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

SOCIALECONOMY.UTORONTO.CA 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

SOCIALECONOMY.UTORONTO.CA 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

SOCIALECONOMY.UTORONTO.CA 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

SOCIALECONOMY.UTORONTO.CA 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) – Comparability problematic Some comparisons are 1955 to 2005; others later, depending upon data

SOCIALECONOMY.UTORONTO.CA 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

SOCIALECONOMY.UTORONTO.CA General Overview, Number of Co-operatives Memberships Revenues Assets

SOCIALECONOMY.UTORONTO.CA Number of co-operatives, 1955 – 2005

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

SOCIALECONOMY.UTORONTO.CA Memberships, 1955 – 2005

SOCIALECONOMY.UTORONTO.CA Revenues, 1955 – 2005

SOCIALECONOMY.UTORONTO.CA Assets, 1955 – 2005

SOCIALECONOMY.UTORONTO.CA Activity Analysis Agricultural Co-opsFishing Co-opsOther Rural Co-opsConsumer Co-opsWorker Co-opsService Co-opsPublic Service Co-ops

SOCIALECONOMY.UTORONTO.CA 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).

SOCIALECONOMY.UTORONTO.CA Top 10 Co-operatives in Canada, no longer appear on the Top 50 list for 2005

SOCIALECONOMY.UTORONTO.CA Fishing Co-operatives Antigonish Movement in Atlantic Canada emphasized development of credit unions and fishing co-ops From , 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)

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

SOCIALECONOMY.UTORONTO.CA 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)

SOCIALECONOMY.UTORONTO.CA 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).

SOCIALECONOMY.UTORONTO.CA 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

SOCIALECONOMY.UTORONTO.CA 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)

SOCIALECONOMY.UTORONTO.CA Public Service Co-operatives a growing group that provides public services assisted by government programs, including: HousingChildcareHealthcareHomecare

SOCIALECONOMY.UTORONTO.CA 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

SOCIALECONOMY.UTORONTO.CA Housing Co-operatives , 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

SOCIALECONOMY.UTORONTO.CA 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

SOCIALECONOMY.UTORONTO.CA 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

SOCIALECONOMY.UTORONTO.CA The Dualism of Co-operatives in Canada Rural Co-operatives relatively successful businesses that are growing in scale in such services as farm marketing, farm supply, other forms of agriculture and consumer retailing Urban Co-operatives relatively small organizations focused upon lower income groups predominantly in public services such as housing, but also in childcare, healthcare, and homecare

SOCIALECONOMY.UTORONTO.CA 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.

SOCIALECONOMY.UTORONTO.CA Thank you!