Exploring the Co-Operative Economy

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Exploring the Co-Operative Economy EXPLORING THE CO-OPERATIVE ECONOMY REPORT 2016 www.monitor.coop THE WORLD CO-OPERATIVE MONITOR IS AN ALLIANCE INITIATIVE WITH THE SCIENTIFIC SUPPORT OF EURICSE THE 2016 WORLD CO-OPERATIVE MONITOR EXPLORING THE CO-OPERATIVE ECONOMY Strength and Impact Welcome to the 2016 World Co-operative Monitor Report report, will render this report an even more valuable tool for produced in partnership by the International Co-operative co-operatives, policy-makers, and researchers alike. Alliance (the Alliance) and the European Research Institute on Cooperative and Social Enterprises (Euricse). Now in In addition, working with Consumer Co-operatives its fifth year, the World Co-operative Monitor remains the Worldwide, a sectoral organisation of the Alliance, this only project of its kind, collecting and analysing data on year we bring you a special look at consumer co-operatives the world’s largest co-operative and mutual organisations. within the Wholesale and Retail Trade sector. Our aim is to MADE POSSIBLE BY THE SUPPORT OF OUR ORGANISATIONAL PARTNERS In these years, the report has been used for policy-making, provide readers some insight beyond the numbers into the advocacy, research, and awareness raising. With the growth important contributions these types of co-operatives can in the statistical database and the ever increasing use of make both socially and economically. the co-operative marque and .coop domain, co-operatives now have strong tools for measurement and helping those Much appreciation goes to all the many contributors to this outside the movement understand the importance and year’s report, in particular those co-operative and mutual weight of the movement on a global scale. organisations that took the time to contribute their data, and to our sponsors, who continue to provide valuable support for We are very pleased to introduce a new feature in this the project. Thank you as well to the FAO for the feedback on year’s Monitor: a chapter dedicated to exploring co- the new capital chapter. We are also grateful to federations, operative capital. The work expands on previous research sectoral organisations and all those who help promote the commissioned by the Alliance and focuses on the initiative and share data. organisations (co-operatives, mutuals, and businesses controlled by co-operatives) present in the Top 300 ranking We are very proud of the work we have built together over of this edition of the Monitor. We hope that this new feature, the past five years and hope you will join our efforts to along with the sectoral and global data found within the continually enhance and develop this valuable research! The Alliance Director-General Euricse Secretary General For information contact www.monitor.coop Charles Gould Gianluca Salvatori [email protected] THE WORLD CO-OPERATIVE MONITOR: 5 YEARS AND COUNTING 02 2016 DATABASE 04 KEY FIGURES 2016 06 THE TOP 10 08 TURNOVER OVER GROSS DOMESTIC PRODUCT (GDP) PER CAPITA RANKINGS 09 INDEX THE CAPITAL STRUCTURE OF CO-OPERATIVE FIRMS 10 RANKINGS 24 AGRICULTURE AND FOOD INDUSTRIES 26 INTERVIEW WITH FAO CHIEF STATISTICIAN PIETRO GENNARI 28 WHOLESALE AND RETAIL TRADE 30 WHAT ARE CONSUMER CO-OPERATIVES? 31 CONSUMER CO-OPERATIVE STORIES 34 INTERVIEW WITH PRESIDENT OF CCW PETAR STEFANOV 42 INDUSTRY AND UTILITIES 44 HEALTH AND SOCIAL CARE 46 OTHER SERVICES 48 BANKING AND FINANCIAL SERVICES 50 INSURANCE CO-OPERATIVES AND MUTUALS 52 TEAM AND STEERING COMMITTEE 54 ACKNOWLEDGEMENTS 54 PROMOTERS 58 ORGANISATIONAL PARTNERS 59 NEW THIS YEAR APPENDIX 1. METHODOLOGY AND DATA SOURCES 60 ANALYSIS OF THE CAPITAL APPENDIX 2. ORGANISATIONS THAT SUBMITTED THE WORLD CO-OPERATIVE MONITOR QUESTIONNAIRE 68 STRUCTURE OF THE TOP 300 APPENDIX 3. TOP 300: RANKING AND CAPITAL INDEXES 74 THE 300 LARGEST CO-OPERATIVE AND MUTUAL ORGANISATIONS BY TURNOVER 74 P. 10 INDEX TABLES 88 5 YEARS AND COUNTING C APITAL TION y Polic 100 ml TOP 300 n 42% 387.0 $ 26% 42 1,420 2,345.67 $ 5.0 % % 23% BUILDING ON A STRONG FOUNDA 2 3 THE WORLD CO-OPERATIVE MONITOR: EXPLORING THE CO-OPERATIVE ECONOMY | REPORT 2016 THE WORLD CO-OPERATIVE MONITOR: EXPLORING THE CO-OPERATIVE ECONOMY | REPORT 2016 THE WORLD CO-OPERATIVE as e ic op ica Pacific r r r - e t f t t u t o MONITOR 2016 DATABASE o o o A t t t t a m E a a a a i l l l l A s 501 1623 12 A 234 Total co-operatives by continent a a b ab ab b o o o o v v v v and number of co-operatives e e e e 1 1 1 1 0 0 0 0 0 0 0 0 with turnover above 100 mln. USD m m m 407 875 5 m 133 l l l l n n n n . KEY FIGURES 2,370 co-operatives across 63 countries 2016 1% DATABASE 22% 16% 14% 9% 7% 6% The 2016 edition of the World Co-operative Monitor reports The types of co-operative organisations subject to analysis are: 26% on data pertaining to the year 2014. • Co-operative • Mutual