The
Cooperative Economy
By Bill Lathrop, General ManagerSeveral years ago at a planning meeting
for our cooperative, Marilyn Scholl discussed why co-ops form. Marilyn Scholl is a
well-known consultant to the co-op business sector. To paraphrase her opening remarks, she
said that co-ops form when there is an economic need that is not being met by the
for-profit business sector. In fact, that is exactly why North Farm was created back in
1971. Several co-op grocers in Madison formed North Farm, then known as Intra-Community
Cooperative, to share the burden of buying products. At that time, there were no natural
foods distributors.
For 28 years, North Farm has been one of the best sources of natural foods for our
members. However, in 1999, we are not the only source. Natural foods are not in scarce
supply, nor are they difficult to obtain. Most supermarkets carry a portion of our most
popular products and “knock-off” versions now appear at Wal-Mart. This raises
the question: With the growth of “natural” products in the “mass
market”, is there still a need for North Farm? Have we outlived our purpose?
I believe not. I believe, not only in the products we carry, but also the means by
which we distribute them. I believe the cooperative sector provides an important service
to our economy. We are one of the few alternatives in a profit-mad economy. While the
proliferation of our products in the traditional economy makes our job more difficult, it
also forces us to be better.
I believe competition, in its purest sense, is a good thing. I believe Adam Smith had a
point with his “Invisible Hand”. However, I don’t think Adam Smith’s
capitalism is what is practiced in the waning moments of the Twentieth Century. In his
depiction of capitalism (which I would label “pure”), a market is defined as a
large number of buyers and suppliers, no one of which can dominate the marketplace. That
is not the common manifestation of capitalism in 1999. Rather, mergers upon mergers have
led to many industries characterized by a few, very powerful suppliers. This has largely
been driven by the mechanics of the stock market—which focuses emphasis on the value
of short-term investor return (as opposed to long-term investor return, or the common
good, or ecological sustainability, or good service to customers).
This phenomenon is happening in our own industry. On the supplier side, natural foods
manufacturers are consolidating into a few large and powerful competitors. Natural foods
distributors are merging, and there is a movement on the national level for the five
remaining co-op distributors to merge.
Before joining North Farm, I worked in public accounting. Much of my work was in the
banking industry. That industry was characterized by merger—it still is. Despite the
benefits celebrated by merger participants (greater economies of scale and reduced costs),
there was a parallel trend in the growth of small, community-owned banks. Those banks took
advantage of the other reality of bank mergers. Large banks focused services on large
companies and international deals. For simple consumers, fees rose and services declined.
Community-owned banks focused their service on the needs of the community—and were
able to find a needed and profitable niche.
Co-ops in our industry may be in a similar position as community banks in the financial
service industry.
We co-ops, particularly those in natural foods, are at a critical point in our history.
We are facing very real competition from the for-profit sector. Consumer needs are
shifting toward ease and convenience. In some cases, our products are being used as loss
leaders, as a marketing vehicle to get consumers into supermarkets.
We must be more creative to compete. Our values alone will not support us. We must
create a shopping experience that is fun. We must continuously look for ways to make the
consumer’s experience more convenient—and take less of his/her precious time. We
must find ways to share our resources, to squeeze as much waste as possible from our
supply chain.
Our members do place value on what we represent. We must ensure that there are other
compelling reasons for our members to shop with us.
October is Co-op month. I urge you to support cooperative economics and your local
co-op.
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Preserve
Food the Old-Fashioned Way--Dry It!
By Norma Woods, Marketing Assistant
The Egyptians and Arabians used the warm desert winds to dry food more than 15,000
years ago. American Indians did it and probably your great-grandmother did it, too. This
ancient method of food preservation still has some advantages over other methods of food
preservation and is worth trying in your own home. New techniques minimize nutrient loss
and maximize color and flavor.
With abundant fresh and processed food available year-round why would anyone want to
dry food? There are many advantages to drying food at home not the least of which is that
it provides an emergency store of food at a much lower cost that commercially-prepared
dried food. Drying food saves a lot of space over canned or frozen food, there is minimal
equipment and the methods used are relatively simple.
Rather than trying to dry a lot of food in your first season, I suggest you ease into
it. Try drying small quantities of a wide variety of foods. Next year you can focus on
drying foods that dried well for you and that your family liked.
There are four basic requirements to safely drying food:
Heat: 140º when using a food dehydrator or oven. This is hot enough
to remove excess moisture but not so hot as to cook the food. If you can't maintain that
temperature the food will have to dry longer.
Time: The average is 6 to 8 hours in a food dehydrator or oven and 3
to 5 days using the sun at a temperature of 95º with low humidity and warm nights.
Dry air: To absorb the moisture.
Air circulation: To remove moist air from the immediate vicinity.
Turning/rotating the food helps air circulate more evenly on all sides. Use cake rakes or
wooden frames covered with cheesecloth to lay food on--not solid trays or cookie sheets.
(The exception is fruit leather which must be dried on a solid tray.)
How food drying works
Most of the moisture in the food is removed thereby slowing the growth of
bacteria and other microorganisms that spoil food. It also slows down the activity of
enzymes.
Methods of food drying
Drying outdoors in the sun. This is not a suitable method in the Upper Midwest. Even if
the temperature stayed an even 95º and humidity remained low, it would still take 3 to 5
days. Exceptions might be herbs and beans that are already partially dried on withering
vines. If you do any drying in the sun be careful to keep the food free from contamination
by birds, rodents and wind-borne dirt and debris.
Oven drying. A gas oven with a continuous pilot light could work. Check the
temperature, keep the door ajar and try using a fan to circulate air. If you use a gas
oven without a pilot light or an electric oven, you must keep the temperature at 140° or
less and try to keep it constant throughout the drying period.
