Speaking of Co-ops, Dada Maheshvarananda

I’ve always found it strange that our political democracy is oblivious to economic democracy. Maybe it’s because co-ops aren’t well known or understood.  After more than 35 years of co-op experience, I’m invested in exploring and developing the highest potential of co-ops.

One of my earliest inspirations was Mondragon, a group of cooperatives in the Basque region of Spain. Started in the 1950’s to create jobs, it has become so successful that it now provides fair wages, job security and health care benefits through worker, consumer, producer and banking co-ops. It is a community of people making a better living with each other.

Co-ops create a sense of community because the members come together for a common purpose. Co-ops are not motivated by profit, resulting in a shift in the overall economy: jobs rather than profit, local suppliers rather than shipped in goods, quality products rather than cheaper products.

 

Someone who shares a co-op vision with me is Dada Maheshvarananda.  He advocates for economic change to improve quality of life in Latin America.  His idea is to create an ethical and fair economic structure, and co-ops are a big part of his economic plan.  Cooperative ownership of the majority of businesses would shift economic and political control away from big business. The focus would change from “how can a few get richer?” to “how can everyone have a better life?”

Dada’s economic model encompasses political, social, ecological, and spiritual aspects. He is the director of the Prout Research Institute of Venezuela.  Prout was the brainchild of S. R. Sarkar, who devised a plan to reorganize society and the economy for the welfare of everyone.

 

 

Dada Maheshvarananda will be speaking about his book, After Capitalism, Economic Democracy in Action, on April 1, at 7 pm, at the Friends Meeting House, 4500 Kensington Ave.  Come out and hear what he has to say.

Here’s a link to the event page on Facebook:

http://www.facebook.com/events/574704812542446/578579855488275/?ref=notif&notif_t=plan_mall_activity#!/events/574704812542446/?fref=ts

Cheryl Marschak, Richmond Food Co-op Steering Committee

 

 

 

Growing Richmond's Citizen Sector

My first boss out of college, Ashoka founder Bill Drayton, often talked about eliminating the terms “nonprofit” and “nongovernmental organization” from our lexicon. He felt it didn’t make sense to be defined by what you were not. Furthermore he argued the term “nonprofit” sent the wrong message to both businesses and “charities” (an equally flawed term) and failed to capture what many in this ever evolving third sector were all about. Instead we championed the term “citizen sector.” It all felt a bit silly at the time. More and more though, the term is starting to resonate with me. This is particularly true when I think about why I am a part of founding what will be the Richmond Food Co-op.

Co-op models across the country fall across a wide spectrum of taxcode definitions. But I believe they are almost all best defined as belonging to this “citizen sector.” They are citizen owned, citizen run, and citizen-serving. Co-ops and other like-minded institutions, businesses, and organizations operate within a framework that can harness the best practices of the public, private, and nonprofit sectors while often avoiding some of the pitfalls and shortcomings of both.

These are not models that ignore or eschew capitalist principles of profit, efficiency, or economies of scale. Rather these principles are embraced and maximized to the benefit of all. This is capitalism at its best…a collaborative capitalism, a cooperative capitalism. What this, other co-ops, and fields like social entrepreneurship offer is the grand compromise of collaborative and cooperative capitalism. And I use the term compromise intentionally because the compromise goes beyond the business model. I feel confident in saying that this co-op will not be perfect. What it will be is a compromise that moves the needle forward and improves the local food system. 

I don't think for a second this co-op will be a perfect solution to our food access issues, but it will be a piece of the puzzle...a puzzle piece with membership available and affordable to all (including a discounted rate of $15 for qualifying members), in a central location accessible to as many people as possible. Despite our best efforts the Co-op will not reach everyone. The co-op will, however, become one of a number of other institutions working in their own ways to improve our food system and an active participant in an ongoing conversation. Richmond needs small neighborhood grocers like Little House, vibrant urban farmers markets like Byrd House Market, unique business models like Fall Line Farms, grassroots urban garden efforts like Roots of Woodville and McDonough Garden, and other “citizen sector” organizations like BusFarm/F2F, Tricycle Gardens, Renew Richmond, Shalom Farms and the Richmond Food Co-op working together on creative models to get healthy local produce into the urban core. This co-op is one more thread in the ever-improving fabric of the Richmond food system. That’s why I’m excited to be a part of it.

-Dominic Barrett, Steering Committee Member

I Joined the Co-op Because...

You've heard a lot of compelling reasons from us, your Co-op Board and Steering Committee, as to why you should become a member/owner of the Richmond Food Co-op.

Now it's time to bring in the voices of our Founding Member/Owners, those that have taken a leap for local, by becoming one of the first 100.

I JOINED THE RICHMOND FOOD CO-OP BECAUSE...

“It's long overdue in Richmond.  I have been a member in a co-op in another state in the past and loved being able to shape where I shop.”

“I have been dreaming of a co-op in Richmond ever since I moved here. It is about damn time!”

"To take part in something I believe in, healthy local food options.  I am a local farmer and nurseryman myself, and I understand the importance of a non-csa and non "Saturday" farmers market-related buying experience in Richmond.”

“We have big concerns about the sourcing of our food by big grocery chains.” 

 “I have always tried to eat healthy foods and support local businesses.  I'm a single working mother who is short on time, but now that my children are getting older I feel like I have the time to get involved in causes that mean something to me... joining the co-op as a member/owner seems like a good step in that direction.”

