Start-up Assistance Gains Momentum

The food co-op sector is at a unique crossroads in its development. There are a significant number of food co-ops with mature business practices and experienced board and management leaders making profound impacts on their respective communities. Their success, along with other social and economic forces, has created a greater awareness and desire amongst communities around the country to have their own food co-ops.

FoodCo-op 500 was created five years ago to create a better system for reaching out to interested communities and act as a clearinghouse for food co-op development information. Just this past year alone, the organization has been contacted by over 100 communities seeking a food co-op. The momentum for a whole new wave of food co-ops is building with a powerful force.

Since Food Co-op 500 was created, the need for services and support for start-up food co-ops has grown exponentially. As the organization considered its role in the sector and looked for a way to meet the need and expand their services, it decided to reorganize as a nonprofit, Food Co-op Initiative (FCI). In this way, the organization would have more flexibility to attract and take in funds to support new food co-op development. To capitalize on the momentum built by Food Co-op 500, the Blooming Prairie Foundation endowed FCI with a 5-year $1 million dollar grant to make a long-term investment in this part of the sector’s growth.

“Becoming a nonprofit and gaining the grant from the Blooming Prairie Foundation allows us to explore more avenues for funding and expand the number of people we can provide training and services to,” said Stuart Reid, FCI’s executive director and development specialist. As a nonprofit, the FCI will be eligible to apply for large development grants like those offered by the United States Department of Agriculture. The FCI can also provide more research and resources in other areas, including a resource center, technical information, training opportunities and discussion forums. “This way we can put it all together and have a two-way conversation with start-up groups seeking help, advice, information and support,” said Reid.

Reid also acknowledges the important role of the National Co-op Bank (NCB) and the National Co-op Grocers Association (NCGA) in providing its past support to Food Co-op 500. “We would not be where we are now without it,” he said. The FCI will need to rely on financial support from existing food co-ops to be able to meet the challenges of building an infrastructure to support start-up co-ops. By supporting FCI, established co-ops can help provide start-ups with funding, mentoring and in-kind support in a coordinated and consistent manner.

“What the Blooming Prairie Foundation has provided is amazing. What a gift and legacy to use the accumulated funds that the food co-ops contributed to with their patronage over the years to be part of starting new co-ops. It’s very visionary,” said Marilyn Scholl, CDS Consulting Co-op consultant and FCI board member.