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Number of Active Co-ops in NSW Reaches 820

The NSW Registry of Co-operatives had 820 active co-operatives on its register at the end of 2001.

There have been 295 new co-operatives registered under the NSW co-operatives legislation, during the period 1990 to 1999 in NSW. These new co-operatives have been formed in many different industries and in different geographical areas. However, there is no apparent pattern or trend to the formations in each year, with the number formed growing and declining from one year to the next.

ACCORD has commenced a study, as part of its foundation work, on formations of new co-operatives over the past 10 years in NSW. The study will examine, through telephone interviews with the senior office-bearers of a sample of new co-operatives, the members' expectations, their reasons for choosing a co-operative structure as a way of organising themselves, and their satisfaction with the co-operative form. It was felt that such a project would: highlight innovative use of co-operation and mutuality; assist in developing programs to promote co-operatives more effectively; and in designing of remedial measures to remove barriers to co-operative formations. The study will also provide an understanding of any trends emerging in the usage of co-operative forms of organisations and an opportunity to publicise and monitor new types of co-operatives.

Preliminary findings of the study indicate that the types of co-operatives formed in the 90's have not been consistent each year. During the first half of the decade, the yearly formations in different categories were relatively consistent. In 1995, higher proportions of co-operatives formed were human service co-operatives. There was also a drop in the number of primary producer co-operatives being formed. By 1997, however, a significant change had occurred, with most co-operatives formed being primary producer co-operatives. Over the period - 1990 to 1999, the relative number of primary producer co-operatives being formed had increased while other producer co-operatives had declined. The trend towards formation of primary producer co-operatives had continued with a majority of agricultural co-operatives being formed in 2000 and 2001.

In totality, about 48% of the new co-operatives formed during the period 1990 to 1999 had their registered offices located in metropolitan areas, while the balance was in rural areas.

Preliminary findings also indicate that co-operatives are formed, as people believe in the values embedded in a co-operative. Among the values most frequently mentioned is the democratic principle of 'one member, one vote' applicable to co-operatives. It appears that the collective decision making process that this principle facilitates provides an impetus to groups of people in starting up mutual organisations.

The necessity for the promotion of co-operatives, both by the Government and sector bodies, has been identified as a significant factor that contributes to the growth of the sector. The need is greater in an increasingly unfavourable broad public policy environment, which promotes 'for-profit' forms of organisations to engage in productive activities. Given that government programs have a positive affect on co-operative development, the final report may well suggest a program to assist formation of co-operatives and to resolve any initial difficulties faced by new co-operatives, through the provision of advisory services, at least for the initial three years.

Four new co-operatives were formed in the last quarter of 2001. These are:

Five Rivers Energy Co-operative Ltd

The co-operative has been formed to negotiate the delivery of environmental and economically efficient energy to its members and will act as an intermediary between energy retailers and the members. It is located on the Mid-North Coast.

Bengal Co-operative Ltd

The co-operative brings together a group of professionals wishing to contribute their skills and resources and to invest in business ventures that are of interest to its members. It is located in Sydney.

Moulamein Grain Co-operative Ltd

Grain farmers in the Moulamein District formed the co-operative to improve the storage facilities available to them within their area. It also intends to market cereal grains produced by members. It is located in the Wakool local government area.

Zumu Trading Co-operative Ltd

The co-operative was formed to promote trading between members and, by levying a small fee on such transactions, to raise money for community initiatives. It is located in Sydney.


Contacts relevant to this item:

Contact : Garry Cronan
Phone : 02 9514 5121
Fax : 02 9514 5144
Email : gcronan@mpx.com.au
Website : www.accord.org.au