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Cooperatives in Canada (Situation ‑ 2003)
The number of non‑financial co‑operatives reporting to the survey was up 0.1 per cent from 2002 and membership was up 3.9 per cent. Volume of business and employees were up 0.4 per cent and 1.2 per cent respectively, while assets were down 0.3 per cent. The slight increase in revenues and the decrease in assets were predominately due to a downturn in the agricultural sector. This downturn was caused by a severe drought which particularly impacted the grains and oilseeds sector in the West.
The number of agricultural co‑operatives reporting was virtually unchanged and active memberships were down 0.8 per cent. Agricultural volume of business and assets were down 3.9 per cent and 3.0 per cent respectively. The total number of employees of agricultural co‑operatives was also lower by 3.1 per cent.
Producer Co‑operatives
Co‑operatives play a crucial role in the agricultural sector of the Canadian economy, particularly in farm supply and in the processing and marketing of grains and oilseeds, dairy products, poultry, fruits, vegetables, livestock, as well as honey and maple products.Agricultural marketing co‑operatives are, for the most part, modern enterprises that use the latest technology to process and add value to farm products. A few large co‑operatives account for the largest part of total revenues, including Agropur in dairy, Saskatchewan Wheat Pool in grains and oilseeds, Lilydale in poultry and Coopérative Fédérée de Québec in meat and poultry processing. The 151 marketing co‑operatives reporting represent a major economic force with a combined business volume of more than $9.6 billion and assets of $3.4 billion. In 2003, they marketed almost $7.7 billion in agricultural products in Canada and abroad (see Table 4).
The market share of agricultural marketing co‑operatives is strongest in the following areas: poultry and eggs (57%); dairy (39%); honey and maple (28%); and grains and oilseeds (22%) and livestock (22%) (see Appendix [E).
In farm supply, co‑operatives play an indispensable role in the provision of farm inputs. They provide member co‑operatives and producers with a broad range of farm inputs including fertilizers and chemicals, animal feed, seed, building materials and petroleum products. The 221 supply co‑operatives reported total revenues of $4.3 billion, up 12.1 per cent from 2002. In farm supply market share, the strongest areas are farm petroleum (43%), fertilizers and chemicals (21%), and animal feed (14%) (see Appendix E).
Eight of the top ten agricultural co‑operatives in Canada are marketing organizations and two supply co‑operatives rounds out the Top 10 (see Appendix H).
There were 55 fishery co‑operatives responding to the survey, five less than in 2002. They reported $256.4 million in revenues, a 0.9 per cent decrease over 2002. Assets declined 14.0 per cent to $81.5 million (see Tables 10 and 11).
Production co‑operatives include feeder, grazing, agricultural machinery, animal reproduction, forestry and handicraft co‑operatives. The 627 production co‑operatives responding to the survey reported a combined volume of business of $591.6 million. Those in Quebec accounted for over 71 per cent of the total volume of business. Quebec revenues were derived primarily from the sale of forest products. Saskatchewan has the largest number of production co‑operatives, with 217 organizations reporting. Management of feeder finance operations and grazing operations were the two main activities of production co‑operatives, with 164 and 150 enterprises respectively, accounting for 50 per cent of all production co‑operatives (see Tables 12 and 13 and Appendix B).
Consumer Co‑operatives
At the local level, consumer co‑operatives vary in size and sophistication, from small buying clubs, to large supermarket organizations and wholesalers. At these "conventional stores", sales are made in the usual manner and any "surplus" is returned at year's end based on patronage (the purchases of each member at their co‑operative). Revenues from the consumer group amounted to $9.7 billion, with food products accounting for 44 per cent of the total and petroleum products, dry goods and home hardware being the other main items sold (see Table 6).The 313 member co‑operatives of Federated Co‑operatives Limited had total revenues of $3.6 billion, placing them first by revenues of all non‑financial co‑operatives. Calgary Co‑op Association Ltd. is the largest consumer retail co‑operative in North America, with nearly 40 per cent of the local retail market. Their sales include food products, hardware, clothing, home furnishings, pharmaceuticals, petroleum products and building materials, as well as providing travel services. Mountain Equipment Co‑op (MEC), headquartered in Vancouver, British Columbia, specializes in the sale of equipment for outdoor activities. With nearly 2.0 million members across Canada, it provides a catalogue sales service and operates eight stores outside British Columbia in Toronto, Ottawa, Calgary, Edmonton, Quebec, Montréal and in Halifax.
The 103 member co‑operatives of Co‑op Atlantic had revenues of $494 million. Twenty‑six former member co‑ops of Co‑op Atlantic have formed a new federally registered co‑operative, Consumers Community Co‑operative (CCC). These and other major changes introduced in 2001 continue to consolidate and strengthen local member ownership within the consumer co‑operative network in Atlantic Canada.
Although not as large or influential, Quebec and Ontario consumer co‑operatives are strong organizations, however, they have little penetration in large urban areas.
