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A co-operative federation or secondary co-operative is a
co-operative A cooperative (also known as co-operative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-control ...
in which all members are, in turn, co-operatives. Historically, co-operative federations have predominantly come in the form of co-operative wholesale societies and co-operative unions. Gide, Charles; as translated from French by the Co-operative Reference Library, Dublin, ''Consumers' Co-operative Societies'', Manchester: The Co-operative Union Limited, 1921, p. 122, Co-operative federations are a means through which co-operatives can fulfill the sixth Co-operative Principle, co-operation among co-operatives. The International Co-operative Alliance notes that ''“Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.”''


Retail

According to co-operative economist Charles Gide, the aim of a co-operative wholesale society, which is owned by retail
consumer co-operative A consumers' co-operative is an business, enterprise owned by consumers and managed democracy, democratically and that aims at fulfilling the needs and aspirations of its members. Such co-operatives operate within the market economy, market system ...
s, is to arrange "bulk purchases, and, if possible, organise production". The best historical examples of this were the English and Scottish Co-operative Wholesale Societies, which were the forerunners to the modern
Co-operative Group Co-operative Group Limited, trading as Co-op, is a British consumer co-operative with a group of retail businesses including food retail, wholesale, e-pharmacy, insurance and legal services, and funeral care. The Co-operative Group has over ...
.


Co-operative union

A second common form of co-operative federation is a co-operative union, whose objective (according to Gide) is “to develop the spirit of solidarity among societies and... in a word, to exercise the functions of a government whose authority, it is needless to say, is purely moral.”
Co-operatives UK Co-operatives UK is a British co-operative federation described as "the central membership organisation for co-operative enterprise throughout the UK". It was founded in 1870 as the Co-operative Central Board, changing its name to the Co-oper ...
and the International Co-operative Alliance are examples of such arrangements.


Banking

* Austria's
Raiffeisen Zentralbank Raiffeisen Zentralbank Österreich A.G. was the central institution of the Raiffeisen Banking Group Austria (RBG). The central bank was merged with its subsidiary Raiffeisen Bank International in 2017. It functions as the group centre for the ...
is a
cooperative bank Cooperative banking is retail and commercial banking organized on a cooperative basis. Cooperative banking institutions take deposits and lend money in most parts of the world. Cooperative banking, as discussed here, includes retail banking car ...
with many branches in eastern Europe. * Germany's
Volksbanken The German Cooperative Financial Group, german: Genossenschaftliche FinanzGruppe Volksbanken Raiffeisenbanken, sometimes referred to in English as "Volksbanken Raiffeisenbanken Cooperative Financial Network", is a major cooperative banking network ...
or Raiffeisenbank are cooperative banks. * France's
Crédit Agricole Crédit Agricole Group (), sometimes called La banque verte ( en, The green bank) due to its historical ties to farming, is a French international banking group and the world's largest cooperative financial institution. It is France's second lar ...
is a multi-tiered network of primary and secondary co-operatives and hybrid co-operatives. * In the UK, The Co-operative Bank is a joint-stock
retail Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and th ...
and
commercial bank A commercial bank is a financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment to make profit. It can also refer to a bank, or a division of a large bank, which deals with co ...
, whose stock is wholly owned by
The Co-operative Group Co-operative Group Limited, trading as Co-op, is a British consumer co-operative with a group of retail businesses including food retail, wholesale, e-pharmacy, insurance and legal services, and funeral care. The Co-operative Group has over ...
, a hybrid primary and secondary co-operative. * In the US,
credit union A credit union, a type of financial institution similar to a commercial bank, is a member-owned nonprofit financial cooperative. Credit unions generally provide services to members similar to retail banks, including deposit accounts, provision ...
s co-operatively own
payment network A payment system is any system used to settle financial transactions through the transfer of monetary value. This includes the institutions, instruments, people, rules, procedures, standards, and technologies that make its exchange possible.Biago ...
s and
financial adviser A financial adviser or financial advisor is a professional who provides financial services to clients based on their financial situation. In many countries, financial advisors must complete specific training and be registered with a regulatory ...
s. * In South Korea,
National Agricultural Cooperative Federation The South Korean National Agricultural Cooperative Federation (initialized as NH (in Korean, derived from NongHyup) or NACF) was established in 1961 to enhance the social and economic status of its membership and to promote a balanced developmen ...
is a multi-purpose agricultural cooperatives' federation. * Mexico
Caja Popular Mexicana
a, Loan and savings cooperative with more than 1.8 million members.


Agriculture

Regional
agricultural co-operative An agricultural cooperative, also known as a farmers' co-op, is a cooperative in which farmers pool their resources in certain areas of activity. A broad typology of agricultural cooperatives distinguishes between agricultural service cooperativ ...
s, such as
Land O'Lakes Land O'Lakes, Inc. is an American member-owned agricultural cooperative based in the Minneapolis-St. Paul suburb of Arden Hills, Minnesota, United States, focusing on the dairy industry. The cooperative has 1,959 direct producer-members, 751 ...
and the former Farmland Industries, are co-operative federations owned by local farmers' co-operatives. Like the Co-operative Group (above), Land O'Lakes is actually a hybrid of a primary and secondary co-operative.


Co-operative party

In some countries with strong co-operative sectors, such as the UK, co-operatives have organized parliamentary political parties to represent their interests. The British
Co-operative Party The Co-operative Party is a Centre-left politics, centre-left List of political parties in the United Kingdom, political party in the United Kingdom, supporting Cooperative, co-operative values and principles. Established in 1917, the Co-operat ...
is an example of such an arrangement.


Other uses

Co-operatives whose member owners are businesses, such as retailers' co-operatives, are sometimes called ''secondary co-operatives'', even when their members are not themselves co-operatives.


See also

* List of co-operative federations


References

{{DEFAULTSORT:Cooperative Federation