About Co-ops

What's a co-op?

A co-op is an enterprise owned and operated by its members.

Cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity. In the tradition of their founders, cooperative members believe in the ethical values of honesty, openness, social responsibility, and caring for others.

Distinguishing Co-ops

There are many types of co-ops, but their general form and purpose are the same. The different types of co-ops are defined by the members and their motivations for using the co-op.

• Producer cooperatives

  Producer co-ops provide goods or services to members who produce a product (e.g. farmers). There are two types of producer co-ops:

  • Supply co-ops – supply producers with the materials they need. These are mostly agricultural.
  • Marketing co-ops – store, process, and market products for producers. These co-ops often sell their members' products under a brand name.
  
  
• Worker cooperatives

  Worker co-ops are businesses that are owned and democratically controlled by their employees. Worker-owned co-ops use the same principles regarding membership, control, and distribution of surplus that all co-ops use; however, unlike other co-ops, worker co-ops are owned entirely and only by their employees. Collectives, businesses that are managed by all or a group of employees, are sometimes confused with worker co-ops. However, collectively managed businesses aren't necessarily owned by the workers, as are worker co-ops.

• Consumer cooperatives

  Consumer co-ops provide goods or services used primarily for personal consumption. Central Co-op's Madison Market is a consumer co-op.

  The cooperative business model is one that can meet a variety of member needs. While most co-ops are producer, worker, or consumer owned, some co-ops are a combination of two or more types (e.g. worker/consumer co-op).

  Instead of being profit-driven, a cooperative benefits its member-owners and communities. As a consumer-owned natural foods cooperative, Central Co-op’s Madison Market is democratically controlled by its member-owners who, upon investment, become eligible to elect our board of trustees and direct organizational referenda.