A diminishing number of consumer co‑operatives operate as “direct charge” co‑operatives. In 2003, 19 of these co‑ops reported to the survey, most of them located in Quebec and New Brunswick. They reported revenues of $106.6 million, assets of $28.9 million and 17,865 members. The concept of the "direct charge" system is that goods are provided to members at cost and a weekly service fee is charged to cover operating costs. Some add a surcharge to build capital for the development of the co‑operative. In the past year a number of this type in the Atlantic region have amalgamated into the “basics” store concept under the Consumers Community Co‑operative.
Student supply co‑operatives have gained a strong foothold, especially in Quebec, where 85 are active. These co‑operatives reported a volume of business of nearly $134.6 million with over 454,861 members. They provide the various goods students may require from stationery to textbooks. Several student supply co‑operatives operate cafeterias and offer driver education courses (see Appendix A).
Service co‑operatives make up the largest number of co‑operatives in Canada and 4,160 responded to the survey, accounting for 73 per cent of all non‑financial co‑operatives. They reported a volume of business of $1.8 billion, up nearly 12 per cent from 2002.
The largest single area of co‑operative activity in the service sector is housing where 2,176 co‑operatives reported with assets of $5.7 billion and 128,238 members. In addition to housing co‑operatives, which focus on providing housing to their members, there are other types of co‑operatives that provide services related to housing and 67 reported to the survey. Most of them are co‑operative housing resource groups involved with the development of emerging housing co‑operatives. The concept of equity housing co‑operatives which are involved with the management of common assets, exists only in British Columbia and Alberta as of 2003 and only two of these reported to the survey (see Appendix C).
There are two types of child care co‑operatives: daycare and nursery school. Daycare co‑operatives are formed by parents to provide daytime care for their children while they are at work. Nursery school co‑operatives are formed with an emphasis on education and social interaction but also provide the parents with time for other pursuits. Child care co‑operatives are found in greatest numbers in Ontario, Saskatchewan and Manitoba. There are 386 daycare and nursery school co‑operatives reporting revenues of $64.0 million having 32,047 members.
Health care co‑operatives play an important role in many communities across Canada and 91 health care co‑operatives reported to the survey with 64,971 members and revenues of $134.0 million. Home care co‑ops are found mostly in Quebec where many incorporations of this type have taken place in the past few years and 49 reported from across Canada for the 2003 survey. Home care co‑ops provide care to mostly elderly people in their homes.
Community development co‑operatives foster local leadership skills and grassroots participation in innovation and solving social and economic problems. While these co‑operatives are found throughout Canada most are in Saskatchewan. There were 281 development co‑operatives reporting with 18,892 members, assets of $45.0 million and revenues of $49.0 million, an increase of over 28 per cent.
Funeral co‑operatives are located mostly in Quebec, although they have made some in‑roads in the Maritimes particularly in Prince Edward Island and New Brunswick. Fifty‑six funeral co‑operatives reported assets of $114.5 million.
Water supply co‑operatives are found mainly in Alberta, Manitoba and Quebec and 184 responded to the survey. Because of aggregate data supplied by Quebec starting in 2003 the only data shown here is the number of co‑ops reporting.
Natural gas and rural electric co‑operatives are found almost exclusively in Alberta where 127 of these co‑operatives reported to the survey. Canada wide, 131 of these co‑operatives reported memberships of 146,576 and assets of $467.0 million and revenues of $228.9 million.
Although recreational co‑operatives are found in most provinces, they are most prevalent in the West, particularly in Saskatchewan. The 274 recreational co‑operatives reporting were engaged in various activities, including the management of community centres, skating and curling rinks, golf courses, campgrounds and swimming pools.
A number of transportation and communication co‑operatives are found throughout Canada. Of the 59 transportation co‑ops reporting most were freight co‑ops and taxi co‑ops. They had revenues of $87.0 million and assets of $60.0 million. Recently car‑sharing co‑operatives have been formed in large urban centres including Vancouver and Toronto, supplying their members with shared vehicles on a needs basis and saving members the high costs of owning an automobile ($9,000 average per year), reducing congestion and in turn reducing pollution. Most of the 99 communication co‑ops reporting were of the radio TV/cable and editing and publishing type. They reported 86,210 members, revenues of $114.1 million and assets of $211.9 million (for other service co‑operatives see Appendix C).
Workers' Co‑operatives
Workers' co‑operatives are employee owned enterprises and most of these are located in the province of Quebec. Canada wide, 326 reported with a total of 13,129 members and revenues of $553 million, assets of $343 million and 9,498 employees. These co‑operatives operate in a wide variety of fields, including forestry co‑operatives which accounted for 58 per cent of the overall volume of business of workers' co‑operatives in Canada, a total of $320.3 million (see Appendix D).In recent years, a new type of worker co‑operative has been developed in Quebec, the worker/shareholder co‑operative. Employees can form a co‑operative to buy a block of shares in an existing business, thus enabling them to have a voice at the board of directors level. The increasing interest in workers' co‑operatives reflects the determination of educated and informed people to have more control over their jobs and, consequently, their lives and communities.
Another type of co‑operative gaining in popularity in Quebec is, the multi‑stakeholder or solidarity co‑operative. Membership is made up of different categories of partners: service users, employees and community organizations. Almost non‑existent a few years ago, 184 multi‑stakeholder co‑operatives were incorporated in Quebec by 2003. Many provide home care services to seniors and people with minor health problems.
