The Cooperative Business Model:

Hip Not Hippie

Food Industry Center Fall Conference 2009:

Local Foods and Consumer Demand.

Rebecca Monro

Associate Director, Institute for Research in Marketing

Rmonro@umn.edu

1972-1998 1998-2009

January 8, 2009

3,500 to <6,000 members$9 million in sales to >$22 millionAdded approx 60 jobs

What is a co-op?

A group of people who buy food

together from a distributor

A group of 7 or more hippies eating organic

barley and passing a peace pipe?

A jointly owned commercial enterprise that

produces and distributes goods and services

A jointly owned commercial enterprise engaging

in the production or distribution of goods or the

supplying of services, operated by its members

for their mutual benefit, and typically organized

by consumers or farmers

A group of 7 or more hippies eating organic

barley and passing a peace pipe?

A group of people who buy food

together from a distributor

Co-ops are all around us!

They include:

Credit unions

Mutual insurance companies

Housing co-ops

Utility co-ops

Consumer goods co-ops

Distribution co-ops

Producer co-ops

Source: NCBA 2009 Annual Report co-op 100

http://www.ncb.coop/uploadedFiles/Coop100_2009_web.pdf

Fun Facts Nearly 30,000 cooperatives operate in 73,000 places

of business throughout the U.S.

U.S. Cooperatives:

Own over $3 trillion in assets

Generate over $500 billion in revenue

Generate over $25 billion in wages

Americans hold 350 million memberships in

cooperatives

Nearly 340 million of these memberships are in

consumer cooperatives

“Research on the Economic Impact of Cooperatives,” S. Deller, A. Hoyt, B. Hueth, and R. Sundaram-Stukel, University of Wisconsin Center for Cooperatives (March 2009)

The Rochdale Society of Equitable Pioneers

Rochdale, England 1844

Voluntary and Open Membership

Cooperative Principles

Democratic Member Control

Concern for Community

Cooperation Among Cooperatives

Education, Training and Information

Autonomy and Independence

Member Economic Participation

One Share = One voteOne Member, One Vote

Cooperatives Corporations

Purpose:

To benefit members

Purpose:

Earn profit for investors

How does it work?Cooperatives Corporations

> Member owners

> Provide a framework that

allows people to get what

they want in a way that better

meets their economic, social

and cultural needs.

> Reinvestment in community

> Patronage refunds

> Invest in local

economies/local foods

Seward Co-op will sustain a healthy

community that has:

• Equitable economic relationships

• Positive environmental impacts

• Inclusive, socially responsible practices

Ends Statement

Why Buy Local?

In general, for every $100 spent locally, $54 stays in

the economy. For every $100 spent at “Big Box”

retailers, only $14 stays in the local economy.

When folks buy local, twice the money stays in the

community

Reduced packaging and fossil fuel use

Source: Andersonville Study of Retail Economics, by Civic Economics, October 2004 and MN Dept.

of Revenue, Gross Retail Sales for 2003.

Source: “Buying Local: How it Boosts the Economy. Time Magazine June 11, 2009

Local farmers spend their money with local merchants.

The money stays in town where it benefits everyone

and builds a stronger local economy.

Independent, family-owned farms supply more local

jobs and contribute to the local economy at higher

rates than do large, corporate-owned farms.

Eating locally grown, healthy food strengthens your

family and community.

Local farmers who sell directly to consumers receive a

larger share of the profit for their food.

Places to look for more

information

National Co-op Organizations

http://www.ncba.org/ National Cooperative Business Association

http://www.cdi.coop/ Cooperative Development Institute

http://www.cdsus.coop/ Cooperative Development Services

http://www.cdf.coop/mission.html Cooperative Development Fund

http://www.ncga.coop Ncga

http://www.seward.coop Seward co-op

http://www.go.coop/

Thank You!