In today's world, Cooperative federation has become a topic of great relevance and interest to both experts and the general public. Since ancient times, Cooperative federation has captured the attention of humanity and has been the subject of countless research, debates and reflections. Its influence extends to various areas, from politics to culture, including science and technology. In this article, we will explore in detail the different dimensions and facets of Cooperative federation, analyzing its importance and impact on today's society.
A co-operative federation or secondary co-operative is a co-operative in which all members are, in turn, co-operatives. Historically, co-operative federations 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 Co-operative Principle, co-operation among co-operatives. The International Co-operative Alliance notes that “Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.”
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 and Scottish Co-operative Wholesale Societies, which were the forerunners to the modern Co-operative Group.
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.
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.
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In some countries with strong co-operative sectors, such as the UK, co-operatives have organized parliamentary political parties to represent their interests. The British Co-operative Party is an example of such an arrangement.
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.
A secondary co-operative is a co-operative business democratically controlled by its members, all of whom are themselves co-operatives and share certain aims or values in common. The secondary co-operative can be a way for these co-operatives to do things that help achieve their aims that they would not be able to do by themselves. Secondary co-operatives have been used in a number of sectors already – Credit Unions, Housing Co-operatives and Social Change Co-operatives for example.