This document provides an overview of co-op to co-op trade between smallholder producer co-ops in developing countries and consumer co-ops in developed countries. It conducted research through interviews and documents to examine current trade, identify opportunities and challenges, and provide recommendations. Major findings include that the 450 million smallholder farmers earn less than $600 annually and supply less than 10% of export value chains, while food co-ops in developed countries have over 80 million members but import less than 1% of products from smallholder co-ops. The document concludes there is excellent potential to dramatically increase this trade by 2020 if the international co-op community establishes strategies and objectives to promote co-op to co-op relationships and development

1. Coop to Coop Trade
Linking Smallholder
Producers in
Developing Countries
with
Consumer Co-ops in
Developed Countries
Prepared by E.G. Nadeau for
the U.S. Overseas Cooperative
Development Council

2. Purpose
• 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

3. Research
•
Interviews with approximately 40
people knowledgeable in
international co-op trade
•
Documentary & Internet research

4. Three Chapters
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

5. Major Findings
Small holder farmers
•
450 million
smallholder farmers
cultivate < 2 hectares
•
< 10% linked to export value
chains
Average annual income < $600
•

6. Major Findings
Retail food co-ops
•
80+ million food coop members in
developed countries
•
$150 billion in sales, less than 1%
from products imported from small
farmer co-ops

7. Major Findings
Retail food co-ops
•
•
U.K.’s The Co-operative Group very
involved, especially with fair-tradecertified products
Co-op Italia committed to fair-trade
products under Solidal Coop brand

8. Major Findings
Retail food co-ops
•
•
•
Some U.S. co-op to
co-op trade with fairtrade emphasis
Similar experience in
Canada
Limited involvement by food co-ops
in other developed nations

9. Major Findings
Retail food co-ops
•
Significant interest in
co-op to co-op trade
from consumer co-op
leaders, members

10. Major Findings
Fair trade
• Certification goal:
provide fair return
• 2011 fair-trade sales
worldwide: $7 billion
• Standards issues may
reduce trust in label

11. Major Findings
Producer co-ops
• Unaware of product
marketing through
consumer co-ops
• Key goals: decent,
stable prices,
trusted channels

12. Major Findings
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

13. 5 Case Studies
The Co-operative Group
• Beyond Fair Trade program helps
build capacity of producer co-ops in
fair-trade supply chain

14. 5 Case Studies
Coop Trading
• Owned by consumer
co-ops in Denmark,
Finland, Norway
• Sources environmentally friendly,
fair-trade products

15. 5 Case Studies
Smallholder project
• Grows non-GMO
soybeans in
Mozambique
• Initiated by Norwegian ag co-op,
Norwegian government

16. 5 Case Studies
‘Tower of labels’
• Challenges of
messages for food
co-op members
NCBA/CLUSA
• Long-term projects in Indonesia &
East Timor to promote smallholder
product exports

17. 3 Recommendations
#1
• 2014-2020 ICA campaign to
significantly increase co-op to co-op
trade

18. 3 Recommendations
#2
• Establishment of cooperative
development resource center by ICA,
co-op development organizations

19. 3 Recommendations
#3
• Develop strategies, measurable
objectives for co-op to co-op trade in
Blueprint for a Cooperative Decade

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