The Changing Pattern of Non-Financial Co-operatives in Canada, 1955-2005

1. The Changing Pattern of Non-Financial Co-operatives in Canada, 1955-2005 Jack Quarter & Jennifer Hann Based on Research by Jack Quarter, Laurie Mook, & Jennifer Hann Social Economy Centre, OISE, University of Toronto Social Economy Centre SOCIALECONOMY.UTORONTO.CA

2. 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

3. 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

4. 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

5. 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

6. 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

7. General Overview, 1955-2005 • Number of Co-operatives • Memberships • Revenues • Assets

8. Number of co-operatives, 1955 – 2005

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

10. Memberships, 1955 – 2005

11. Revenues, 1955 – 2005

12. Assets, 1955 – 2005

13. Activity Analysis

14. 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).

15. Top 10 Co-operatives in Canada, 1985-1995 no longer appear on the Top 50 list for 2005

16. 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)

17. Other Rural Co-operatives • Natural gas, electrification, water supply • Farmers markets, soil conservation, television and cable, and volunteer fire departments

18. 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)

19. 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).

20. 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

21. 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)

22. Public Service Co-operatives • a growing group that provides public services assisted by government programs, including:

23. 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

24. 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

25. 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

26. 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

27. The Dualism of Co-operatives in Canada

28. 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.

29. Thank you!