With US tariffs and the US/Israel war on Iran highlighting the vulnerability of global supply chains, food security is a growing concern – which could be helped through the development of farm co-ops, a report argues.
The report, issued by the UK Co-operative Party with support from the Co-op Group, says that agri co-ops “offer a practical and potentially transformational response to this crisis – a modern institutional model capable of redistributing power though our food system.
“By enabling farmers to pool resources, share risk, and invest collectively, co-operatives reduce exposure to volatile input markets and strengthen bargaining power across the supply chain.
“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.”
It added: ”Co-operation 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. Networks of co-operative producers are better placed to manage shocks, maintain production, and transition towards lower-input, more sustainable systems.”
Government data obtained by the Co-op Group shows that UK meat imports have risen sharply, up 15% year on year – with £5bn worth imported last year – “leading to a fragile British food supply chain exposed to global shocks”.
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In 2025, poultry was the most imported protein, worth almost £2bn, with imports from Poland and the Netherlands accounting for the largest share. However, poultry imports from Thailand saw a big increase, growing by nearly 50% on the previous year.
The Group, which only sells and uses 100% British meat and poultry, warns the findings highlight Britain’s increasing reliance on international supply chains for imported meats, which are not immune to challenging weather conditions and the increasing number of worldwide conflicts and growing global tensions.
It adds: “The shockwaves from the Iran conflict have exposed the deep interdependence and fragility of complex supply chains that underpin our food system, and the critical importance of strong domestic production. It comes as food policy experts warn the UK is not prepared to deal with the scale of shocks that could jeopardise our food security.
“One proven business model for success within agriculture is a co-operative, with recent estimates indicating that there are 526 agricultural co-operatives in the UK, generating an income of over £9bn.”
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From one of those co-ops – ESG Drysdale – technical director Matt O’Hagan said: “Our East of Scotland Growers Cooperative dates back to 1987 and brings together 20 member growers across a wide geographical spread.
“Being grower-owned creates genuine alignment between farmers, the land and the route to market. Working collaboratively over the long term, the co-operative model supports responsible land stewardship, investment in sustainable farming practices, and the ability to adapt to environmental and climate challenges. The structure gives farmers a real voice in how their produce is sold and valued, building trust, stability and long-term confidence.
“That alignment allows us to plan effectively, maintain quality and manage the volatility that continues to challenge the wider sector. It’s a proven, sustainable model that brings clear benefits to the UK food system.”
To help grow the model, the policy paper sets out a three-pillar plan for government to champion, enable and scale agricultural co-operatives across the food system, highlighting policy levers that could help farmers to form, grow and scale co-operatives.
The report calls on ministers to should “explicitly position co-operatives as a core component of agricultural policy via targets in the 25-year Farming Roadmap”.
This should be supported by ministerial advocacy, improved guidance for farmers, and greater representation of co-operative expertise in governance structures, the report adds, and public engagement should be strengthened to increase consumer awareness of co-operative supply chains and their benefits.”
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A more enabling environment for co-ops is also needed, the report adds. Key proposals include establishing a dedicated agricultural co-operative development body, expanding the role of existing public institutions, clarifying the legal status of co-operatives, and reinstating and redesigning targeted financial support mechanisms aimed at producer organisations.
Additional suggestions include leveraging public procurement, exploring tax incentives, and improving access to public and private finance.
The paper also advocates for integrating co-operatives into regional and place-based policy frameworks, including potentially introducing regional agricultural strategic plans.
“Co-operatives should be positioned as delivery partners for environmental programmes, land use planning, and rural development initiatives.
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“Support for multi- stakeholder and community-based co-operatives is also recommended to strengthen connections between producers, consumers, and local economies.”
The report says there is “untapped potential to scale and deepen collaboration across the sector and co-operatives offer a proven institutional model for improving market power, reducing costs, and enabling collective investment in infrastructure, innovation, and sustainability.
“Agricultural co-operatives can manage shocks and inherent in their business model is the capacity to increase supply-chain resilience, champion sustainable agriculture, facilitate innovation, harness green finance, boost horticultural production, build rural skills and community, and create stronger sectoral partnerships.”
Paul Gerrard, director of public affairs and campaigns at the Group, said: ”The issue of supply chain resilience is upon us now and there is a clear and demonstrable benefit to the co-operative business model in agriculture. An expansion of agricultural co-operation is both an economic opportunity and a political imperative: it directly addresses the need for a more secure and sustainable food system, one less exposed to the volatility of global markets, and the instability in a rapidly changing world.
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“As the largest consumer co-operative in the UK, we are clear how the model naturally lends itself to sharing costs and spreading risk, which will make the day-to-day fundamentals of farming more efficient. The untapped potential of agricultural co-operatives is an opportunity to strengthen our food system and deliver a better deal for British farming.”
Joe Fortune, general secretary of the Co-op Party said: “Co-operation 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.”
Tim Bailey, from the Scottish Agricultural Organisation Society, said: “Agriculture is undoubtedly going through a pivotal time of change, and we believe that co-operation has never been more important. Over half of Scottish farmers and crofters are active in farmer co-ops, and these co-ops are well placed to help support and deliver the change that is needed.
“Despite their scale and footprint, agricultural co-ops have generally been excluded from any form of rural support, despite their pivotal place in the sector. In addition to our everyday work promoting and supporting the development of co-operatives, we have spent considerable time and effort in the last year highlighting to the Scottish and the UK governments the power and potential for co-operatives as a solution to many of today’s challenges, and indeed those of the future.”