Purchased food dehydrator. This uses less electricity than an electric oven but the
temperature is generally 120° so drying takes longer. It will come with a guide to drying
food that you should follow closely when using that specific machine.
Homemade food dehydrator. It is possible to construct your own dehydrator. USDA
Bulletin #217 has instructions on how to build a natural-draft dehydrator. Some people
have even used the back window of their car for drying small quantities.
Preparation
Vegetables: Choose tender, mature vegetables; wash thoroughly; cut out any
damaged areas and then cut into even pieces. Blanch the pieces by dipping them in boiling
water for a few minutes to stop enzyme activity. Follow the blanching time for freezing
the same vegetables. No blanching required for onions, sweet peppers or mushrooms.
Fruits: Choose firm, mature fruit; wash thoroughly; cut out any damaged areas and then
cut into even pieces. No blanching required. Remove the pits from apricots, peaches and
plums and cut in half. Apples should be cored.
Skins may be left on, but the waxy skin of some fruits should be “cracked” by
putting the fruit in boiling water for a minute or so and then dipping it in ice water.
Sprinkling light-colored fruit with a commercial anti-oxidant or ascorbic acid solution
will keep it from darkening. Treating fruit with sulfur before drying will improve the
color.
Fruit Leathers: These are made by puréeing almost any type of fruit and is a good use
for odd pieces. Line a cookie sheet with plastic wrap and spread the purée only 1/4"
thick. Dry until it is leather-like with no sticky spots. Keep in your refrigerator or
freezer.
Herbs: These are ideal for drying and require much less time to dry than fruit or
vegetables. They should not be sun-dried as the sun will bleach them and destroy the
natural aroma. You can remove them from their stems and dry on cheese cloth screens or tie
them in small bunches and hang upside down in a warm, dry, airy room.
Safety
Cleanliness is vitally important. It will help keep the food from spoiling and
you from getting sick.
Dry foods thoroughly and allow to cool thoroughly before sealing them in jars, cans
with lids or plastic bags. As a further precaution, check them several times in the
following weeks to make sure there is no condensation or mold growth.
Store dried foods in a dark, cool and dry place. Dried fruits and leathers can often be
eaten as they are. Vegetables and fruits used in prepared dishes need to be reconstituted
by soaking for two hours or pouring boiling water over the food and letting it sit for 15
minutes. Dried vegetables may be added directly to soups.
Use dried foods within a year for best quality.
Resources
Web sites: Search on “canning and drying food”. Some of the new
sites devoted to the Y2K problem have excellent information on food preservation and
storage.
Reference books:
Canning, Freezing and Drying, Editors, Sunset Books and Sunset Magazine, Lane
Publishing Company, Menlo Park, California, 1975.
Dehydrator Delights, Noreen Thomas, D. T. Publishing, 1994, available at
amazon.com.
How to Dry Foods, DeLong, D. HP Books, Tucson, Arizona, 1979.
How to Dry Fruits and Vegetables at Home, Food Editors, Farm Journal,
Countryside Press, Philadelphia, Pennsylvania, 1975.
Making and Using Dried Foods, Phyllis Hobson, Storey Books, 1994, available at
amazon.com.
Putting Food By, 3rd ed., Hertzberg, R., Vaughan, B., and Greene, J., Stephen
Greene. Press, Brattleboro, Vermont, 1982.
Stocking Up, Editors, Organic Gardening and Farming, Rodale Press, Emmaus,
Pennsylvania, 1977.
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Y2K Shopping List
If you're thinking about stocking up on staples this year, consider items from the
following list. All are found in the "Grocery" section of the September/October
Price List, and if properly stored, will have a long shelf life. If you are planning on
ordering large quantities (20 cases or more), please contact the Customer Services Team to arrange pre-order through
our Purchasing Department.
Beans, Bulk:
Adzuki, great northern, navy, anasazi, kidney, black turtle,lentils, split peas,
garbanzos,pinto, soybeans, blackeye peas
Beans, Packaged:
- Canned beans, many varieties
- Fantastic Foods instant refried pintos or black beans, bulk or packaged
Cereals:
farina, oatmeal, Bob’s Red Mill whole grain hot cereals, instant cereal cups
(Fantastic Foods and Dr. McDougal’s)
Prepared Foods/Mixes:
- entrées
- side-dish mixes
- ramen
- canned soups
- chili
- instant meal cups
- canned pasta
Soy Foods:
- Mori-Nu aseptically packaged tofu. Worthington canned soy products.
- Texturized Vegetable Protein
Dried Fruit:
- raisins
- apples
- apricots
- pineapple
- bananas
- cranberries
- dates
- figs
- pears
- prunes
Whole Grains, Bulk:
- barley
- amaranth
- corn
- buckwheat
- oats
- quinoa
- rye
- spelt
- wheat
Nuts/Seeds:
- almonds
- cashews
- peanuts
- soynuts
- flax seed
- sunflower seeds
Nut Seed Butters:
- peanut butter
- cashew butter
- almond butter
- tahini
- soy butter
Oils:
- olive oil
- canola oil
- safflower oil
Pasta, Bulk:
- elbows
- shells
- spirals
- rice noodles
- ribbons
- spaghetti
- ramen
- couscous
Rice, Bulk:
- brown rice, long and short grain
- white rice, long and short grain
- basmati rice
- wild rice
Seafood, Canned:
- tuna
- salmon
- sardines
- oysters
- shrimp
- crab
Vegetables, Canned:
Fruit, Canned:
- peaches
- pineapple
- pears
- applesauce
Tomato Products, Canned:
- diced
- whole
- paste
- sauce
- juice
- pasta sauce
Beverages:
- aseptically packaged juice
- aseptically packaged milk (Horizon’s)
- soymilk
- powdered milk
- bottled juices
- bottled water
- powdered drink mixes
Potatoes:
- instant mashed potato flakes (Barbara’s)
Sweeteners:
- sugar
- honey
- maple syrup
- molasses
Other:
- spices
- condiments
- broth powders
- nutrition bars and powders
- personal care items
- baby food
- pet food and supplies
- vitamins and other supplements
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Annual Planning
Session
By Wendell Nekoranec, North Farm Board Member
For two days in June, 27 North Farm board members, management and staff met to
strategize about operational issues and implement plans to address service capabilities
that will help North Farm continue to grow as a quality service delivery organization. As
North Farm's customer bases shift, North Farm focused the planning session agenda on
important operational areas that will enhance its ability to deliver products on time. The
net result of the planning session was a clearer focus on the issues that will make North
Farm more competitive and service responsive. Built into the results-oriented plans was
the design of a new project management process that will assist the completion of the
individual projects on time. I will discuss the areas under discussion and the expected
results.
