Food Co-ops as 'Islands of the Future' in challenging times

Durham Co-op Market (Durham, NC)

Throughout history, food co-ops have emerged during periods of crisis, economic inequality, or, when large segments of the population recognize that the patterns of the dominant systems of exchange are no longer adequate.

Yes, much of what we are experiencing through the 2020 COVID-19 crisis is “unprecedented”, BUT, let’s not be mistaken just how much precedent is built into the DNA of cooperative principles, values and practice. Co-ops have been operating as ‘Islands of the Future’ for as long as they’ve been around, and today we each have a tremendous opportunity to identify that ‘future’ as now.

As the physical and economic fallout of the virus unfolds, there is an unmistakable demand on each of us to look more closely to our neighbors and communities - an opportunity to shake off old patterns of economic exchange, and to support our communities through our choices of where we shop for food and what we purchase.

If the economic fallout hasn’t affected you directly, each of us probably knows someone who has already been laid off or may be in the near future. Our food dollars have the capacity to generate new employment opportunities. If we can increase the demand for all locally-made food products, like bread, yogurt, cheese, fresh produce, granola or coffee (locally-roasted) — we are effectively developing the capacity for these foodmakers to generate new jobs to help meet this new demand. Food co-ops have long been in the business of supporting truly local foodmakers.

Locally-owned grocers such as food co-ops are also making payments to other local businesses — skilled trades or financial, legal and marketing services. In 2019, the Kootenay Co-op in Nelson, BC (pop. 10.7k) directed $4.2 million in payments to businesses within a local area spanning no more than 100-miles across and with a population of less than 80,000 people (this represented 25% of all of the store’s payments for that year).

Our Food Dollars at Work

Littleton Food Co-op (Littleton, NH)

Redistribution of our grocery dollars to community organizations

Food co-ops are more than just grocery stores, they’re community development organizations.

Examples of community organizations supported.

A portion of every dollar spent at most co-ops directly supports nonprofits. In 2017, the Kootenay Co-op contributed the equivalent of $196,625 toward affordable housing initiatives, food access services, schools, choirs, gymnastics programs, sports associations, and wildlife rehabilitation services among others — 185 groups in total.

An average 4 percent of profits at conventional stores are devoted to charitable donations compared with 13 percent at food co-ops.

Some co-ops offer grants. The North Coast Co-op with its two locations in Arcata and Eureka, California, established a permanent endowment fund in the 1990s. The fund is fed by direct donations, their round-up program, and a 10-cent charge for every paper bag purchased at the checkout. It has granted more than $400,000 to projects that promote sustainable agriculture, nutrition and food security. At almost every food co-op in North America, people are directly supporting their friends and neighbors with their food purchases. The family you are supporting with your purchases may just be the next person in line at the checkout. [Chapter 7]

Recirculating food dollars within our communities

A portion of every food dollar spent at a grocery store ends up in the hands of the people who produce the food. They, in turn, go out and spend that portion in a myriad of ways — some of it for expenses incurred by the business itself, the rest for personal expenditures. Of the portion spent on the business, the more local the supplier is, the greater the chance that those expenditures will be supporting other local businesses, maybe even your own friends and neighbors. Website design, legal services, financial consultants, label printing, advertising in local community newspapers…. this is the local multiplier effect of our food dollars when we use them to purchase local foods. [Chapter 10]

For non-local foods, when purchased at a food co-op, these purchases too will help recirculate more of those dollars within the community.

Here’s an example of the ripple effects of local food purchases and how those business owners then go on to support other locally-owned businesses who are each employing our friends and neighbors.

For every dollar spent on Valerie’s sauerkrauts and soups, a portion ends up in the pockets of other local farmers like Janet Spicer of Spicer Farm (cabbage), the Moore family at Canyon City Farm (carrots, potatoes, beets), Angela Weir and Gord Spankie of Crooked Horn Farm (parsnips, zucchini), and Owen Broad and Nancy Gabrielse of Kettle River Farm (onions). Another portion of the food dollar ends up at Hall Printing (labels), Cowan’s Office Supplies (paper, glue, tape, printer cartridges), and Phoenix Computers. Then there are Valerie and David’s personal expenditures that find their way into locally owned businesses and professionals … once again, all thanks to people purchasing local sauerkraut and baguettes: Vince DeVito Shoes, Boomtown Sports, Secret Service Cycles, local microbrewers Nelson Brewing and Backroads Brewing, Whitewater Ski Resort, Kurama Sushi, Dr. RP Daniel’s Optometry, Oso Negro Coffee, the Capitol Theatre, Dr. Scott Pentecost (dentist), and Kootenay Insurance Services. [Chapter 10]

Co-ops of all kinds have long demonstrated their capacity to transform challenge into opportunity. Today, we can follow that wisdom from generations past and seize this opportunity to use community-owned food stores to support those most in need and to open the doors even wider to the more beautiful world our hearts know is possible.

At the Kootenay Co-op (Nelson, BC)

At the Kootenay Co-op (Nelson, BC)

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Jon Steinman