Co-ops at heart of NZ agri
In the first of four articles, Rural News looks at challenges facing these businesses, along with the opportunities presented by the co-operative model:
She made the comments at the launch of The New Zealand Co-operative Economy report.
It provides insight into New Zealand's position as one of the most co-operative economies in the world with a high proportion of member-owned businesses, including top agribusinesses like Fonterra and kiwifruit marketer Zespri. Fonterra heads the list of the country's top 30 co-operatives.
Waikato dairy co-op Tatua is 14th on the list, followed by FMG and LIC. The Dairy Goat Co-operative is 18th on the list.
Fertiliser co-operatives Ballance and Ravensdown are 9th and 10th respectively.
The report, completed by PwC, shows New Zealand's top 30 co-operatives contribute 13% of New Zealand's GDP by revenue, earning ready $42 billion revenue in 2020.
The co-operatives have a staggering 1.5 million members, with the top 30 enabling job opportunities to a significant portion of the workforce with 41,000 employees.
Around 72% of New Zealand's co-operatives are in the agri-food sector and have achieved increased revenues of around 10% since 2015.
"These agri-food co-operatives have been performing well with strong growth in revenue and assets, indicating a resistance and strong response to the economic impacts of Covid-19," Henry says.
Those in the insurance, banking and finance sector have also performed strongly, with revenue growth over 40% since 2015.
"The past 18 months have shone the light even brighter on how essential these businesses are in keeping New Zealand moving forward."
Co-operatives have long been part of the fabric of New Zealand life. The business model is successfully applied across multiple sectors and is fundamental to the way New Zealanders do business and deliver goods and services.
"The vast spread of sectors outlined in this report shows how versatile the model is," says Henry.
"Not only that, it brings to the forefront that some of New Zealand's most enduring businesses are co-operatives.
"They're multi-generational, sustainable and community-focused - ensuring profits and their businesses' positive social and environmental impacts continue to be circled back into New Zealanders' lives," says Henry.
The researchers highlighted that the key challenges facing the co-operative sector included raising capital, labour shortages, and reducing emissions to comply with the Climate Change Response Act 2002.
"There are fantastic opportunities to work closely with the New Zealand Government, educators and business community to address these and ensure New Zealand's co-operatives continue to thrive.
"This report also recognises the opportunity for future businesses to be established using the model. It shares why understanding and supporting New Zealand co-operatives is important and how Cooperative Business NZ can implement this with various partners."
