Co-operatives in Canada (Situation - 2005)

Executive Summary

The 2005 statistics are based on survey results received from 5,714 non-financial co-operatives representing 5.9 million members, $27.7 billion in total revenues and $17.7 billion in assets. These co-operatives employed 87,716 people of which over 77 per cent were full-time employees, including wholesale co-operatives and federations. Of these co-operatives, 896 were agricultural, representing over 346,000 active memberships and employing close to 33,000 individuals with total revenues of $13 billion and assets of $5.3 billion.

The number of non-financial co-operatives reporting to the survey was down 1.1 per cent from 2004 and membership was up 5.1 per cent. Volume of business and employees were up 0.6 per cent and 0.3 per cent respectively. The total asset was also up by 1.1 per cent.

The number of agricultural co-operatives reporting declined slightly, with a 4.1 per cent decrease, and active memberships were down 4.6 per cent. Agricultural volume of business and assets were down 7.7 per cent and 5.7 per cent respectively. The total number of employees of agricultural co-operatives was also lower by 1.0 per cent.

Producer Co-operatives

Co-operatives play a crucial role in the agricultural sector of the Canadian economy, particularly in farm supply and in the processing and marketing of grains and oilseed, dairy products, poultry, fruits, vegetables, livestock, as well as honey and maple products.

Agricultural marketing co-operatives are, for the most part, modern enterprises that use the latest technology to process and add value to farm products. A few large co-operatives account for the largest part of total revenues, including Agropur and Gay Lea Foods in dairy, La Coop fédérée in meat and poultry processing and Exceldor in poultry slaughtering and processing. The 151 marketing co-operatives reporting represent a major economic force with a combined business volume of more than $8.2 billion and assets of $3.0 billion. In 2005, they marketed over $6.8 billion in agricultural products in Canada and abroad.

In 2005, it's the first year for which there are no longer grains and oilseeds sales from Saskatchewan Wheat Pool nor poultry sales from Lilydale as both co-operatives demutualized during the course of the year 2005.

The market share of agricultural marketing co-operatives is accentuated in the following areas: poultry and eggs (38%); dairy (40%); honey and maple (25%); and grains and oilseeds (8%) and livestock (18%).

In farm supply, co-operatives play an indispensable role in the provision of farm inputs. They provide member co-operatives and producers with a broad range of farm inputs including fertilizers and chemicals, animal feed, seed, building materials and petroleum products. The 216 supply co-operatives reported total revenues of $4.8 billion, up 9.5 per cent from 2004. In farm supply market share, the strongest areas are farm petroleum (52%), fertilizers and chemicals (13%), and animal feed (14%).

In 2005, it's the first year where there are no longer fertilizer and chemicals sales from Saskatchewan Wheat Pool cause by his demutualization as mentioned previously.

Eight of the top ten agricultural co-operatives in Canada are marketing organizations and two supply co-operative rounds out the Top 10.

There were 55 fishery co-operatives responding to the survey, one less than in 2004. They reported $251.7 million in revenues, a 5.8 per cent increase over 2004. Assets increased by 11.6 per cent to $95.5 million.

Production co-operatives include feeder, grazing, agricultural machinery, animal reproduction, forestry and handicraft co-operatives. The 603 production co-operatives responding to the survey reported a combined volume of business of $605.6 million. Those in Quebec accounted for over 65 per cent of the total volume of business. Quebec revenues were derived primarily from the sale of forest products. Quebec has the largest number of production co-operatives, with 204 organizations reporting. Management of feeder finance operations and grazing operations were the two main activities of production co-operatives, with 141 and 134 enterprises respectively, accounting for 45 per cent of all production co-operatives.

Consumer Co-operatives

At the local level, consumer co-operatives vary in size and sophistication, from small buying clubs, to large supermarket organizations and wholesalers. At these "conventional stores", sales are made in the usual manner and any "surplus" is returned at year's end based on patronage (the purchases of each member at their co-operative). Revenues from the consumer group amounted to $11.8 billion, with food products accounting for 37 per cent of the total and petroleum products, dry goods and home hardware being the other main items sold.

The 288 member co-operatives of Federated Co-operatives Limited had total revenues of $4.8 billion, placing them first in revenues of all non-financial co-operatives. The 109 member co-operatives of Co-op Atlantic had revenues of $564 million.

Calgary Co-op Association Ltd. is one of the largest retail co-operatives in North America. Their sales include food products, hardware, clothing, home furnishings, pharmaceuticals, petroleum products and building materials, as well as providing travel services.

Mountain Equipment Co-op (MEC), headquartered in Vancouver, British Columbia, specializes in the sale of equipment for outdoor activities. With 2.2 million members across Canada, it provides a catalogue sales service and operates eight stores outside British Columbia in Toronto, Ottawa, Calgary, Winnipeg, Edmonton, Quebec, Montreal and in Halifax.

Although not as large or influential, Quebec and Ontario consumer co-operatives are strong organizations, however, they have little penetration in large urban areas.

A diminishing number of consumer co-operatives operate as direct chargeco-operatives. In 2005, 16 of these co-ops reported to the survey, most of them located in Quebec. They reported revenues of $117.7 million, assets of $28.5 million and 20,626 members. The concept of the "direct charge" system is that goods are provided to members at cost and a weekly service fee is charged to cover operating costs.