The group's facilitator, Kent Lesandrini, started the session with a familiar
topic--change management. The natural products industry is changing, which is no surprise
to you. Every industry out there constantly experiences the need to deal with change. The
goal was to help design business strategies to address the changing nature of the industry
as well as ways to deal with change in general that affect the North Farm operation. A few
outcomes of the change discussion were: keep moving forward through the tough issues; keep
learning about the competition and about ways to improve the operation to provide better
service; have contingency plans; keep identifying the problems and creating better
solutions; build in incremental goal and service levels; and increase communication and
education to the staff and our customers.
North Farm looked at where it had come from and where it was going. To start this
process, North Farm cited its accomplishments which, by the way, was a long list. I will
cite a few here:
- Membership loyalty
- Knowledgeable staff
- Excellent products
- Name recognition throughout the industry
- Step-ahead with some of our technology
- Employee dedication to providing quality customer service
- Commitment to member needs
- One-to-one relationship to customer with North Farm representative
- Stronger management team to help create a dynamic organization
- Attitude of “can do” no matter what the obstacle is
- In a strong growth industry
- Shared sense of values with membership
The list goes on, but the point is that North Farm comes from a background of strength
and quality and the North Farm group wanted to use this proud history to meet the
challenges of the future.
Yes, there was another list that addressed unacceptable operational and service issues
that have had a negative impact on our customers.
Some of the items on this list you have experienced over the last 12-18 months with our
deepest regrets. The group recognized this list that was made up of internal and external
items and moved to establish procedures and commitments to correct these items that have
been generating expense or service inconsistencies.
The key issue for you, our members, is that North Farm came out of this two-day
planning session with clear goals, plus timelines and procedures to correct operational
areas that have negatively impacted its ability to provide quality service and to build
the organization into an industry leader.
Accountability to the goals and a commitment to use resources to achieve the admirable
outcomes were supported by all in attendance. In looking at the financial and service
results for 1998, I wanted to see North Farm use this planning session to put the
“North” back into North Farm. I was very pleased at the results of the planning
session since I saw strong management and staff commitment to these goals. North Farm is
poised for growth and to be an industry leader.
I write this article over the Fourth of July weekend. As usual, I am amazed at the
people I run into through casual discussion who are North Farm customers and who speak so
eloquently of North Farm as a provider of quality products. While attending a Fourth of
July party, I ran into yet another North Farm customer who shared with me his love and
appreciation for the quality products that North Farm delivers. Our commitment to you is
to strengthen the North Farm heritage and continue to build it into a quality service
provider. The June planning session recommitted our resources to this common purpose. The
outcome is the successes we will share and the prominent place North Farm will create in
the co-op industry.
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Genetically
Engineered Products
By Bill Lathrop, General Manager
Genetic engineering is an emerging trend in food manufacturing. Concern regarding
genetically engineered foods is an emerging societal trend.
At North Farm, we see our mission as staying abreast with the needs of our members. One
of these is the need for more information regarding genetically engineered (GE) products,
sometimes called genetically modified organisms (GMO). Beginning with this Price List, we
will disclose those products we know are free of GE ingredients.
Why Worry About GE Products
There are advantages to GE foods. These foods are designed to be resistant to certain
types of pests, or to rot more slowly. In fulfilling these goals, GE products perform
admirably. GE products are created from the combining of genes from several species. In
some cases, gene splicing can be between completely different biological kingdoms. (A
public radio broadcast recently discussed the use of salmon genes being spliced with
vegetables.)
Unfortunately, GE products may have unpredictable side effects. In some cases, genes
from foodstuffs that trigger allergic reactions have been spliced with another food. Yet
this is not disclosed to the consumer, and an allergic reaction could occur from an
obscure source. Some food allergies (like peanuts) can be lethal.
Another facet of the problem is the sheer inability to predict what can result from
gene splicing. Gene splicing may yield desirable results for a certain physical
characteristic. Unfortunately, the genetic changes could yield other results which are not
even tested for—nor even conceived as a possibility. The sheer vastness of unknown
potential has prompted the FDA to bypass traditional food testing requirements with GE
foods.
The State of Industry Disclosure
The natural products industry currently offers little guidance on GE foods. Because GE
techniques are so new, organic certification may not yet adequately address GE products.
There is currently no disclosure requirement about genetically engineered foods at any
point in the supply chain. Because of this, GE disclosure will be very difficult.
North Farm and Genetic Engineering
Because of the potential for harm, however great or slight it may be, we at North Farm
have opted to do whatever we can to promote the development of labeling standards for
products with GE ingredients. Since no standards currently exist, this will be a difficult
process. Nevertheless, we will begin tagging all products that are free from GE
ingredients in our Price List. We will also begin asking all suppliers if their products
are free of GE ingredients. We hope this promotes the awareness of the need for GE
disclosure. We will also participate in the development of national organic standards so
those standards include provisions for GE foods.
