About Co-ops

The Cooperative Identity

Definition: 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.

Values: Cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. In the tradition of their founders, co-operative members believe in the ethical values of honesty, openness, social responsibility and caring for others.

A cooperative is a business. Co-ops range in size from small store-fronts to large International companies. In many ways, they’re like any other business; but in several important ways they’re unique and different.

Cooperatives are:

  • Owned and democratically controlled by their members-the people who use the co-op’s services or buy its goods-not by outside investors; Co-op members elect their board of director from within the membership.
  • Return surplus revenues (income over expenses and investment) to members proportionate to their use of the cooperative, not proportionate to their “investment” or ownership share.
  • Are motivated not by profit, but by service-to meet their members’ needs for affordable and high quality goods or services;
  • Exist solely to serve their members.
  • Pay taxes on income kept within the co-op for investment and reserves. Surplus revenues from the co-op are returned to individual members who pay taxes on that income.

Types of Cooperatives

Consumer Cooperatives: Consumer cooperatives are owned by the people who buy the goods or use the services of the cooperative. They sell consumer goods such as food and outdoors equipment. They provide housing, electricity and telecommunications. And they offer financial (credit unions), healthcare, childcare and funeral services. Almost any consumer needs can be met by a cooperative.

The Medford Food Co-op (MFC) is a Consumer Cooperative and is owned by its members who want high quality, safe, and healthy foods.

Producer Cooperatives: Producer cooperatives are owned by people who produce similar types of products-by farmers who grow crops, raise cattle, milk cows, or by craftsmen and artisans. By banding together, they leverage greater bargaining power with buyers. They also combine resources to more effectively market and brand their products, improving the incomes of their members.

Worker Cooperatives: Worker cooperatives are owned and governed by the employees of the business. They operate in all sectors of the economy and provide workers with both employment and ownership opportunities. Examples include employee-owned food stores, processing companies, restaurants, taxicab companies, sewing companies, timber processors and light and heavy industry.

Purchasing/Shared Services Cooperatives: Purchasing and shared services cooperatives are owned and governed by independent business owners, small municipalities and, in some cases, state governments that band together to enhance their purchasing power, lowering their costs and improving their competitiveness and ability to provide quality services. They operate in all sectors of the economy.

The Cooperative Principles

Cooperatives follow seven internationally recognized principles:

  • Voluntary and Open Membership
  • Democratic Member Control
  • Member Economic Participation
  • Autonomy and Independence
  • Education, Training and Information
  • Cooperation Among Cooperatives
  • Concern for Community

Why Co-ops Form

Co-ops are formed by their members when the marketplace fails to provide needed goods or services at affordable prices and acceptable quality. Cooperatives empower people to improve their quality of life and enhance their economic opportunities through self-help. Throughout the world, cooperatives are providing co-op members with financial services, utilities, consumer goods, affordable housing, and other services that would otherwise not be available to them.

Co-ops Serve Many Needs

Cooperatives may be organized to provide just about any good or service such as:

  • Business services, such as personnel and benefits management and group purchasing of goods and services
  • Childcare
  • Credit and personal financial services
  • Employment
  • Equipment, hardware and farm supplies
  • Electricity, telephone, Internet and satellite and cable T.V. services
  • Food and food services
  • Funeral and memorial service planning
  • Health care
  • Health Insurance
  • Housing
  • Insurance
  • Legal and professional services
  • Marketing of agricultural and other products