More farming co-operatives could ‘unleash growth’ in UK, finds report

Agricultural co-operatives could “unleash growth” in the UK and improve national food security in the face of crises such as the Middle East conflict by “improving the resilience of UK farms”, according to a report.

The policy paper produced by the Co-operative party, which backs influential Labour MPs including Steve Reed and Jonathan Reynolds, calls for “a shift in perspective, not a doubling down of the status quo”. It says co-ops, which enable farmers to pool resources, share risk and invest collectively, can help “reduce exposure to volatile input markets”, such as fertiliser, fuel and animal feed.

The report, seen exclusively by the Guardian and due to be published this week, says: “They create the conditions for shorter, more resilient supply networks, and for greater retention of value within rural economies. And in doing so, they align economic resilience with democratic ownership.”

There are an estimated 526 agricultural co-operatives in the UK, generating an income of more than £9bn, including the Arla dairy group and Berry Gardens Growers. In 2019, about a half of UK farmers were estimated to be members of a co-operative in some form.

However, the report says there is “significant room for expansion” and that a forthcoming 25-year Farming Roadmap for England presents an opportunity for the Department for Environment, Food and Rural Affairs (Defra) to formalise a commitment to expanding agricultural co-ops.

Labour’s 2024 manifesto included a commitment to “support diverse business models”, including by doubling the size of the co-operative and mutuals sector.

The call for change in British farming, which is being backed by the Co-operative Group, which runs thousands of grocery stores, comes amid concerns about the proportion of British food being imported.

Meat imports into the UK rose 15% year-on-year in 2025 to £5bn, according to HMRC data obtained by the Co-operative Group.

Poultry was the most imported protein, worth almost £2bn, with imports from Poland and the Netherlands accounting for the largest share. Imports from Thailand soared nearly 50% on the previous year to £23.3m, about 1% of fresh and frozen poultry imports, indicating a growing presence in shopping trolleys and on dinner plates.

Across the national diet, the UK grows only 62% of what it consumes. The UK imports 83% of its fruit, for example, although this is partly because of the popularity of fruits that cannot be grown in the UK, such as bananas.

Rising fertiliser and food costs caused by the conflict in the Middle East have added to existing pressures on farmers from post-Brexit changes to subsidies and problems with exports, unpredictable weather amid the climate crisis and lower prices for their crops on global markets.

Joe Fortune, leader of the Co-operative party, said: “Cooperation is a form of strategic resilience. In a world where fertiliser supplies can be disrupted and energy costs can spike overnight, the ability to coordinate, adapt and invest collectively becomes a matter of national strategic importance. Government has the opportunity to unleash growth in this sector and use it to help secure our supply chains for the future.”

Matt O’Hagan, technical director at ESG Drysdale, a co-operative vegetable production company based in the east of Scotland that brings together 20 growers, said the approach helped plan effectively and manage volatility in a challenging environment.

“The structure gives farmers a real voice in how their produce is sold and valued, building trust, stability and long-term confidence,” he said.

Paul Gerrard, director of public affairs at the Co-operative Group, said the model “naturally lends itself to sharing costs and spreading risk” and made “the day-to-day fundamentals of farming more efficient”.