#CoopEconomyco-operative business model remaining relatively low. The UK’s co-ops are owned and...

A comprehensive report on the UK’s co-operative sector

#CoopEconomy

CO-OP ECONOMY / 2019 PAGE 2

The Co-op Economy is the nation’s only comprehensive report on the UK’s co-operative sector. It reveals turnover, membership and employee figures for thousands of co-op businesses across the UK.

The 2019 report lifts the lid on a sector which is yet to reach critical mass – despite strong arguments for a more co-operative economy. So many businesses behave destructively, damaging the environment, avoiding taxes and putting shareholders above any public interest. In contrast, co-ops operate in a balanced way, doing good, sharing profits and reinvesting in the communities they serve.

Co-ops are owned and controlled by their members. These members can be the customers, workers or suppliers. Co-ops exist to serve their members’ needs – to provide solutions. They are fairer because they share profits among their members, rather than rewarding external shareholders. They provide control because members have a say in how the business is run. And they are resilient, with new co-ops more likely to succeed than start-up companies.

The Co-op Economy 2019

“With Brexit looming, more co-ops can help pave the way for a sustainable and resilient economy. In an uncertain climate, it helps to pull together.”

Ed MayoCo-operatives UK


There are 7,215 independent co-ops operating across the UK, a drop of 51 from 2018 levels. But fewer co-ops are doing more business, with turnover at a record high of £37.7 billion – up more than £400 million.

The modest decline in the number of co-ops can be attributed to fewer new starts, with awareness of the co-operative business model remaining relatively low.

The UK’s co-ops are owned and controlled by 13.7 million members, the equivalent to more than a fifth of the population. They also remain significant employers, with 233,733 people earning their livelihoods directly through co-ops.

2016201720182019£36.8

bn£36.3

bn£36.3

bn£37.3

bn£37.7

bn

Ownership and control

2017 12.9 million

Number of co-op members2019

2018 13.7 million

13.7 million

Annual turnover 2015

233,733

employees of co-ops

7,215Independent

co-ops in the UK


Companies

Business survival rates

Survival rates after 5 years

Year 1

Co-ops

Co-operatives are resilient. Almost three out of four co-op start-ups (72%) are still flourishing after the difficult first five years of existence. In stark contrast, more than half of all new companies (57%) have gone to the wall before reaching that same milestone.

Co-ops operate in all sectors. Their resilience is not down to cherry-picking more favourable industries. Greater community-based ownership means more people are invested in the long-term success of co-ops. Co-ops are also underpinned by a common set of values and principles which set them apart from other businesses.

Survival of the fairest

Year 2 Year 3 Year 4 Year 5

91.3% 73.9% 59.4% 50.4% 43.2%

95.6% 90.9% 86.7% 77.8% 72.1%

72%

43%

Co-op survival

Company survival

The calculation for company survival rates is based on figures from 2012-2017


The vast majority of the UK’s co-ops are based in England and the UK’s most populous nation provides 87% of total turnover, as well as 79% of newly created co-ops in 2019. The number of start-ups is in decline however, with 150 in 2019, down from the previous year’s 191.

Co-op development in Scotland and Wales is boosted by government policy and funds. Both Scotland and Wales created more co-ops than England when correlated against business population.

Agriculture and finance remain the dominant sectors in Scotland, combining to provide almost 40% of co-ops. More than 50% of co-ops in Wales are in the membership associations, social clubs and trade unions sector.

Credit unions remain the dominant force in Northern Ireland with over 61% of the nation’s co-ops in the finance sector. Farming also plays an important role with 15% of co-ops operating in agriculture.

Across the UK

Northern Ireland

£1.1bn turnover257 co-ops

779k members

Scotland £2.6bn turnover

578 co-ops1.1m members

Wales £1.1bn turnover

478 co-ops698k members

England £32.7bn turnover

5,898 co-ops10.9m members

Channel Islands: £183.6m turnover, 4 co-ops, 128k members


Co-ops operate across all industries, from fishing to finance, transport to telecommunications. Retail remains a dominant force within the UK’s co-op economy. Driven by The Co-op and John Lewis Partnership and supported by a series of successful and innovative consumer-owned retailers, turnover has grown by almost £1 billion to £26.5 billion. In the last year, the other major financial player is the agricultural sector, with 434 co-ops producing an annual turnover of more than £7.9 billion.

