Food co-ops make a big difference in US communities

A recent study conducted by the National Cooperative Grocers Association in the US shows how food co-ops make a difference in their local communities. The report, “Healthy foods, Healthy communities,” looks at the social and economic impact of food co-ops in the US.

The study highlights how co-ops are superior to the conventional grocery industry — those stores that are privately or investor-owned — in terms of the proportion of energy efficiency, environmental impact, healthy and environmental food provided and the job opportunities offered.

For every USD1,000 a shopper spends at their local food co-op, USD1,604 in economic activity is generated in their local economy — USD239 more than if they had spent that same USD1,000 at a conventional grocer in the same community.

A typical co-op in the US works with over 150 individual local farmers and food producers as opposed to only 65 local farmers and food producers in the case of the conventional stores

Co-ops source over 40% meats, 35% deli, 31% dairy, 11% grocery and 11% general merchandise from local producers, as opposed to only 5% meats, 3% deli, 9% dairy, 2% grocery and 5% general merchandise in the case of the conventional sector. Moreover, in a co-op store 82% of produce sales are organic, while only 12% are organic in a conventional store.

Retail food co-operatives also create jobs for the local communities. The average food co-op creates 9.3 jobs for every million dollars in sales. A typical co-op creates USD10 million a year in revenue and provides employment for over 90 workers, or nine workers per million. In contrast, a conventional grocer creates only 5.8 jobs per million dollars in sales.

Overall, co-ops generally pay comparable wages to their competitors. For some occupations such as cashiers, stock clerks or food prep workers, the average hourly wage is higher for co-op workers than for employees within the conventional sector. Due to various bonuses and profit sharing, co-op employees earn an average of USD14.31 per hour compared to USD13.35 for their peers in the traditional sector.

Furthermore, 68% are eligible for health insurance in the co-op sector, where as less than half are eligible in the conventional sector, due to the fact that there are more part-time employees than in this sector. Employees also highly value the co-op principles and appreciate their workplace culture and the benefits.

A food co-op in the US spends an estimated 38% of revenues locally, while a conventional grocer spends 24%. Food co-ops also help to redistribute the revenue to the local economy.

A co-op with USD10 million in annual sales generates USD16 million of local economic impact. On the other hand, a local conventional grocery store of the same size, in the same community, would have an annual economic impact of USD13.6 million. This means that by choosing to support and shop at a food co-op, a community can increase its total economic activity by over USD2.4 million a year.

The study shows that co-ops also have more efficient environmental policies because consumers themselves are involved in the decision making process.

A typical NCGA food co-op recycles 96% of its cardboard waste, 81% of its plastics and 96% cardboard, as opposed to 36%, 29% and 91% in the conventional sector. Food co-ops are also involved in energy conservation projects. Co-op food stores have scored an average energy score of 82 out of 100, while conventional grocery stores have only scored only 50.

• The National Cooperative Grocers Association (NCGA) is a business services co-operative for retail food co-ops located throughout the United States. For more information on the study, visit: strongertogether.coop/food-coops/food-co-op-impact-study

International Year of Cooperatives 2012 - Join the Revolution

Gli “anni internazionali” sono dichiarati dalle Nazioni Unite per attirare l’attenzione su temi di primaria importanza e incoraggiare delle iniziative a riguardo.
L’anno internazionale delle cooperative (2012) ha l’intento di accrescere la consapevolezza degli immensi contributi che le imprese cooperative apportano alla società: riduzione della povertà, democratizzazione della società, creazione di posti di lavoro, salvaguardia e miglioramento del tessuto sociale ecc.
L’Anno servirà anche a sottolineare la solidità del modello d’impresa cooperativa, e il ruolo che esso potrà ricoprire in futuro per lo sviluppo socio-economico a livello internazionale.

International Year of Cooperatives 2012



The Co-operative Ethical Plan - Join the Revolution

A better world means more co-operatives - Getting their attention

"Co-operatives received some important high-level recognition this week when ICA’s President, Dame Pauline Green, and I were able to join representatives from China’s co-operative sector in a meeting with the Chinese Vice Premier, Hon. Mr. Hui Liangyu, in Beijing. Mr. Hui presented a four-part commitment of the Chinese government to co-operative development, including: sound legal protection for co-operatives; pushing forward innovation, ‘the inexhaustible resource for growth’; displaying co-operative values, such as poverty reduction; and deepening exchange among co-operatives, including with co-operatives in other countries.