In the long term, genetically engineered foods may be beneficial to consumers and
society. We will do whatever we can to promote awareness and focus manufacturers on safety
and disclosure.
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Organic Standards
Review
By Ben Birkett, Retail and National Sales Manager
The good news: Issues surrounding the standards previously and currently proposed for
legislation continue to receive a lot of media attention. Finally acknowledged by
government agencies as a mainstream consumer issue, regulation of organic certification is
a very important issue for consumers, retailers, distributors and manufacturers, both here
and abroad. So far the only good thing about these activities is the consumer interest
that they've generated and the increase in sales that represents. How some of these other
issues impact the industry remains to be seen.
Although it has benefited sales to some segments that this issue has been live for over
a year, the length of time involved is an impediment to greater long-term increases in
growth and sales. First of all, sales oversees are limited by strict compliance programs
in many European nations. For example, the E.U. group has placed a deadline of June 30,
1999, for certification by an E.U.-accredited agency for products labeled
"organic" entering those countries. Producers not making that deadline will not
have access to those markets. Similarly, it has been noted that certification must be made
by an authorized agency, i.e. the USDA, under a National Organic Standards Act.
The time pressure placed on us poses the risk of compromises we don't want to make.
Under pressure from agronomic interests to dilute the standards as we propose them, the
U.S. government may delay this legislation until those parties are appeased. This can be
accomplished in the guise of debate and public participation as more papers and proposals
for standards are released and public comment periods are established for each.
Finally, regarding timing, the perceived value of our current certification processes
is at risk. With no single authority to oversee or police compliance, isolated incidents
will discredit the movement as a whole. Because the current certifying agencies may be at
risk of suddenly becoming obsolete or insufficient, producers are choosing multiple
certification as an option or, worst case, electing to let their certification expire to
wait and see what happens next. Additionally, there is no way legally to de-certify a
producer if it has been determined that they are not practicing in compliance with the
standards the certifying agency has established. We need to eliminate any confusion or
discrepancies.
Integrity is what built this industry, and as mass market and discount distribution
channels get involved that is what is lost. With a strict and consistent national standard
and an accepted and empowered enforcement agency we can partially restore that integrity.
Speaking more to those in distribution, to compete we must differentiate. A national
retailer and distributor certification program will again position us as having the
commitment to maintaining the spirit and integrity of this movement and not just a
corporation committed to exploiting the market.
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Healthy Halloween
Treats
By David Meyer, Home Shopping Services Team Member
It's an annual dilemma. How can you give Trick-or-Treaters the candy they want but not
feel guilty about contributing to the nutritional delinquency of minors? This year
consider the following alternatives:
Cloud Nine's Malted Milk Crunch (#12659) is made from all-natural ingredients. Each
case contains 60 individually wrapped pieces of high-quality "ghoulmet"
chocolate.
Also available in 60-count cases are Newman's Milk Chocolates (#10697). Made from
organic ingredients, these morsels are so highly prized it's rumored in years gone by they
were often targeted by Butch Cassidy's gang when it got the munchies.
With individual wrapping any Mummy would feel safe about, Natural Nectar's Peanut
Butter Nuggets (#2334) offer a peanut butter cup treat with no hydrogenated oils or
artificial ingredients.
Treat them to the Cherry Bears (#3710) from Panda Licorice. These all-natural, fat-free
snacks will delight any youngsters who happen to be visiting from a time long, long ago
and a galaxy far, far away.
Finally, for creepy-crawly fun, consider Rapunzel's Lady Bug Truffles (#7356). Made
from 100% organic ingredients, these little cuties come individually wrapped in a foil
ladybug costume. Each case contains 200 "bugs".
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Home
Grown: Solana Gold Organics
Johnny Appleseed’s legacy inspired Solana Gold Organics.
Many people have a big dream. Unlike many people, John Kolling followed his. The
president of Solana Gold Organics left his successful engineering career at Hewlett
Packard and followed his heart to become an organic apple farmer and manufacturer.
That was 20 years ago. Not that much has changed around here at Appleseed Orchards in
Sebastopol, California. We’re still old-fashioned farmers—except for the
computers and stuff.
Did you know that Luther Burbank first brought cuttings of apple trees here from
orchards started by Johnny Appleseed? In fact, Johnny Appleseed was one of our
inspirations. His actual trees, planted in the 1880’s, are still in active production
on our ranch. Their graceful canopies tower on Appleseed Farms’ hillsides. There are
very few locations on earth with such ideal growing conditions. This unique microclimate
produces a peak flavor, satisfying grainy crunchiness and intense aroma.
Have you tried all our flavors? We have 11 flavors of applesauce in both the 24 oz. and
14 oz. size: In fact, we were the first to do flavors—11 years before Motts.
Like we said, we’re old-fashioned farmers. Working our land as an owned and
operated farm, we can keep your costs down. We’re pleased that people relate to us as
“the apple guys”—authentic farmers who they can trust to keep chemicals off
their plate.
By the way, if Johnny Appleseed has inspired you or your children, write to us. We
always love to hear more lore about one of American’s folk heroes—and the guy
who inspired John Kolling to go back to the land to find his dream.
Most of our customers were ahead of their time in “going organic”. We welcome
all the new folks joining the ranks who say, “No thanks, make mine organic.”
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Chapter
Meetings in the Year 2000
By Jan Torkildson, Home Shopping Services Manager
One of the roles of our Board of Directors is to provide a forum for our members to
share information and generate ideas. To help facilitate this we hold two meetings every
year for each chapter.
As we begin to plan for the year 2000 we would like to ask for your support in hosting
these meetings. If you and your members are interested in helping us facilitate these
meetings, please e-mail us with your interest.
So that we can make these meetings more beneficial to our members we frequently have
educational speakers who provide information on various topics such as medicinal herbs,
cooking whole foods and cooking low-fat meals.
