Publications

Profile of Canadian Agricultural Co-operatives
(1998-2002)

Rajendra Gurung and Les McCagg
Co-operatives Secretariat, Government of Canada
January 2005

Executive Summary

This report presents and discusses statistics for agricultural co-operatives from 1998 to 2002. The information in this report is obtained from the Canadian Annual Survey of Co-operatives, a voluntary survey conducted by the Co operatives Secretariat, as well as from information provided by provincial governments.

The period between 1998 and 2002 witnessed structural changes in agricultural co-operatives and in the agri-food industry. Some of the large agricultural co operatives went through a process of consolidation, reorganization and divestment of assets, and some have demutualized. A prolonged period of drought in Western Canada also affected the operation of agricultural co operatives. These changes during the reporting period will have significant bearing on statistics presented in this report. Some of the highlights of the report are presented below:

• The number of agricultural co-operatives incorporated increased from 1,314 in 1998 to 1,331 in 2002.
• The number of agricultural co-operatives responding to the survey decreased from 980 in 1998 to 966 in 2002.
• In 2002, total active membership decreased to 389,677 from 458,643 in 1998. The majority of active memberships (67%) were reported by farm supply co-operatives.
• Agricultural co-operatives reported 35,000 employees in 2002 compared to more than 36,000 in 1998, representing a decrease of 3.8% over the period.
• Agricultural co-operatives reported total revenues of $14 billion in 2002, which represents a decrease of more than 26% since 1998.
• Fertilizer and chemical sales represent the largest share of farm supply revenues reported by co-operatives, while dairy revenue represents the largest share of marketing revenues reported by agricultural co-operatives in 2002.
• Agricultural co-operatives had a net value added of $1.2 billion in 2002. Agricultural marketing co-operatives had the greatest contribution to total net value added.
• Except for farm petroleum, co-operatives' market share in all other farm supply sales declined in 2002. Similarly, except for poultry and eggs, and maple and honey, the market share of agricultural co-operatives in all other farm commodity sales declined in 2002.
• In 2002, total assets decreased to $5.7 billion from more than $6.6 billion in 1998. Similarly, total equity decreased to $2.2 billion in 2002 from $2.5 billion in 1998.
• The proportion of debt is greater than the proportion of equity in the capital structure of agricultural co-operatives, particularly of marketing co operatives.