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
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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
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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
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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
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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
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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
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General Overview, 1955-2005
• Number of Co-operatives
• Memberships
• Revenues
• Assets
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Number of co-operatives, 1955 – 2005
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Number of co-operatives per 100,000 population, rural and urban, 1995 – 2005
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Memberships, 1955 – 2005
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Revenues, 1955 – 2005
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Assets, 1955 – 2005
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Activity Analysis
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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).
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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
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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)
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Other Rural Co-operatives
• Natural gas, electrification, water supply• Farmers markets, soil conservation, television
and cable, and volunteer fire departments
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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)
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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).
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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
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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)
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Public Service Co-operatives
• a growing group that provides public services assisted by government programs, including:
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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
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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
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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
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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
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The Dualism of Co-operatives in Canada
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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.
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Thank you!
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