2023 Food Co-op Annual Report

2023 FOOD CO-OP ANNUAL REPORT

2023 Year In Review

BY KENNA S. EATON, FOOD CO-OP GENERAL MANAGER

Some years it’s easier than others to remember the year that just past. For instance, 2020, the first year of COVID. It was pretty darn easy to remember the horrors of running a grocery store during unprecedented challenges. On the other hand, 2023 doesn’t feel quite so memorable. Yes, we’re still dealing with a volatile, uncertain, and complex marketplace—from sourcing product to supporting staff in a more difficult world— but some of that is beginning to feel oddly ordinary. I hate to say it, but it seems like the “new normal.” But looking back at my 2023 reports to the board helped remind me of our notso-normal challenges and successes. Here’s a short list in no particular order.

We added many more 60 Field Day products, offering more organic products at great prices. With these, plus Co+op Basics and BOGOs (Buy One, Get One free) sales, we aim to fill your pantry with affordable good food.

We researched and addressed the topic of heavy metals in dark chocolate.

We began revising our Ends, the Co-op’s major goals. The Board worked with our management team, and we had a fun, generative discussion about current and future directions for the Co-op.

We tackled the issue of a water pipe repeatedly leaking in our parking lot. Not once, not twice, but three times. We sincerely hope it’s fixed but worry it isn’t!

We refreshed our kitchen workspace, including cleaning, painting, and general repairs.

We brought in many new Local 5 products including bread, jams, pasta, ciders, seafood, soap, cookies, fruit syrups, cinnamon rolls, shrubs….

We mentored a PT High School Food Innovation class on how to bring a new local product to market.

We survived the construction of a new round-about (oval-about?), polished our concrete store floors, and restriped our parking lot.

We held our first staff party in four years—outdoors and under the stars at RainCoast Farms!

We created a new fund raiser for our local farms and found a new way to ask for your help at the checkout line.

We formalized the storage area at the front of the store with new storage solutions and found a way to bring back four (small) dining tables and chairs.

In between doing this work, we did all that “normal” work of keeping the shelves filled with good food, making great food in our kitchen, hiring new staff, saying goodbye to those leaving, working with community partners to help make our food system more resilient, creating content for our in-house newsletter and Community Cook, holding in-person classes, and generally keeping our business strong and financially resilient. And with unwavering support from our staff and members, it worked once again! We were able to generate a small profit (see the Treasurer’s report) and both reinvest back into our co-op, give a Gainshare to our staff, and recommend a patronage dividend, proving it really is true that we’re stronger through cooperation. Warmly, Kenna

BY LISA BARCLAY, BOARD EMERITUS

I first met Hanako and Marko of Midori Farm at the PT Farmers Market, many years ago now. I was drawn to their beautiful vegetables and admired their enthusiasm for what they did. They loved sharing the first tomatoes of the season or a new variety of bitter greens, and always had a recipe to share. Then I worked on the farm once a week for a few summers (until my knees said no), and I saw first hand the care they put into their work and into their farming community. Sustainable farming like theirs is crucial to a healthy community and planet, and difficult to scale up, which is yet another reason to support our small local farms.

Besides amazing vegetables, Marko and Hanako also make kimchi and other ferments. My favorite is Curtido, a slightly spicy ferment that adds zing to almost any dish with just a chopped tablespoon or two—from salads to soups to melted-cheese sandwiches. But try all their krauts to find out which is your favorite. And you don’t want to miss their seasonal Hungarian Hot Wax Fermented Pepper Sauce.

Originally, they planned to use their Farmer Fund grant to purchase a professional garlic peeler, to help with all the garlic they grow for their ferments, but in the end they realized their immediate need was for more sustainable, reusable veggie bins.

As a note, this year you won’t find Midori at the Farmers Market, because they are concentrating on their ferments and growing veggies for their CSA and local stores, like the Co-op, where you can also find their veggie starts in the spring. For more info and photos of the farm, check out their website at www.midorifarm.com

Hopscotch Farm + Cannery is decidedly small scale, which suits owner Meghan just fine. Farming a half acre enables her to use human-scale, regenerative methods, actually improving the soil as she grows her tasty vegetables. She sells some of those veggies at the Farmers Market and some she cans, one small batch at a time, which you can find at the Co-op. My personal favorite is her Salsa Verde, available in the fall. Her selections change with the seasons, so stock up when you discover your own favorites.

Meghan adds to our community’s resilience by providing nutritious vegetables and shelf-stable food, and also by using fruits and vegetables from other local farms—such as Kodama Farm, Stellar J Farm, and Chimalow Produce—in her jars of relish, jam, and pickles. I love how our local farms support one another—cooperation! As her business has grown, prepping all those veggies and fruits by hand has taken more and more of Meghan’s scarce time, so she will be using her Farmer Fund grant to buy a a Robot Coupe Vegetable Preparation Machine to cube, slice, and dice. Community-minded as she is, Meghan plans to share the processor with some other local food businesses, keeping it at the Market Kitchen.

