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Why Co-ops?
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2021 Food
Co-op Impact Report
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What is a Cooperative (Co-op)?
The International Cooperative Alliance
officially defines a co-op as an autonomous
association of persons united voluntarily to
meet their common economic, social, and cultural
needs and aspirations through a jointly owned
and democratically controlled enterprise.
Members of a cooperative support it with their
patronage, participate in decision-making, and
share in the profits generated by the
organization’s activities.
History of the Cooperative Movement
Today’s cooperatives trace their origins to
England’s Industrial Revolution. In the first
half of the nineteenth century, living
conditions were extremely harsh for working
class people in the textile milling towns of
northern England. Mills workers labored long
hours under dangerous working conditions for low
pay. Plagued by unending poverty, they were
forced to buy food on credit from merchants who
charged high prices for goods that were poor
quality and often adulterated. Owning no
property, workers were unable to vote. These
conditions gave rise to labor movements, which
drew great numbers of followers.
During this period, cooperative initiatives were
common, offering their working class members the
promise of economic opportunity and democratic
control. But until the founding of the Rochdale
Equitable Pioneers Society in 1844, none were
successful. When the self-described "Rochdale
Pioneers" opened their first cooperative food
shop, they sold only five products—butter,
flour, oatmeal, sugar, and candles—but promised
to provide members with "purest provisions,
giving full weight and measure." They went on to
establish many other member-owned businesses.
Cooperative Values
Cooperatives are based on the values of
self-help, self-responsibility, democracy,
equality, equity, and solidarity. In the
tradition of their founders, cooperative members
believe in the ethical values of honesty,
openness, social responsibility, and caring for
others.
Cooperative Principle
The founders of the Rochdale Society developed a
series of operating principles, which ensured
their success and the success of hundreds of
cooperatives in England and beyond. Today, these
basic principles still guide cooperatives around
the world.
1st Principle: Voluntary and open membership
Cooperatives are voluntary organizations, open
to all persons able to use their services and
willing to accept the responsibilities of
memberships, without gender, social, racial,
political, or religious discrimination.
2nd Principle: Democratic member control
Cooperatives are democratic organizations
controlled by their members, who actively
participate in setting their policies and making
decisions. Men and women serving as elected
representatives are accountable to the
membership. In primary cooperatives members have
equal voting rights (one member, one vote) and
cooperatives at other levels are organized in a
democratic manner.
3rd Principle: Member
economic participation
Members contribute
equitably to, and democratically control, the
capital of their cooperative. At least part of
that capital is usually the common property of
the cooperative. They usually receive limited
compensation, if any, on capital subscribed as a
condition of membership. Members allocate
surpluses for any of all of the following
purposes: developing the cooperative, possibly
by setting up reserves, part of which at least
would be indivisible; benefiting members in
proportion to their transactions with the
cooperative; and supporting
other activities
approved by the membership.
4th
Principle: Autonomy and independence
Cooperatives are autonomous, self-help
organizations controlled by their members. If
they enter into agreements with other
organizations, including governments, or raise
capital from external sources, they do so on
terms that ensure democratic control by their
members and maintain their cooperative autonomy.
5th Principle: Education, training and
information
Cooperatives provide education
and training for their members, elected
representatives, managers, and employees so they
can contribute effectively to the development of
their cooperatives. They inform the general
public—particularly young people and opinion
leaders—about the nature and benefits of
cooperation.
6th Principle: Cooperation
among cooperatives
Cooperatives serve their
members most effectively and strengthen the
cooperative movement by working together through
local, national, regional, and international
structures.
7th Principle: Concern for
community
Cooperatives work for the
sustainable development of their communities
through policies approved by their members.
Twin Pines Emblem of Cooperation
Dr. James Peter Warbasse, who wrote about the
implications of cooperation and believed
strongly in the co-op movement, created the twin
pines emblem for use in the United States. In
describing the significance of this symbol, he
said: The pine tree is the ancient symbol of
endurance and fecundity. More than one pine is
used to signify cooperation. The trunks of the
trees are continued into roots, which form the
circle, the ancient symbol of eternal life,
typifying that which has no end. The circle
represents the all-embracing cosmos, which
depends on cooperation for its existence. The
two pines and the circle are dark green, the
chlorophyll color of human’s life principle in
nature. The background within the circle is
gold, typifying the sun, giver of light and
life. The twin pines symbol isn’t as common in
the United States as it once was, since many
co-ops have replaced it with their own logos.
However, this symbol is still frequently used by
co-ops in other countries, especially throughout
Central America, in India, and in other
developing regions.
Types of Co-ops
Cooperatives are often formed to provide their
members with goods and services or economic
benefits not provided by the marketplace. Thus,
co-ops operate a wide variety of businesses. All
are owned and run by the people they serve. Here
are a few examples:
Rural Utility Co-ops have played an important
role in serving the needs of rural Americans.
Electric co-ops have brought power to over 80%
of the land area of the United States, and
provide water and sewer services to many rural
areas. Telephone cooperatives have brought new
communication technologies to many people.
Credit Unions provide banking and credit
services to over 71 million members in the
United States.
Housing Co-ops are home to
students, seniors, city dwellers, mobile home
park residents, minorities, the handicapped,
single parents, and others. Some for whom
home-ownership would be out of reach find it
possible through a housing cooperative.
Agricultural Co-ops offer individual farmers
greater clout in the marketplace by acting as
their buying and selling agents. Agricultural
supply co-ops allow farmers to purchase supplies
at competitive prices, while agricultural
marketing co-ops market farm crops and
manufacture value added products. They include
such well-known names as Cabot, Sunkist, Ocean
Spray, Land of Lakes, and Blue Diamond.
Worker Co-ops are owned and controlled by their
employees. Worker cooperatives may be found in
almost any industry, from restaurants and
bakeries to printers and taxi cab companies.
Consumer Co-ops, like the Keweenaw Co-op,
may operate food stores, pharmacies, clothing
and sporting goods outlets, book stores, service
stations, hardware and agricultural supply
stores, and other retail businesses.
Ownership is achieved by purchasing a share in
the business and exercised by patronizing the
store and voting. The membership elects its
board of directors to hire, guide and evaluate
the management, which is in charge of running
the operation of the business.
Consumer
cooperatives are very different from privately
owned discount clubs, which charge an annual fee
in exchange for a discount on purchases. This is
a marketing device that is quite successful at
capturing repeat business. However, the club is
not owned or governed by the "members" and the
benefits of the business go to the investors
based on their investments.
The overall
goal of the cooperative movement is to create
organizations that serve the needs of the people
who use them. In this way, cooperative business
can serve as an alternative to the excesses of
runaway capitalism, provide goods and services
that private industry doesn’t perceive a market
for (such was the beginning of the natural food
cooperatives), and use our collective resources
for the good of the whole community.
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