Established in 1844, The Rochdale Society of Equitable Pioneers in Rochdale, England, is considered the first modern consumer cooperative. However, Benjamin Franklin is recognized for organizing the first successful cooperative in the U.S. in 1752 – the Philadelphia Contributionship for the Insurances of Houses from Loss by Fire.

Cooperatives can consist of a small group of neighbors or friends or be large Fortune 500 companies. There are four types of cooperatives: consumer, producer, worker and purchasing or shared services.

• Consumer cooperatives are owned by the people who buy the goods or use the services of the cooperative. Jackson EMC is a consumer-owned cooperative.
• Producer cooperatives are owned by people who produce similar types of products. Combining resources gives these producers more opportunities for marketing, branding or selling their products. Farmers who grow crops or produce dairy products fall into the producer-owned category.
• Worker cooperatives are owned and governed by the employees of the business. These groups are found in all sectors of the economy and provide workers with opportunities for employment and ownership. Restaurants, employee-owned food stores and taxicab companies are examples of some worker-owned cooperatives.
• Purchasing or shared-services cooperatives are governed by independent business owners, small municipalities and sometimes state governments. These groups band together to increase their purchasing power, lower costs or improve competitiveness.

"The cooperative business model is better because we put people before profit. Our purpose is to build better communities, not just make profits for stockholders," says Paul Hazen, National Cooperative Business Association President/CEO. "With globalization, people are looking for more control and sense of community. The cooperative business model allows people to work with people who share common economic and social interests."

Cooperatives are a vital part of the economy, and many of us don't realize how cooperatives impact our everyday lives. So the next time you enjoy a cool Ocean Spray® spritzer, buy something from REI® or pick up a tool from True Value®, remember that they are a few of the thousands of cooperatives providing products we know and love.

Types of Cooperatives

U.S. cooperatives serve 120 million members, and worldwide more than 730 million members are served by 750,000 cooperatives. Cooperatives are formed to provide a number of goods and services.

Here are a few of the types of goods and services offered by cooperatives:

• Business services, such as personnel and benefits management, and group purchasing of goods and services
• Childcare
• Credit and personal financial services
• Employment
• Equipment, hardware and farm supplies
• Electricity, telephone, Internet, and satellite/cable TV services
• Food and food services
• Funeral and memorial service planning
• Health care
• Health insurance
• Housing
• Insurance
• Legal and professional services
• Marketing of agricultural and other products