Over a third of the UK’s co-ops are found in the membership associations, socialclubs and trade unions sector. Just as the Rochdale Pioneers were driven by a need to provide affordable essentials 175 years ago, today’s associations and clubs are also created to fulfil local needs.

The co-op business model is built on the basic premise of serving member needs while adhering to a common set of values – making co-ops just as relevant and necessary today as they were in 1844. New co-ops are being created every week. Innovative tech platforms are being built to deliver fairer social care; freelancers are coming together for greater resiliance; and community-owned co-ops are safeguarding jobs when big business moves out.

Across sectors


97

£168.9m 180

£36.9m 522

£241.9m 245

£24.1m 303

£354.3m 124

£7.8m

2,597

£551.4m 151

£98.3m 689

£26.5bn 553

£707.0m 22

£7.0m 310

£34.9m

159

£5.9m 434

£7.9bn

700

£668.8m 77

£369.8m

Number of co-ops and turnover by sector

Agriculture Arts and

culture

Digital and

media

Education Energy and

environment

Finance Food service

and pubs

Health and social

care

Housing Manufacturing Social clubs and trade

unions

Professional and legal services

Retail Sports and

recreation

Transport Other


2019 2018 2017 2016 2015£14.1 bn

£13.3 bn

£13.2 bn

£12.9 bn

£13.0 bn

Retail societies, those co-ops owned and controlled by their customers, enjoyed an increase in turnover of over £175 million to more than £13 billion. Led by The Co-op, the UK’s best known and most visible co-op, customer-owned retailers make up four of the UK’s top 10 co-ops by turnover.

The retail societies represent something different to the major supermarket chains. Through responsible business – putting co-op values and principles into practice every day – they give their members a chance to consume in a way which has wide-ranging benefits.

Retail societies champion local produce, Fairtrade and the communities in which they operate. For example, since November 2017 The Co-op has helped raise £19 million for local causes.

Annual turnover

Customercontrol

Customer owned retailers

“We are living in fractious and uncertain times where many communities feel disconnected and vulnerable. It is in such a climate where the true value of co-operation can shine through, just like it did in Rochdale 175 years ago.”

Steve Murrells, The Co-op


Worker co-ops are businesses owned and controlled by the workers themselves. Combined with employee trusts, annual turnover is at a record high, at almost £11 billion. As the success of the business and the interests of the workers are intertwined, the benefits are far-reaching and go above and beyond financial reward.

An increased stake and say in how the workplace is run is a positive factor in determining well-being. Worker co-ops also offer high levels of democratic governance, which has demonstrable social, political and economic benefits. Some worker co-ops, like Suma in Elland, West Yorkshire, and Manchester’s Unicorn Grocery, operate on a equal pay structure. Subsequently, there is no gender pay gap.

£10.4 bn

£10.4 bn

£10.6 bn

£10.9 bn

£11.0 bn

2019 2018 2017 2016 2015

Workercontrol

Annual turnover

20152019

440492

Total worker owned

“Our experience is that workers are much more motivated when they own and run the business, and sustainable businesses are good for the economy, communities, workers and their families. We’re supporting the #1MillionOwners call for more investment in worker ownership.”

Debbie Clarke, Unicorn Grocery


Communities are taking ownership and control of local assets. It is a growing movement as those who most value their local pubs, shops, or even football clubs and pools, take positive action together. More than £80m has been raised by Community Shares since 2015. Institutional investment has been increasingly important in scaling up the ambition of projects, with £4.4m of matched equity provided by funders during the same period.

Community-owned pubs, alongside local shops and community energy, proved early trailblazers and continue to be a mainstay of the sector. The number of co-operatively owned pubs, like the The Anglers Rest in the Peak District, has increased five-fold since 2012.

Communitycontrol

Co-op pubs

20122019

180

32

“It’s the way forward. Once you become a free house you’re really in charge of your own destiny. You have to believe in what you’re doing. The rewards are great – we now own our own pub. It’s a protected asset owned by the local community and a shining beacon for all those looking to achieve the same thing.”

Mark Newcombe, Crauford Arms


Co-ops give farmers more control over their produce and are a major force in the co-op economy, with nine businesses featuring in the top 20 best performing UK co-ops by turnover.

While turnover has risen to a three-year high at just over £7.9 billion, the number of farmer co-ops has fallen for the fourth year out of five. A total of 434 farmer co-ops now operate in the UK – down from 440 the previous year. Consolidation within the co-op sector, alongside conversions to other legal forms, are among the reason for the latest reduction.

