added 10/05/10

The goals of building community and increasing self-reliance never go out of style and have carried co-ops through the ups and downs.

Building Community and Protecting Farmers

by Jaime Baker Richardson
Education Programs Assistant

Throughout history, consumer cooperatives have taken pride in their ability to beat the odds during periods of economic struggle. Because they are owned by the people who shop in them, they are attuned to the needs of their local communities and can respond accordingly.

Co-op History

Many U.S. cooperatives, such as our own Hanover Consumer Cooperative Society, arose during the 1930s as an alternative source of affordable, quality food. In the 1960s and’70s, New Wave co-ops were established to meet the needs of a young population interested in ecology and nutrition. While the Depression-era co-ops evolved into full-service supermarkets selling a wide range of products, the New Wave “natural foods” co-ops tended to be more selective in their merchandise. In time, the demands of a changing marketplace contributed to the evolution of “hybrid” cooperatives, combining the full product selection and defined organizational structure of the traditional co-ops with the natural foods preferences of the New Wave. Again, our co-op was a pioneer in the development of the hybrid model that is gaining popularity today.

Lessons from the 1980s

For several years in the early 1980s, inflation, high unemployment, high interest rates, and stagnant productivity plagued the American economy. In addition, Americans watched industrial-scale agribusinesses squeeze out the nation’s family farms. In 1983, the Hanover Co-op researched its impact on the Upper Valley economy and identified two distinctive qualities not shared by other supermarkets in the area.

First, the Co-op returned its annual net savings (funds left over after all expenses had been paid) to its 5,474 members in the form of a patronage refund. In 1983, the amount of money refunded was $180,500. This cash tended to re-circulate locally, rather than being exported to out-of-state stockholders as is common with conventional corporations.

Second, since the Co-op was locally owned and controlled, its purchasing policies were more flexible than most supermarkets and its needs could be adequately met by a small producer, such as a local farmer or baker. The Co-op’s ability—and interest—in purchasing from local vendors not only meant good business for the Co-op; it also provided a reliable market for small farmers and growers in the area, thereby keeping local land in production and contributing to regional food security.

Lessons for Today

Today, buying locally is gaining recognition as a powerful economic development strategy overall, as well as an important tool for protecting the health and productive future of farmland. Supporting locally owned businesses keeps money in the local economy, strengthens community ties, and increases our ability to meet our own needs.

In the end, it’s about building community and increasing self-reliance—two goals that never go out of style!

Connecting Consumers to their Food

It was the mid 1980s, and three young men who had met as managers at a New England food co-op had a common vision. They wanted to create a social change organization that would help small farmers in countries outside the U.S. gain more control over their economic futures. The result was Equal Exchange, a non-profit organization dedicated to empowering farmers, educating consumers, and providing high-quality foods through a company controlled by the people who did the actual work.

The organization started with fairly traded specialty coffee, and consumer co-ops rallied to support its mission. By 1994, Equal Exchange had transformed itself into a worker-owned cooperative. Meanwhile, the idea of fair trade had caught on with a growing segment of American consumers, and a system of Fair Trade product certification was launched in the U.S. in 1998.

Today, Equal Exchange is a thriving model of fair trade that has exceeded its founders’ original vision. The company is not resting on its laurels, however. It continues to seek new and better ways of connecting consumers to their food and the farmers who grow it. As always, consumer cooperatives are part of their plans.

See Small Farmer Co-operatives: Saving Coffee–and the Earth on this page to find out more!