Collaboration and Carbon : The Environmental Benefits of the Co-operative Business Model in the Food Sector

Abstract

One of the biggest environmental issues facing businesses in the UK is climate change. It is argued that climate change occurs as a result of increasing atmospheric greenhouse gases (GHGs), which have a significant impact on the global temperature balance (Stern, 2009). According to the UK Government‟s ambitious plan, the emissions of greenhouse gases have to be cut by 80% of the level of 1990 by 2050 (OPSI, 2008). This presents both threats and opportunities for all businesses.

Farming and the food industry may play an important role in reducing greenhouse gas emissions, because food production, distribution and consumption as a whole account for 22% of the total UK greenhouse gas emissions (DEFRA, 2005). Within this chain the primary production stage is the biggest contributor of GHGs.

Organisations with a co-operative structure may appear at different stages within the food supply chain, yet primary production in the UK is controlled by the co-operatives to a large extent (Briscoe and Ward, 2000b). Thus agricultural co-operatives and their environmental benefits constitute the main focus of this study.

This study uses a qualitative case study approach (Yin, 2009; Flick, 2007a; Gibbs, 2007; Yin, 2003b). The data were collected through semi-structured interviews with the chief-executives and managing directors of the organisations. Template analysis is selected by the author as the data analysis technique (King, 2004).

The results of the research show that the efficiencies of the co-operative business model are numerous and may generate significant results when the reduction in greenhouse gas emissions is required to tackle climate change and global warming. The principles of this model as well as the whole unique philosophy play a key role in driving the efficiencies within the food supply chain. Thus, the system of knowledge sharing, communication with the supply chain partners, sharing of risk, ability to invest and gain economies of scale and continuously looking for improvements may all result in a reduction of greenhouse gas emissions.

Date of Award	9 Jun 2011
Original language	English
Awarding Institution	Northumbria University
Supervisor	David Oglethorpe (Supervisor)