Outline

What are co-operatives Types of co-operatives Definition, values & principles Seven co-operative principles Co-operatives as a means of

organising Community, social capital & the

change agent

Outline

What are food co-ops?Australian food co-opsHow do food co-ops work?Thoughtful Foods case studyTypes of productsBuying principles & factorsProject aims & outcomes

What are Co-operatives? A co-operative is a form of business

enterprise different from private & public enterprises

Co-operatives are a separate legal structure• Registry of Co-operatives (NSW)• Department of Fair Trading (NSW)• Federation of Co-operatives (Victoria)

What are Co-operatives?

Co-operatives are• owned & controlled by their member

different because they are democratic, participatory, open, voluntary & community based

• reflect and reinforce co-operative values & principles

Many different types of co-operatives exist

Types of Co-operatives Agricultural - fishing, forestry, producer, supply . &

marketing co-operatives Community service - aged care & child care .

co-operatives Consumer co-operatives – provide consumer goods .

for sale to members (& non-members) Credit - financial service co-operatives Education - school, student & supply

. co-operatives Housing - community settlement & housing

. co-operatives

Types of Co-operatives

Media - newspaper, radio station, telecommunications, television station, video production & publishing co-operatives

Recreational - game park & urban camp cooperatives

Store - bookshops, food, hardware, clothing & other merchandise co- operatives

Transport - bus, courier & taxi co-operatives Utility co-operatives - energy, telephone &

water service co-operatives

Definition

“A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social & cultural needs & aspirations through a jointly-owned & democratically controlled enterprise”

(Victorian Federation of Co-operatives, 2006)

Definition

Characterised by participative ownership & control, democratic structure & use of capital for mutual benefit

Their unique structure is based on explicit values & principles in the International Co-operative Alliance's Statement.

Co-operatives Investor-owned companies

Purpose Service driven Capital driven

Ownership The member users Investor shareholders

Control Majority of members. Members elect board on basis of one vote per member

Majority of shares. Investor shareholders control the company based number of shares they own

Use Users of co-operatives are its members

Users are not usually the majority of shareholders

Shareholding

Shareholding & non-shareholding. Limited number & interest

Shareholding limited number and interest

Values

Based on values of self-help, self responsibility, democracy, equality, equity & solidarity

Co-operative members believe in the ethical values of honesty, openness, social responsibility & caring for others

Principles

The co-operative principles are guidelines by which cooperatives put their values into practice.

Seven principles defined in the International Co-operative Alliance's Statement on the Co-operative Identity (1995)

Seven Co-operative Principles

1) Voluntary & open membership 2) Democratic member control 3) Member economic participation 4) Autonomy & independence 5) Education, training & information 6) Cooperation among co-operatives 7) Concern for community

1) Voluntary & Open Membership

Co-operatives are voluntary organizations, open to all persons able to use their services & willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination

2) Democratic Member Control

Co-operatives are democratic organizations controlled by their members, who actively participate in setting their policies & making decisions

People serving as elected representatives are accountable to the membership

In primary co-operatives members have equal voting rights (one member, one vote) & cooperatives at other levels are also organised in a democratic manner

3) Member Economic Participation

Members contribute equitably to, & democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the co-operative

Members usually receive limited compensation, if any, on capital subscribed as a condition of membership

Members allocate surpluses for any or all of the following purposes:• developing their co-operative, possibly by setting up

reserves, part of which at least would be indivisible; • benefiting members in proportion to their transactions

with the co-operative; • supporting other activities approved by the

membership

4) Autonomy & Independence

Co-operatives are autonomous, self-help organizations controlled by their members

If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members & maintain their co-operative autonomy

5) Education, Training & Information

Co-operatives provide education & training for their members, elected representatives, managers & employees so they can contribute effectively to the development of their cooperatives

They inform the general public - particularly young people & opinion leaders - about the nature & benefits of cooperation

6) Cooperation among Co-operatives

Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures

7) Concern for Community

Co-operatives work for the sustainable development of their communities through policies approved by their members

Co-operatives as a Means of Organising

A process not just an outcome Pooling energy & resources to effect change

for a common benefit Cooperation provides strength by bringing

people together mutual aims & interests Mutual collective not individualist benefit Co-ops as a political form of organising Decentralised, participatory democracy not

centralised hierarchy Autonomy, responsibility & freedom

Community, Social Capital & the Change Agent

A co-operative is about & is its members Formed for serving needs of members &

the community not just the investment of capital

Food co-operatives are not for profit Social capital, capacity building & the

third economy Bill Moyer & the four roles of activism

• Food co-ops & the role of the change agent

What are Food Co-ops?

