Green Business Models

Building a Cooperative Future

Michael HenryMembership & Outreach Manager

Open Harvest Co-op Grocery

What is a Cooperative?

A cooperative 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.

Cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity.

Cooperative members believe in the ethical values of honesty, openness, social responsibility and caring for others.

The Seven Principles

• Voluntary and Open Membership

• Democratic Member Control

• Member Economic Participation

• Autonomy and Independence

• Education, Training and Information

• Cooperation among Cooperatives

• Concern for Community

InternationalCooperative

Alliancewww.ica.coop

Founded in 1895Statement adopted in 1995

Early Modern Co-op History

• 1769 – Fenwick Weavers’ Society; the first documented consumer cooperative

• 1831 – Cooperative Congress organized in Manchester

• 1832 – Rochdale Friendly Society; handloom weavers

• 1844 – Rochdale Society of Equitable Pioneers

• 1845 – Boston Mechanics’ and Laborers’ Mutual Benefit Association

• 1863 – North of England Cooperative Society

• 1872 – Cooperative Wholesale Society (formerly NECS)

• Early 1900s – Consumer cooperatives organized under “Rochdale plan”

• 1920 – Number of consumer co-ops in the United States reaches 2,600

Recent Co-op History

• Great Depression– Berkeley and Palo Alto, CA– Eau Claire, WI– Hanover, NH– Hyde Park / Chicago, IL– Greenbelt, MD

• 1930s – establishment of credit unions throughout the United States

• 1971 – Hoedads Reforestation Cooperative, named for a hand tool used to plant bare-root trees on steep slopes

• 1971 – Buying club forms in Lincoln, Nebraska

• 1975 – Open Harvest opens first storefront near 27th & Randolph Streets

Cooperative Structure

Worker-Owned• Indirect

– Board of Directors– Hierarchical structure

• Direct– Flat structure– All members vote

Consumer-Owned

• Board of Directors• Hierarchical structure

— Mondragon Bookstore & Coffeehouse

Board ofDirectors

GeneralManager

Member-Owners

Staff &Volunteers

Open Harvest — Community

• 54¢ of every dollar spent returned to community

• 60+ local suppliers– Vegetable farmers– Ranchers– Pasta makers– Dairy (cheese, eggs

and milk)

• Weekly food donations– F Street Rec Center– Food Net

• Community Investment– Donations

• Direct funds• Food• Gift Cards

– Education

• Recycling / reuse– Composting– Product packaging

Center for Cooperatives

Project Objectives

• Build comprehensive list of cooperatives

• Establish Cooperative Research Council (CRC)

• Gather economic data

• Develop approaches for measuring impacts of cooperatives

Funding SourcesUnited States Department of

Agriculture National Cooperative Business

AssociationState of Wisconsin’s Department of

Agriculture, Trade, and Consumer Protection.

Cooperative ImpactType

Assets (M)

Revenue (M)

Wages (M)

# of Firms

% of Firms

Empl.(T)

Mem.(T)

Worker 128.02 219.24 55.41 223 1 2.38 55.14

Producer 23,632 65,426 2,970 1,494 5 72.93 714.65

Purchasing

1,126,848

157,892 2,902 724 2 130.35 6,133

Consumer

1,975,805

291.086 19,085 26,844 92 650.65 343,969

Total 3,126,414

514,624 25,013 29,285 100 856.31 350,872

The Future• Studies

– Collaborate with US Census Bureau– Spur research on improving performance– Examine unique impacts

• Resources– Consumer Cooperative Management

Assn.– International Cooperative Alliance– USDA Cooperative Services Program– UW Center for Cooperatives