Worcestershire Farmers Limited

From Wikipedia, the free encyclopedia

IndustryAgriculture, commerce, retail, food supply
Founded1919
Defunct1964
Worcestershire Farmers Limited
Company typeAgricultural cooperative
Producer cooperative
IndustryAgriculture, commerce, retail, food supply
Founded1919
Defunct1964
SuccessorMidland Shires Farmers
Headquarters,
Area served
Worcestershire
Key people
Hugh W Dixon, Thomas Bernard Davies
ServicesAgricultural goods producer and retailer, foodstuffs supplier, fuel retailer
Members2,571 in 1957

Worcestershire Farmers Limited (WFL) was an agricultural cooperative society, which served the farmers of Worcestershire for much of the Twentieth Century. It was unusual in that it both supplied its members with inputs for agricultural production, including feed-stuffs, seeds and fuel, while at the same time packing, distributing and marketing their produce. A combination that prompted Sir Frederick Brundrett, chairman of the Agricultural Central Co-operative Association, to write in 1958 that it was not only unique in England but probably in Europe as well.[1]

Worcestershire Farmers Limited (WFL) was established in 1919 as part of a wave of new agricultural cooperatives founded with the active encouragement of the Agricultural Organisation Society after the end of the First World War. The decision to establish the WFL was taken by members of the executive committee of the Worcestershire county National Farmers’ Union (NFU) at a meeting held in Worcester in August 1919. A nine-person provisional committee was established under the chairmanship of Hugh W. Dixon, with its members drawn from the various local NFU branches throughout the county. From the beginning, this established a tight link between the county NFU and WFL which was to persist throughout its existence. Annual meetings were always held at the Farmer's Club in Worcester and the cooperative's chairman was always a senior member of the executive of the county NFU.

After they returned home from the meeting in Worcester, members of the provisional committee convened local NFU branch meetings to encourage farmers to become shareholders in the new cooperative. Their efforts seem to have met with mixed results. The poor attendance at one meeting on 14 October 1919 at the Star Hotel in Tenbury Wells was excused by the fact that there was a busy market at the time, although it was also thought that the reluctance of some within a profession known for its high degree of individualism to engage in a form of organisation more associated with socialism played a role.[2] However, at another better attended meeting at the same venue a few weeks later the assembled farmers showed more enthusiasm and afterwards it was reported that there had been 400 applications for the £1 shares which had a prospective dividend yield of 6%.[3] After 100 further members joined, following another gathering held in Worcester on 17 November, which was addressed by a prominent figure from the agricultural cooperative movement, Percy Whiteley of Preston Farmers Limited, it was reported that altogether £20,000 of share capital had been pledged and this was deemed sufficient to allow WFL to be officially established at the end of the month. The first general manager and secretary, E. H. Davies was appointed and operations, which had begun from a small desk in the corner of the Farmer's Union Office in the city, soon moved to the cooperative's own premises at 59 Broad Street, Worcester. Trading began on 17 January 1920 and the first corn and seed traveller, Mr F. Golledge, was employed. With such a small staff, the management committee inevitably had to play a full role in the day-to-day affairs of the new society. They not only handled matters of administration but also actively sought business, for which they were allowed to claim the cost of railway fares and ‘where absolutely necessary’ for the hire of a motor car.[4]

During the war years, rising agricultural costs had by and large been offset by an increase in the amount that farmers received for their products. Once the war ended, however, there arose a widespread fear in the agricultural community that food prices would fall, especially if an expected decline in shipping rates again opened up the British market to competition from abroad. The new agricultural cooperative societies, such as WFL, aimed to strengthen the position of the farmers by removing middlemen from the supply chain. WFL would bulk-buy items such as seeds, feeding stuffs and fertilisers directly from the manufacturers and supply them at cost price to its members plus a 10% operation charge, which would cover such things as carriage and bags for the delivery of clover and grass seeds. Not only would this reduce the price of inputs for the farmers — it was reported that they could save up to 30 shillings a ton on linseed cattle cake — but they also stood to benefit from the annual redistribution of any trading surplus, which would be returned to members in direct proportion to the amount of business they had done with the cooperative.[5] This applied not just to buying but also to selling, because the cooperative also intended to help its members market their produce although initially this was to be limited to fruit and vegetables.

During the First World War the Worcestershire Fruit and Vegetable Society, originally founded in Upton-on-Severn as the Upton Produce Committee, had been established to provide a constant flow of fresh produce to both its wholesale market in Angel Street, Worcester and to the canteens of a number of large Birmingham factories. This was not only probably the first attempt at cooperative marketing in England but in the process it also contributed to the establishment of the concept of workplace catering.[6] By 1920, however, the Worcestershire Fruit and Vegetable Society was in dire financial straits and the WFL ‘to help the co-operative ideal‘ agreed to step in to save it, offering its members 15 shillings in the pound on their share capital.[7] By taking over the Society, WFL acquired control of its Worcester market and this helped strengthen its balance sheet which, in its first year of trading, showed a healthy profit of £1,336 on a turnover of £109,546.[8]

After this successful beginning, the early 1920s were difficult trading years for WFL. The society staff worked hard to build sufficient confidence in the cooperative to attract new members but it was not until 1928 that the board was able to recommend a payment of interest on share capital and not until the following year, 1929, that they were able to pay a bonus on the trading surplus at the rate of two pence in the pound. In 1931 the first chairman, Hugh Dixon, died to be replaced by Frank Smith of Yielding Tree, Clent but the change of leadership brought little appreciable change in fortunes. Profits slowly rose to £2,464 in 1935 and £3,383 in 1937 before falling again in 1939. Dividends never reached the 6% promised at the foundation of the society, but the bonus paid did increase to nine pence in the pound on all corn products bought in 1937, most likely as part of an effort to attract more farmers to trade with the society.

Post Second World War expansion

Successor Organisations

References

Related Articles

Wikiwand AI