Food Co-ops: Making Healthy, Local Food

More Accessible

Micha Josephy & Bonnie Hudspeth NOFA Summer Conference // August 11, 2013

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Overview

• Introductions • Problem: Hunger in our Communities • Solution: Co-ops!

-- What are they? -- Why can they address hunger? -- What challenges to co-ops face in this area?

• Food Co-ops & Healthy Food Access -- Partners -- Projects

• Questions and Discussion 2

The Problem

• In the Northeast, over 2.9 million households (13.5%) are food insecure, meaning they lack the resources to access enough food. • Households with children or seniors are more likely to be food

insecure, and are the most vulnerable to hunger’s impact on health and well-being.

• In the US, 2.3 million households have limited access to supermarkets and grocery stores. Many of these households are low-income and food insecure.

• The need is spread through urban, rural, and increasingly suburban communities

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The Solution

?

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What is a Co-op?

A co-operative is: * an autonomous association of persons united voluntarily * to meet their common economic, social, and cultural needs and aspirations * through a jointly-owned and democratically-controlled enterprise International Co-operative Alliance

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“User” Focused

• User-Owned: The people who use the co-op’s

services also own it.

• User-Controlled: The people who use the co-op

control it on a democratic basis (one-member, one-

vote).

• User-Benefit: The people who use the co-op

receive benefits such as patronage dividends,

improved price, goods and services & employment.

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Co-ops Today

Are more common than we think

• 1 billion members worldwide (1 in 4 in the US)

• More people than own stock in publically traded corporations

• Majority of US farmers are co-op members

Are innovative

• Healthy food, organic agriculture, Fair Trade, re-localization, regional

aggregation & distribution

Are successful

• 30,000 co-ops in all sectors of US economy

Are resilient

• Survived and grew during the global recession

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Co-ops in New England

• 1,400 co-ops across industries

(Food Co-ops, Farmer Co-ops, Credit Unions, Worker Co-ops,

Energy Co-ops, Housing Co-ops, etc.)

• 5 million memberships

• Employ 22,000 people

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The Birth & Growth of the Co-op Movement

• Rochdale Pioneers

• Begin with a store

• Accumulate shared capital

• Leverage purchasing power for new Co-op enterprises

• All about HEALTHY FOOD ACCESS

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Co-ops & Resilience

Community ownership & control

+ Focus on service, meeting needs before profit

+ Development of local skills & assets

+ Regional economic efficiencies

+ Ability to assemble limited resources

+ Difficult to move or buy-out

+ Root wealth in communities, not markets

+ Member, customer loyalty

+ Low business failure rate & are long-lived

------------------------------------------------------------------ = More stable local food systems, infrastructure,

employment, services & economy 11

Structural Challenges

• Balancing various goals Planet, People, Profit

• Economies of Scale Economic Competition against Big Boxes

• Barriers to Entry Limited Capacity of individual co-ops

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Food Co-ops and Healthy Food Access

• Increase access to healthy food and co-op

ownership for low-income families in New

England.

• Facilitate information sharing among co-ops.

• Highlight the role co-ops play in healthy food

access.

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Vision

Focus

Areas

Strategy

Thriving

Regional

Economy

Network

Partnerships

Collaboration

among

Co-ops

Healthy, Just &

Sustainable Food

System

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VERMONT

• Brattleboro Food Co-op, Brattleboro

• Buffalo Mountain Food Co-op, Hardwick

• City Market / Onion River Co-op, Burlington

• Co-op Food Store, White River Junction

• Granite City Grocery, Barre

• Hunger Mountain Food Co-op, Montpelier

• Middlebury Natural Foods Co-op, Middlebury

• Plainfield Food Co-op, Plainfield

• Putney Food Co-op, Putney

• Rutland Area Food Co-op, Rutland

• South Royalton Food Co-op, South Royalton

• Southshire Community Market, Bennington

• Springfield Food Co-op, Springfield

• Stone Valley Community Market, Poultney

• Upper Valley Food Co-op, White River Jct.

