Co-operation helps drive turnover to record £2bn

TRADITIONAL opinion has it that farmers operate as individuals and work against their neighbours, but the latest figures on Scottish co-operatives tell a different story.

James Graham, chief executive of SAOS, the Scottish umbrella organisation for farm co-operatives, said two-thirds of all farm businesses work with others, a far higher percentage than in any other sector in small and medium-sized businesses.

The scale of co-operation is vast, with the top ten SAOS member co-operatives posting a record throughput of almost 2 billion last year – 20 per cent up on the previous top level.

In total, SAOS has 75 farmer-owned co-operative members in this its 105th year in operation. Speaking at the annual meeting this week, chairman David Mitchell said the record turnover figures had been achieved despite a difficult economic climate.

"In a tough year, many SAOS members performed especially well, signalling farmers' confidence in their co-ops and the strength of the benefits they deliver," he said.

Mitchell cited a number of instances where co-op members were looking forward positively: "Aberdeen Grain opened the first phase of their new drying and storage facility at Whiterashes; East of Scotland Farmers marked their 50th year of trading; Tarff Valley posted a record turnover and opened a new retail warehouse near Dumfries; and First Milk announced plans for a new creamery in Campbeltown."

Mitchell accepted that life had been especially challenging for members in the milk and red meat processing sectors, but said it was evident that their directors and managers had responded to the pressures and had taken decisive action.

Co-ops are also increasingly using the expertise and advice available from SAOS. Graham said: "More co-op boards than ever before asked SAOS to help them review and formulate their strategies during the year.

"This shows the forward-thinking nature of our member businesses, and also that our specialist services remain highly valued by members .

"A survey carried out last year showed that SAOS was cited as the main source of advice by 72 per cent of our members."

In his comment on the annual SAOS figures, Richard Lochhead, the minister for rural affairs and the environment, said the Scottish Government was a strong supporter of farmers' co-operatives and the various initiatives being driven by the organisation.

"Our joint working on farming, food and drink, and climate change is clearly reaping rewards," he said.

"I congratulate SAOS on the progress that has been made over the last year, and welcome the organisation's continuing contribution.

"There remain many significant opportunities within the food and drink supply chain to improve profitability and sustainability, and I look forward to delivering these together over the coming months."