We want to continue to provide our members with educational opportunities and welcome
your input on the subjects you would like us to pursue in the year 2000.
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Board
Organizes For Challenging Year
By Mark Thomas, North Farm Board Member
Your Board of Directors concluded a work-filled weekend with the election of officers,
arrangement of committees and the setting of goals for the upcoming year. Following two
days of planning with staff and management, your Board set about its own work to guide us
through to the next General Membership Meeting. Election of officers brought about no
surprise and added greatly to our stability. President Bill O'Donnell and Vice President
Wendell Nekoranec were re-elected as were temporary Secretary Mark Thomas and temporary
Treasurer Sheila Herman. Thomas and Herman were elected after the General Membership
Meeting in May to fill the posts of the retiring Mary Poster, Secretary, and Dale Scott,
Treasurer. The one new officer is Tom Nesler. He will serve as Parliamentarian. All the
officers will now serve until next year's election.
Your Board conducts its business through standing committees. The standing committees
and members are:
Finance: Chair, Sheila Herman; Seth Nowak; Ian Wylie; Tom Nesler;
Jenny Hanson.
Planning and Co-op Affairs: Chair, Wendell Nekoranec; Michelle
Robillard; Bill O'Donnell; Mark Slagh; Mark Thomas.
Personnel: Chair, Bill O'Donnell; Mark Thomas; Wendell Nekoranec.
Magic Mill: Chair, Mark Slagh; Bill O'Donnell; Tom Nesler; Seth Nowak;
Ian Wylie.
Policy Governance: Chair, Seth Nowak; Michelle Robillard; Jenny
Hanson; Wendell Nekoranec; Sheila Herman.
To provide overarching guidance, the Board adopted the following near and long-term
goals: To become proactive in our communications both internally and externally. Complete
our governance model. Improve our monitoring methods of industry indicators. Develop
improved performance measures. Review both our personnel policies and our by-laws. Revisit
and enhance our membership representation structure. Investigate the possibility and
methodology of converting Magic Mill to a consumer cooperative.
As you can see your Board has chosen an ambitious agenda. Accomplishment of these goals
will go a long way to strengthen and position your cooperative to not only survive, but to
regain a leadership position in cooperatively-owned businesses. I only ask that you
understand and support our efforts on your behalf.
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Wake
Up Call for Co-ops: CCMA Conference '99
By Seth Nowak, North Farm Board Member
Frenetic, intense, eye-opening and almost overwhelmingly informative are the words and
phrases that come to mind to describe my experience at Cooperation Unbound!, the 43rd
annual Consumer Cooperative Management Association Conference in Portland, Oregon. It was
a well-planned and implemented food co-op conference all around. Yet the heavy background
hum of natural foods industry competition pressuring our co-ops into action overshadowed
everything. It's like when the fan on the produce cooler in your store starts to get loose
and get louder and you start to think, "Wow, we've really got to fix that,"
whereas in the past the sound was there but unnoticed. The pervasive sense that something
significant, alarming, and exciting, is going on here colored the workshops, panel
discussions, and mealtime conversations.
Nowhere was the competitive challenge to our co-ops more richly and informatively
abundant than at three sessions I attended Friday afternoon and Saturday afternoon. A
panel discussion on Friday called "Cooperative Distribution System in 2005"
looked at the big picture for co-ops in the context of demographic forecasts and the whole
world of retailing from the perspective of competitive business strategy. The startling
reminder for me was that vast national and global food companies are constantly looking at
their businesses with market share, profits, and putting the other guys out of business as
top priorities. And co-ops are some of these other guys! Those of us in retail food co-ops
know this of course, but the numbers are just plain daunting.
For example, consider that natural foods is one of the few growth areas in the grocery
business. Great! My retail co-op and North Farm are in this segment, so times are
good--right? I always felt that co-ops made sound business sense. Well turn it around,
look at it from the perspective of a grocery chain manager that has 100 times or 1,000
times the cash flow, looking to increase profits and margins. Where to invest? Nationwide
cooperatives are beginning to feel the squeeze as mass market stores (what I still call
"supermarkets") expand their natural food product offerings and open up
"stores within the store" to compete with co-ops.
Other social trends are affecting consumer cooperatives as well. People feel busier and
busier as the decades go by, and participatory democracies like our co-ops take time and
energy and attention. Preparing food fresh from natural ingredients and bulk supplies
does, too. The corporate food chains are aggressively working to make their stores as
convenient as possible in ways that many cooperatives haven't caught up with or even
thought about yet.
The two-part presentation on Saturday, titled "Strategies 2005: Vision For The
Wholesale-Supplied System", went even further along the same lines with detailed
charts and graphs about a myriad of economic trends in the food distribution systems
surrounding and including our cooperatives and buying clubs.
In response to the huge market trends, food co-ops are uniting. Cooperative Grocers
Associations, or CGA's, are one example. The Cooperative Grocers Information Network
(CGIN) is an Internet-based initiative that links us together. Seventeen co-ops are
integrating their purchasing using the CAP program. Many cooperatives are beginning to see
the consumer cooperative movement like a "virtual chain" and taking advantage of
comparative financial information to compete more effectively in the marketplace.
Co-ops are coordinating with each other and putting the cooperative principle of
"cooperation among cooperatives" to work like never before. As a co-op
distributor, North Farm is right in the middle of this thrilling integration. The CCMA
conference left me completely energized about North Farm Cooperative and the bright future
that is possible for North Farm if we assertively work together to build the cooperative
movement with our members, customers and other co-op distributors.
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Co-op Quiz
By Dottie Dykstra, North Farm Board Administrator
In celebration of October Co-op Month, here's a little quiz to test your knowledge of
cooperatives.
QUESTIONS
- The owners of a co-op are called what?
- There are how many cooperative principles?
- A co-op symbol?
