Sharechat Logo

New Zealand's top 30 cooperatives generate sales of more than $40 billion

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.

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Govt raises GST threshold for online shopping
Exploration ban 'selfish, rich world' approach, MPs told
Mexico's Finaccess dangles 24% premium to buy control of Restaurant Brands
October 18th Morning Report
NZ dollar dips as growing concerns in Europe bolster greenback
MARKET CLOSE: NZ shares gain as A2 calms critics with strong sales
NZ dollar may extend rally on signs of gradual Fed rate increases
Larry Ellison's NZ yacht company key to America's Cup rival
Port of Tauranga eyes record $101mln 2019 profit on cargo growth
Marsden Maritime eyes benefits from upper North Island transport study

IRG See IRG research reports