bankingCooperative banking is retail and commercial banking organized on a cooperative basis. Cooperative banking institutions take deposits and lend money in most parts of the world....
with many branches in eastern Europe. - Germany's Volksbanken or Raiffeisenbank are cooperative banks.
- France's Crédit AgricoleCrédit AgricoleCrédit Agricole S.A. is the largest retail banking group in France, second largest in Europe and the eighth largest in the world by Tier 1 capital according to The Banker magazine. It is also part of the CAC 40 stock market index....
is a multi-tiered network of primary and secondary co-operatives and hybrid co-operatives. - In the UK, the Co-operative BankCo-operative BankThe Co-operative Bank plc is a commercial bank in the United Kingdom and Guernsey, with its headquarters in Manchester.The bank markets itself as an ethical bank, and refuses to invest in companies involved in the arms trade, global climate change, genetic engineering, animal testing and use of...
is a joint stock retailRetail bankingRetail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
and commercial bankCommercial bankAfter the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
, whose stock is wholly owned by the Co-operative Group, a hybrid primary and secondary co-operative. - In the US, credit unionCredit unionA credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
s co-operatively own payment networks and financial adviserFinancial adviserA financial adviser, is a professional who renders financial services to individuals, businesses and governments. This can involve investment advice, which may include pension planning, and/or advice on life insurance and other insurances such as income protection insurance, critical illness...
s.
Agriculture
Regional agricultural co-operatives, such as Land O'LakesLand O'Lakes
Land O'Lakes is a member-owned agricultural cooperative based in Arden Hills, Minnesota, focusing on the dairy industry. The co-op states that it has about 3200 producer-members, 1000 member-cooperatives, and about 9000 employees who process and distribute products for about 300,000 agricultural...
and the former Farmland Industries
Farmland Industries
Farmland Industries was the largest agricultural cooperative in North America when it declared bankruptcy in 2002.The Farmland brand and its slogan "Good Food From the Heartland" is now owned by Smithfield Foods. While owned by Smithfield Foods, Farmland Foods, Inc...
, 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.
Co-operative party
In some countries with strong co-operative sectors, such as the UK, co-operatives have organized parliamentary political partiesPolitical party
A political party is a political organization that typically seeks to influence government policy, usually by nominating their own candidates and trying to seat them in political office. Parties participate in electoral campaigns, educational outreach or protest actions...
to represent their interests. The British Co-operative Party
Co-operative Party
The Co-operative Party is a centre-left political party in the United Kingdom committed to supporting and representing co-operative principles. The party does not put up separate candidates for any UK election itself. Instead, Co-operative candidates stand jointly with the Labour Party as "Labour...
is an example of such an arrangement.