The number of farmer members has dropped by 1.8% to 153,486 after successive increases since 2015.

434farmerco-ops

Farmercontrol

153,486farmerowners

2019 2015201620172018£8.8bn

£8.0bn

£7.5bn

£7.8bn

£7.9bn

Annual turnover

“The supply chain is getting controlled by fewer and fewer players who all want to take more money out of farmers’ pockets. By learning better practices, by co-operating better, we’ll all do our jobs better.”

Tim Wilson, Aspatria Farmers


The co-operative top 100

Top 100 rankingOrganisation name Industry sector Turnover

2019 20181 1 The John Lewis Partnership Retail £10,316,700,000

2 2 The Co-operative Group Retail £10,162,000,000

3 3 Arla Foods Agriculture £2,643,868,181

4 4 National Merchant Buying Society (NMBS) Retail £1,787,019,000

5 5 The Midcounties Co-operative Retail £1,177,059,000

6 6 Central England Co-operative Retail £827,804,000

7 8 Openfield Group Agriculture £627,518,000

8 9 Mole Valley Farmers Agriculture £490,523,000

9 11 Dale Farm Co-operative Agriculture £482,375,000

10 10 Southern Co-operative Retail £450,851,000

11 12 Scotmid Co-op Retail £377,856,000

12 13 East of England Co-op Retail £353,513,000

13 14 Berry Gardens Growers Agriculture £345,642,000

14 16 Greenwich Leisure Sports and Recreation £277,051,004

15 18 The AF Group Agriculture £273,662,418

16 20 First Milk Agriculture £248,154,000

17 21 Scott Bader Company Manufacturing £225,817,000



2019 201818 19 LacPatrick Agriculture £223,841,024

19 17 Lincolnshire Co-op Retail £213,626,000

20 22 Fram Farmers Agriculture £194,748,551

21 23 The Channel Islands Co-operative Society Retail £183,609,000

22 26 United Oilseed Producers Agriculture £156,119,771

23 24 GrainCo Agriculture £151,964,582

24 15 Fane Valley Agriculture £135,793,000

25 25 ANM Group Agriculture £124,703,000

26 27 Woldmarsh Producers Agriculture £114,715,438

27 28 Farm Fresh PO Agriculture £102,279,737

28 32 Brandsby Agricultural Trading Association (BATA) Agriculture £101,922,864

29 29 United Farmers Agriculture £100,291,103

30 30 Organic Milk Suppliers Co-operative (OMSCo) Agriculture £92,054,000

31 31 Agricultural Central Trading Agriculture £91,218,794

32 33 Yorkshire Farmers Livestock Marketing Agriculture £87,606,873

33 36 Chelmsford Star Co-operative Retail £83,601,696

34 34 The Wine Society Retail £82,032,000

35 35 Meadow Quality Retail £80,359,010

36 37 G's Growers Agriculture £78,842,000

37 38 Heart of England Co-operative Retail £74,203,000

38 39 Grand Union Housing Group Housing £73,832,000

39 42 Freedom Leisure Sports and Recreation £67,440,699

40 40 Aquascot Manufacturing £63,622,428

41 41 Speciality Produce Agriculture £63,454,231

42 49 Scottish Pig Producers Agriculture £63,301,409

43 44 Scotlean Pigs Agriculture £63,135,302

44 45 The Camping and Caravanning Club Membership associations, social clubs and trade unions

