3c hapter - Index of

From Brown Rice to Biofuels 165
$75 billion in wages and benefi ts, and $133.5 billion in valueadded
income, according to a study by the University of Wisconsin
Center for Cooperatives. 4
Co- ops tend to fi ll a need that the marketplace is ignoring.
And often, they are at the forefront of important trends. Those
crunchy- granola natural- food co- ops, for example, were instrumental
in establishing the organic and natural foods market—well
before John Mackey opened his fi rst Whole Foods store in 1980 or
Walmart glommed onto the organic trend in 2006. 5 New associations,
such as the Seattle Farm Co- op, created in 2009 by urban
farmers who needed a source of livestock feed, worm starter kits,
and farming supplies suitable for their city environs, are helping
establish brand new markets. Similarly, today’s energy cooperatives
are on the cutting edge of distributed, renewable energy production
from solar, wind, and biofuels.
Most co- ops are small, but some have been hugely successful,
rivaling the biggest corporations. Italy’s Coop Italia, a national
retail cooperative, operates the country’s largest retail chain and
produces more than 1,600 products, from tomatoes to soccer
balls. The UK- based Co- operative Group spans fi nance, travel,
food, and even funeral services. With 4.5 million members, it is
the world’s largest consumer co- op.
In Spain, the Mondragon Cooperative Corporation (MCC) is
a prosperous federation of worker- owned cooperatives employing
100,000 workers and generating more than $20 billion in revenue.
Mondragon cooperatives manufacture consumer appliances,
bicycles, and industrial components. They sell insurance and run
a university, whose graduates typically fi nd employment within
the cooperative within three months. MCC also operates Eroski,
Spain’s largest retailer. Like all co- ops, the net revenue that
Mondragon generates annually is invested back in the company,
with any surplus distributed among the workers and directed to
community programs. Compare that to the multinational corporations
with their multi- billion dollar cash reserves sitting idle
in offshore accounts while domestic workers, capital investment,
and communities languish. It is little surprise that a growing number
of civic and business leaders are making pilgrimages to the