Midori Farm LOCAL FARMER CHECK IN Hopscotch Farm

So look for Meghan at the Farmers Market (next to Stellar J) and the Co-op, or sign up for her flexible CSA. Check out her website at www.hopscotchfarmpt. com where she also offers classes in canning and food preservation as well as farm consulting services to help new farmers create low-cost systems for their own micro farms.

FARMER FUND FEATURE

BY CAMERON JONES, BOARD VICE PRESIDENT

Longhouse For The People

In the heart of the Olympic Peninsula, nestled amidst towering evergreens and rolling hills, Naomi Krienke stands as a beacon of hope and resilience. As the visionary behind the Tamanowas Foundation and the Longhouse for the People project, Naomi has dedicated over two decades of her life to realizing a dream of Indigenous-led revitalization.

At its core, the Longhouse for the People project is a testament to land stewardship, spiritual education, and the revival of Indigenous foodways. For Naomi, the longhouse represents more than just a physical structure; it’s a space where wounds inflicted by colonization and intertribal conflict can be healed. It’s a beacon of cultural resurgence and communal healing.

Central to the project is the restoration of Indigenous food systems through the Longhouse First Foods Project. By planting native plants like kwala (camas), chocolate lilies, and nettles, Naomi and her community are reclaiming ancestral knowledge and reconnecting with the land. Through workshops, seasonal events, and community encounters, they are not only feeding their people but also sharing their knowledge and connection with others.

Naomi’s vision extends beyond the boundaries of the Longhouse project; it encompasses a world of Indigenous sovereignty and collaboration within the broader community. Supported by members of the community, Indigenous nations, and allies from diverse backgrounds, the Longhouse for the People project is a testament to the power of collective action and solidarity.

In Naiomi’s own words: “We’re bringing a native presence back. The longhouse will serve as a place for educational purposes, where people can learn about the rich culture and history of the Indigenous peoples of this region. It will be a living museum, a spiritual healing center, and a hub for intertribal cultural events.”

Naomi’s journey has been buoyed by support from various quarters, including the Farmers Fund, which provided crucial assistance in acquiring tools and equipment for the project’s implementation. As the Longhouse for the People project continues to unfold, Naomi remains steadfast in her commitment to uplifting Indigenous voices, rights, and wellness.

Through collaboration, mutual aid, and reverence for the land, she envisions a future where Indigenous presence is celebrated and cherished.

In a world marked by division and strife, Naomi Krienke’s vision offers a glimmer of hope—a vision of unity, resilience, and cultural resurgence. And at its heart lies the Longhouse for the People—a testament to the enduring spirit of Indigenous wisdom and community solidarity.

Woodbridge Farm

Nestled in the lush Chimacum Valley of Washington’s Olympic Peninsula lies Woodbridge Farm, a 27-acre sanctuary tended by Peter Mustin. Purchased in 2018, this land was once neglected, burdened by decades of debris, scrap and mis-use. Everything from tiny microplastics hidden in the dirt, to abandoned tractor trailers themselves full of trash. Yet, with unwavering determination, Mustin embarked on a journey of restoration, transforming the farm into a vibrant oasis.

Stemming from Peter’s own journey of healing through connection to the land, Woodbridge Farm isn’t just about growing crops and raising livestock; it’s a beacon of community, inclusivity, and reconnecting with the land. As one of rural Jefferson County’s few Black farmers and largest Black landowners, Mustin is committed to creating a space where people of all backgrounds can come together, learn, and reconnect with the land.

Central to Mustin’s vision is environmental stewardship. Sustainable farming practices, organic cultivation, and conservation efforts are woven into the fabric of Woodbridge Farm. Through his life experience, Mustin seeks to inspire others to embrace a more sustainable way of life.

The journey hasn’t been without its challenges (#DimeBagstoDahlias), but Mustin’s persistence and perseverance has paid off. Thanks to support from the Food Co-op’s Farmers Fund, Woodbridge Farm has acquired essential tools and equipment to further its mission of sustainability and zero-waste production. From soil block makers to innovative farming techniques, the Farmers Fund has empowered Mustin to realize his vision for a brighter, more sustainable future.

Looking ahead, Woodbridge Farm holds boundless potential. Mustin envisions educational programs for BIPOC youth, workshops on land stewardship, and a thriving community center where people can come together to learn and grow. With each passing day, Woodbridge Farm serves as a reminder of the transformative power of stewardship, community, and resilience. And at its heart is Peter Mustin, a farmer with a vision—one that nurtures both the land and the soul.

