Western Mail

Co-operation is key to robust agri-food sector

- CHRIS PYKE Business reporter chris.pyke@walesonlin­e.co.uk

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.

 ?? Patrick Olner ?? > Derek Walker, chief executive of the Wales Co-operative Centre
Patrick Olner > Derek Walker, chief executive of the Wales Co-operative Centre

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