- North Farm Cooperative’s previous name was what?
- The first successful cooperative was what?
- The largest consumer cooperative is what?
- In 1975, NFC had how many full-time employees?
- What is an important membership benefit?
- Co-op members elect what to monitor the business, set goals and hire management?
- In 1993, North Farm merged with what other wholesale cooperative?
- North Farm is a unique cooperative in that it is a hybrid, with members from what two
groups?
- Members provide capital for the co-op by investing in what?
- What rules state how the cooperative will con- duct business?
- In 1987, North Farm expanded its product line to include what?
- Magic Mill opened on what significant holiday in 1989?
- A type of consumer co-op?
- A brand name owned by a marketing co-op?
- Co-op month is celebrated when?
- North Farm is what kind of business?
- One cooperative principle is democratic control, which means there are how many votes
per member?
- International Cooperative Day is observed the first Saturday of what month?
- The International Cooperative Alliance uses what symbol?
- The infinity symbol is mainly used in co-op stores in what country?
- Co-op members enjoy what three unique features of the co-op business?
- BONUS: What are the first names of the eight Management Team members?
ANSWERS
- Members
- Seven
- Twin pines
- Intra Community Cooperative
- Rochdale Pioneers
- Recreational Equipment Co-op
- Six
- Voting
- Board of Directors
- Common Health
- Employees, consumers
- Equity
- Bylaws
- Frozen food
- Earth Day
- Credit Union
- Sunkist
- October
- Cooperative
- One
- July
- Rainbow Flag
- Sweden
- Ownership, control, use
- Ben, Bill, Dave, Eric, Jan, Joe, Steve, Trish
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What's
Cookin': Vegetarian Shepherd's Pie
Bill Lathrop and Ben Birkett are cooking up something. A Vegetarian Shepherd's Pie, in
fact. This is the dish to make to use all the bounty coming in from the garden right about
now. Anything goes as the underlayer for the mashed potatoes: green peas or beans, lima
beans, diced turnips, sliced celery, etc. For extra protein you could add some cooked
chickpeas or kidney beans. Therefore, do not feel limited to the ingredients listed,
although they work well. The casserole can be prepared in advance for baking later.
Vegetarian Shepherd’s Pie
Topping
2 lbs. all-purpose potatoes, scrubbed, quartered
1 T Organic Valley Butter or any butter substitute
¼ C Soy Moo soymilk or milk
1 t Eden Soy Tamari or Soy Sauce
1 clove garlic, minced
½ C grated North Farm cheese (any kind you like)
Several dashes cayenne, to taste
Paprika for garnish
Filling
1 t Spectrum Canola Oil
1 large onion, chopped
5 large fresh tomatoes or (2) 14.5 oz. cans Muir Glen Whole Peeled Tomatoes, coarsely
chopped
1 lb. carrots, sliced
1 green pepper, seeded and diced
1 ½ C shredded green cabbage
1 head cauliflower or broccoli, cut into bite size chunks
1 bay leaf
1 T dried basil
2 C chopped greens (spinach, kale, Swiss chard)
1 T Eden Soy Tamari or Soy Sauce
1 clove garlic, minced
1) Cook the potatoes in lightly salted water to cover until they are soft. Drain the
potatoes (save water for soup or bread) and, when they are cool enough to handle, remove
and discard the skins, add the butter and milk, and mash the potatoes until they are
smooth. Mix in the tamari or soy sauce, the garlic, and 2/3 of the cheese. Set mixture
aside.
2) Prepare the filling in a large skillet or Dutch oven. Heat the oil, and sauté the
onion until it is soft. Add the tomatoes, carrots, green pepper, cabbage, cauliflower or
broccoli, bay leaf and basil. Bring the mixture to a boil. Reduce the heat and simmer for
20 minutes.
3) Add the greens, tamari or soy sauce, and garlic and simmer the mixture 5 minutes
longer. Discard the leaf.
4) Transfer the vegetables to a large casserole (3 or 4 qt. size). Spread the mashed
potato topping over the vegetables. Sprinkle on the remaining cheese plus the cayenne and
paprika.
5) Bake the pie in a preheated 350 degree oven for 15 to 20 minutes or until it is
heated through and the topping is lightly browned.
Don’t have time to make this delicious recipe? Try Amy’s Vegetarian
Shepherd's Pie #14759 in this price list, listed under Entrées/Vegetarian, Frozen!
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North Farm's
Phone System
We hope this information will help you navigate through our telephone system. Please
keep the information for future reference.
When calling North Farm Co-op, you will hear the following script:
"Thank you for calling North Farm Cooperative. You may contact individuals and
departments by using your touch-tone phone. You may dial "0" at any time to
reach our receptionist. If you have a rotary phone please hold for the receptionist."
The touch-tone options are:
- For information regarding delivery times press 6.
- Home Shopping Service/Buying Club customers press 1. (You can now select Orders/Customer
Service by pressing 1 or individual team members by pressing 2.)
- Retail customers press 3 (You can now select individual team members by pressing 1or
Orders/Customer Service by pressing 2.)
- To leave a message for customer service after hours press 4 and then 3096 for Home
Shopping Service/Buying Club voice mail or 3099 for Retail voice mail.
- For NF-One Technical Support press 4 and then 2075 during regular business hours or 2138
for after-hours support.Note: Messages are retrieved until 8 p.m. Monday - Friday and
until 4 p.m. Saturday - Sunday.
- To access an individual's extension press 4.
- For a listing by department press 5.
Transportation, press 1.
Purchasing, press 2.
Accounting, press 3.
Warehouse, press 4.
Marketing, Human Resources, Administration and Outlet Store, press 5.
Home Shopping Service/Buying Club, press 6.Retail, press 7.
Press 0 to reach reception.
- To hear the options again, press 9.
