Linking Smallholder Producers in Developing Countries withConsumer Co-ops in Developed Countries

Coop to Coop Trade

Prepared by E.G. Nadeau for the U.S. Overseas Cooperative Development Council

• Conduct overview of co-op to co-op trade focusing on food products from co-ops of small-scale producers

• Draw lessons, make recommendations for growing trade

• Help develop objectives for Blueprint for the Cooperative Decade

Purpose

• Interviews with approximately 40 people knowledgeable in international co-op trade

• Documentary & Internet research

Research

1. Overview of international co-op to co-op food trade

2. Five international trade case studies

3. Recommendations for future co-op to co-op trade

Three Chapters

Small holder farmers

• 450 million smallholder farmers cultivate < 2 hectares

Major Findings

• < 10% linked to export value chains

• Average annual income < $600

Retail food co-ops

• 80+ million food co-op members in developed countries

Major Findings

• $150 billion in sales, less than 1% from products imported from small farmer co-ops

Retail food co-ops

• U.K.’s The Co-operative Group very involved, especially with fair-trade-certified products

• Co-op Italia committed to fair-trade products under Solidal Coop brand

Major Findings

Retail food co-ops

• Some U.S. co-op to co-op trade with fair-trade emphasis

• Similar experience in Canada

Major Findings

• Limited involvement by food co-ops in other developed nations

Retail food co-ops

• Significant interest in co-op to co-op trade from consumer co-op leaders, members

Major Findings

Fair trade• Certification goal:

provide fair return• 2011 fair-trade sales

worldwide: $7 billion• Standards issues may

reduce trust in label

Major Findings

Producer co-ops• Unaware of product

marketing through consumer co-ops

Major Findings

• Key goals: decent, stable prices, trusted channels

Co-op development organizations• Small number provide assistance to

smallholder ag co-ops• Even smaller number promote, assist

with co-op to co-op trade

Major Findings

The Co-operative Group• Beyond Fair Trade program helps

build capacity of producer co-ops in fair-trade supply chain

5 Case Studies

Coop Trading• Owned by consumer

co-ops in Denmark, Finland, Norway

5 Case Studies

• Sources environmentally friendly, fair-trade products

Smallholder project• Grows non-GMO

soybeans in Mozambique

5 Case Studies

• Initiated by Norwegian ag co-op, Norwegian government

‘Tower of labels’• Challenges of

messages for food co-op members

5 Case Studies

NCBA/CLUSA• Long-term projects in Indonesia &

East Timor to promote smallholder product exports

#1• 2014-2020 ICA campaign to

significantly increase co-op to co-op trade

3 Recommendations

#2• Establishment of cooperative

development resource center by ICA, co-op development organizations

3 Recommendations

#3• Develop strategies, measurable

objectives for co-op to co-op trade in Blueprint for a Cooperative Decade

3 Recommendations

Excellent potential for international co-op community to dramatically increase co-op to co-op trade by 2020

Conclusion