• Source: Cooperative federation

A co-operative federation or secondary co-operative is a co-operative in which all members are, in turn, co-operatives.
Historically, co-operative federations have predominantly come in the form of co-operative wholesale societies and co-operative unions. Co-operative federations are a means through which co-operatives can fulfill the sixth Co-operative Principle, co-operation among co-operatives. The International Co-operative Alliance notes that “Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.”




Retail


According to co-operative economist Charles Gide, the aim of a co-operative wholesale society, which is owned by retail consumer co-operatives, is to arrange "bulk purchases, and, if possible, organise production". The best historical examples of this were the English and Scottish Co-operative Wholesale Societies, which were the forerunners to the modern Co-operative Group.




Co-operative union


A second common form of co-operative federation is a co-operative union, whose objective (according to Gide) is “to develop the spirit of solidarity among societies and... in a word, to exercise the functions of a government whose authority, it is needless to say, is purely moral.” Co-operatives UK and the International Co-operative Alliance are examples of such arrangements.




Banking



Austria's Raiffeisen Banking Group includes many cooperative banks in Austria as well as operations (not organized as cooperatives) in eastern Europe.
Germany's Volksbanken and Raiffeisenbanken are cooperative banks within the German Cooperative Financial Group.
France's Crédit Agricole is a multi-tiered network of primary and secondary co-operatives and hybrid co-operatives.
In the UK, The Co-operative Bank is a joint-stock retail and commercial bank, whose stock is wholly owned by The Co-operative Group, a hybrid primary and secondary co-operative.
In the US, credit unions co-operatively own payment networks and financial advisers.
In South Korea, National Agricultural Cooperative Federation is a multi-purpose agricultural cooperatives' federation.
Mexico, a, Loan and savings cooperative with more than 1.8 million members.




Agriculture


Regional agricultural co-operatives, such as Land O'Lakes and the former Farmland Industries, are co-operative federations owned by local farmers' co-operatives. Like the Co-operative Group (above), Land O'Lakes is actually a hybrid of a primary and secondary co-operative.




Co-operative party


In some countries with strong co-operative sectors, such as the UK, co-operatives have organized parliamentary political parties to represent their interests. The British Co-operative Party is an example of such an arrangement.




Other uses


Co-operatives whose member owners are businesses, such as retailers' co-operatives, are sometimes called secondary co-operatives, even when their members are not themselves co-operatives.




See also


List of co-operative federations




References

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