Celebrating Cooperatives

By Ryan Moran and Gregory McKee
Contributing Writers

With October recognized as “Co-op Month,” it’s a good time to look at how cooperatives are a vital resource and make sense in our region. Relatively low population and distant access to some services make cooperatives a good option for the Upper Great Plains. The members of our community can work to overcome some of these issues by joining together to form cooperatives.

Using this business model, citizens can pool resources, obtain a presence in the marketplace, and be able to express their opinion about how the business should work. Not only do cooperatives provide financial benefits, they also serve very real needs in the region, such as the services provided by the rural electrical and telephone cooperatives.

In fact, there are many examples of citizens of communities essentially being forced to join together to ensure vital services to the region that corporations had declined to offer. For instance, several cooperatives operate in the Red River Valley. In the 1970s, one group of sugar beet farmers formed the Minn-Dak Farmers Cooperative. Another purchased the assets of American Crystal Sugar and transformed it into a cooperative. Both companies improved farmers’ ability to sell their sugar. Together, the companies formed the United Sugars Corporation in 1994 to further enhance their product line and opportunities to sell its products for its members and patrons.

These cooperatives have flourished and allowed regional sugar beet farmers to improve their market position and improve the welfare of the people of the region. By joining together and forming a cooperative, farmers are able to pool their resources, create a dedicated outlet for their products which they can control, and manage their risk in the marketplace.

In Grand Forks, a good example of a local cooperative is the Amazing Grains Natural Foods cooperative. This co-op was formed in 1972 to provide the community with organic and natural foods at a reasonable price. They purchased a storefront and began selling locally grown eggs, milk and dairy products, and purchasing other natural and organic food stuffs from reputable distributors. Like other co-ops, members own the grocery store. In order to become a member of the cooperative there is a $100 one-time membership fee and in return the members get a monthly newsletter, a 5% discount on purchases and increase the region’s ability to purchase whole, healthy, and organic foods.

In the Fargo area a few examples of co-ops are Cass County Electric Cooperative, the various credit unions in our community, and even a pair of cooperatively owned art galleries located downtown. The electric cooperative is one of the more common forms of cooperatives.

One of the reasons for this is the cost for companies to bring electrical services to rural communities and therefore choose not to do so. The credit unions try to educate their members about good financial stewardship practices. The art galleries give a chance for people with a common interest in art to develop their talents at a pace they decide on.

Cooperatives are still forming in our Valley. In the Fargo-Moorhead region, some citizens have expressed an interest in forming a grocery co-op. The still forming Fargo-Moorhead Wholesome Foods cooperative is an example of extending the local reach of agricultural products. The co-op even has a virtual community presence on Facebook.

As we can see, cooperatives fill vital needs to the region, serve their members, and provide products and services to the communities. As we go through the month of October, let’s take a few moments to recognize the various cooperatives that operate around us, take a moment to think of their value to the area and consider giving them our support.

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