Co-ops Top 100 Uncovers Hidden ‘Ninja’ Economy

18 November 2014

Australia’s member owned businesses make the same contribution to the economy as the mining sector – around 6% of the nation’s earnings.

The Business Council of Co-operatives and Mutuals 2014 National Mutual Economy Report, launched today at the Council’s Leaders’ Summit in Sydney, has found the top 100 Australian co-operative and mutual businesses, including the top 10 member owned superannuation funds had combined turnover of over $104 billion In FY 2012/13 and combined assets of $282 billion.

The top 100 data is drawn directly from a study commissioned by the Business Council of Co-operatives and Mutuals and undertaken by the University of Western Australia: “Australia’s Leading Co-operative and Mutual Enterprises 2014” published by UWA as a standalone publication.

Top of the list were Australia’s farmer-owned co-operatives. Western Australian grain handler, CBH Group (2.8 billion) and Victorian dairy behemoth, Murray Goulburn (2.39 billion) – first and second on the top 100 list, also ranked third and fourth In the top 5 private Australian businesses in the recent BRW Top 500 list.

Non-profit health funds HCF (2.13 billion) and HBF (1.27 billion) occupied third and fourth place on the co-operative top 100.

“Co-operatives and member owned businesses are an under recognised sector of the nation’s economy,” said BCCM Chair and B20 Member, Dr Andrew Crane.

Australia has 1700 member owned businesses providing numerous benefits to their 13 million members. We are pleased to highlight the contributions of co-operatives and mutuals and the ways in which they excel in creating shared value by reinvesting all profits back into the economy through their members.

Co-operatives and mutuals are also big investors in Australian infrastructure from ports, rail and irritation systems, to road, housing and manufacturing plants.

Mutual ownership of infrastructure was recognised in the B20’s Recommendations to the G20 Leaders,” said Dr Crane.

The Report found mutual insurers were the biggest part of the sector with $7.6 billion in combined turnover and $10.7 billion in assets, followed by agriculture and then banking and finance.

When ranked by assets held, the mutuals operating in the banking and finance sector topped the list (more than $84 billion).

NSW had the most co-operatives and mutuals in the top 100 list (44%) and largest contribution to aggregate turnover, but WA was the best performing state. WA had only 13% of the top 100 co-operative and mutual businesses but accounted for 27% of the combined turnover. The top 10 co-operatives and mutuals in NSW had turnover of $5.79 billion in 2012/13 whilst the top 10 in WA had turnover of $6.71 billion.

“If Australia had a ‘ninja’ economy it would be the mutual economy. Member owned businesses excel in their chosen area of the market economy but the sector is largely unseen,” said Melina Morrison, CEO of the Business Council of Co-operatives and Mutuals.

For example 40% of Australia’s grain crop and 35% of the blueberry crop is marketed by co-operatives. Australia’s largest supplier of textbooks is a co-operative and almost a quarter of Australia’s automotive parts are purchased by the co-operative sector. Australia’s largest dairy company is a co-operative.

The role of co-operatives and mutuals in a sustainable economy is starting to become part of mainstream Government thinking. The Federal Government’s Agricultural Competitiveness Green Paper recommends the development of more farmer-owned co-operatives to ensure sustainable pricing at the farm gate and more competition in the supply chain,” said Ms Morrison.

NSW Fair Trading Commissioner, Rod Stowe will launch the top 100 report at the Business Council of Co-operatives and Mutuals Leaders’ Summit at 9.00AM on 18th November at the InterContinental Sydney. Also attending the Summit is Independent Senator Nick Xenophon.

A Sector Blueprint will be launched at the Summit, calling on all political parties to sign up to a Mutuals Charter ensuring government policies do not neglect or prejudice the contribution of co-operative enterprise. The Blueprint is endorsed by the country’s leading co-operative and mutual organisations.

Ends.

Press/Photo Call

The Business Council of Co-operatives and Mutuals is inviting journalists to a photo and press call ahead of the Summit at 8:45am, Tuesday 18th November 2014 in the Treasury Room, InterContinental Hotel, 117 Macquarie Street, SYDNEY.

Photographs will be available of the chief executives of the nation’s top co-operatives and mutuals including Australia’s largest co-operative, Australia’s largest mutual, Australia’s largest member owned retailer, Australia’s largest non-profit health insurer and Australia’s largest dairy firm.

The Business leaders in attendance include Dr Andrew Crane, CEO, CBH Group, Shaun Larkin, Managing Director, HCF, Tony Stuart, Group CEO, NRMA, Greg Wall, Capricorn Group CEO, Philip Tracy, Chairman, Devondale Murray Goulburn, and Peter Knock, CEO, The Co-op.