Advantages of co-operation

Nobody truly knows what 2017 and the years that follow will hold, even more so now with the uncertainty caused by the June 2016 referendum on EU membership and the suggestions of Indyref 2.

The vote to leave the EU for many in the Scottish agricultural sector was a seen as a way to get free of the 'red tape' imposed upon us.

But will this be the result? Will we get the deal the UK government hopes for or will the 27 EU countries make an example of us to prevent others following suit?

Will Scotland benefit any or will more red tape be imposed from a closer headquarters?

Prices received by us all post Brexit have certainly been in our favour with the weak pound discouraging the more expensive imports, this increasing the household consumption of home grown and reared produce.

There’s certainly a long way to go yet to get more Scottish product in many of the larger supermarkets throughout the country but progress is being made.

Quality Meat Scotland and NFUS have been working with Aldi to promote local produce throughout their stores.

There is no reason why other supermarkets couldn’t follow suit and promote our produce. I’m sure I’m not the only one that gets annoyed when in a supermarket and under a 'Scottish' banner in the meat isle you find a product imported from New Zealand or some other country.

So, what better way to market our fully traceable, farm assured produce than through a marketing co-operative?

There are around 70 farm cooperatives operating throughout Scotland, all providing a service and working to achieve the best returns possible for their members.

The main purpose of a co-operative is to add value to its members' businesses through the use of its facilities and services.

The collaboration enables the co-operatives to achieve maximum potential with economies of scale and diverse marketing knowledge. Both of which are probably far beyond that of individual producers marketing on their own.

There is no doubt in my mind that we are all better off working together as producers and processors to get as much out of our end product as possible.

Be it from pork to lamb or cereals to shell fish, there is a wide range of co-ops covering the width and breadth of our country.

No matter what size of operation you run, be it 20 pigs a week, or 1000 tonnes of grain during harvest, think of being a part of 10,500 pigs per week or 65,000 tonnes of grain, each member in a co-operative has an equal say.

The size of the business can’t be taken into account, co-operatives can only class themselves as such if each member has an equal say.

The larger volumes handled by co-operatives reduces expenses incurred and the volume they are handling means they are more likely than the individual to receive a premium.

Successful co-operatives not only have the same common goals amongst their membership, they also have ambition and drive with democracy and accountability and good leadership amongst the members, directors and staff, and a commitment to high standards of governance ensuring the service required is provided.

The 2016 SAOS annual report showed the top 50 co-operatives had a membership of 49,446 with a turnover of £4.9b.

Producers are not the only ones to benefit from co-operatives. With the larger number of producers all working together the processors' and retailers' lives are also made easier.

One phone call to the co-operative and their requirements for the next day or week can be sorted, rather than phoning 10 or 100 different producers.

Meat processors, for example, would be all too familiar with producers calling to query grades or complain about the price or payment terms. Working through a co-operative means all the hassle is taken away from the processor.

Good working relationships can also be forged between the processor and co-operative. Disagreements do happen, but can be put to the side quickly.

Scottish Pig Producers is one example of a farmer owned marketing co-operative based in Huntly.

With around 110 members throughout Scotland and Northern Ireland, SPP is an essential part of the pork supply chain both sides of the Irish sea. The co-operatives turnover is circa £58m. Founded in 1979, formerly Grampian Pig Producers, it was established with a focus on providing a quality service to its members and processors alike, something that still stands to this day.

SPP plays a leading role in industry innovations such as Wholesome Pigs (Scotland) Ltd (WPS) and the Scottish Pig Disease Control Centre (SPDCC). Both of which not only benefit the membership but all pig keepers and producers in Scotland.

With 110 like-minded producers working together, each with the same goals, the co-operative benefits each and every one of them.

Market and financial security, fast payment, scheduling, haulage and licences all arranged same day feedback after slaughter and all producers sharing best practice.

There’s something we can all gain from being part of a co-operative in Scotland or further afield so why not get involved in one that can positively impact your business and see the difference it can make.