"I support community involvement, local farmers.... I love healthy food all year long. I want to be able to get good food not just during seasonal farmers' markets but anytime.”

These are the voices of your friends, neighbors, co-workers, and family members.  They have joined a community dedicated to eating fresh, healthy food that supports our local economy. 

And finally, a couple of quotes from folks who likely would have joined the Co-op too:

“We shall have no better conditions in the future if we are satisfied with all those which we have at present.”  -Thomas Edison

"Why not go out on a limb? Isn't that where the fruit is?"  -Frank Scully

Come out on this limb with us...where the VA fresh fruit is...

The sun is shining on Richmond now - so let's bloom!

Co-op = Community

The co-op model is unique in myriad ways, but I would argue that the most important is the sense of community that transforms a shared vision into a brick and mortar store, where food shopping becomes a way to put values into practice. Co-op equals community. We are excited about engaging and growing our Co-op community and are planning lots of opportunities to get together in the months ahead. 

We are keeping the fun from Hardywood going with monthly social gatherings. On Feb. 26^th we will host a cocktail hour at Olio Uptown – the event is open to all and there will be special perks for existing members (or those who sign up at the event!). Our happy hours have been well attended and well loved, so we plan to keep these going, as well as adding in a diversity of activities in the months to come. As the weather warms up we will be spending time together outdoors with picnics, farm tours and more!

This spring we will also be hosting monthly Co-op Community Forums at the William Byrd Community House on the third Monday of the month. The forums will consist of an information session for prospective members who want to learn more and a general meeting for existing members to keep up to date on our progress and development. The first in the series is this coming Monday, Feb. 18th.

Additionally, in March we will start Co-op Potluck Parties – a way for you to invite your friends and neighbors to join the Co-op community. Member/Owners will have the opportunity to host a potluck (or food swap, or wine & cheese pairing, or coffee & cookies, or ___ ...) and tell those they love why they love the Co-op. A Board/Steering Committee member will join the party and be available to answer any questions. Hosting member/owners will actively take responsibility for getting the Co-op the members we need to open. They will be sharing the Co-op experience with friends. They will be having a fun party. They even get a special thank you host gift. What’s not to love?

Visit our website for details on our upcoming events. I look forward to seeing you soon!

-Michele Lord

Wide World of Co-ops







Maps tell the best stories.  And this map is making a couple of points:

1)  Richmond can support a co-op.

• Our smaller VA cities (whom we love) are showing us up.  Take a look:
• Harrisonburg, VA: Population 49,973
• Roanoke, VA: Population 96,714
• Neighboring states have cities comparable and larger in size to us that have thriving food co-ops:
• Durham, NC: 233,252
• Greensboro, NC: Population 273,425

Richmond, VA:  Population 205,533

2)  Richmond needs a co-op. 

Looking at Richmond on this map, it's clear that we are smack in an underserved area.  There are 7 food co-ops in North Carolina and 5 in Maryland. Virginia's capital needs to be represented in the co-op landscape.

So we're doing something about it.  As we write this post, we are 75 members strong and barely a week into our membership campaign.  We have the momentum, and we are funneling it into action.

Let's be the cartographers of our own food destiny. Together we will put Richmond on the map and help fill that hole!

Making Milestones

This was a big week in the life of the Co-op. We are excited to announce that we are officially in business!

It started with this piece of paper:

Which led to this piece of paper:

My member equity is in the bank. It's about putting your money where your values are.
I value affordable access to good food.
I value my community.
I value my local economy.
I value the generations that will come after me.
I value my Co-op.

Join me in becoming one of the founding member/owners of the Richmond Food Co-op. Eat the change you want in the world!

-Michele Lord, Board Chair

Co-op Capitalization Timeline

On Friday we got a call from the State confirming that our incorporation is finalized and we are officially in business. As a cooperative, our community of member/owners will serve as the foundation for our capital campaign, and the key factor in taking us from a highly researched and developed idea to a brick and mortar store open for business.

Our Board has developed a start-up budget that calls for us to raise $1.5 million in capital to open the Richmond Food Cooperative.  The capital plan depends on “member equity” (at $125 equity + $25 joining fee each) from 800 member/owners, to raise a total of $120,000.  How soon we open the Co-op depends on how quickly we can sign up these 800 member/owners.

Our hoped-for recruitment schedule is to sign up 100 member/owners per month, starting this month.  This would allow us to open in September (a 9-month timeline).  In order to be realistic, we have also developed back-up timelines:  12 months (opening in December, 2013) and 18 months (opening in June, 2014).

A second step in financing the Co-op is to set up a member loan campaign. Once we have reached our halfway point of 400 member/owners, we will invite members to further support start up costs by lending money to the Co-op. These loans would be money that the Co-op pays back, with interest, over a set schedule.  Our budget calls for us to raise $600,000 in this way. While not provided by all members, member loans represent commitment and engagement in the co-op on behalf of its members, and will serve as a local investing opportunity to make this a truly Richmond-based venture.

            

We also expect to raise capital from the proceeds from fundraising events, government economic development funds, crowd sourcing, landlord improvements, contributed product, vendor credit, etc.

           

The most vital source of capital is a commercial loan.  In our budget, we are planning for about 35% of our total capital to come from a bank loan.  We must, however, have secured the member equity and member loans before we can seek a bank loan.

            

So, what we are doing right now – recruiting Co-op member/owners – is perhaps the most crucial part of our capital plan, and our timeline for opening the doors of the Richmond Food Cooperative depends on it! It starts with you!

-David King, Board Treasurer