By George Siemon, C-E-I-E-I-O of CROPP, known
more familiarly as Organic Valley® Family of Farms
Photos by Carrie Branovan
We often hear negative talk about corporations
with their lack of long-term focus. All corporations may not fit
that description, but there is no doubt that corporate decisions
are increasingly dominated by considerations of stock value and the
next quarterly results. Businesses have a mission to answer to a
specific need of the consumer. That mission can be complimentary
to community values, environmental concerns and other ethical deliverables.
Unfortunately, corporations all too often leave behind any sense
of reasonable or sustainable profit – or
community benefit..
Starting as far back as the 19th century, social movements have looked
for alternatives to corporate structure. Cooperatives first swept through
the United States in the early 20th century, peaking in the late 1920’s
with a primary focus in rural America. Cooperatives provided services
in regions where no business would go and provided alternatives to limited
markets.
Most people don’t know that there are many cooperatives in our
society today. But they do know cooperative brands like Ocean Spray,
Welch’s and Land ‘O Lakes. Most consumers don’t realize
how many independent retailers have formed cooperatives to access larger
buying capacity. Worldwide the number of cooperatives has tripled in
the last 20 years.
So, how are cooperatives different from corporations? Primarily, a cooperative’s
purpose is the same as a traditional corporation. But stock value is
not a consideration. The cooperative member-owners are building a vehicle
that will provide ongoing service for generations – not a business
to generate maximum profits. This does not mean that profits are not
important, but it does mean that those profits are based on a long-term
purpose. Another key difference is that management cannot own stock in
cooperatives, so the pressure to maximize stock bonuses is eliminated.
I have been very fortunate to be part of founding a cooperative in 1988
with a group of pioneering organic farmers that has blossomed into CROPP
(Cooperative Regions of Organic Producer Pools) Cooperative, more commonly
known as the brand Organic Valley Family of Farms. Organic Valley now
represents nearly 750 farmers in 23 states.
U.S. agricultural policy has long favored the corporate takeover of food
production. In my lifetime, nearly four million farmers have gone out
of business. It has been a long time since farmers were able to set their
own pay prices. Cooperatives put farmers back in charge. Our cooperative
is governed by an all farmer member board and elected Executive Committees
that act as our Congress. Each region reviews all the issues that are
of concern to them, including their pricing structure. It is this democratic
process that makes cooperatives so unique. Cooperatives practice democracy
in their governance, allowing the member-owners to actively participate
in their business. Most cooperatives, like CROPP Cooperative and unlike
most corporations, designate each member with one vote regardless of
size.
We are dedicated to the highest organic
standards, best tasting organic foods and to encompassing organic principles
and environmental stewardship in all aspects of our business. But most
critical to achieving these higher, long-term goals is CROPP’s
dedication to paying farmers a fair and stable pay price for their
products and to provide meaningful and fair employment.
The cooperative model and the USDA organic standards provide an excellent
foundation but do not represent all of the values that are important
to us and to our customers. Values such as food miles, whole foods,
domestic fair trade and farm scale are not inherently addressed. We
have developed a pyramid of values to help us remember where organic
and cooperative fit into the hierarchy of how we think about food and
farming as a whole. The pyramid is also a visual way of communicating
to our customers and partners how their personal food choices fit into
a sustainable model. Personal food choices, ultimately, drive the evolution
of sustainable eating and farming practices. Encouraging brands that
match our values will help to support a sustainable food system for
future generations.
Organic cooperatives are our hope. They give us a democratic model
of working together for a common cause. This is perhaps the most difficult
challenge we face – how to work together most effectively for the
good of the whole. If we can do this, then we can succeed at protecting
the environment and returning our waters to purity.
If we want business to be about long-term sustainability and social
responsibility, then the cooperative model is the strongest option.
Luckily, cooperatives are quietly prospering – empowering people
and businesses to be competitive and build long-term prospering communities. |
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