While co-operatives are traditionally associated with workers, consumers and farmers, the co-operative business model has also been adopted by groups of small business owners, the self-employed and professionals. These business co-operatives primarily consist of independent businesses, which are not co-operatives and are generally in direct competition with each other. They bring together separate organisations that seek to combat market threats while adopting a philosophy based on co-operative principles. They include, for example, small shopkeepers, newsagents, butchers and professionals. There are a variety of reasons for the creation of business co-operatives.
There is a desire to cut out the “middleman” and gain direct control over supply and marketing. Businesses desire to reduce costs by purchasing goods and services in bulk such as building supplies. They wish to ensure stability in the supply chain by engaging in vertical integration through setting up their own abattoirs or manufacturing facilities. They also gain marketing advantages by having a common brand.
While there were business co-operatives in Australia since the 1860s, an early example is the Masters’ Butchers Co-operative (now known as MBL), established as the Master Butchers Association in Adelaide, SA, in 1905. Its early pioneers were influenced by the Rochdale co-operative model with its emphasis on the democratic principle of one member being entitled to only vote. One of its first actions was to protect its members from customers who were bad credit risks by issuing lists of such customers to members. One focus of the co-operative is processing and marketing the waste products of butchers. There was a growth of business co-operatives during the economic boom following the Second World War as small businesses found it necessary to share services to remain competitive in rapidly expanding markets.
Master plumbers in NSW, facing material shortages, formed Plumbers Supplies Co-operative in 1955 to bulk buy on behalf of its members and provide returns to members based on their patronage.
There was also an expansion of professional employment in Australia with professional co-operatives primarily for barristers in Sydney from the 1950s providing library facilities, clerical services and accommodation.
There were at least 112 business co-operatives operating in Australia by July 2024. They include Furniture One, Plumbers Supplies Co-operative, MBL and the Independent Liquor Group.
For further details, please download Greg Patmore, Nikola Balnave and Olivera Marjanovic, A History of Australian Co-operatives 1828-2023.