This meeting was arranged by the All China Federation of Supply and Marketing Cooperatives, an ICA member, as part of an impressive symposium in Beijing for the International Year of Co-operatives. It conveyed a thoughtful, outward-looking strategy, with the global perspective presented along with a perspective from each of the world’s regions, providing an interest counterpoint for the Chinese view of their own co-operative experience and future.

Later that week, I had the opportunity to meet with the Deputy Prime Minister of Vietnam, H.E. Mr. Mguyen Xuan Phuc, in Da Nang, where he addressed the World Fisheries Cooperative Day attendees. He noted the significance of the fisheries sector to the Vietnamese economy and that Vietnam is now among the top 20 countries in fish catch and ranked sixth in terms of fisheries export. He expressed his appreciation specifically for the contributions of ICFO (International Co-operative Fisheries Organisation), ICA’s fisheries sectoral organisation, to the development of Vietnam’s fisheries co-operatives.

Juxtaposed, these meetings demonstrate the growing awareness of appreciation for co-operatives at the highest levels of government. The World Fisheries Cooperative Day, in particular, signals a way for us to continue to invite this attention even as the International Year itself reaches its close later this year.

This was the second World Fisheries Cooperative Day (15 June) conference. 200 representatives of fisheries co-operatives in a dozen countries shared their development experiences and their challenges before celebrating the Day, which included the presentation of the World Fisheries Cooperator Prize to Ikuhiro Hattori, President of the National Federation of Fisheries Co-operative Associations of Japan.

Mr. Hattori has a distinguished career in aquaculture and co-operation and was able to describe the steady development of the Japanese Federation since enabling legislation in 1948. The government early allowed the Federation to use its foreign currency reserves from fuel oil supply operations, which gave it a sound business model for growth. From that start, the Federation expanded into mutual aid, marketing, fish freezing and processing, and more recently, marine resource management and a fishers’ income security system. As Japan now recovers from the terrible tsunami of last year, the sophisticated systems of the Federation are demonstrating the value of thoughtful planning and steady growth. They also demonstrate an important point about governmental relations, and that co-operatives do not seek government subsidies as part of an ongoing business model. Instead, if policy can simply acknowledge the unique structure and nature of co-operatives and allow them to fully leverage their potential, the resulting impact is very impressive.

Vietnam, this year’s host for the conference, is still developing its fisheries co-operatives. With a coastline of 3200 km, fishing is a major part of the Vietnamese economy, and employs 5 million people. It is also a fast-growing part of the economy, increasing over 6% annually this past decade. But it is an inefficient industry. Today, the vast majority of fishing knowledge is passed from father-to-son, vessels are often of low quality, lacking communication and safety equipment, and illegal and unsustainable fishing methods are common.



An improved legislative framework for co-operatives, beginning in the late 1990s, has resulted in an increase in the number of fishing co-operatives from 79 to 500, and an additional 4000 ‘pre-cooperatives’. With training, logistical services, and joint marketing, fishers in co-operatives are reporting a doubling of their income. Further improvements to the co-operative legislation are pending even as I write, and we were able to address this with the Deputy Prime Minister.

While fishers are among the poorest of workers, conditions would seem to be ripe for greater attention to their needs. For example, the agenda of the important United Nations Rio+20 Conference on Sustainable Development, meeting this month in Brazil, includes sustainable oceans policy. At the same time, the Food and Agriculture Organisation has been warning of a growing food security crisis, and aquaculture and fishing are acknowledged as essential means to address this. ICA is working to ensure that co-operatives are seen as part of the solution. Our Public Policy Director, Betsy Dribben, is in Rio now, advocating for inclusion of co-operatives in the outcome document from Rio+20, to ensure our inclusion in post-Rio implementation strategies.


As further evidence of growing attention to co-operatives in this area of food supply, the new FAO (UN Food and Agriculture Organisation) Director-General, Mr. Graziano da Silva, is a friend of co-operatives, having seen first-hand their impact in his home country of Brazil. He is elevating the visibility of co-operatives within the FAO and ensuring their integration in key initiatives.

The dangers of the waters have long made fishing conducive to mutual support. An increased awareness of the over-exploitation of the seas has elevated the urgency of co-operation in resource management, as well. The co-operative model is showing, in the countries represented at the World Fisheries Cooperative Day, how effective it is in accomplishing this, while at the same time raising the standard of living of the fishers involved."


from: charlesgould.tumblr.com/post/25289917579