Definition
As defined by Consumer Co-operatives Worldwide (CCW), which represents 26 national organizations of consumer cooperatives around the world, “a consumer cooperative is an autonomous association of consumers united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise”. In other words, a consumer cooperative is an enterprise that is owned by consumers who unite voluntarily to fulfill their common needs and aspirations. Like in the case of food cooperatives, cooperatives that own retail outlets run by consumers are the most common type of consumer cooperatives. However, there are also consumer cooperatives operating in areas such as childcare, health care, insurance, housing, utilities, and personal finance. The main purpose of a consumer cooperative is not to maximize profit but to provide quality products and services at the lowest price to the customers.
Alternative consumer cooperatives (ACC) can be considered as an extension of Alternative Food Networks (AFNs) that aim to bypass intermediaries in food supply and distribution, support small farmers, empower women, advocate for food sovereignty, engage in ecological production, and encourage the preservation of traditional agricultural methods (see Community Supported Agriculture). Different from traditional consumer cooperatives, in which “members are the consumers or users of the goods or services made available by or through the cooperative”, ACC represents a non-capitalist form of organizing that can be considered an example of “diverse economies”, a term coined by J.K. Gibson-Graham. Activists involved in these cooperatives question neoliberal policies, asymmetric power relations, and commodification of labor, and seek alternatives that can lead to transformation to achieve a “fair” distribution of resources beyond capitalist dynamics. Building trust-based ties between producers and consumers (see Prosumerism), ACCs are against the existing market logic and experiment with a different governance system that is based on direct democracy and elimination of hierarchies, with practices built on the “ethics of solidarity”, in J.K. Gibson-Graham’s terms.
History
The cooperative movement began in 19th-century England and France, gaining momentum with the founding of the Rochdale Society of Equitable Pioneers in 1844 by 28 flannel weavers after an unsuccessful strike over soaring prices and poor food quality. Consumer cooperatives that existed before the Rochdale cooperatives were supported by philanthropists and social reformers like Robert Owen and William King. Owen’s ideals of using cooperation to create a prosperous and harmonious society influenced the Rochdale Society’s formation. Although not the first, Rochdale’s principles and practices inspired many subsequent cooperatives, initially in England (see Box 65.1).
Box 65.1 The principles established by the Rochdale Pioneers
The principles established by the Rochdale Pioneers include:
- Democratic Control: Each member has one vote, ensuring equal participation regardless of investment size.
- Open Membership: Cooperatives are open to all who can use their services and accept the responsibilities of membership.
- Economic Participation: Members contribute equitably to the capital of the cooperative and receive limited compensation, if any, on capital subscribed as a condition of membership.
- Autonomy and Independence: Cooperatives are autonomous, self-help organizations controlled by their members.
- Education, Training, and Information: Cooperatives provide education and training for their members, elected representatives, managers, and employees.
- Cooperation among Cooperatives: Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.
- Concern for Community: Cooperatives work for the sustainable development of their communities through policies approved by their members.
Unlike earlier examples, the Rochdale Pioneers were a self-help cooperative aimed at re-organizing the relationships of consumption and production that emerged during the Industrial Revolution (1760–1840). The Rochdale model quickly spread to other European countries and Australia. During World War I, cooperatives grew to counteract war-related commodity shortages, price hikes, and profiteering. This trend continued through the Great Depression of the 1930s, with governments supporting self-help cooperatives. Their principles became foundational for cooperative governance and transactions. In 1937, the International Cooperative Alliance (ICA) drafted seven cooperative principles inspired by Rochdale. These included trading at market prices, selling unadulterated food, using fair weights, cash purchases, and no credit. Governance principles emphasized “one member, one vote” and gender equality, promoting democratic governance and reconfiguring power relations. Profit distribution was done quarterly, based on members’ purchases, fostering member loyalty, and providing financial resources, with a portion allocated to education.
However, the 1980s saw a major shift with the rise of multinational supermarkets, forcing cooperatives to compete by focusing on cost-cutting, revenue enhancement, and market share, moving away from their foundational principles of cooperation, sharing, and collective work.
In the early 1990s, a new wave of consumer activism emerged, driven by ethical consumerism and a demand for ecologically safe and ethically produced goods. This movement revived some of the Rochdale Society’s ideals, creating alternative consumer cooperatives that emphasized ethical and sustainable practices. Since ACCs can take various organizational forms, including informal ones, it is challenging to provide precise numbers for alternative consumer cooperatives nowadays.
Different Perspectives
Consumer cooperatives play a crucial role in advancing sustainable consumption but are often caught in debates about their effectiveness and motives. These discussions typically focus on the tension between economic survival and a commitment to ecological and social impacts.
As consumer cooperatives increasingly adopt business practices from conventional for-profit enterprises, questions about the erosion of their foundational principles arise. This commercial drift can lead to prioritizing profitability at the expense of social and environmental responsibilities, diluting the cooperative’s commitment to its sustainability ethos. Furthermore, internal debates within cooperatives about the true meaning of sustainability, mirroring broader academic discussions that grapple with theories of strong versus weak sustainability – whether to preserve natural capital at all costs or allow for some substitution with human-made capital, allow for in-depth analyses of different perspectives of consumer cooperatives. Stakeholders, including members, managers, and community supporters, frequently hold divergent views on which sustainability aspect – environmental, social, economic – should take precedence. This disparity can lead to internal conflicts about the cooperative’s direction and undermine trust and cohesion within the community.