Student supply co-operatives have gained a strong foothold, especially in Quebec, where 89 are active. These co-operatives reported a volume of business of nearly $154.8 million with over 521,113 members. They provide the various goods students may require from stationery to textbooks. Several student supply co-operatives operate cafeterias and offer driver education courses.

Service co-operatives make up the largest number of co-operatives in Canada and 4,167 responded to the survey, accounting for 73 per cent of all non-financial co-operatives. They reported a volume of business of $1.9 billion, a 1.1 per cent decrease from 2004.

The largest single area of co-operative activity in the service sector is housing where 2,202 co-operatives reported with assets of $5.5 billion and 115,197 members. In addition to housing co-operatives, which focus on providing housing to their members, there are other types of co-operatives that provide services related to housing and 68 reported to the survey. Most of them are co-operative housing resource groups involved with the development of emerging housing co-operatives. The concept of equity housing co-operatives which are involved with the management of common assets, exists only in British Columbia and Alberta as of 2005 and only six of these reported to the survey.

There are two types of child care co-operatives: daycare and nursery school. Daycare co-operatives are formed by parents to provide daytime care for their children while they are at work. Nursery school co-operatives are formed with an emphasis on education and social interaction but also provide the parents with time for other pursuits. Child care co-operatives are found in greatest numbers in Ontario, Saskatchewan and Manitoba. There are 387 daycare and nursery school co-operatives reporting revenues of $70.7 million having 34,089 members.

Health care co-operatives play an important role in many communities across Canada and 101 health care co-operatives reported to the survey with 77,469 members and revenues of $158.3 million. Home care co-ops are found mostly in Quebec where many incorporations of this type have taken place in the past few years. A total of 51 reported from across Canada for the 2005 survey. Home care co-ops provide care to mostly elderly people in their homes.

Community development co-operatives foster local leadership skills and grassroots participation in innovation and solving social and economic problems. While these co-operatives are found throughout Canada, most are in Saskatchewan. There were 300 development co-operatives reporting with 19,433 members, assets of $58 million and revenues of $56 million, an increase of 13.9 per cent from 2004.

Funeral co-operatives are located mostly in Quebec, although they have made some in-roads in the Maritimes, particularly in Prince Edward Island and New Brunswick. Fifty-five funeral co-operatives reported assets of $127 million.

Water supply co-operatives are found mainly in Alberta, Manitoba and Quebec and 160 responded to the survey.

Natural gas and rural electric co-operatives are found almost exclusively in Alberta where 62 of these co-operatives reported to the survey. Canada wide, 66 of these co-operatives reported memberships of 146,647 and assets of $479.9 million and revenues of $272.7 million.

Although recreational co-operatives are found in most provinces, they are most prevalent in the West, particularly in Saskatchewan. The 269 recreational co-operatives reporting were engaged in various activities, including the management of community centres, skating and curling rinks, golf courses, campgrounds and swimming pools.

A number of transportation and communication co-operatives are found throughout Canada. Of the 62 transportation co-ops reporting, most were freight co-ops and taxi co-ops. They had revenues of $90 million and assets of $60.2 million. In the past few years, car sharing co-operatives have been formed in large urban centres including Vancouver and Toronto, supplying their members with shared vehicles on a needs basis and saving members the high costs of owning an automobile ($9,000 average per year), reducing congestion and in turn reducing pollution. Most of the 99 communication co-ops reporting were of the radio TV/cable and editing and publishing type. They reported 93,767 members, revenues of $129.5 million and assets of $215.3 million.

Workers' Co-operatives

Workers' co-operatives are employee owned enterprises and most of these are located in the province of Quebec. Canada wide, 341 reported with a total of 13,310 members with revenues of $527 million and assets of $312 million. These co-operatives operate in a wide variety of fields, including forestry co-operatives which accounted for 58 per cent of the overall volume of business of workers' co-operatives in Canada, a total of $307.1 million.

In Quebec, the worker/shareholder co-operative type is included in these numbers. In this sort of co-operative, employees can form a co-operative to buy a block of shares in an existing business, thus enabling them to have a voice at the board of directors level. The increasing interest in workers' co-operatives reflects the determination of educated and informed people to have more control over their jobs and, consequently, their lives and communities. Worker co-operatives have also been identified as an option for business succession, particularly in rural and remote communities.

Another type of co-operative gaining in popularity in Quebec is the multi-stakeholder or solidarity co-operative. Membership is made up of different categories of partners: service users, employees and community organizations. Almost non-existent a few years ago, 147 multi-stakeholder co-operatives were incorporated in Quebec by 2005. Many provide home care services to seniors and people with minor health problems.

Financial Co-operatives

Credit Unions and Caisses populaires

Credit unions and caisses populaires operate in all the provinces and reported assets of $181.3 billion in 2005, an increase of 7.4 per cent over 2004. Quebec accounts for 47 per cent of all credit union and caisses populaires assets.

Co-operatives and Insurance Mutuals

This category, which encompasses sales of insurance by co-operative enterprises and mutual companies applying co-operative principles, includes some of the largest companies within Canada's insurance sector. Five insurance co-operatives and two insurance mutuals have over $33.5 billion in assets and provide services to policy holders that represent 11.9 million certificates and policies.

Please note that the complete report is available upon request by contacting the Co-operatives Secretariat by e-mail or by telephone at 613-759-7194.