£61,639,000



2019 201845 43 Tarff Valley Agriculture £59,789,686

46 48 Clawson Agriculture £57,466,000

47 46 Rochdale Boroughwide Housing Housing £57,182,000

48 47 The Co-operative Academies Trust Education £55,904,000

49 50 Suma Foods Retail £54,341,735

50 51 Trivallis Housing £52,448,000

51 54 Steer Davies Gleave Professional and Legal services £49,634,513

52 56 Greenfields Community Housing Housing £47,091,000

53 53 Clynderwen and Cardiganshire Farmers (CCF) Agriculture £45,158,030

54 55 Bron Afon Community Housing Housing £45,155,000

55 62 South Caernarvon Creameries Agriculture £45,105,153

56 57 Tullis Russell Group Manufacturing £35,009,000

57 58 Southern Farmers Agriculture £34,922,310

58 61 BAKO Western Retail £33,991,018

59 59 Surrey County Cricket Club Sports and Recreation £33,894,994

60 60 Phoenix Community Housing Housing £33,423,000

61 66 HF Holidays Sports and Recreation £31,460,000

62 63 Watford Community Housing Trust Housing £31,410,000

63 64 Community Gateway Association Housing £31,259,579

64 65 Mockbeggar Retail £30,371,406

65 68 Radstock Co-operative Society Retail £30,205,690

66 67 Osborne Co-operative Academy Trust Education £28,674,000

67 71 Local Care Direct Health and Social Care £27,187,283

68 70 Hafod Care Association Limited Housing £26,478,000

69 73 UIA Mutual Finance £24,940,000

70 80 Aspatria Farmers Agriculture £24,460,718

71 75 Argyll Community Housing Association Housing £24,329,000

72 74 Infinity Foods Retail £24,279,566



2019 201873 69 Scottish Shellfish Marketing Group Agriculture £24,023,761

74 78 Tamworth Co-operative Society Retail £23,392,000

75 77 Cartrefi Cymru Health and Social Care £23,309,000

76 76 Education and Leadership Trust Education £23,183,826

77 82 Society of Growers of Topfruit Agriculture £19,303,081

78 84 Hay and Brecon Farmers Agriculture £19,203,815

79 83 Merthyr Valleys Homes Housing £19,022,000

80 95 Farm Stock (Scotland) Agriculture £17,725,778

81 86 Essential Trading Retail £17,513,143

82 85 Warwickshire County Cricket Club Sports and Recreation £17,275,390

83 81 CLIC Cooperative Trust Education £17,217,912

84 87 Be Caring Health and Social Care £17,170,431

85 88 South Armagh Farming Enterprises (SAFE) Agriculture £17,143,877

86 99 Coastal Grains Marketing Agriculture £17,067,904

87 96 The Shropshire Doctors' Co-operative (ShropDoc) Health and Social Care £16,860,848

88 89 Dengie Crops Agriculture £16,761,683

89 90 Lancashire County Cricket Club Sports and Recreation £16,462,097

90 91 Watmos Community Homes Housing £15,904,000

91 92 Fresh Growers Agriculture £15,838,121

92 94 Leisure in the Community Sports and Recreation £15,663,938

93 97 East of Scotland Farmers Agriculture £15,379,332

94 98 Littleton & Badsey Growers Agriculture £15,048,445

95 106 East of Scotland Growers Agriculture £14,885,612

96 103 BAKO Wales Retail £14,454,551

97 100 Best Western Hotels Food service, accommodation, pubs £14,271,051

98 101 Salford Community Leisure Sports and Recreation £14,123,388

99 105 North East Grains Agriculture £13,896,085

100 102 Accent Corporate Services Finance £13,711,000


Top 10s

CUSTOMER OWNED RETAILERSRank Organisation name £ Turnover 1 The Co-operative Group £10,162,000,000

2 The Midcounties Co-operative £1,177,059,000

3 Central England Co-operative £827,804,000

4 The Southern Co-operative £450,851,000

5 Scotmid Co-operative £377,856,000

6 East of England Co-operative £353,513,000

7 Lincolnshire Co-operative £213,626,000

8 Channel Islands Co-operative £183,609,000

9 Chelmsford Star Co-operative £83,601,696

10 The Wine Society £82,032,000

WORKER CO-OPSRank Organisation name £ Turnover 1 Suma Foods £54,341,735

2 Infinity Foods Co-operative £24,279,566

3 Essential Trading Co-operative £17,513,143

4 Leading Lives £11,583,087

5 Clansman Dynamics £10,236,336

6 Dulas £9,404,630

7 Unicorn Grocery £7,759,156

8 Edinburgh Bicycle Co-operative £7,100,000

9 Michael Jones Jeweller £7,051,525

10 GreenCity Wholefoods £6,471,877

SELF-EMPLOYED CO-OPS Rank Organisation name £ Turnover 1 Shropdoc £16,860,848

2 Tees Bay Pilots £3,635,481

3 Glasgow Taxis £2,694,462

4 Licensed Taxi Drivers Association £2,498,337

5 DWP Harvesting £1,791,524

6 Builders Merchants Federation £986,836

7 South Acton Community Builders Co-operative

£928,865

9 T.O.A. Taxis £689,069

8 Town Taxis (Coatbridge) £620,696

10 East Dumbartonshire Taxi Owners Association

£571,541


Top 10s

ENERGY AND ENVIRONMENT CO-OPSRank Organisation name Turnover 1 Westmill Solar Co-operative £1,966,174

