3c hapter - Index of

From Brown Rice to Biofuels 161
repeat customers. You have a model in which this community is
putting their resources into it, and yet a lot of times you have this
disconnected or absentee ownership of it, and so the resources of
your community really are being funneled out of it. So my vision
there was, let’s just close the loop. Let’s make it so that’s being
reinvested back into the community in a variety of ways, whether
it be better jobs for the work force or investment in expansion or
improvement of the current assets you have or refunding excess
[profi ts] back to the membership.” 1
A Natural Loop
Cooperatives—businesses owned by and run for the benefi t
of their members—were fi rst established in the late 18th and
early 19th centuries in the face of disruption brought about by
the Industrial Revolution. As people left farms for employment
in the fast- growing cities and mechanization threatened the
livelihoods of craftsmen, workers were often at the mercy of
abusive employers. These marginalized members of society—
whether workers, consumers, farmers, or producers—began
banding together as a way to protect and promote their mutual
interests.
Cooperative (Co-op)
Cooperatives are associations run for the mutual benefi t of their
member- owners. They generally adhere to the seven Rochdale principles:
open membership, democratic member control (one member,
one vote), economic participation of members through the distribution
of profi ts, independence and autonomy, community concern,
cooperation with other co- ops, and education and training. Co- ops
can be worker owned, consumer owned, producer owned, or buyerowned
associations—or sometimes a combination. They range from
tiny food and energy co- ops to multi- million- or billion- dollar enterprises
such as Organic Valley, Land O’ Lakes, and The Co- operative
Group of Britain.
(Continued )