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Co-operatives and Increased Competition in the Australian Supermarket Industry Nikola Balnave and Greg Patmore.

Published byFlorence O’Connor’ Modified over 9 years ago

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Presentation on theme: "Co-operatives and Increased Competition in the Australian Supermarket Industry Nikola Balnave and Greg Patmore."— Presentation transcript:

1 Co-operatives and Increased Competition in the Australian Supermarket Industry Nikola Balnave and Greg Patmore

2 Overview ›(i) What are consumer co-operatives ›(ii) What has been the history in Australia ›(iii) What is the current situation? ›(iv) What are the future prospects? 2

3 Rochdale Consumer Co-operative http://upload.wikimedia.org/wikipedia/commons/7/76/ToadLane2009.jpg 3

4 (1) What are consumer co-operatives? ›(i) The Rochdale influence ›(ii) Two major challenges -Capitalisation -The limitation of shares -Business activities -Merger into larger co-operatives to aggregate capital (Italy) -Italian approach -CCU -National Co-operative Bank -Supply Chain Management -Wholesaling (CWS – 1864) -Co-op label ›(iii) Despite problems they prosper in a number of countries (e.g.. Italy, US – NGCA) 4

5 (2) History of Consumer Co-operatives in Australia ›Rochdale Consumer Co-operatives Brisbane 1859 ›Coalmining ›Adelaide/Newcastle ›Co-operative Wholesale Society ›Co-operative Federation of Australia (CFA) ›Conflict -Centralisation vs. local autonomy -Co-operative Women's Guilds ›Issues with farmers and unions ›Legal constraints ›Decline in post-war period (Collie, Newcastle and Suburban – 95,000 members) 5

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9 (3) What is the current situation? ›Supermarket domination by Coles/Woolworths ›Small number of original Rochdale co-ops survive (e.g.. Nuriootpa, Junee, Denmark – WA) -Outsider co-ops -Franchising (IGA) -Localism ›Transformational Co-ops ›New Food co-ops (Alfalfa House) ›Some positive recent developments (e.g.. Co-operative Food Group) 9

10 (4) What are the Future Prospects? ›The need for more competition in the Australian Supermarket industry ›Benefits of food co-operative sector -Sustaining local communities -Reinforcing democratic practices -Emphasis on good nutrition, health and environment through sale of local, sustainable and organic produce ›How to change things? -Education -Access to Capital (e.g.. US Rural Co-operative Development Grants) -Supply Chain Management (Trade Practices legislation) 10

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