What is a Co-op?
A cooperative business is owned and democratically controlled by its members -- people who have organized to provide themselves with needed goods and services. A cooperative is operated for the benefit of its member-owners. A cooperative takes advantage of economies of scale by pooling buying power. A cooperative returns any profits to co-op members, after bills are paid and money is set aside for operations and improvements.

Co-ops are Everywhere
North Americans have come to depend on cooperatives for a range of goods and services. There are consumer-owned cooperatives selling clothing, appliances, camping gear, bicycles and books. There are cooperative wholesalers providing products, branding and other services to independent hardware, grocery and natural foods businesses. There are co-ops disseminating news and photographs, and co-ops for the arts community. There are cooperatives that provide electricity and telephone service. By nature, credit unions and mutual insurance companies are cooperatives because they are member-owned. There are thousands of agriculture co-ops and cooperatives providing financing to farmers. There are cooperatively organized employee-owned companies, cooperative purchasing groups for fast-food franchisees, and housing co-ops. When it comes to making economic and charitable contributions to their communities, the nation’s cooperative businesses are industry leaders, setting the bar high for other types of businesses.

When it comes to making economic and charitable contributions to their communities, the nation’s cooperative businesses are industry leaders, setting the bar high for other types of businesses.

• Co-ops employ at least half a million Americans and generate more than $230 billion in annual revenues for their communities through their day-to-day activities. For example…
• More than 3,000 farmer cooperatives account for 200,000 jobs nationwide and a total payroll of more than $8 billion. Co-ops also have a strong commitment to the communities in which their members live and work. Through cash contributions, volunteerism and more, co-ops invest in new community businesses and support local causes ranging from education to the environment.

Co-ops’ commitment to their communities stems from their organization as member-owned and member-controlled businesses. Being owned largely by people who live and work in the communities they serve gives cooperatives a different perspective from businesses owned by distant investors.

• Co-op are motivated to serve their members, not outside investors.
• That means they must also serve the communities in which their members live and work.
• Investor-owned businesses also generate jobs and make charitable contributions in their communities.
• For co-ops it’s a critical part of what they do and why they do it.
• At a time of increasing concern about the national economy, co-ops are creating jobs, income and opportunity in their communities every day.

Although cooperatives continue to change over the years, the principles with which they operate have remained essentially the same:

Open Membership – anyone who wants to become a member can Democratic Control – members control the cooperative through their election of its board of directors Limited Returns on Investment – returns are limited to keep control in the hands of the users Patronage Refunds – margins or earnings are returned to members in proportion to the amount of business done with the cooperative Continuing Cooperative Education – a duty to educate members and the general public about our cooperative form of business as a unique and valuable part of our private enterprise system Cooperation Among Cooperatives – working together is one of the strengths of cooperatives Concern For Community – while focusing on members’ needs, cooperatives work for the sustainable development of their communities through policies approved by their members

Cooperatives Produce Quality Products
Many cooperatives have familiar names:

Prairie Farms Lindsay Olives Sunkist Blue Diamond Almonds Ocean Spray Riceland Rice Sun-Maid Raisins Thank You Brand Pie Filling

Sunsweet Prunes C & H Sugar Land O’Lakes Welch’s Libby’s Sue Bee Honey Seald-Sweet processes citrus Diamond Walnuts and Pecans