Cooperative History
 The History & the Heritage of an Integral Part of American Economy


 

 

 

 

 The Rochdale Founders of the Cooperative Movement
The roots of the modern cooperative movement can be traced to the town of Rochdale, England, near Manchester, at the beginning of the Industrial Revolution.

It was here in 1844 that a group of 28 factory workers, living in Rochdale (pronounced "Rotch-dale"), sought to gain control over their economic destiny by forming a cooperative called the Rochdale Equitable Pioneers Society.

Earning average wages of 23 cents per 14-hour day (children received 6 cents per day) the 28 Rochdale workers managed to accumulate $120 in one year. Half of the money went to rent a tiny store at 31 Toad Lane. The remaining money was used to stock items and construct shelves. The Rochdale Society cooperative store sold food staples including sugar, flour, salt and butter. The Society bought in quantity and sold to each other at low prices - establishing the fundamental principles of modern cooperatives.

The success of the Rochdale Society can be in part attributed to a set of business guidelines drawn up by one of its members, Charles Howarth. Now, more than 150 years later the "Rochdale Principles" guide cooperatives all over the world. The seven principles were first introduced in the U.S. in 1874 by the National Grange, a farmer cooperative founded in 1867, and form the basis for the cooperative movement today. These values and principles are strongly endorsed by 1st Rochdale Cooperative.

In the ethical tradition of the Rochdale Pioneers, cooperatives believe in honesty, openness, social responsibility and caring for others. Cooperators value self-help, self-responsibility, democracy, equality, equity and solidarity.

 

Doing Business
the Cooperative Way
The cooperative form of business touches most of us in our daily lives.

As you go through your day you are likely to encounter cooperatives in various aspects of your life. The Associated Press report in your newspaper was provided by the largest wire news service in the world. It is the oldest business cooperative in the U.S. - started in 1848 by six newspaper owners in NYC. Enjoy a glass of juice – orange juice from Sunkist, the California citrus growers cooperative, or cranberry juice from the Ocean Spray cooperative.

Many other businesses with familiar names are cooperatives: Land O'Lakes butter, C-Span, Best Western, The Corporation for Public Broadcasting, FTD Florists, Ace Hardware, Agway, and the list goes on.

There are over 48,000 cooperative businesses in the U.S. alone, serving the needs of millions of Americans and generating over $120 billion in annual economic activity. One in every four Americans is a member of some kind of cooperative and approximately one-third of all Americans are directly served by at least one type of cooperative endeavor.

Although there is a broad diversity of cooperatives they generally fall into one of three categories:

  • Consumer-owned cooperatives enable consumers to buy a wide array of goods and services including housing, food, utilities, health care, fuel, hardware, clothing and other consumer goods.
  • Producer-owned cooperatives are owned by farmers, producers or small businesses. Agricultural producers and crafts people join together to process and market their goods, and to provide themselves with credit, equipment and production supplies. Retail stores can also be producer owned cooperatives
  • Worker-owned cooperatives are owned and controlled by their employees and can be found in almost any industry from taxi cabs, to car rentals, to airlines.
     

250 Years of Co-op History; The Cooperative Movement in America

Cooperative businesses have been a part of the American way since at least 1752 when the first known co-op was formed by Benjamin Franklin, the Father of American Cooperatives.

While living in Britain, he had seen the growing role of "mutual" or cooperative societies. When he returned to the states he helped form the first mutual insurance company, the "Philadelphia Contributionship for the Insurance of Houses from Losses by Fire." Today, it is the oldest cooperative in the nation.

Farmers were mostly responsible for early cooperative development in the U.S., creating marketing and support groups to enhance their dealings in the marketplace. The U.S. Department of Agriculture reports American farmers attempted to formally organize in 1785 as the Philadelphia Society for Promotion of Agriculture. In 1804, the first farmer marketing cooperative was organized by dairymen in the Connecticut River Valley. An irrigation co-op was started in California in 1853, and by 1857 New York and Ohio had laws that enabled cooperative (mutual) insurance companies to operate.