What is a Co-op, anyway?

If you read my posts regularly, you may have noticed a few mentions of my local co-op.  And, if you're curious like I was when I first heard mention of a co-op, you may be wondering what exactly it means to be a part of one.  The United Nations named 2012 the year of the co-op and the latest issue of Yes! Magazine features a cover story about how cooperatives are driving the new economy.  Publications like the Business Insider and Triple Pundit also feature articles on cooperatives.  So what exactly are they and why are they so important?

Here is what I know of co-ops so far:  They can be small like the Middlebury Natural Foods Co-op where I work and shop.   Or they can be Fortune 500 companies, like Land O Lakes and Sunkist.  They can be credit unions, art galleries, insurance agencies, even sports teams (did you know that the Green Bay Packers are a co-op?!).  All together the 30,000 cooperatives in the United States make up a $500 billion dollar industry, employ more than 2 million people, and have around 130 million members.  More Americans have membership in a co-op than hold shares in the stock market.  Globally, there are a billion co-op members with more than $2 trillion in revenue.  If these enterprises were a nation, their economy would be the ninth largest on earth.   What they all have in common is the fundamental idea that co-ops, just like people, can get more done together than anyone can do alone.

Here are a handful of other things that all co-ops have in common:  they are owned by their members in equal shares; their ownership is democratic, meaning that the members elect a board of directors to shape the priorities and direction of the co-op and the members vote on issues pertinent to achieving those priorities; they build healthy local economies; and they exist to meet the needs of their members.  Yes! magazine cites some fascinating statistics from a study titled Healthy Foods, Healthy Communities which point out that for every $1000 spent at a local food co-op, $1606 in economic activity is generated in their local food economy.  That means that 17% more money stays in the community than if that same $1000 was spent at a conventional grocery store.  There are also more jobs created for every million in sales with food co-ops adding jobs at a rate of 9.3% per million and conventional grocers at 5.8%.  Food co-ops on average source 20% of their products from local vendors compared with 6% for conventional grocers.  This means more money going directly to small, local family farms who are then able to stay afloat in the sea of Big Ag and continue to nourish their communities.

The local farmers who supply food to the MNFC are featured in photos in the produce, cheese & dairy departments.

Original building of the Rochedale Society of Equitable Pioneers

The cooperative business model is not new.  The first modern, consumer-owned co-op began in the 1840's when a group of cotton and wool workers in the depressed industrial town of Rochdale, England, decided that they were tired of being cheated by dishonest shopkeepers who would use rigged scales to sell flour mixed with plaster, used tea leaves that were dried and passed off as new, and rancid butter disguised under a thin layer of fresh butter.  They banded together to form the Rochdale Society of Equitable Pioneers and sold quality foods at fair prices with any profits distributed back to the members based on their use of the store.  This is where cooperatives really stand out among their big-business peers:  they are profit-making, but not profit-driven.  They are driven, instead, by a desire to meet the needs of their members and the needs of their communities first and foremost.  And not just in the sense of economic health, but also in the areas of education and civic engagement.


The Middlebury Natural Foods Co-op was founded in the early 1970's by a group of families who wanted access to healthy, natural foods at reasonable prices.  They operated first as a buying club, purchasing items at wholesale price and in bulk scale, then meeting at a different members home each time to split up the order among the group.  The buying club grew, and began having surpluses after dividing the items.  They also needed more space for storage and packaging, so they purchased a small store front in the Middlebury train depot and scheduled volunteers to run the store.  The store continued to grow with pre-ordering and retail store functioning side-by-side, and eventually elected a board of directors in 1976.  Fast forward to 2013, and the store is now in a beautiful new building with 3600 members and 60 employees.  The focus remains on providing healthy, natural foods to members of the community (based on a voted-upon buying criteria); stimulating a vibrant local economy; operating under democratic, cooperative ownership; and operating with environmentally sustainable and energy efficient practices.

Additionally, the MNFC puts strong emphasis on community education by sponsoring classes on budget shopping, food preservation, cooking basics, and other topics in partnership with the Hannaford Career Center.  Last week, we co-hosted a GMO labeling forum with the Northeast Organic Farming Association at the local American Legion. We often give tours to middle and high school groups, senior groups, and  college students who are studying local food systems.  In a few weeks, I will give a tour to a group of young parents who are interested in learning how to shop for healthy foods on a tight budget.  I'm particularly enthusiastic about that upcoming tour because I love debunking the myth that shopping for healthy, whole foods needs to be expensive.  I also like to let community members know that you don't have to be a member of the co-op to shop there, but membership does come with a discount at the store and at other local business in town.  Plus, membership brings monthly member coupons, an informative and educational monthly member newsletter, and the opportunity to vote and have a voice on issues that matter to me as a co-op member.  Board meetings are open to all members and members are encouraged to attend and participate. 

Another thing I find really interesting and appealing about my co-op is their strong emphasis on local products.  Many of the small farmers and food producers still deliver their goods themselves, and it gives members and customers a chance to meet them and ask about their products, processes, challenges, and experiences as a small food producer.  There is something special about meeting the people who grow and make your food, and you begin to feel a distinct connection between their success as a farmer/producer and your role as a consumer.  You begin rooting for them to succeed because you see how hard they work and you like what they bring to your dinner table.

I also love the fact that my co-op donated over 7000 pounds of food to our local food shelf last year, we compost much of the food waste that can't be donated to the food shelf, and many of our farmers and producers reuse the cardboard boxes and other containers they ship and package food in.  Things like maple syrup buckets, honey buckets, nut butter buckets, egg cartons, and glass milk containers are reused over and over again.  Food co-ops in general recycle 81% of their plastics, compared with only 29% at conventional food stores.  Reusing and recycling means a lot less food and materials are going to waste.

Vermont Cheeses

The MNFC represents just one example of a co-op and how it can impact a community.  You may not have a food co-op in your area, but you may have a credit union, an artists cooperative, a farmers cooperative, or an insurance co-op.  You may also have the opportunity to purchase items from cooperatives at conventional stores.  Cabot Cheese, Florida's Natural Orange Juice, Blue Diamond nuts, Bob's Red Mill flours, Ocean Spray, and REI Outfitters are all cooperatives.  I hope that we can all embrace the idea of a business model that puts people before profits.  I hope after reading more about what makes a cooperative tick and what it means to the community to have a healthy, thriving co-op, that you might seek them out in your area and give their products and services a try.  They are the future of our economy, after all!