Collaboration Builds a Stronger Food System

KELLY WILSON, RDN, Director of Community Partners

What do you think of when you hear the word “co-op”? Likely, you envision a small health food store or your local credit union. However, these are just two examples of the many businesses with a cooperative structure.

According to the International Cooperative Alliance, “cooperatives are people-centered enterprises owned, controlled and run by and for their members to realize common economic, social, and cultural needs and aspirations.” Cooperatives are value-driven and operate with fairness, equality and social justice at the heart of their business.

Cooperatives can generate greater profit for members, provide services at lower price points, and help businesses access previously inaccessible markets. Food based cooperatives exist in every sector of the food system from farm to retail. Currently, agricultural-based cooperatives exist in three broad categories: marketing cooperatives, farm supply cooperatives, and service cooperatives. Marketing cooperatives can give farmers collective bargaining power and the ability to aggregate product to tap into new markets. Farm supply cooperatives provide farmers access to inputs and tools at wholesale rates while service cooperatives reduce the cost of necessary business tools (i.e. on-farm technology or insurance).

In Michigan, we have many strong examples of cooperatives throughout our food system. At the farm level, many farms choose to sell their goods together through collaborative CSA (Community Supported Agriculture) programs like the City Commons CSA. Wholesale marketing groups, like Grown in Detroit and the Michigan Flower Growers Cooperative, are also growing in popularity. These models help farmers streamline their businesses, share risks, and access a broader customer base.

Value-added producers in Michigan also benefit from cooperative-like business models. Commercial kitchen space is expensive and difficult for most small businesses to attain. While not formally organized as cooperatives, shared commercial kitchens like Detroit Kitchen Connect and Proud Mitten Shared Kitchen provide similar benefits: affordable access to resources and a shared risk environment. Food business incubators, like Food Lab Detroit, also increase access to tools, resources, and services at affordable rates for food entrepreneurs.

In the retail sector, several Michigan stores (i.e. Deroit People’s Food Co-op and Ypsilanti Food Co-op) follow cooperative models. In these stores, member-owners provide capital to the business and receive discounts in return. Regardless of membership status, anyone is able to shop at these stores. In addition to providing healthy food options and improved food access, these cooperatives also invest in their communities through educational activities and events.

Cooperation and collaboration among food businesses is not a new concept. However, as the food and farming sector in Michigan continues to grow, more businesses are following cooperative structures to mitigate risks and grow in sustainable ways. These models fortify businesses, reflecting that we truly are stronger together.