Data is collected from various sources, including: • Co-operative of co-operatives/mutuals 1,420 co-operatives with mln. USD turnover + 100 • World Co-operative Monitor questionnaire • Co-operative group Across 52 countries • National rankings • Co-operative network • Sector rankings • Non-co-operative enterprise controlled by co-operatives • Existing databases containing financial data • Annual reports 3% 5% 2% 6% 0% OVER 100 MLN. 30% 34% 19% 22016016 300 co-operatives 2,533.1 billion USD Across 25 countries Turnover in 2014 2015 DATABASE Turnover (excluding banking and insurance sectors) 1,125.3 billion USD 2014 OVER 100 MLN. $ Total banking income 387.0 billion USD TOP 300 TOP 300 2013 Total insurance co-ops and mutuals premium income 1,020.8 billion USD 2012 32% 39% 6% 19% 1% 1% 2% 0% For more details on the World Co-operative Monitor methodology see Appendix 1 or read the complete paper available Agriculture Insurance Banking Wholesale Other Health Industry Other at www.monitor.coop. and food and financial and retail services and social activities industries services trade care 6 7 THE WORLD CO-OPERATIVE MONITOR: EXPLORING THE CO-OPERATIVE ECONOMY | REPORT 2016 THE WORLD CO-OPERATIVE MONITOR: EXPLORING THE CO-OPERATIVE ECONOMY | REPORT 2016 THE TOP 10 TURNOVER OVER GROSS DOMESTIC PRODUCT (GDP) PER CAPITA RANKINGS BY TURNOVER 2014 BY TURNOVER/GDP PER CAPITA 2014 The World Co-operative Monitor rankings based on the ratio of turnover over GDP per capita relate the turnover of the co- GROUPE CREDIT AGRICOLE NH NONGHYUP operative organisation to the wealth of the country in which it operates. This ratio gives a better understanding the turnover of 1 (France) 1 (Republic of Korea) a co-operative relative to the purchasing power of an economy. 2 BVR (Germany) 2 IFFCO (India) Compared with the Top 300 ranking based on turnover, the Top 300 ranking based on turnover over GDP per capita has: GROUPE CREDIT AGRICOLE GROUPE BPCE (France) 3 3 (France) 11 NH NONGHYUP 4 4 UNIMED DO BRASIL (Brazil) (Republic of Korea) 6 ADDITIONAL ADDITIONAL COUNTRIES 3 CO-OPERATIVES ADDITIONAL 5 STATE FARM (USA) 5 GROUPE BPCE (France) MALAYSIAN FROM ASIA Argentina, Bolivia, China, Colombia, AND PACIFIC Czech Republic, Indonesia, CO-OPERATIVES 6 KAISER PERMANENTE (USA) 6 ZENKYOREN (Japan) Kenya, Philippines, Poland, South Africa, Turkey 7 ACDLEC - E.LECLERC (France) 7 BVR (Germany) 8 GROUPE CREDIT MUTUEL (France) 8 ACDLEC - E.LECLERC (France) 5 2 3 9 REWE GROUP (Germany) 9 GROUPE CREDIT MUTUEL (France) ADDITIONAL CO-OPERATIVES ENTER BRAZILIAN FROM AFRICA IN THE TOP 10 CO-OPERATIVES 10 ZENKYOREN (Japan) 10 ZEN-NOH (Japan) UNIMED DO BRASIL, IFFCO, ZEN-NOH The complete Top 300 ranking by turnover: p. 74 To see the complete rankings utilizing the ratio of turnover over GDP per capita please visit www.monitor.coop. 8 9 THE WORLD CO-OPERATIVE MONITOR: EXPLORING THE CO-OPERATIVE ECONOMY | REPORT 2016 THE WORLD CO-OPERATIVE MONITOR: EXPLORING THE CO-OPERATIVE ECONOMY | REPORT 2016 THE CAPITAL STRUCTURE NUMBER OF CO-OPERATIVES BY SECTOR AND REGION OF CO-OPERATIVE FIRMS 49 9 38 28 4 European region Professor Flavio Bazzana, University of Trento 14 5 39 7 2 Americas region 8 2 9 7 Capital structure is one of the most important and widely their own money and it has its own resources to pay back the discussed issues in corporate finance. In the seminal work of loan. The higher is the equity capital, the more deserving is Asia and the Pacific the Nobel Prize winners Modigliani and Miller in 1958, the the loan. Obtaining outside equities necessary for expanding two authors argue that the decision of the capital structure in business operations and remaining competitive is viewed as Agriculture and food industries Banking and financial services Insurance Wholesale and retail trade Other a financial world without cost and frictions does not modify more challenging for co-operatives for the following reasons: the value of the firm. But, in a real financial market there are first, financing a co-operative using this method is dependent transaction costs, taxes, bankruptcy costs – the presence on the laws of each country; second, the democratic voting of which have an impact on the value of the firm and of the mechanism, not related to the number of shares, discourages GENERAL ANALYSIS BY CAPITAL COMPOSITION decision on capital structure. In both cases – in an ideal capital investors; third, co-operative businesses are less financial market, and in a real financial market with frictions attractive to investors given the forecast on future returns. – the results in terms of capital structure depend on rational This chapter, a follow-up to the Survey on Co-operative The simplest comparison across countries and sectors require a higher level of debt compared to equity for normal choices made by bondholders and shareholders.
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