Co-ops are a way for farmers to work together to create and retain more value in food supply chains – making their businesses more productive, profitable and sustainable. Despite this , the number of farmer co-ops operating in the UK has fallen for the fifth successive year, down to 420 from a 2014 high of 445. The number of farmer owners overall is also in decline, with a drop of 2.6% to 142,999.

This trend is in stark contrast with our European neighbours and important farming nations further afield. The market share of the UK’s farming co-operatives, at just 6%, is a fraction of other European Union nations including Germany (45%) and France (55%).

Those nations with a stronger market share are experiencing stronger growth, with the United States Department of Agriculture reporting that the UK achieved an average annual growth in ‘total factor productivity’ of 0.8% from 2001 to 2012. This compares unfavourably with France (1.7%), Germany (1.8%) and the United States (2%) over the same period.

Defra recognises that the UK is significantly out of step with its international competitors and, following concerted lobbying efforts from Co-operatives UK and its farmer members, is supporting more collaboration in the sector.

The announcement of a £10 million government fund to support farmer co-operation arrived in early 2018 but more support is required to reverse the trend of declining farmer co-op numbers.

Case Study

For 400 years the Casswell family has farmed land in Sleaford, Lincolnshire. But without farmer-owned co-operatives the prospect of future generations continuing those farming traditions would be slim.

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James Casswell is both a tenant and contract farmer, with more than 3,000 acres of land, primarily used to harvest grain. He is one of 4,000 farmer owners of Openfield, the UK’s only national farming grain co-operative.

“Margins are pretty tight,” said James. “I’d see us really struggling (as a standalone farmer). Having Openfield working for me can be the difference between making a profit and making a loss. I always believed that we, the UK’s farmers, need to come together and that we’re stronger as a result of working together.”

Openfield markets approximately four million tonnes of grain a year and supplies some of the biggest and best-known names in the British food and drink manufacturing industry. It supplies its members with seed and fertiliser, provides grain storage, offers expert advice on marketing with complete transparency in the marketplace.