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Södra leads the way: Swedish Cooperatives drive economic growth and sustainable forestry

 Friday, December 5, 2025

Södra leads the way: Swedish Cooperatives drive economic growth and sustainable forestry

A recent report from the Swedish Cooperative Association highlights the growing economic influence of cooperative businesses in Sweden. Over the past decade, the turnover of cooperatives has surged by 27%, now accounting for about 10% of the nation’s GDP. The findings underscore the crucial role cooperatives play in bolstering Sweden’s economy, while also contributing to a more sustainable and resilient future.

One of the standout examples of this success is Södra, Sweden’s largest forest owners’ association. With over 50,000 members, Södra has become a major player in the forestry sector. The cooperative generates a turnover of SEK 29 billion, refining and renewing forest assets to create long-term value. The association’s focus is not only on business success but also on sustainable forestry that benefits both members and society at large. Through innovation and responsible resource use, Södra is strengthening the entire value chain from forest to customer.

The report, titled Cooperative Sweden 2014-2024, reveals that cooperatives in Sweden generated SEK 676 billion in turnover in 2024, an increase of SEK 145 billion since 2014. The largest cooperatives collectively employ nearly 100,000 people across various sectors. This performance highlights the cooperative model as one of strength and stability, even during times of economic change. As the UN prepares for the Year of Cooperatives in 2025, the cooperative model has been recognised as vital in achieving global sustainability goals.

Södra, for instance, stands as an exemplary model of cooperative success. The group has long been a leader in forestry, producing innovative products such as cross-laminated timber. The association’s approach ensures that the raw materials sourced from the forests are transformed into high-quality products that contribute to a more sustainable society. Through its work, Södra aims to optimise forest resources while maintaining environmental responsibility.

Henrik Andersson, Strategy and Membership Manager at Södra, emphasised that the cooperative model goes beyond mere business objectives. “It’s about more than business – it’s about creating value from the forest while safeguarding the forest estate’s future,” he explained. Andersson also highlighted the importance of cooperation and long-term thinking in sustaining both the forest and the cooperative.

In southern Sweden, 53,000 forest owners are part of Södra, which collectively owns just over half of the privately-owned forest in the region. The cooperative’s size allows it to offer a reliable market for raw materials while ensuring the profitability of its members’ forestry operations. This mutually beneficial system supports sustainable practices and strengthens the local economy.

Södra’s commitment to sustainability is evident not only in its environmental initiatives but also in its status as a major employer in the region. The group employs 3,100 people in various fields, including forestry management, environmental conservation, and product development. This provides ample job opportunities for the local population while fostering expertise in sustainable forest management.

The three main business areas of Södra include sawn timber products, paper pulp, and biofuel. The company has also made significant strides in renewable energy. In recent years, Södra has grown into a net producer of electricity, now generating more power than it consumes. This energy transition aligns with the company’s broader commitment to sustainability, reinforcing its role as a leader in the renewable energy sector.

As the cooperative sector continues to grow, Södra remains committed to fostering a sustainable and resilient economy. The company’s efforts highlight how cooperatives can provide long-term value not only for their members but also for the wider community and environment. Södra’s ability to adapt, innovate, and embrace sustainability ensures that it will remain a vital part of Sweden’s economic and ecological future.

The cooperative model is expected to gain even more recognition in the coming years. With 2025 designated as the Year of Cooperatives by the United Nations, the model will be further showcased as a key driver in achieving the global sustainability agenda. The growth of cooperatives in Sweden, especially in sectors like forestry, presents a clear example of how such business models can foster both economic prosperity and environmental responsibility.

As cooperatives like Södra continue to thrive, they are setting a standard for other regions and sectors to follow. Their success story proves that combining innovation, collaboration, and long-term thinking can lead to tangible benefits for both members and the larger society.

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