Co-operate to grow Fife economy

FIFE'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 is urging local entrepreneurs throughout Fife 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. It is widely recognised that a combination of shared ownership and employee participation delivers superior business performance and sustainability.

In Fife, local success stories include Fife Farmers Market and employee-owned paper and board manufacturer Tullis Russell.

Fife Farmers' Market, a co-operative of local producers formed in 2001, turns over around £750,000 a year from 47 farmers' markets across Kirkcaldy, St Andrews, Cupar and Dunfermline.

The 16 members include Puddledub Pork and Fifeshire Bacon, Fletchers of Auchtermuchty (venison), Hudson's Home Baking, Kilduncan Eggs and Bellfield Organics (vegetables). 

Tom Mitchell, Chairman, said: "A co-operative framework is the best one, because it means there is a committed band of producers who can then work together to build a band of consumers."

When Tullis Russell completed its employee buyout in 1994, productivity was 90,000 tons a year with 950 employees. Today it is producing 150,000 tons with 560 employees - equivalent to a 185% increase.

"We have been able to realise that increase in productivity because of employee ownership and our special structure", explained Tullis Russell chief executive Chris Parr.  "Because our employees are the shareholders in the business, rather than outside investors, they are more engaged and productive as a result. That makes a big difference to Tullis Russell."

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/