A co-operative federation or secondary co-operative is a co-operative in which all members are, in turn, co-operatives.[1] Historically, co-operative federations have predominantly come in the form of co-operative wholesale societies and co-operative unions.[2] Co-operative federations are a means through which co-operatives can fulfill the sixth Co-operative Principle, co-operation among co-operatives. The International Co-operative Alliance notes that “Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.”[3]
A secondary co-operative is a co-operative business democratically controlled by its members, all of whom are themselves co-operatives and share certain aims or values in common. The secondary co-operative can be a way for these co-operatives to do things that help achieve their aims that they would not be able to do by themselves. Secondary co-operatives have been used in a number of sectors already – Credit Unions, Housing Co-operatives and Social Change Co-operatives for example.