The Changing Pattern of Non-Financial Co-operatives in Canada, 1955-2005 Jack Quarter & Jennifer...

The Changing Pattern of Non-Financial Co-operatives

in Canada, 1955-2005

Jack Quarter & Jennifer HannBased on Research by Jack Quarter, Laurie Mook, & Jennifer Hann

Social Economy Centre, OISE, University of Toronto

Social Economy Centre SOCIALECONOMY.UTORONTO.CA

SOCIALECONOMY.UTORONTO.CA

Definition

A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.

—International Co-operative Alliance, Geneva


Governing Principles

• Voluntary and Open Membership• Democratic Member Control • Member Economic Participation • Autonomy and Independence • Education, Training and Information • Co-operation among Co-operatives • Concern for Community


Historical Roots

• Alternative to Capitalism/Co-operative Commonwealth

• Rochdale Pioneers, Owenism, Knights of Labour, kibbutz movement, Antigonish, Desjardins

• Currently: management-run businesses and public services meeting member needs


Data Base

• Annual Government Reports (Co-operation in Canada, Top 50 Co-operatives in Canada) dating to the 1930s – Department of Agriculture, Agriculture Canada, and Co-operatives Secretariat (1985) – http://www.coop.gc.ca/COOP/

• Comparability problematic

• Some comparisons are 1955 to 2005; others later, depending upon data


Introduction

This presentation will explore:

• changes in number, type, size that occurred among non-financial co-ops,1955–2005

• rise of service co-ops as a reflection of a shift by co-ops to an urban environment


General Overview, 1955-2005

• Number of Co-operatives

• Memberships

• Revenues

• Assets


Number of co-operatives, 1955 – 2005


Number of co-operatives per 100,000 population, rural and urban, 1995 – 2005


Memberships, 1955 – 2005


Revenues, 1955 – 2005


Assets, 1955 – 2005


Activity Analysis


Agricultural Co-operatives

• In 1955, agricultural co-operatives dominated the co-operative sector in Canada, both in terms of number of organizations and volume of business.

• In 2005, agricultural co-operatives still were the economic muscle of Canadian co-operatives.

• However, in terms of the number of organizations, agricultural co-operatives have declined significantly (in some cases merging to form very large organizations and in other cases demutualizing).


Top 10 Co-operatives in Canada, 1985-1995

1985 1995 Saskatchewan Wheat Pool Saskatchewan Wheat Pool Federated Co-operatives Federated Co-operatives Alberta Pool XCAN Grain Pool La Coop fédérée Alberta Wheat Pool United Grain Growers Coop fédérée de Québec Agropur Agrifoods International Manitoba Pool Elevators Agropur United Co-operatives of Ontario Manitoba Pool Elevators Calgary Co-operative Association Calgary Co-op Assn. Fraser Valley Milk Producers Co-op Co-op Atlantic

no longer appear on the Top 50 list for 2005


Fishing Co-operatives

• Antigonish Movement in Atlantic Canada emphasized development of credit unions and fishing co-ops

• From1955-2005, memberships and numbers of fishing co-ops decreased, but revenues per organization increased

• One major change: extinction of B.C. fishing co-ops• Late 1980s until 1997: fishing co-ops an industry in

decline after which revenues starting increasing (Canadian Fisheries Adjustment and Restructuring initiative, 1998)


Other Rural Co-operatives

• Natural gas, electrification, water supply• Farmers markets, soil conservation, television

and cable, and volunteer fire departments


Consumer Co-operatives

Co-operative stores are organized around three major systems:

The Arctic(Arctic Co-operatives)

Western Canada(Federated Co-operatives) The Atlantic

(Co-op Atlantic)


Consumer Co-operatives

• One major weakness in the consumer co-operative system: 5/8 of Canada’s population is located in Ontario and Québec, but no significant presence similar in scope to Federated, Co-op Atlantic, or Arctic Co-ops.

• The three major consumer systems represent a shift from the farm, but are unable to make a significant impact in major urban centres (Calgary Co-op and MEC are the exceptions).


Worker Co-operatives

• Variation of the predominant co-op model in that the members are the employees of a firm

• Revival in early 1980s, spike in 2000• Québec: dominant location in Canada• Exciting concept with potential, but marginalized• Economic muscle of this group is forestry (rural)• Other than forestry: very small organizations in

which members are eking out a living


Service Co-operatives

• covers an array of services that do not fit into the other categories

• some of the best evidence of co-ops’ urban presence

• dominant form (in terms of number) within sector• growth driven largely by housing co-ops• excellent examples of urban businesses

(transportation, communication, funeral)


Public Service Co-operatives

• a growing group that provides public services assisted by government programs, including:


Housing Co-operatives

• Predominantly urban phenomenon through which people who have low to below-average income can gain security of tenure at relatively predictable costs and be part of a democratically controlled community

• Limited presence until amendments to the National Housing Act in 1973 provided for assistance to non-market or non-profit housing


Housing Co-operatives

• 1965-2005, there was a 40-fold increase in the number of housing co-operatives

• By 2005, assets of housing co-ops, $5.5 billion, represented 31.1 percent of total for all co-ops, including giant corporations that market and supply agricultural products


The “Rural Tilt” of Canadian Co-operatives

• While the Canadian population has shifted from 67 percent urban in 1955 to 80 percent urban in 2005, only 60 percent of co-operatives are urban

• Excluding housing co-operatives, only 45 percent are urban.

• There is more of a rural tilt among co-operatives than for Canadian society as a whole


Conclusions

• “Mutual Aid” in rural communities• Market Failure Theory• Shift towards a service economy and the growth

of government-funded services• Long-standing tradition of co-operatives in rural

communities


The Dualism of Co-operatives in Canada


Reflections

• Will this dualism pose a challenge to a sector unified by the Rochdale Principles?

• In spite of historic emphasis among co-ops in representing a new form of market enterprise, growth of co-ops in Canada, particularly in urban centres, is very much tied to supportive government programs.


Thank you!

The Changing Pattern of Non-Financial Co-operatives in Canada, 1955-2005 Jack Quarter & Jennifer...

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