CONNECTICUT

• Elm City Co-op Market, New Haven

• Fiddleheads Food Co-op, New London

• The Local Beet Co-op, Chester

• Willimantic Food Co-op, Willimantic

NEW HAMPSHIRE

• Co-op Food Store, Hanover

• Co-op Food Store, Lebanon

• Great River Co-op, Walpole

• Littleton Food Co-op, Littleton

• Manchester Food Co-op, Manchester

• Monadnock Community Market, Keene

MASSACHUSETTS

• Assabet Village Food Co-op, Maynard

• Dorchester Community Co-op, Dorchester

• Green Fields Co-op Market, Greenfield

• Leverett Village Co-op, Leverett

• McCusker's Co-op Market, Shelburne Falls

• Merrimack Valley Food Co-op, Lawrence

• Old Creamery Co-op, Cummington

• River Valley Co-op Market, Northampton

• Wild Oats Co-op Market, Williamstown

RHODE ISLAND

• Urban Greens Food Co-op, Providence

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NFCA Member Impact

• A Co-op of 20 food co-ops and 12

start-up projects

• 90,000 individual members

• 1,400 employees (2010) – 1,200 in 2007

– VT members among top 25 employers in

the state

• Paid $28.6 million in wages… – Average wage was 18% higher than the

average for food and beverage industry

in same states.

• $200 million revenue (2010) – $161 million in 2007

• $33 million in local purchases

(2007)

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• Founded in 1975

• Finance co-ops and nonprofits

• Loaned over $30 million

• 99.2% repayment rate

• 100% repayment rate to

investors

• Created/saved 8,415 jobs and

4,462 housing units

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CFNE Impact

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Worker Co-op 11%

Nonprofit 9%

Mfg. Housing

Co-op 8% Housing Co-op 18%

Food Co-op 43%

Cohousing 3%

Other Co-op 8%

CFNE Borrowers 4-30-2013 Govern-

ment 15%

Bank 5%

Found-ation

9%

Faith-Based 25%

Trust 6%

Individual 31%

Co-op 9%

CFNE Investors 4-30-2013

$-

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

Mill

ion

s

CFNE Portfolio 1975-2012

Challenges Revisited

Structural Specific to HFA

1) Balancing Goals 1) Time/Cost of designing

and implementing

affordability programs

2) Economies of Scale 2) Reaching prospective

co-op shoppers/members

3) Barriers to Entry 3) Perception of co-ops as

expensive

4) Pricing

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1) Time / Cost of Design and

Implementation

Sharing Resources:

– Planning timeline

– Pro-forma for financial projections

– Marketing materials

– Educational program design

– Staff training

– NFCA/CFNE Role

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2) Reaching Prospective Shoppers/Members

Smart Partnerships: Hunger Free Vermont

Nonprofit education & advocacy organization

whose mission is to end the injustice of hunger

and malnutrition for all Vermonters.

• The formula:

• Children are fed healthful food wherever they are in their day.

• Individuals and families have access to enough 3SquaresVT

(SNAP) benefits to purchase nutritious food for their family.

• All those who need education on cooking & nutrition have access

to it.

• Charitable food is used only for emergencies.

www.hungerfreevt.org

3) Perceptions about Co-ops

• Education on variety and value

• Using welcoming/inclusive language in all

communications (in store and in advertising,

marketing, etc.)

• Host community events & do store tours: get

people in the door! 22

4) Pricing

• Affordability Programs

– BASICS

– Food For All

– After school programs

• Membership installment plan

• Classes on cooking, food prep, etc.

• Shopping on a Budget, bulk section tours

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Framework: Aspects of

Healthy Food Access Programs

1. Collaboration with Partner Organizations

2. Inclusive Marketing

3. Education of Individuals

4. Product Affordability

5. Accessible Ownership

6. Infrastructure

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- Brattleboro Food Co-op

- Monadnock Food Co-op

- Putney Food Co-op

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A Neighboring Approach…

Co-Branding = Bigger Impact

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HFA Challenges & Responses

Challenges:

• Reaching prospective

co-operators

• Pricing

• Perception re: co-ops

as expensive

• Time/Cost of designing

and implementing

affordability programs

Responses:

• Smart partnering

• Basics, discounts, bulk,

education re: cooking.

• Education re: variety &

value

• Sharing resources

among co-ops

(CFNE/NFCA)

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Successes & Strengths

Willingness to do it

Community and member based entities

Vision of inclusion

Co-op model

allows flexibility

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What’s Next?

1. Toolbox

2. Technical

Assistance

3. Peer-to-Peer

Audits

4. Coordinated

roll-out

5. Partnering for success

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Contact Us

Micha Josephy, Program Manager

Cooperative Fund of New England

micha@coopfund.coop // www.coopfund.coop

Bonnie Hudspeth, Outreach Coordinator

Neighboring Food Co-op Association

bonnie@nfca.coop // www.nfca.coop

www.facebook.com/neighboring

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