Food co-ops consist of a group of people (members) cooperating to take back control of their food

Take into consideration how & where it is produced & under what conditions

Provide accessible, affordable environmentally, socially & ethically responsible food & household products

An alternative to stupormarkets

How do Food Co-ops work? Food co-ops stock a range of products

bought according to their buying principles & factors

Open to community, staff, students & members

Bulk, minimally packaged products Avoid, reduce, reuse, recycle BYO containers & DIY Engaging people with their food

How do Food Co-ops work?

Membership, shares & discounts

Mostly volunteer run, members who volunteer get greater discounts than non-working members

Coordinators, roles, Management Committee & decision making

Differences between campus based & community based food co-ops

Buying Principles & Factors Organic Biodynamic Chemical free GE free Irradiation free Fairtrade Vegan/vegetarian Cruelty free Wholefoods or

healthiness

Food miles / Localness Minimally packaged &

bulk Ethics Availability Price Social/community

component Supplier type Producer type

Organic A method of farming based on the cultivation of good

soil quality & biodiversity Use of agrochemicals is strictly regulated & kept to

the absolute minimum Prohibits GMOs (even in animal feed) & is a legally

binding term defined in international law Rearing organic animals must be according to strict

welfare standards & they may only be treated with antibiotics as a last resort to cure illness

When the term is used to describe a food product or item, at least 95% of its ingredients must be certified organic & it may not be irradiated

There are Australian & overseas certification bodies

Biodynamic Biodynamic farming relies on companion planting,

homeopathic preparations & a seven-year cycle of crop rotation to remain entirely chemical free

Biodynamic farms are completely self contained, integrating different crops & livestock to create a mini-ecosystem

The lunar calendar is used as a guide to planting & harvesting crops, with different star constellations signalling the most fruitful times for these activities

Biodynamic is part of the family of organic farming methods

Chemical Free

Agrochemical• A chemical or chemical compound used in

farming • Also describes produce from farms that

extensively use these chemicals, or the method of agriculture that utilizes agrochemicals

Artificial additives• Chemicals & chemical compounds that are

added to foods to manipulate their colour, taste, texture or shelf life, including powerful toxins

• Only 7 of the 1000’s of additives used in non-organic food may be used in organic food

Chemical Free

Fertilisers

• Synthetic chemicals & chemical compounds based on based on synthetic nitrates used by farmers to give plants extra nutrients for growth.

• An excess of nitrates is known to cause cancer in humans & animals.

• Organic farming uses only natural fertilizers including manure, seaweed, clays & rockdust

Chemical Free Pesticides

• Chemicals & chemical compounds used by farmers & gardeners to kill pests

• Often contain organophosphates • Synthetic pesticides are routinely

applied to crops & livestock in agrochemical agriculture to prevent & treat pests

• Organic farming relies on biodiversity to provide natural predators to control pests, or uses natural plants-pesticides

Chemical Free Insecticides

• Chemicals & chemical compounds used to kill insects

• Organic farming prohibits their use Herbicides

• Chemicals and chemical compounds used to kill weeds

• Organic farming prohibits their use Fungicides

• Chemicals & chemical compounds used to prevent moulds growing on crops & food products by killing fungal spores

• Organic farming prohibits their use

Food miles / Localness Food miles

• How far the food has been transported?• Sydney Bioregion, NSW, East Coast, Australia,

Overseas close, Overseas far• How it has been transported?

• Ship, rail, truck, airplane Why?

