209:, “Cooperatives play a key role in agricultural markets not only because they account for a significant fraction of economic activity in this sector, but also because they are believed to generate a pro-competitive effect in imperfectly competitive markets.” The grocery market, in particular, is often not very competitive in geographically isolated areas, with only enough consumer base to support one major supermarket. In response to high prices caused by this monopoly, a cooperative may spring up, supported by a network of consumers looking for lower prices. Because the profits are redistributed to the members, a traditional grocery store must reduce its profits in order to compete. Lastly, some studies indicate the spillover benefits to the community are significant. One found that “For every $ 1,000 spent at a food co-op, $ 1,606 goes to the local economy; for every $ 1 million in sales, 9.3 jobs are created”.
125:
if it is not. A food cooperative, in contrast, is directly owned by both its employees and its members, people who shop at the cooperative and who typically pay a nominal fee for joining. When the store makes a profit, much as with a corporation, these profits are either divided among the members or reinvested in the business. These decisions are often made by a board, for which any member of the cooperative can run. In general, membership is open to any community member, with stores adopting official policies of nondiscrimination. However, some cooperatives will limit membership to a certain geographic area, such as a state.
192:
cooperative model. The logistical and financial obstacles associated with planning a store and establishing a distribution network are significant, especially when no individual owns the store. This contrasts with typical corporate grocery stores, which can be financed using debt or equity, and whose owners can eventually reap a profit to recoup their investment. Nevertheless, cooperatives claim higher levels of success than for-profit businesses: after 5 years, 90% of cooperatives are still in business, compared to 3-5% of businesses.
183:, occupying a noticeable part of the grocery market, albeit with large geographic variation. One study found that grocery cooperatives claim 485,000 total members in the United States, with 325 total stores. However, differences in definition can lead to measurement discrepancies, depending on what exactly one defines as a food based cooperative, since many cooperatives operate in the food sector, but are not restricted to groceries. For example, “Farm supply and marketing” cooperative members totaled 2.484 million in the US.
129:
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171:, socializes the risks associated with growing the food, transferring it from the growers to consumers. These two programs often work in concert in rural areas, and are associated with each other by consumers. However, in a CSA program, the consumer is purchasing a limited ownership in the farm, the production of the food, instead of the grocery store, the distribution of the food.
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Cooperatives are generally formed by a core group of members who form the initial governing body. These members must contribute enough in initial membership fees to get the grocery store off the ground and finance startup costs, such as purchasing a store, which can be a significant challenge for the
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Academic research has described the benefits cooperatives can have in economically connected sectors, namely food production: “Cooperatives play other socially beneficial roles in the agricultural sector. They provide an opportunity for farmers to share risk and to control managerial decision-making
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model is the socialization of potential profit associated with running a grocery store. In a typical food production model, a store is owned by a company, which is in turn managed by either a board of directors and shareholders if the company is publicly owned, or a collection of private individuals
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Another potential benefit to members is the different niche of the food market often occupied by cooperatives. Cooperatives often have a focus on local, organic, or otherwise more sustainably sourced products. Consumers often support the local ownership of the cooperative model, in contrast to many
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having the highest concentrations. Vermont, in particular, has a concentration three times higher than any other state. Food cooperatives are commonly co-located with higher incomes, higher educational attainment, the presence of land trusts, and population over age 65. In the United States, there
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Each cooperative has a different fee structure, typically determined by its management, but in general, members of the public will have the option of purchasing a membership that will yield discounted prices on food, as well as a vote on decisions. A key difference with corporations is that while
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In the US, cooperatives are taxed differently than small businesses. Earnings of the cooperative itself are not subject to business taxes; however, any profits made by the individual members are treated as income and as such are subject to
97:. The origination of the modern cooperative movement began in the 1960s when many "second wave" cooperatives started. The goals of these cooperatives were to provide an organic and anti-corporate alternative to chain
101:. Food cooperatives began to emerge in major cities and college towns, catering to the food-conscious. Co-op members made the decision of what foods to buy and how to purchase and distribute it.
218:
for their direct benefit. Additionally, they offer a credence attribute — farmer ownership — which can be attached to farm commodities, thus providing additional value to some consumers.”
50:, where the decisions regarding the production and distribution of its food are chosen by its members. Like all cooperatives, food cooperatives are often based on the 7
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voting power on corporate decisions is in proportion to the number of shares owned, nearly all cooperatives operate according to the “one member, one vote” principle.
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Cooperatives have potential spillover effects on the rest of the grocery store market. According to researchers at the
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of food cooperatives. These associations can provide logistical support, a distribution network, or operate under the
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A comparison of economic flows and ownership structure for a food cooperative and corporate grocery store
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In the United States, food cooperatives are more common in the northern states of the US, with
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420:"The Divergence of Defining Local Food – Consumer Co-op versus Conventional Grocery Shoppers"
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started in the 19th century and the first notable food cooperative was started in
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395:"What Is a Food Co-op and Is It Worth Joining? - Costs, Benefits & Drawbacks"
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546:"Farm Supply and Marketing | Research on the Economic Impact of Cooperatives"
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517:"The Benefits and Impacts of Cooperatives | Grassroots Economic Organizing"
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Food Co-ops in
America: Communities, Consumption, and Economic Democracy.