2023 was a year of incredible growth and generosity. We’re proud to contribute to a thriving Jefferson County, sharing not just our resources, but also a commitment to a healthier, more connected community. Thank you for joining us on this journey of giving and growth. Let’s keep the momentum going!

800 LBS OF ONE STRAW RANCH SAUSAGE AND 300 LBS OF BOB'S SAUSAGE

3,600 LBS OF CAPE CLEARE COHO SALMON AND 650 CANS OF

SUPERFREE,

COOKIES: 70,000

SHORTBREAD: 10,000 TIRAMISU: 7,500

1,250 CEARRAS CINNAMON ROLLS

200 LBS OF BULK PASTA FROM THE GRAINERY

OVER 1,000 PANE D'AMORE PIZZA DOUGH BALLS

220 MOUNTAIN SPIRIT KICK ASS TINCTURES

220 MOUNTAIN SPIRIT KICK ASS TINCTURES

6,700 LBS OF LOCAL BULK

1,250 CEARRAS CINNAMON ROLLS

2,400 CANS OF LOCAL KOMBUCHA

200 LBS OF BULK PASTA FROM THE GRAINERY

230 LBS OF LOCAL BASIL FROM MIDORI, RED DOG AND MORE

OVER 1,000 PANE D'AMORE PIZZA DOUGH BALLS

200 LOCAL SHAMPOO BARS

320 JARS OF SPRING RAIN FARM TOMATO SAUCE

220 MOUNTAIN SPIRIT KICK ASS TINCTURES

8,000 LOCAL DOZEN EGGS

YOU FOR SUPPORTING

2023 Financials

BY JURI JENNINGS, BOARD TREASURER

One of the important duties of the board is to ensure that our Co-op’s financials are sound. We do this by reviewing quarterly financial reports provided by the general manager, looking out for 1.) any possible trends that could lead to any financial downturn, 2.) evidence that operations are hitting certain financial goals, and 3.) alignment with recommended milestones.

I entered the board having no financial literacy regarding the operation of a grocery store, only my own general disposition of being an overly stingy money user (you can ask my husband all about it). In this way, I generally agree with Kenna because she is also conservative in her decision making and that “cash on hand” is gold. Operating through the pandemic and the into post-pandemic world of inflation and rising costs on nearly everything, it seems particularly pertinent.

Have you ever wondered how many “Days-of-Cash” the Co-op has? In other words: if, for whatever reason, we had to close, how many days could we still pay our employees and all the other expenses due even if there is no work? This question always puts things into perspective. (FYI it’s about 30 days!)

Financially speaking, 2023 was a good year for The Food Co-op and we ended the year with 1.6% net profit (the profit that is left over after all expenses have been paid). We will be sharing this profit with our members, as a patronage dividend; comprised of 100% of the profits generated by member sales, to be split 70/30. Given today’s economic climate, retaining 70% of patronage equity for the store’s growth made sense for us. And the 30% we are returning is a bit more than we normally would and is an expression of gratitude for our members who have continued to support their co-op even during uncertain economic times. This dividend represents an opportunity to further build our equity and access to capital, as well as continuing to create a stronger buffer against the future unknowns.

This distribution is an example of “strength through cooperation” with our mission front and center --when we balance between giving back to our member-owners and investing in the future of the co-op. In a cooperatively owned business, member equity provides the capital we need to support our business. Look for details in an email or letter towards the end of June, along with a formal announcement at our Annual General Meeting, June 26th. The dividend will be available at the store beginning July 1st, 2024.

Here’s more about the specifics of our financial status for those who want to continue and read further.

Our income statement tells a story of the dollar; where it came from, where it went and what’s left. Starting with the sales, which represent 100% of our income, totaling $21,877,913, about 7.5% over 2022. Not shabby for a small market. Some of that growth was due to inflation but not all. After paying for all the goods in the store, we were left with a gross profit margin (GPM) of 36.4%, which covered all our operating costs including labor, and left us a bit over at the end. Even after sharing a portion of the profits with our staff, we were very happy to see a net income of $321,142.

Our balance sheet continues to be strong—which is how we like it. The balance sheet is a snapshot at a given moment in time and looks at the relationships between debt and equity, as well as representing our fiscal health. The balance sheet tells a story of what we own (assets), versus how we got it (liability). Current assets are liquid, meaning we could sell them within a year. Fixed assets do have value but are harder to sell. Liabilities tell where we got those assets, and likewise are fixed or liquid. And at the end of the day, they all need to balance out. We conducted a financial audit in 2023, using an outside CPA firm to inspect our financial processes and records, and we were very pleased that they came back with a ‘clean opinion’, meaning we can trust these numbers.

Thanks to you, our member owners who continue to shop and support our store, The Food Co-op continues to be financially prepared to meet the challenges of the future and the potatoes for tonight.

With appreciation, Juri, in collaboration with Kenna Eaton (GM) and Tony Hillman (Finance & IT Manager)