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Turnover of farming co-ops increases by 5 %
The average turnover from agricultural co-operatives has increased by 5 % to £ 7.7bn , according to the 2018 UK Cooperative Economy report .
T his uplift in revenue echoes the trend seen across the wider co-operative network , which has increased turnover to £ 36.1bn a year , within which agriculture represents over 20 %.
“ This growth is testimony to the resilience of our farming cooperatives and has been achieved despite ongoing uncertainty in the run up to Brexit ,” explains Richard Self , agricultural manager of Cooperatives UK , the trade body for the sector .
“ However , at a time when we need more co-operation and collaboration in agriculture in readiness for leaving the EU , the number of agricultural cooperatives is in fact , declining .
“ Defra has recognised that the UK is significantly out of step with its international competitors in the use of the co-operative business model to support producers and have indicated their support for more collaboration in the sector ,” he says .
“ However , they also need to make sure that the funds they announce can be accessed easily and support the right initiatives , to help change perceptions and encourage co-operation ."
The UK Co-operative Economy report also references several success stories from organisations across the UK , including OMSCo ( Organic Milk Suppliers Cooperative ), the largest organic dairy co-operative in the UK and Europe .
Nearly 25 years old , the OMSCo has provided a stable and sustainable return to its members by pursuing a market and product business diversification strategy .
“ A focus on long-term , strategic partnerships with like-minded businesses globally , has helped us to develop supply chains overseas and access international markets ,” explains OMSCo ’ s managing director , Richard Hampton .
This approach has led to OMSCo forming relationships with US-based Organic Valley , the largest organic co-operative in the world , leading European organic dairy co-operative , Eko Holland , and long-term partner and
renowned dairy processor Wyke Farms , with whom they formed the ‘ The British Organic Dairy Company ’ joint venture in 2017 .
“ Although OMSCo ’ s core business is in the UK , added-value initiatives not only help us to balance fluctuations in UK organic milk supply and demand , but also to build resilience as a business ,” he says .
For the financial year-ending March 2017 , exports accounted for 21 % of OMSCo ’ s turnover .
However , Richard explains that there are hurdles to overcome as Brexit draws closer and brings with it potential barriers to trade .
“ The figures from this year ’ s economy report are reflective of the current market conditions and the challenges that lie ahead ,” he says . “ Collaboration within the agricultural supply chain and across co-operative memberships , will be key in ensuring sector success post-Brexit .”
06 | Farming Monthly | July 2018 www . farmingmonthly . co . uk