Editorial: Visiting co-op expert comments on Murray Goulburn bid for Warrnambool Cheese and Butter

24 October 2013

This independent opinion editorial was contributed by visiting co-operative educator Dr Chris Cooper

It is fitting that a well established and successful co-operative like Murray Goulburn should take the lead to keep Australia’s oldest dairy processor Australian. Murray Goulburn is recognised worldwide as a successful co-operative business and for its contribution to the members and communities it serves.

Co-operatives are recognised across the globe for their economic and social contributions as a values-based business model that builds and retains wealth created by their members in the communities that the wealth is generated in. This is different to the shareholder based model where the profits made from the work of local people are unlikely to be spent, in a meaningful way, in those communities. The success of this ethical and socially responsible business approach of co-operatives is demonstrated by the clear longevity and sustainability that co-operatives have when compared to their investor led counterparts. In short, people respect and trust their co-operatives and are often rightly wary of the investor owned model and their focus on short term decisions and high fast profits.

Co-operatives are open, transparent and democratic and are owned and run by their members. They provide a stable and sustainable business form for people in the uncertain markets of today. Listed businesses are often focussed solely on their share price and the need to make quick profits for the benefits of a limited group of institutional or high value shareholders rather than concentrating, as co-operatives do, on the needs of the member, customer and the community. Co-operatives are adaptable and flexible and in the interests of their members always seeking new and profitable opportunities.

The GFC has seen a period of unprecedented growth in co-operatives and co-operatives are a global success story being the first business form to be awarded a United Nations International Year in 2012. They are also a global network that provides access to markets and businesses opportunities wherever they operate in the developed and the developing world. They provide around a billion members with routes to market and services that they could not get in a better way. The top 300 co-ops have a turnover equivalent to the GDP of Canada and employ 100 million workers, more people than all multi-nationals added together. A final important UN statistic is that co-operatives, Murray Goulburn included contribute directly to improve the standards of living of half the World’s population.

Becoming a part of Murray Goulburn will be much more than just being taken over by another company, which is what the alternative bids offer. In becoming a part of Murray Goulburn they will be joining a new values-based and ethical culture and becoming a part of the worldwide family that co-operatives are.