food industry conference presentation
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The Cooperative Business Model: Hip not HippieTRANSCRIPT
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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
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1972-1998 1998-2009
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January 8, 2009
3,500 to <6,000 members$9 million in sales to >$22 millionAdded approx 60 jobs
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What is a co-op?
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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
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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
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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
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Source: NCBA 2009 Annual Report co-op 100
http://www.ncb.coop/uploadedFiles/Coop100_2009_web.pdf
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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)
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The Rochdale Society of Equitable Pioneers
Rochdale, England 1844
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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
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One Share = One voteOne Member, One Vote
Cooperatives Corporations
Purpose:
To benefit members
Purpose:
Earn profit for investors
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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
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Seward Co-op will sustain a healthy
community that has:
• Equitable economic relationships
• Positive environmental impacts
• Inclusive, socially responsible practices
Ends Statement
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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
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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.
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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/
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Thank You!