Co-operate to grow Argyll economy

ARGYLL'S economy would grow significantly if there were more co-operative and employee owned companies, according to Co-operative Development Scotland.

The Scottish Enterprise subsidiary, which works in partnership with Highlands & Islands Enterprise, is urging local entrepreneurs throughout Argyll and the Islands to explore co-ownership as part of the UK's first Co-operatives Fortnight from 19 June to 3 July.

Co-operative and employee owned business models are attracting increasing interest from businesses and policymakers across the UK seeking more productive and profitable ways of working. Research suggests a combination of shared ownership and employee participation delivers superior business performance and sustainability.

In Argyll, local success stories include employee owned Loch Fyne Oysters and Argyll Food Producers, a co-operative of nine local food producers who sell their products as ready-to-eat food at events under the ‘Food from Argyll’ banner.

"Employee ownership helps the local economy by anchoring businesses in the region and providing stability through succession," explains Loch Fyne Chief Executive Bruce Davidson, who is also member of the CDS Advisory Board.

"Selling to a competitor or a management buyout are not the only ways for the owner to exit the business. There is always a fear at these times that the company could be bought by a buyer from elsewhere and disappear from the region. An employee buyout is an effective way of avoiding that and of attracting people back into rural areas, while ensuring that the owner receives a fair price for the business."

The members of Argyll Food Producers include Bumble, a maker of hand-made puddings; Winston Churchill Wild Venison, a venison gamekeeper and producer and Ifferdale Lamb, a beef and lamb producer.

"The members all saw the co-operative as an opportunity to get into a market that would be really hard to crack on their own," says co-ordinator Fergus Younger, also CDS Advisory Board member. "With events, there is always an element of uncertainty, however turnover has grown year-on-year and it has become increasingly profitable as members focus on the correct events and refine their operations."

CDS promotes co-operative and employee owned enterprise across Scotland and is widely supporting Co-operatives Fortnight.

The initiative is organised by Co-operatives UK, the membership organisation for co-operative enterprise, and will promote co-operative business models with the theme – There is an Alternative – and a website – http://www.thereisanalternative.coop/

For more information, please contact Victoria Masterson on 07733 301715 or Ian Spinney on 07973 671773.

About CDS

CDS is a wholly-owned subsidiary of Scottish Enterprise. The organisation was established by the Scottish Government to promote and support the development of co-operative and employee owned business models throughout Scotland. CDS supports the remit of Scottish Enterprise, Highlands & Islands Enterprise and Business Gateway. A specific focus is on growth industries, including food and drink, renewable energy, forestry and tourism. Co-operative business models have a major role to play in the growth of these sectors. 

CDS has its own Advisory Board comprising industry representatives and co-operative experts.  By working closely with key partners, CDS aims to demonstrate the improved productivity, sustainability and community benefits that co-operative models can offer. Its remit is to:

• Raise awareness of co-operative business models
• Help new and existing co-operatives to grow
• Develop markets for co-operative businesses

Some of Scotland's best-known co-operative and employee owned businesses include Tullis Russell, Loch Fyne Oysters, Highland Home Carers, First Milk, John Lewis Partnership, The Co-operative Group and Scotmid.

www.cdscotland.co.uk/