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What
Vegetarianism Means to Me
By Alan Weinberg, Inventory Control Clerk
Hi, I work in the warehouse office. I have been at North Farm for over 16 years. During
that time I have married, had three children and moved to the country. I like working at
North Farm and I love living in the country with my family. It's a nice lifestyle.
I also love being a vegetarian. So do my wife and kids. I have not had a hamburger or
hot dog since 1974, any poultry since 1978 and no fish in 20 years. You might think I'm
deprived; I feel blessed. My conscience is pretty clear and so are my body and mind.
Meat is nasty--like cigarettes. (Yes, I know, there's nothing like a juicy steak!) And
I'm not taking any lives just for my benefit, when I know I have so many choices. Anything
that has babies, that can look at me, is life that has the right to life.
My health has been great, also. I'm in my 40's and feel like 20. I get a very
occasional cold but that's about it. I'm sure not eating meat has plenty to do with that.
We don't eat organic, but we do eat healthy. We cook most meals from scratch and make
stir-fry, pasta, nut loaf, casseroles, muffins, soups, etc. We do eat eggs and some dairy
products, but we drink soy milk and rice milk--no cow's milk. And, occasionally, we have
products like tofu, tempeh and miso.
There are other arguments I could make in the name of vegetarianism, but the
above-mentioned respect for all life is the force that really drives me and keeps me
centered.
Give vegetarianism a try sometime. It'll make you feel good!
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"How May I Help You?" Customer Service Tips for
Home Shoppers
By Laura Miller, Home Shopping Services Team Member
North Farm Co-op offers many benefits to our customers. Our prices on natural products
are great. We are a community-oriented alternative to the big corporate food stores. By
joining North Farm as a customer, you get these benefits, but you also take on some
responsibilities to help make the Co-op work better. These responsibilities range from
keeping current on what's going on at North Farm by reading things like North Farm
News to having your customer number ready when you call with a question or a problem.
The Home Shopping Customer Service Team is here to support our Home Shopping customers.
We strive for a positive and productive relationship with our customers. Part of this
comes from the energy we put into our job. The other piece of good customer relations
comes from the customer.
As a member of North Farm's Home Shopping Customer Service Team, I'd like to offer a
few tips for when you call North Farm. Like I said earlier, it's always important to have
your customer number ready when calling us. When you call with questions on your invoice
or delivery, have your invoice number and date of delivery in front of you. This will cut
down on the length of your call.
If you're calling with questions on our products, please have the item numbers ready.
North Farm carries thousands of items and even though we in Customer Service know a lot
about our products, we don't know everything. We use a computer database to keep track of
ingredients and nutritional information. That's why we need the product number. Sometimes
we don't have the information immediately available. If you call with a question that
needs to be researched, we'll need a day to get back to you. Therefore, it's best to call
with your product questions a few days before your order is due.
Our Price List is a great resource for information on how things work at North Farm.
Make sure you're familiar with the return policies on page 5 and the volume discount
program on page 7. We also have included many useful forms. These are the Mail-in Credit
Form, Update Information Form, Product Request Form and Customer Feedback Form. Reading North
Farm News is a great way to keep up with the developments here.
Also in the Price List is the Mail-in Subscription Form. Check this one out if you
don't already have a subscription to the Price List. Subscriptions are the best and least
expensive way to receive the North Farm Home Shopping Price List. As of August 1, Price
Lists shipped with your order went up in price to $1.50. Deadline for receiving the
November/December issue on a subscription is September 5. Remember to check your mailing
labels for expiration information. A renewal reminder will appear on your mailing label
two issues prior to expiration. With your subscription to the Price List, you also will
receive our bi-monthly newsletter Home Shopping Insider.
I hope this information is helpful to all of you home shoppers. We really appreciate
our supportive customers. We are always striving to serve you better.
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Inactivating
and Reactivating Club Accounts
By Jan Torkildson, Home Shopping Services Manager
There are two ways for a club's account to be inactivated. The first option is for a
buying club coordinator to send in a written request to have his/her club inactivated. The
second option is for North Farm to inactivate a club account due to no orders for 12
months. If your account is inactivated, we will notify you in writing. Note: Inactivated
clubs with $250 or more in equity retain their voting rights and continue to receive
board-related mailings.
Reactivation can be implemented per a buying club coordinator's written request. He/she
is also asked to send in an updated information form and a new delivery authorization
form, if applicable. If the reactivated club is requesting to resume direct deliveries, a
postcard will be sent to the coordinator to inform him/her of the club's order and
delivery date.
If you have any questions regarding inactivating and reactivating club accounts, please
contact Customer Service.
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Monthly
Member Order Summary
By Jan Torkildson, Home Shopping Services Manager
We have put together a simple and easy-to-use matrix that your club’s bookkeeper
could profit from. The sheet summarizes an individual member’s transactions with the
club, allowing for a breakdown of charges and payments. Please use the information in any
shape or form you would like: Copy the pages for manual record keeping, set up the
document in an Excel spreadsheet on your computer, or create your very own system. At the
very least we hope to get you thinking about easier and more efficient ways to manage your
club.
Beginning Balance: NF Invoice total The dollar amount of the
member's individual order.
NF Credits: This figure reflects any credits due to the
individual.
Misc. Refunds: Internal buying club refunds (e.g. member overpaid the
club).
Pre-Payment: The amount the member pre-paid.
Bottle Deposit Credit: Michigan customers receive a refund for
bottles/cans returned.
Debits/Sales: Could be a sale off the extras table or perhaps a
subscription that was billed to the club.
Service Charge: Service charges your club assesses members.
Equity and/or volume adjustment: Equity and/or volume adjustment
allocated to the individual member.
Amount Due:
Amount Paid:
Balance to carry over: Balance outstanding to carry over to the
next month.
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Holiday Ordering
In the past, many of our Buying Club members have opted not to receive delivery during
the weeks of Christmas and New Years.
