If you’ve ever looked into an alternative to your traditional “big box” grocery store – whether you’re shopping for bulk items or natural foods, you’ve probably heard of a “co-op.” What makes these grocery stores different than your traditional stores? Let’s take a look.
A food cooperative or food co-op is a food distribution outlet organized as a cooperative, rather than a public or private company. In this structure, decisions regarding the production and distribution of its food are chosen by its members.
The cooperative movement traces its roots to the 19th century in Rochdale, England. The United States saw a big wave of cooperative initiatives between 1969-79, when over 10,000 cooperatives were established in America. Currently, there are about 485,000+ members in the United States, with 290 total stores.
How does this translate in operations of the store? Why is this any different?
A co-op is owned and democratically governed by its members, the people who shop there, or are employed by the business. Profits generated by a co-op are reinvested in the business or returned to the members based on their use of its services. Membership in the co-op is obtained through the purchase of a member share in the business, which does not change in value and entitles the member to one vote in matters that come before the members. The table below illustrates this relationship.
Members decide what foods and products are stocked on the shelves and where those items are purchased. Members also vote on standards for negotiating prices, and they choose how co-op employees are compensated. Membership is typically open to anyone interested in the community, however, some stores will limit membership to a geographic area or state.
Advantages
Aside from membership benefits, shopping at a co-op has a variety of other benefits.
Food co-ops spend 6% more on local wages and benefits than conventional grocery stores, and do 2 ½ times more business with local farms and producers.
Co-ops often have a focus on local, organic, or otherwise more sustainably sourced products, and thus, you are more likely to find these types of products at a co-op than at a traditional grocery store.
Co-ops often provide food with less packaging, including bulk items, which reduces the waste generated by shopping at a conventional store.
Disadvantages
In order to become a member at a co-op, most stores require individuals to contribute a nominal fee, or volunteer hours. If someone is already facing a meager food budget and cannot work volunteer hours, they cannot take advantage of membership privileges. Even a membership fee of $35 could be someone’s food budget for a week, so it’s a tough choice. Additionally, items at a co-op may not necessarily be cheaper than at a conventional grocery store.
Co-ops used to be seen as one of the number one outlets for organic and bulk food within communities. However, conventional stores have kept up with trends and have expanded their organic and bulk options. This competition allows folks to shop for these niche items without paying the membership fee.
If joining a food co-op is doable for you and your family, please check out the locator below to find one near you:
https://www.welcometothetable.coop/all-coops
