Tuesday 24th January 2017
|Text too small?|
New Zealand's top 30 cooperatives contribute more than $42.3 billion per annum to the economy in revenue, a new report has found.
The report, by industry body Cooperative Business New Zealand and researchers from Massey University and Auckland University, shows the top cooperatives and mutuals have a revenue-to-gross domestic product ratio of 17.5 percent. The data "confirms the importance of the cooperative business model to New Zealand as a country," said Cooperative Business chief executive Craig Presland. A total of 1.4 million New Zealanders are members of cooperatives.
Led by dairy giant Fonterra Cooperative Group, the agri-food sector generates 65.2 percent of that revenue, holds 67.6 percent of assets and employs 82.8 percent of the 48,500 people employed by cooperatives. Fonterra alone has revenue of $18.8 billion. Fonterra is followed by the two regional Foodstuffs cooperatives and Silver Fern Farms.
The next largest sector by revenue is retail and wholesale, which accounts for 30.3 percent of the revenue.
When the authors of the report compared New Zealand to other countries they found the agri-food and retail and wholesale sector account for twice as much of New Zealand's cooperative economy compared to the top 300 in the world and three times that of Australia's top 100 cooperatives.
"We expected the agrifoods sector would be important but we were surprised to find it is twice as much as the global situation," said lead researcher Elena Garnevska of Massey University.
The reverse was true for the insurance, banking and finance sectors. Globally, the sector accounts for 45 percent of revenue in the cooperative economy but in New Zealand, it is only 3.4 percent.
Given the importance of the cooperatives to the economy, the authors of the report are calling for more research to look at the sustainability of the model and map long-term trends and cycles.
No comments yet
NZ farm sales fall 11% in March quarter as mycoplasma bovis keeps farmers nervous
NXT-listed QEX Logistics says annual gross margins wider than anticipated
High Court orders Forestlands IRD debt can be paid from $18M funds in trust; liquidation sought by FMA
April 23rd Morning Report
NZ dollar falls near 72 US cts as growing inflationary pressures drive up US Treasury yields
World Week Ahead: Gearing up for tech earnings
MARKET CLOSE: NZ shares fall as MSCI changes debated, Mercury falls, Fletcher gains
NZ dollar heads for 1.6% weekly fall as greenback finds favour on rate hike view
FMA keeping close tabs on Australian Royal Commission as AMP chief Meller departs
NZ's R&D tax incentive plan viewed as positive by business