Food cooperative

[2] Food cooperatives began to emerge in major cities and college towns, catering to the food-conscious.

[2] A key aspect of the food cooperative model is the socialization of potential profit associated with running a grocery store.

In general, membership is open to any community member, with stores adopting official policies of nondiscrimination.

[4] Each cooperative has a different fee structure, typically determined by its management, but in general, members of the public will have the option of purchasing a membership that will yield discounted prices on food, as well as a vote on decisions.

[4] In contrast, a similar program, community supported agriculture, socializes the risks associated with growing the food, transferring it from the growers to consumers.

[8] This contrasts with typical corporate grocery stores, which can be financed using debt or equity, and whose owners can eventually reap a profit to recoup their investment.

According to researchers at the University of Wisconsin, “Cooperatives play a key role in agricultural markets not only because they account for a significant fraction of economic activity in this sector, but also because they are believed to generate a pro-competitive effect in imperfectly competitive markets.”[10] The grocery market, in particular, is often not very competitive in geographically isolated areas, with only enough consumer base to support one major supermarket.

One found that “For every $1,000 spent at a food co-op, $1,606 goes to the local economy; for every $1 million in sales, 9.3 jobs are created”.

They provide an opportunity for farmers to share risk and to control managerial decision-making for their direct benefit.

[9] Consumers often support the local ownership of the cooperative model, in contrast to many grocery store chains owned by multinational corporations.