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Food Co-ops

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General Info

The member-owners of food cooperatives are typically consumers, however some are worker-owned or share decision making among both workers and consumers. Consumer food cooperatives are formed to gain control over the type and quality of products available and to obtain lower food prices and include retail supermarkets with one or more outlets and buying groups with a few to hundreds of members. Many cooperative supermarkets began as small buying clubs and developed into storefront cooperatives as membership increased. 

The first consumer food cooperative in California was formed in 1867 in San Francisco. Although the modest daily sales were financially sound, the store lasted only a short time. In the 1930s there was a burst of cooperative activity throughout the United States in response to the Great Depression. In California, the Berkeley food cooperative was formed in 1937. Although the 1988 closure of the Berkeley food cooperative was a setback for the consumer cooperative movement, many other food cooperatives in California are thriving and expanding; most have been formed within the last 40 years. In addition to traditional economic benefits associated with cooperative food purchasing, these cooperatives often emphasize nutritional quality, production and distribution alternatives such as organic lines and free trade, and emphasize offering information and education so that consumers can make informed choices. 

Members of food cooperatives democratically elect a board of directors who make policy decisions about the cooperative. Most cooperative markets hire a manager to oversee the day-today administration of the store. These cooperatives typically allow anyone to shop at the store but offer discounts and/or “patronage dividends” to members. A patronage dividend is the member’s share of year-end profits based on the amount of purchases made over that same time period. Sometimes cooperatives offer price discounts for members who contribute volunteer time to the cooperative. 

In addition to storefront food cooperatives, there are numerous buying clubs in California. In this model, households join together to buy food in bulk to take advantage of quantity discounts and to obtain a range of foods not available locally. Buying clubs are generally run on a volunteer basis by members, with a majority of members volunteering time. ------------------------------- *For more information about food cooperatives that are worker owned—see: “Worker Cooperative.” Sometimes, consumer cooperatives contract with a worker cooperative or collective to provide staffing services.

Starting Up Creating a Development Budget Gessner, Bill: Cooperative Development Services. Adapted from a webinar presentation, this document describes how to develop a sources-and-uses development to start a brick-and-mortar food co-op, broken down into stages of organizing, feasibility/planning, and implementation. Accompanied by a sample budget spreadsheet, Start-Up Natural Food Co-op, Key Assumptions and Sources & Uses Budget. Essential Business Planning Elements Coontz, E. Kim: CCCD. Adapted from Ward and Kennedy, The Business Plan Manual. An overview of the purpose and components of a business plan. Feasibility Study Checklist Coontz, E. Kim: CCCD. Adapted from Adams and Hansen, Putting Democracy to Work. A checklist of steps to include in examining the feasibility of the cooperative venture. Frequenty Asked Questions Answered for Food Cooperative Organizers Every year we at CCCD hear food co-op organizers’ questions and assumptions about how food co-ops start and how they can benefit their local community. We interviewed a dozen mature California food co-ops and 6 new co-ops in California and other parts of the US to learn a little more about what’s worked and what hasn’t, and what the impact of the store has been on local economy and agriculture. We hope you can use these answers as you promote starting a cooperative in your community. Keys to Success for Food Co-op Start Ups in Rural Areas: Four Case Studies Lawless, Greg, and Reynolds, Anne: University of Wisconsin Center for Cooperatives. A comparative report on four rural food co-ops. This is a large file which may take some time to download. Legal Sourcebook for California Cooperatives: Start-Up and Administration Baldwin, Van: UC Center for Cooperatives. This reference has information on California co-ops of many kinds, both in starting and in continuing operations. Topics covered include: choice of entity, articles of incorporation, bylaws, membership, board of directors, officers, raising capital, distributions and patronage refunds, reporting, and taxation. Note: this publication is not fully updated for subsequent changes in the law or other information provided herein. Starting a Co-op: Principles, Phases, Steps & Elements for Success Coontz, E. Kim: CCCD. Topics include steps, cooperative principles, phases of co-op development, and elements needed for a successful co-op start-up. Operations Basic Responsibilities of the Co-op Board of Directors Coontz, E. Kim: CCCD. Describes the roles and responsibilities of co-op boards. Conflict Resolution Tips for Co-op Members Coontz, E. Kim: CCCD. Feasibility of a California Energy Feedstock Supply Cooperative The San Joaquin Air Pollution Control District banned the burning of stumps in orchard removal as of June 1, 2007 and established a total ban on burning of all orchard waste effective June 1, 2010. There are about one million acres of deciduous fruit and nut trees in California, producing an estimated 700,000 tons of prunings annually. In the past, much of this orchard waste has been burned in the field. Guidelines for Successful Organizational Meetings Coontz, E. Kim: CCCD. Adapted from Haberman, Gayle, Facilitating Meetings. An overview of strategies to improve meeting effectiveness—including information about preparation, recording minutes, facilitation, encouraging participation, and addressing concerns. Other

Other

Co-op Grocer #192 Food co-op trade association magazine. Resources Cooperative Grocer Network Founded to support the growth and development of food co-ops, it has the mission to strengthen all retail food cooperatives by creating community and facilitating the sharing and development of resources among members. The CGN grocer.coop website is a rich resource for interacting with other cooperators and finding even more resources on all aspects of food cooperative operations. Cooperative Grocer Network Founded to support the growth and development of food co-ops, it has the mission to strengthen all retail food cooperatives by creating community and facilitating the sharing and development of resources among members. The CGN grocer.coop website is a rich resource for interacting with other cooperators and finding even more resources on all aspects of food cooperative operations. CoFED CoFED (Cooperative Food Empowerment Directive) partners with young folks of color from poor and working-class backgrounds to meet our communities' needs through food and land co-ops. Cooperative Development Services Consulting Cooperative CDS Consulting Cooperative's members are professionals providing consulting services in all areas of consumer owned grocery stores (food coops), ranging from pre-opening planning to strategic planning. Food Cooperative Initiative Food Cooperative Initiative supports the development of new food cooperatives through trainings and grant programs for cooperative organizing groups. Sustainable Economies Law Center: Coop Law Library Legal information, best practices, and supporting tools for cooperatively owned businesses and organizations.

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