The role of agricultural co-ops in driving change supporting the climate challenge

The focus of this project is researching the role agricultural co-ops (member-owned organizations) play in driving change in their networks with a focus on helping their farmer members address the climate challenge. Education and effective knowledge transfer are a key pillar and one of the seven principles of co-operation in co-op enterprises.



SAOS believe addressing the climate emergency is too large a challenge for any one business to tackle alone, especially SMEs. And that Scotland's strong agricultural co-ops can be an effective solution to coordinating meaningful change whilst remaining competitive via highly effective co-op farmer member networks.



The co-op model presents a huge opportunity to support farmers address barriers such as limited time and capital, technical change, and information asymmetries. Action to deliver both economic and environmental gains become progressively more difficult as the industry advances through 'easy wins' and lower cost solutions. This highlights the value of a more collaborative approach between farmers, to support for example, the adoption and development of new technology or commitment to more capital-intensive investments. Arguably one of the key roles co-ops provide is the leadership to facilitate and actualize change. For example, the investment by Aberdeen Grain in large-scale biomass driers to decarbon the drying of malting barley grain.



That said, the co-op business model is not well understood in Scotland or the wider UK, despite their long history as a business model, founded in the principles of mutual support, democracy and shared economic benefits. Apart from the commercial returns from being a member, co-ops seek to build social capital and enhance skills that can be vital in building resilience and strengthening rural communities, whilst remaining competitive.