New Report Highlights Co-Ops' Role in Supporting Local Farmers, Retail Workers

National Co Op Grocers (NCG), which has 148 member co-ops operating more than 200 stores in 38 states, released its 2021 Food Co-Op Impact Report, highlighting the myriad ways food co-ops are working to drive change in the U.S. food system.

The report underscores food co-ops as industry leaders when it comes to supporting local farmers and entrepreneurs, concluding that the average NCG food co-op purchases from 178 local farms and producers, whose products make up 26% of a co-op’s total sales. 

“Food co-ops have cultivated relationships with local farmers and producers for decades, even when it wasn’t trendy, cost-effective or convenient to do so,” the report's authors state. “Locally grown and produced food increases our connection to each other and the land we all live on and builds a bridge between rural and city communities, which is needed now more than ever.”

NCG also reports that 40% of food co-ops’ combined annual $2.4 billion in sales come from certified organic products, which aligns with NCG’s goals to build an inclusive economy and climate-friendly future.

“Organic farming has been shown to sequester carbon from the atmosphere, slow global warming, and protect and foster biodiversity, including the essential pollinators we need to grow food,” the report reads.

Meanwhile, Certified B Corp. products made up 9% of the average co-op’s total sales—a larger share than at other natural grocers (7%) and conventional grocers (2%), according to SPINS data. Fair-trade-certified products made up 5% of sales, again outpacing other natural grocery competitors (3%) and conventional grocers (0.5%). 

Since 2012, food co-ops have been working with fair trade farmer co-ops in Peru to offset a portion of greenhouse-gas emissions associated with annual business travel by planting and protecting trees in the Peruvian Amazon, the report noted. The program—known as Co Op Forest—has helped plant and/or protect more than 1.8 million trees, according to NCG.

The report also highlighted food co-ops’ work to make natural and organic foods more affordable: Through NCG's Co Op Deals promotional program, customers can save an average of 25% off retail prices on a selection of more than 2,000 brand-name items on sale each month. The program, NCG said, complements the everyday-low-price Co Op Basics program, which includes 379 items.

“We know that promotions aren’t enough to make food affordable for our community members living in cycles of poverty and food insecurity,” NCG said in the report. “More than 40% of food co-ops offer a needs-based discount, and co-ops work together at the federal level to advocate for increased funding for nutrition programs like SNAP, WIC, and fruit and vegetable incentive programs. In addition, food co-ops donate over a million pounds of nutritious food to local food pantries each year and raise money at the registers for these valuable community partners.”

The report also offered a snapshot of food co-ops as employers, reporting that the average food co-op employs 96 people, 57% of whom are eligible for healthcare benefits—13 percentage points higher than the national coverage rate for service employees (44%), according to U.S. Bureau of Labor Statistics data.

“Every worker deserves a livable wage, healthcare benefits and the sense of security that comes from building retirement savings," NCG stated in the report. "As independent businesses in a competitive industry, food co-ops are working to achieve these goals for our staff. We are making steady progress towards making it a reality."

Among NCG’s 148 independent food co-ops, 58% pay all staff local livable wages and 66% contribute to staff retirement plans, the organization noted.