In response to these challenges, there is a growing discussion among the cooperative community and policymakers about reinforcing the authentic elements of cooperatives. Ensuring that cooperatives remain true to their principles of community control, environmental stewardship, and social equity is essential as they navigate modern market complexities.
Application
Consumer cooperatives demonstrate the practical application of sustainability within community-centric commerce, intertwining economic, environmental, and social objectives for production and consumption (see Box 65.2). These cooperatives support local economies by keeping capital within communities and enhancing social structures through job creation and local supplier support. For example, food cooperatives often source from local farmers, supporting regional agriculture and reducing emissions from long-distance transportation (see Food Miles, Food Sovereignty). This bolsters local economies and promotes environmental stewardship by minimizing the cooperative’s carbon footprint.
In addition to economic and environmental impacts, consumer cooperatives influence social dynamics. They challenge traditional consumer behaviors (such as not checking information about producers, labor conditions at the production sites, and fetishization of commodities) and promote a collective ethos toward responsible consumption, shifting from individualistic to communal purchasing practices. This fosters a culture of shared responsibility and sustainability within the community. Cooperatives also serve as educational platforms, informing members about the broader impacts of their consumption choices and promoting sustainable living practices. They encourage members to consider the environmental and social ramifications of their purchases, such as choosing locally produced goods and reducing waste through bulk purchases and reduced packaging.
Box 65.2 Examples of consumer cooperatives
Examples of consumer cooperatives around the world
- In Italy, a significant example of consumer cooperatives is the “Gruppi di Acquisto Solidale” (GAS). These are grassroots groups that collectively purchase goods directly from producers, emphasizing sustainability, ethical production, and local sourcing (see Grassroots Innovation). Currently, in Italy, it is estimated that there are at least twice as many as the 1,000 registered GAS groups, with typically between 20 and 100 members per group, though some may have several hundred members.
- In Japan, the Japanese Consumers’ Co-operative Union (JCCU) is a significant player, with about 30 million members. JCCU is active in food retail and is known for its commitment to food safety, organic farming, and supporting local producers. The cooperative has a strong educational component, offering programs that teach members about the environmental and social impacts of their consumption choices.
- Park Slope Food Coop in New York City, USA, is a smaller yet highly influential example, with around 17,000 members. This cooperative is member-owned and operated. It focuses on offering high-quality, sustainably sourced food at affordable prices, fostering a strong sense of community and shared responsibility.
- In Spain, the Som Energia cooperative is a grassroots initiative with around 80,000 members focused on renewable energy. This cooperative, founded by a small group of individuals in 2010, allows members to collectively purchase and generate green energy.
- In Germany and Austria, the “Solidarische Landwirtschaft” (Solidarity Farming or CSA – Community Supported Agriculture) movement consists of small, grassroots cooperatives where members collectively support local farms. Each group typically has around 30 to 50 members who share the costs and harvests of the farm.
These examples illustrate the diversity in size, scope, and geographical presence of consumer cooperatives, highlighting their significant role in promoting sustainable consumption and community development worldwide.
The practical application of consumer cooperatives extends into policy and practice, as demonstrated for example in Italy, where the government supports cooperatives like Coop Italia to promote sustainable consumption. Governments can leverage cooperatives as models for developing sustainable consumption policies, integrating their successes into broader policy frameworks. For instance, Coop Italia has benefited from regional subsidies aimed at promoting organic farming and reducing food waste.
Furthermore, cooperatives can influence local and regional policies, advocating for initiatives that benefit broader community interests. This could include promoting green urban planning or supporting urban gardening projects, enhancing community green spaces, and contributing to urban sustainability (see Urban Planning and Spatial Allocation). Through these activities, consumer cooperatives advocate for and shape the landscape of sustainable consumption, demonstrating how integrated community efforts can lead to positive changes in local environments and broader societal structures.
Further Reading
Barbera, F., Dagnes, J., & Di Monaco, R. (2020). Participation for what? Organizational roles, quality conventions and purchasing behaviors in solidarity purchasing groups. Journal of Rural Studies, 73, 243–251. https://doi.org/10.1016/j.jrurstud.2019.10.044.
Belk, R. (2014). You are what you can access: Sharing and collaborative consumption online. Journal of Business Research, 67(8), 1595–1600. https://doi.org/10.1016/j.jbusres.2013.10.001.
Forno, F. (2013). Co‐operative movement. In D.A. Snow, D. della Porta, B. Klandermans, & D. McAdam (Eds.), The Wiley‐Blackwell encyclopedia of social and political movements, pp. 1–3. Blackwell Publishing Ltd.
Hilson, M. (2017). Rochdale and beyond: Consumer co-operation in Britain. In M. Hilson, S. Neunsinger, & G. Patmore (Eds.), A global history of consumer co-operation since 1850: Movements and businesses, Vol. 28, pp. 59–78. Leiden and Boston: Brill.
Patmore, G., & Balnave, N. (2018). A global history of co-operative business, pp. 26–47. New York: Routledge.