Co-operation is key to robust agri-food sector
Wales needs to take inspiration from the co-operative success of its Scottish and Irish counterparts when it comes to creating a more resilient Welsh agrifood sector post-Brexit, according to the country’s leading development agency for co-operative and social enterprise.
A recent report published by the Wales Co-operative Centre, and funded by the Welsh Government and the European Regional Development Fund, found that the agriculture co-operative sector in Wales has not grown to the same scale as that of Scotland and Ireland.
The report found that both Scotland and Ireland each have more than 60 formally constituted cooperatives within the agricultural sector, covering crops, horticulture, dairy and agricultural supply, compared to 22 in Wales.
With Brexit dominating last week’s Royal Welsh Show, Derek Walker, chief executive of the Wales Cooperative Centre, believes it’s time for more co-operative action within the Welsh agri-food sector.
“We have some well-established co-operatives in Wales, such as the South Caernarfon Creameries and Clynderwen and Cardiganshire Farmers, but we need to work harder with organisations who are engaged with the agri-food sector and help develop programmes where cooperation and collaboration are key features,” said Mr Walker.
“With more and more uncertainty over future funding for the industry after the UK leaves the EU, could farmers look at cutting costs by collaborating with one another in vital business areas like purchasing, processing and marketing?
“Take Scotland and Ireland. They believe their farmers can preserve their independence and grow by cooperating to secure gains that may not be available if acting independently of each other.
“They believe collaboration within the food and drink supply chains generates additional value for all participants by developing transparency and trust and reducing uncertainty and risk.
“And the proof is in the pudding, with the SAOS [Scottish Agricultural Organisation Society Ltd] members’ collective turnover around the £2bn mark and the ICOS [Irish Co-operative Organisation Society] members’ combined turnover hitting almost €15bn.”
The report says it has identified that there is clearly a gap in the provision of business support for both new and existing co-operatives in the agri-food sector in Wales.
It was clear from respondents taking part in the research report that the kind of specialist advice provided by the Welsh Government and European Regional Development-funded Social Business Wales project is required in the agri-food sector.
Richard Self, Co-operatives UK agricultural manager, said: “Increasing the market share of well-run agricultural co-operatives in the food and farming sector helps to make primary producers more profitable, supply chains more efficient and reduces volatility in the markets.
“It is important that farmer/grower co-operatives have the right support available to maximise their potential and the benefit they return to their members.
“Co-operatives UK supports all types of co-operatives and will be pleased to work with the Wales Cooperative Centre to make sure that this support is available to as many Welsh agricultural co-operatives as possible,” added Mr Self.