Cooperative federation

A co-operative federation or secondary co-operative is a co-operative in which all members are, in turn, co-operatives. Historically, these 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 Rochdale Principle, co-operation among co-operatives, with the ICA noting 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 CWS and the Scottish CWS, 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

see also: cooperative banking, Cooperative banking, Credit union, History of credit unions, European Association of Co-operative Banks (EACB)

• Austria's Raiffeisen Zentralbank is a Cooperative banking with many branches in eastern Europe.
• Germany's Volksbanken or Raiffeisenbank are cooperative banks.
• 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.

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 a strong co-operative sector, such as the UK, co-operatives may find it advantageous to form a parliamentary political party 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