To help us plan for this busy time, we would appreciate hearing from your club if you
will not be ordering.
It is especially important for you to plan ahead as we are unable to add extra stops to
trucking routes during the busy season directly before and after the holidays. If your
club will be affected by a delivery schedule change, North Farm will contact your
coordinator.
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Shelf Analysis -- Getting the Most Out of Your Display Space
By Tom Nesler, North Farm Board Member
Most stores do not have excess shelf space to worry about. Usually they are trying to
figure ways to cram more items on their shelves and still keep the store attractive. But
how do you know if you are using your shelf space efficiently to maximize sales?
A technique that can help is "shelf analysis". Shelf analysis is calculating
how many linear shelf feet are devoted to each category of your product line and making
sure that the percentage of space devoted to each category matches the profits generated
from each category.
To use this technique, you need to look at all the shelves in your store and determine
what category each shelf belongs to. For example, how many shelves are devoted to spices?
How long is each shelf? Multiply the number of shelves by the number of linear feet per
shelf to get the total number of shelf feet devoted to spices. For now, don't worry about
whether the shelves are 6 inches or 6 feet apart. You could potentially put two shelves up
with spices for each shelf you have cereal on, but this would add a level of complexity
that common sense alone can handle. Don't worry about aisle space in your calculations.
Chances are your aisles are already small enough to maximize display without causing too
much congestion. Be sure to include the shelves or other storage area for inventory in the
back room.
Use the categories you already have in your cash register as the categories you will
use in your analysis. Once you have completed your survey of your store, add all these
numbers up to get a total. Then divide the total by each category to get a percentage of
the store which is devoted to each category. Next, compare these percentages to the
monthly sales percentages.
For example, here are some numbers from a fictitious store:
In this chart we can see that Spices make up only about 5% of sales but take up 12% of
space. This is typical because spices are usually found on small shelves and have high
margins to justify their space, (7% of the store total). Books, on the other hand, are
doing very well in the small space they are given with about 5% sales vs. 4% space with
6.2% total store margin. Perhaps this warrants expanding books a little. An additional
note: Books are not only one sale; they also influence food and supplement purchases.
You can also use percentages of gross margin against shelf percentages or inventory
value against shelf percentages to get a new perspective of how you are handling your
resources. Sometimes these categories are too broad to get specific answers for you. In
this case, break down the category into sub categories and keep tabs for a week or two on
a subcategory to compare it to the total coming from your cash register. If you are just
writing down numbers as an item sells this can be inaccurate, so the best way is to use a
spare category key for your test group to get your data.
As you look at your store in different ways, you can get better understanding in what
changes can be made to make it more successful. I hope this tool can be a valuable
unbiased way of determining what changes are needed.
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Competition: Mergers, Acquisitions and Takeovers --
Strategies for Survival in a Hostile Environment
By Ben Birkett, Retail and National Sales Manager
No, things just aren't the same as they used to be. We can reflect on the good and the
bad but like it or not things have sure changed over the years. Adapt to the present, plan
for the future, or become a figment of the past; regardless of the type of business we're
in we all share this responsibility.
A more recent phenomenon affecting us all is that growth in our industry is being
directed by the market on Wall Street and not the market that built this industry. Growth
has become predicated on expansion that is most often based on building new stores or
buying out existing ones. Whole Foods Markets and Wild Oats are examples of two
organizations heavily involved in that process. Additionally, the tremendous marketing
resources available to these big guns have permitted them to create a much larger public
presence in communities than the traditional natural foods grocers and cooperatives that
existed there originally.
Like the traditional natural foods grocers, natural products distributors are facing
tremendous competitive pressures from larger, publicly-traded organizations. Some of the
companies involved own several warehouses and are able to benefit from much greater
economies of scale than smaller, regionally-controlled distributors. A resulting trend has
been the merging of some cooperative warehouses. This is not necessarily a new trend; over
the years the number of co-op distributors has dropped from a high of 33 to a current
five, but "merger" has become a buzz word lately that seems to imply itself as a
cure-all.
I'd like to suggest a more sensible initiative for our cooperative grocers and
distributors: cooperation among cooperatives. I believe it's universally found in our
bylaws. I believe it defines us and what we based this movement on: the coming together of
people to form a collective or community by which to share the resources required to feed
their families the highest quality of food at the lowest prices possible.
I have some examples and suggestions that may create a more tangible image and provide
some strategies. The best current example is the C.A.P. Program established by the
Minneapolis-based cooperative grocers of the Cooperative Grocers Association. This group
of about 15 co-op grocers from Minnesota, Wisconsin, and Illinois is using their joint
purchasing power to buy promotions and the marketing needed to support them. The co-op
grocers in Minneapolis have worked together to provide benefits for all before. They have
a newspaper; they share some warehousing and transportation; and they communicate
regularly. There may be no stronger cooperative community anywhere in this country as that
of Minneapolis.
We can all make more of the opportunities we have to work together. To survive the long
term we need to advocate for all cooperatives, not just our own. Consumers' purchasing
patterns are largely determined by convenience. I remember when my membership at Mifflin
Street Co-op here in Madison was honored in every other co-op grocery I walked into and
there were signs posted proudly stating this policy. I think we need to keep that
tradition alive.
Try networking in your community and those that surround you. These competitive
pressures are a commonality that we can use to build partnerships in an alliance. Share
the costs of advertising and marketing; represent your businesses together at a booth at
the county fair; or co-sponsor community events and organizations. Work together towards
common goals that benefit and improve our relationships with and within our communities:
education and training, fund raising, promotions and advertising as well as shared
resources like fax machines, PC's, and (a throwback to the old days) community mailboxes
and shared buying club drop sites.
Go ahead now, keep the message alive: Come together to stay independent and strong.
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