Transcript Co-operatives and Increased Competition in the Australian Supermarket Industry

Co-operatives and Increased Competition in the
Australian Supermarket Industry
Nikola Balnave and Greg Patmore
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
Rochdale Consumer Co-operative
http://upload.wikimedia.org/wikipedia/commons/7/76/ToadLane2009.jpg
3
(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
(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
(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
(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