2 Bath and West Community Energy £1,520,992

3 High Winds Community Energy £1,095,983

4 Bristol Energy Co-op £1,057,407

5 Sheriffhales Community Energy £897,950

6 Crest Co-operative £871,623

7 Westmill Wind Farm Co-operative £805,451

8 Drumlin Wind Energy Co-operative £647,611

9 Wiltshire Wildlife Community Energy £621,091

10 Environmental Conservation Co-operative

£617,646

HEALTH AND SOCIAL CARE CO-OPSRank Organisation name Turnover 1 Local Care Direct £27,187,283

2 Cartrefi Cymru Co-operative £23,309,000

3 Be Caring £17,170,431

4 Shropdoc £16,860,848

5 SELDOC £13,578,078

6 Leading Lives £11,583,087

7 BARDOC £11,325,585

8 East Lancashire Medical Services £10,405,625

9 Highland Home Carers £7,885,000

10 The Foster Care Co-operative £6,014,083

FARMING CO-OPSRank Organisation name Turnover 1 Arla Foods £2,643,868,181

2 Openfield Group £627,518,000

3 Mole Valley Farmers £490,523,000

4 Dale Farm Co-operative £482,375,000

5 Berry Gardens Growers £345,642,000

6 The AF Group £273,662,418

7 First Milk £248,154,000

8 LacPatrick £223,841,024

9 Fram Farmers £194,748,551

10 United Oilseed Producers £156,119,771


Top 10s

MOST CO-OPERATIVE PLACESRank Local authority district Co-ops per

10,000 people 1 Na h-Eileanan Siar 8.16

2 Orkney Islands 5.91

3 Shetland Islands 5.63

4 Eden 4.55

5 Allerdale 3.6

6 Powys 3.55

7 West Devon 3.25

8 Purbeck 3.21

9 Argyll and Bute 3.11

10 Northumberland 3.07

MOST CO-OPERATIVE REGIONSRank Region Co-ops per

10,000 people 1 North East 1.89

2 South West 1.66

3 Wales 1.53

4 Northern Ireland 1.37

5 Yorkshire and The Humber 1.09

6 Scotland 1.07

7 West Midlands 0.97

8 North West 0.97

9 East Midlands 0.96

10 Northumberland 0.93

Why are rural areas the most co-operative?

The top three most co-operative places are all in the Scottish Isles. Co-operative businesses often spring up out of a need to solve a local issue, and therefore in rural or remote areas where services and jobs may be more limited or at risk, people come together to form a co-op – perhaps to save a much loved community space, valued service or business to safeguard local jobs. More densely populated urban conurbations have more co-ops, but not when compared to the size of the population.


About this report

The Co-op Economy report has been compiled by Co-operatives UK on behalf of the UK co-operative movement. The report analyses data from thousands of co-op businesses across the UK for the period 1 Feb 2018 to 31 Jan 2019.

Co-operatives UK monitors a range of data sources to provide the most comprehensive intelligence available on the UK co-operative sector.

Data is collected from a range of sources including the Financial Conduct Authority and Companies House and it is continually updated to ensure it is accurate, complete and trustworthy.

We make our data openly available to allow anyone to access, analyse, build upon, share, and help us improve it. By making the data open, Co-operatives UK affirms this and offers a route for users to identify gaps and areas for improvement. The annual figures featured in the Co-op Economy report are rebased when new data is added or existing data updated. This means year-on-year data and trends are accurate in each report, though there may be differences if comparing across different publications. In 2015-16, a significant change was made to the methodology used to compile the dataset. This has led to an increase in its accuracy, but with a notable change in level of turnover reported in previous reports:

Find out more at ww.uk.coop/open-data

http://uk.coop/open-data

Co-operatives UK LimitedHolyoake HouseHanover StreetManchester M60 0ASTel 0161 214 1750

www.uk.coop/economy

Published 2019 © Co-operatives UK

Thousands of businesses,one networkCo-operatives UK is the network for Britain’s thousands of co-operatives. We work together to promote, develop and unite member-owned businesses across the economy. From high street retailers to community owned pubs, fan owned football clubs to farmer controlled businesses, co-operatives are everywhere and together they are worth billions to the UK economy.

Design concept and illustrations created by Co-operatives UK member Creative Coop

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