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International
Journal of Undergraduate Research and Creative Activities
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Grocery Story: The
Promise of Food Co-ops in the Age of Grocery Giants
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Between 1969 and 1979, close to 10,000 food co-ops were established.
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Food cooperatives in various forms operate on a large scale in the
58:. Decisions about how to run a cooperative are not made by outside
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In the United States, the
National Cooperative Grocers (NCG) is a
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Agricultural and
Applied Economics Association Annual Meeting
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grocery store chains owned by multinational corporations.
62:, therefore cooperatives often exhibit a higher degree of
576:"The Geography of Food Cooperatives in the United States"
366:"What is a Co-op? – Neighboring Food Co-op Association"
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Food distribution outlet organized as a cooperative
445:"Research on the Economic Impact of Cooperatives"
339:. Santa Barbara, Calif.: ABC-CLIO. p. 157.
452:University of Wisconsin Center for Cooperatives
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336:Social History of the United States, Volume 1
38:is a food distribution outlet organized as a
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77:that is composed of 146 food cooperatives.
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333:Greenberg, Brian; Watts, Linda S. (2009).
256:, which can provide a recognizable brand.
175:Scale of cooperatives in the United States
1060:ICA Statement on the Cooperative Identity
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1277:History of the cooperative movement
748:International Co-operative Alliance
93:by industrial weavers known as the
42:, rather than a private or public
25:
493:"Food co-op FAQ and feasibility"
167:In contrast, a similar program,
46:. Food cooperatives are usually
291:Minnesota Food Cooperative Wars
276:Community-supported agriculture
187:Formation of a food cooperative
169:community supported agriculture
1130:Socially responsible investing
1:
753:Cooperative wholesale society
1176:Friedrich Wilhelm Raiffeisen
929:Health insurance cooperative
792:Savings and loan association
213:Agricultural sector benefits
54:, and they typically offer
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1244:United Farmers of Alberta
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286:List of food cooperatives
120:A key aspect of the food
1256:Nepal Co-operative Party
624:Cornell University Press
574:Young, Seth T. (2014).
207:University of Wisconsin
1085:Cooperative federalism
1080:Co-operative economics
593:10.7710/2168-0620.1025
271:Consumers' cooperative
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132:A food cooperative in
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75:cooperative federation
898:Community wind energy
694:Primary cooperative (
399:www.moneycrashers.com
315:The food cooperative.
250:regional associations
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64:social responsibility
48:consumer cooperatives
1308:Private aid programs
665:mutual organizations
296:Vegetable box scheme
87:cooperative movement
1055:Rochdale Principles
1002:Agent-owned company
787:Mutual savings bank
618:Anne Meis Knupfer,
466:"Food Co-op Finder"
163:Comparison with CSA
52:Rochdale Principles
1250:Co-operative Party
1135:Solidarity economy
1095:Economic democracy
860:Collective farming
550:reic.uwcc.wisc.edu
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116:Economic structure
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222:Consumer benefits
95:Rochdale Pioneers
91:Rochdale, England
18:Food co-operative
16:(Redirected from
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1156:Charles Gide
1090:Distributism
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852:Agricultural
782:Credit union
661:Cooperatives
622:Ithaca, NY:
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553:. Retrieved
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521:www.geo.coop
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373:. Retrieved
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157:income taxes
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60:shareholders
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29:
1171:Robert Owen
835:egalitarian
266:Cooperative
122:cooperative
70:analogues.
66:than their
40:cooperative
1297:Categories
875:Wheat pool
870:Winemaking
766:By product
735:Federation
720:Purchasing
555:2018-03-06
526:2018-03-06
475:2022-10-04
404:2018-03-06
375:2018-03-06
150:Tax policy
134:Ames, Iowa
36:food co-op
1200:By region
1125:Socialism
1105:Mutualism
962:Recycling
922:Insurance
913:Broadband
908:Telephone
820:Cohousing
602:2168-0620
370:nfca.coop
302:Footnotes
245:Wisconsin
241:Minnesota
231:Geography
68:corporate
1246:(Canada)
1240:(Canada)
1048:Identity
967:Platform
903:Electric
815:Building
725:Retailer
705:Consumer
586:(2): 2.
260:See also
196:Benefits
1212:Ukraine
1115:Owenism
1008:Stokvel
885:Utility
840:commune
807:Housing
774:Banking
626:, 2013.
237:Vermont
141:Pricing
81:History
44:company
1207:Canada
1038:Topics
710:Worker
600:
343:
243:, and
1282:.coop
1015:Artel
990:Other
972:Media
943:Other
496:(PDF)
448:(PDF)
423:(PDF)
1252:(UK)
955:list
950:Food
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663:and
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341:ISBN
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Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
