WHAT IS A COOPERATIVE BUSINESS?
And how can it save small dairies?
A cooperative business model is member-owned and controlled. It is applauded for its democratic structure because each member gains one vote in big decision-making processes. Because private corporations are investor-owned, they are more often criticized for their profit-focused goals.
CASE STUDY: CABOT CHEESE
Cabot Creamery is an example of a co-op that is able to outsell and outlast corporate competitors because of their integration of various local dairies. The company has been in business for over 100 years, and works with over 800 farms in New England. Winning the World Champions Cheese Contest for several years in a row, and being the first dairy co-op to earn a B-corp Certification, Cabot proves that the cooperative model can benefit everyone involved.
WHY SHOULD SMALL DAIRIES WANT TO JOIN?
Higher Success Rate
Cooperative businesses have lower failure rates than traditional corporations and small businesses, after the first year of startup, and after 5 years in business.
Stabilize Local Communities
Co-ops are able to distribute and recycle, local expertise and resources within a community, spending their capital in the same region in which it was gained. For every $1,000 spent at a food co-op, $1,606 goes to the local economy.
The Prospect of More Workers
Co-ops participate in social outreach programs and donate to charities that help communities thrive. Because six in ten millennials reported "a sense of purpose" as a reason for accepting their current job, employees would be incentivized to work at a smaller dairy involved in a co-op.