South Hams Dairy Co-operative - buying into a good idea

Two of the main advantages for many co-ops around the world are the benefits of joint-purchasing of supplies and the ability to trade more effectively. This can be particularly true within struggling markets in developing parts of the world but also much closer to home, such as the UK's farming community. There are many examples of agricultural co-operatives in the South West. One is the South Hams Dairy Co-operative, established in 1986 with 15 members, primarily to collectively buy animal feed.

There is strength in numbers: a group of farmers working together is more likely to be able to negotiate prices and deals with suppliers of feed than a farmer operating alone, especially in the event of sudden commodity price increases due to poor harvests, for example. Membership of the South Hams Co-operative has now grown to 21 dairy farmers with herds ranging from 40 cows up to more than 700, including Riverford Organics. Members pay an annual fee plus a small commission on turnover each month, which covers their running costs. The co-op meets once a month and each member has responsibility for individual tasks, but all share allegience to their three main founding principles: commitment; confidentiality and credibility.

"Everything we need for our business in terms of supplies and services can largely be sourced via the co-op", says the current Chair Gaynor Wellwood, who with her husband Kieran manage a 100-cow herd. But bulk buying isn't the only benefit. Others include benchmarking exercises to encourage producers to look at profitability of their businesses year on year and improve systems, three or four farm walks a year are held on members farms and also on farms of other co-operatives' members in Devon. Training has become increasingly important over the years. The South Hams Co-operative is now described as 50% buyer and 50% a knowledge transfer group. But Gaynor adds that the real bonus, apart from the savings which can be made across businesses, is the camaraderie: "There is a huge support structure in place which means members don't feel so isolated. It helps to get out and talk about a situation, see what other milk producers are doing and how the co-op can help its members to cope with the challenges within the dairy industry."

Co-operatives across the movement, all over the world would agree with that.