• Ecological Footprint• Carbon dioxide emissions & climate change• Infrastructure required for transportation & other

environmental impacts• Supporting smaller local organic farmers rather

than large-scale agrochemical monoculture based farming controlled by multinationals

GE Free

Genetic Engineering • The manipulation of genetic material between

different unrelated species of living things • In agriculture, the creation of crops known as

Genetically Modified Organisms (GMOs) or Transgenic Organisms by extracting genes from one species & inserting them in another

• GM farming is part of the family of farming styles that makes up agrochemical farming

• There are problems with labelling laws in Australia which have many loopholes

Check out www.truefood.org.au for the Greenpeace True Food Guide or The Future of Food (film)

FairTrade The concept is that a fair price should be paid for goods

produced by farmers & workers in the developing world Many poorer farmers are forced to sell their products for

much less than it just if there is no other outlet for them, compete with subsidised products from the developed world & high tariffs

Fairtrade means a buyer from the developed world will not exploit farmers by paying less money for a commodity than it is worth

Fairtrade Mark prohibits child & forced labour & guarantees that workers receive a decent standard of housing, healthcare & safety & employment rights

Also promotes programmes for environmental sustainability Check out www.maketradefair.com/en/index.htm &

www.oxfam.org.au (campaigns section)

Irradiation Free Irradiation

• The passing of food through a radiation field to preserve it beyond its natural shelf life

• Involves gamma rays & Cobalt 60, a by-product of the nuclear fuel cycle (nuclear waste)

• The use of ionizing radiation to preserve food is prohibited under organic standards

• There are very few labeling laws in Australia

Check out www.irradiationwatch.org for the new Irradiation Free Guide

Vegan/Vegetarian Included for cruelty free & other ethical &

environmental reasons Vegetarian

• Foods that don’t contain any meat or meat products & are produced without any meat products

Vegan• Foods that don’t contain any animal

products & are produced without any animal products

Examples• Milk, cheese, honey & eggs are vegetarian but

not vegan

Availability & Price

Availability • Does the product exist? Is it currently

available to buy?

• Seasonality

Price• Is it a reasonable price?

• Organic & Fairtrade products are often more expensive than conventional products

Juggling a Balancing Act

Buying principles & the problem of internal contradictions & tensions• It isn’t always possible to tick all the boxes• Which principles & factors are more

important & why?• How is the decision made?

Examples • Organic vs Food miles• Organic vs Insecticide free vs price

Project Aims Construct a profile of NSW & ACT food co-

ops• What, where, how & why, structure &

decision making process, member involvement, SWOT analysis

• Register of existing co-ops & ordering people• Identify existing buying policies, principles &

factors Identify buying principles & factors

• Analyse values, reasoning, beliefs & politics on which they are based

Create a stock database with all variables

Project Aims Compare & contrast buying principles &

factors • Identify variations• Analyse how & why buying principals & factors

. & their relative importance varies

• Compare & contrast between food co-ops Develop a hierarchy of buying principles

• Compare & contrast within & between food . . co-ops

• Analyse the extent of variation - how & why . this exists

Project Aims

Identify internal tensions & contradictions Analyse how tensions are reconciled Develop a Decision Tree Analyse member knowledge, input into &

understanding of buying principles Incorporate findings into a decision

making tool? Report back on findings Action research approach

Research Outcomes

Profile of food co-ops in NSW & ACT

Buying principles & factors paper

Stock database

Hierarchy of buying principles for each food co-op & an overall hierarchy table

Decision Tree

Analysis of results

? Decision making tool

Australian Food Co-ops

Northern Territory• POD (Darwin)

Queensland• Griffith Uni Food Co-op (Brisbane)• Community Foods (Cairns)

South Australia• Flinders Uni Food Co-op (Adelaide)• Goodwood Goodfood Co-op (Adelaide)• Clarence Park Community Food Co-op

(Adelaide)

Australian Food Co-ops

Victoria• Wholefoods (Monash Uni Food Co-op,

Melbourne)• Melbourne Uni Food Co-op (Melbourne)• La Trobe Food Co-op (Melbourne)• RMIT Food Co-op (Melbourne)• Friends of the Earth Food Co-op (Melbourne)• St Kilda Organic Food Co-op (Phillip Bay)

Tasmania• Hobart Organic Food Co-op

NSW & ACT Food Co-ops University/Campus based

Community based

Broadway Food Co-op (UTS) Manly Food Co-op Sydney Uni Food Co-op Alfalfa House (Newtown) Thoughtful Foods (UNSW) Katoomba Food Co-op ANU Food Co-op* ANU Food Co-op* Sustenance (Newcastle Uni) Green Tucker Store

(Forestville) Happy Bellies (University of Wollongong)

Angophora Food Co-op (Blue Mountains)

Seasons Food Co-op (Uni of . Western Sydney Hawkesbury)

Beanstalk Organic Food Co-op . (Newcastle)

Armidale Food Co-op (University of New England )