Oryana Community Co-op is a locally-owned food cooperative that has served Northern Michigan for over five decades – but we’re not alone. There are hundreds of cooperatives serving communities across the country, each with its own identity and mission. Cooperatives do share a common set of values and practices that guide what we do.
Learn more about the co-op business structure, values, and why joining your local cooperative – wherever you are – can have a lasting impact on your community.
What Is a Co-op?
On the surface, co-ops may look like any other business, but it’s what goes on behind the scenes that makes the difference. A co-op is an organization owned, controlled, and operated by those who use its services or purchase its products, not outside investors. The goal is to pool resources to meet shared needs and shape decision-making under a simple “one owner, one vote” philosophy.
Types of Co-ops
Food cooperatives are some of the most well-known types of cooperatives, but there are several other industries that feature the organizational structure, including:
- Housing co-ops, where residents own shares in the entity that owns the building in which they live
- Consumer co-ops, such as food co-ops, are owned by its customers
- Worker co-ops, which are owned and operated by employees
- Producer coops, where producers sell or market their products together
What Makes a Co-op Special?
Cooperatives like Oryana are different from other businesses because they prioritize democratic ownership, a set of principles, and accountability to a larger purpose.
One owner, one vote: Our owners elect the board of directors, which shape our guide principles, Ends, and broader strategic direction.
Benefits: We provide reliable access to quality foods that meet exacting nutritional, environmental, and social standards at reasonable rates. The goal isn’t to make a profit for investors, but to serve investors and the community.
Principles: Like co-ops the world over, we follow certain principles, including voluntary ownership, a community focus, and an emphasis on equality.
The Cooperative Principles
Cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. In the tradition of their founders, cooperative members and owners believe in the ethical values of honesty, openness, social responsibility and caring for others. The cooperative principles are guidelines by which cooperatives put their values into practice. The International Cooperative Alliance recognizes Seven Cooperative Principles. In December 2024, the Oryana Board passed a resolution to recognize and adopt the Eighth Cooperative Principle: Diversity, Equity, and Inclusion.
- Voluntary and open membership: Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
- Democratic Member Control through the elected Board of Directors: Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. People serving as elected representatives are accountable to the membership. In primary cooperatives members have equal voting rights (one member, one vote) and cooperatives at other levels are also organized in a democratic manner.
- Member Economic Participation: Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.
- Autonomy and Independence: Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.
- Education, Training and Information: Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives. They inform the general public – particularly young people and opinion leaders – about the nature and benefits of co-operation.
- Cooperation Among Cooperatives: Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.
- Concern for Community: Cooperatives work for the sustainable development of their communities through policies approved by their members.
- Diversity, Equity and Inclusion: Cooperatives believe we are stronger when a proactive effort is put forth to engage everyone in governance, management and representation.
Oryana’s Cooperative Structure
Along with a Mission, Oryana operates in accordance with Cooperative Principles (see above) and Ends Policy. The Cooperative Principles ensure all owners have a say in the decisions the business makes ,and the Ends Policy helps guide everyday decisions.
Under these principles and policies, a co-op returns surplus revenue to its owners and the community, rather than rewarding outside investors with profits.
Owner Benefits
Becoming an owner has its perks. We offer an anytime discount of 5% on six transactions throughout the year, bonus savings during our owner discount events, and deals on our famous cooking classes.
You’ll also be helping us support non-profits and community-minded organizations that make life better for everyone. Oryana owners have helped support TART, SEEDS, and dozens of other impactful projects, including dozens of local farmers and artisans.
More about Patronage
Co-ops are distinctive businesses based on ownership, which allows them to return excess profit to their owners as tax-free rebates. These rebates are called “patronage rebates” because they are based on how much owners “patronized” or spent at the co-op the previous fiscal year. By law, patronage rebates can only come from owner income (not non-owner purchases) and be allocated based on each owner’s purchases (patronage) at the co-op. The profit returned to owners as rebates are funds not needed for new owner services or future projects.
Throughout the year the co-op tracks how much each owner spends, which is why we ask for owner cards at checkout. Generally, if the co-op has made a profit in excess of what it needs to operate, it may return a percentage of that profit back to its owners. The Board of Directors, utilizing the General Manager’s recommendation, determines what percent of the profit will be returned to owners and what percent is retained by the co-op.
The co-op needs to retain some of the profit as a financial cushion for lean years or to finance expansion or other owner services. Although owners do not receive this profit as a cash rebate, they, in effect, jointly invest more money to grow the co-op and provide more of the services they want. There may be years when no patronage is returned due to a project or other immediate need of the co-op.
You need to show your ownership card every time you make a purchase so we can track what you have spent during the year. You will need to keep your ownership current and let us know if your address or contact information changes.
Once the fiscal year ends (December 31st) the co-op utilizes the first quarter of the following year to finalize its year-end financials and evaluate its needs, with an announcement about the patronage rebate set for the General Ownership Meeting in April.
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