The Cooperative Business Model:
Hip Not Hippie
Food Industry Center Fall Conference 2009:
Local Foods and Consumer Demand....
1972-1998 1998-2009
January 8, 2009
3,500 to <6,000 members
$9 million in sales to >$22 million
Added 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 jointly owned commercial enterprise engaging
in the production or distribution of goods or the
supplying of services, op...
Co-ops are all around us!
They include:
 Credit unions
 Mutual insurance companies
 Housing co-ops
 Utility co-ops
 C...
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...
The Rochdale Society of Equitable Pioneers
Rochdale, England 1844
Voluntary and Open Membership
Cooperative Principles
Democratic Member Control
Concern for Community
Cooperation Among Coo...
One Share = One voteOne Member, One Vote
Cooperatives Corporations
Purpose:
To benefit members
Purpose:
Earn profit for in...
How does it work?
Cooperatives Corporations
> Member owners
> Provide a framework that
allows people to get what
they want...
Seward Co-op will sustain a healthy
community that has:
• Equitable economic relationships
• Positive environmental impact...
Why Buy Local?
 In general, for every $100 spent locally, $54 stays in
the economy. For every $100 spent at “Big Box”
ret...
 Local farmers spend their money with local merchants.
The money stays in town where it benefits everyone
and builds a st...
Places to look for more
information
National Co-op Organizations
 http://www.ncba.org/ National Cooperative Business Asso...
Thank You!
Food Industry Conference Presentation
Food Industry Conference Presentation
Food Industry Conference Presentation
Food Industry Conference Presentation
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Food Industry Conference Presentation

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The Cooperative Business Model: Hip not Hippie

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  • It has occupied three different sites and undergone five expansions, as it struggles to keep up with the growing demand for its natural foods.1. I am assuming you want to know the number of natural food co-ops so in the metro there 12 co-ops with 15 stores with one starting up in the western suburbs. In the state there are about 35 co-ops and 40 stores. 2. 35% of our food last year was local. We sourced from 167 local vendors. 3. The move occurred in 1988 with an addition done in 2004.
  • Who here is a member of a co-op?Is anyone a member of Seward?Who here has ever used a co-op?
  • Many people in the US don’t know that they are members of a co-op
  • Co-ops answer a need that people haveInherent in the cooperative model is the equitable distribution of wealthNot low cost – fair costco-operatives redistribute surplus net earnings to members at the end of the accounting year, via "patronage refunds," based on the volume of business the member does with the co-operative.
  • Food Industry Conference Presentation

    1. 1. 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
    2. 2. 1972-1998 1998-2009
    3. 3. January 8, 2009 3,500 to <6,000 members $9 million in sales to >$22 million Added approx 60 jobs
    4. 4. What is a co-op?
    5. 5. 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
    6. 6. 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
    7. 7. 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
    8. 8. Source: NCBA 2009 Annual Report co-op 100 http://www.ncb.coop/uploadedFiles/Coop100_2009_web.pdf
    9. 9. 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)
    10. 10. The Rochdale Society of Equitable Pioneers Rochdale, England 1844
    11. 11. 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
    12. 12. One Share = One voteOne Member, One Vote Cooperatives Corporations Purpose: To benefit members Purpose: Earn profit for investors
    13. 13. 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
    14. 14. Seward Co-op will sustain a healthy community that has: • Equitable economic relationships • Positive environmental impacts • Inclusive, socially responsible practices Ends Statement
    15. 15. 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
    16. 16.  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.
    17. 17. 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/
    18. 18. Thank You!

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