Project updates
April 2008
Growing ring membership on the net
Scottish business rings (agricultural secondary co-ops) are considered world class in engaging and managing trade between their member businesses. The eleven rings have almost 6,000 members, a £35m annual throughput and employ over 40 staff. Growth is around 15% a year.
To build on this success, CDS, SAOS and the Scottish Machinery Ring Association are carrying out a feasibility study for a new co-operative business (Scottish Ring Net) to own and run a web-enabled network which would grow ring membership throughout Scotland.
A particular focus will be on linking activity between the rural economy and metropolitan areas of Scotland.
Look out for the next CDS newsletter for more information. Subscribe here.
Stimulating investment in biomass crushing plants
Concerns about the environment, the rising cost of fossil fuels, and Third World food supply and de-forestation, are generating proposals which explore the potential of biodiesel production in Scotland.
Stimulating capital investment in crushing plants is key to developing the supply chain, so CDS has commissioned a market study to identify and gain commitment from potential customers for biodiesel and thus reduce risk to investors.
Look out for the next CDS newsletter for more information. Subscribe here.
Developing sports services in the Borders
A rugby supporters trust, recently set up with the help of Supporters Direct, is now looking to create a secondary co-op structure, along the lines of an agricultural 'ring'. The idea is to generate greater buying power for all sports clubs in the Borders.
A feasibility study (jointly supported by Scottish Borders Council, SE Borders and CDS) has just been completed and is highly positive:
'there would appear every likelihood that the BST concept would be well received by the market. It encompasses a remarkably wide range of unmet needs, primarily by satisfying the sports clubs' requirement for procurement assistance at a time when they are under real cost pressure, but also offering an easy market entry to new or ambitious suppliers, and a consolidated market that existing suppliers are unlikely to ignore.
CDS will be looking to take this project forward in the coming months.
Developing the home care market
Highland Homecare and Stewartry Homecare (both Baxi supported employee buyouts) have led the field in quality care in Scotland. Yet the feeling remains that there is a massive, as yet untapped, potential to develop co-operatives in the care sector.
To this end, CDS has commissioned Care & Share Associates (CASA) to investigate the potential market in Scotland. CASA is a secondary co-operative offshoot of award-winning Sunderland Homecare. Some initial findings of the study are:
- further demand for increasingly complex homecare services
- a huge increase in Direct Payments, from £2.3 million in 2001 to around £24.3 million in 2007
- 50% to 60% out-sourcing by local authorities forecast.
CDS will be looking to develop this work in the new financial year and will be investigating the replication and/or franchising of the CASA model. Several local authorities are already showing a keen interest.
Co-operation in 'The Land of Food and Drink'
In recognition of the importance of the food and drink sector to the Scottish economy, work is going on to position Scotland as 'The Land of Food and Drink'.
SAOS, with Scotland Food & Drink and Scottish Enterprise, is currently developing this initiative by leading on establishing more efficient supply chains.
Read more about this development on SAOS' website