Consumer Groups and Cooperatives

With increasing urbanisation, many people dIn urban areas where people have no direct access to farms and the countryside, consumer groups can be very worthwhile. Since most organic food is more expensive than non-organic, many families think they can't afford it. Consumer groups and cooperatives and other forms of buying clubs help to bring prices down and encourage consumers to 'go organic'.organic food

These consumer groups consist of groups of people pooling their financial resources in order to purchase bulk foods at wholesale prices. Consumer groups equate to buying power.

Consumer cooperatives can differ considerably in how they are organised and operated. Most fall into two types. One purchases organic food products from a cooperative wharehouse of which the whole group becomes a member. The other type works in conjunction with a retail distributor by initially making special orders through a retailer, then negotiating a direct relationship with the distributor.

Both growers and consumers benefit from consumer cooperatives. The advantages of consumer cooperatives from a grower's perspective include:

  • stable, non-volatile market
  • high growth potential
  • farmer gets high portion of food dollars
  • small farmer investment
  • farmers are consumers too.

Potential issues for growers to bear in mind:

  • requires organization of or by consumers
  • high degree of management required
  • staff/personnel issues
  • legal responsibilities
  • formal organization with rules and regulations, just like a grocery shop.