Business Co-Operatives Get Greener

  • Gary Alperovitz says co-op businesses are rooted to the community, and that gives the Evergreen Cooperative a long term customer base.(Photo courtesy of Julie Grant)

Many people think the idea of business co-operatives is a leftover from the hippie generation. In a co-op, the workers own and manage the company. But there’s a new resurgence in the co-op model: there are new co-op bakeries, solar companies, and laundries. Julie Grant reports about these new employee-owned, often green-focused businesses.

Transcript

Many people think the idea of business co-operatives is a leftover from the hippie generation. In a co-op, the workers own and manage the company. But there’s a new resurgence in the co-op model: there are new co-op bakeries, solar companies, and laundries. Julie Grant reports about these new employee-owned, often green-focused businesses.

The last few years have been tough in many inner city neighborhoods. Around the area known as University Circle in Cleveland some experts think the poverty rate is 40-percent. The streets are lined with boarded up, foreclosed homes, and the signs of poverty are everywhere: drugs, crime, and unemployment.

So, Mienyan Smith is glad to have a job. She’s 31-years old and has five kids.

She sorts laundry into large bins – blue blankets in one, white sheets in another. But this isn’t the same as any other job. Smith and the other eight workers are all about to become part owners.

“WE ALL HAVE A GOAL TO EVENTUALLY OWN THIS FACILITY. AND WE WANT IT TO ALSO EXPAND, SO WE WORK HARDER, TO LET THEM KNOW THAT ‘HEY, WE’RE IN IT FOR THE LONG HAUL.’”

Smith and the other workers will ‘buy in’ to the cooperative. Since none of them has the 3-thousand dollars upfront, they will each give 50-cents an hour from their paycheck.

Jim Anderson is with the Employee Ownership Center at Kent State University. He signed the papers for 6-million dollars in loans to start-up the Evergreen Cooperative Laundry.

In 3 years, he says the first 9 employees will be owners…

“THEY’RE GOING TO HAVE TO BE INVOLVED IN DECISIONS. THEY’RE GOING TO HAVE TO UNDERSTAND THE PURCHASING SIDE OF THE BUSINESS. SUPPLIES. WHAT THOSE COSTS ARE. THEY’RE GOING TO HAVE TO UNDERSTAND THE PAYROLL SIDE. THEY’RE GOING TO HAVE TO UNDERSTAND THE QUALITY ISSUES THAT CUSTOMERS HAVE.”

Even in the best of times this would be a challenging task. So, starting a worker-owned business during a recession might seem down right crazy. But Anderson says Evergreen is on track to succeed. Their workers really care about the success of the business.

Plus, the co-op has a market advantage. It’s made significant investments to be an environmentally friendly laundry. They bought washing machines with special energy efficient motors that save millions of gallons of water, and they purchased no-steam ironing presses that use less energy…

“WHERE, EVERYTHING ELSE BE EQUAL, WE’RE THE GREEN LAUNDRY. WE’RE GOING TO REDUCE YOUR CARBON FOOTPRINT MORE THAN ANYBODY ELSE WILL AND WE CAN SHOW WHY THAT IS. AND WE THINK, GIVEN THAT, WE’LL GET THE NOD FROM THE CUSTOMER.”

The co-op’s customers are mostly hospitals, nursing homes and hotels.

Gary Alperovitz says those types of businesses are rooted to the community – and that gives the Evergreen Cooperative a long term customer base.

Alperovitz is author of the book “America Beyond Capitalism.”

He says Americans are sick of overpaid CEOs and companies that abandon a community as soon as they find better tax breaks or cheaper labor…

“BUT COOPERATIVELY OWNED COMPANIES AND WORKER OWNED COMPANIES IN GENERAL, SINCE THE PEOPLE LIVE THERE, RARELY GET UP AND LEAVE TOWN AND GO TO THE SUN BELT. THEY ARE VERY GOOD FOR THE ECONOMY BECAUSE THEY ARE ANCHORED THERE.”

The Cleveland Model, as Alperovitz calls it, includes more than just the laundry. Evergreen has also opened a Co-op Solar Company, that employs a dozen inner city workers, and plans to hire up to 100 people. A Co-op greenhouse and a co-op newspaper are already in the works in Cleveland. Each intends to the be greenest company in its sector.

Alperovitz says the focus on green businesses is unique to Cleveland, but communities all over the U.S. are starting to look at the co-op business model:

“THERE’S A LOT OF SLOGANS, BUT THE UNEMPLOYMENT RATE DOESN’T CHANGE, THE LOCAL ECONOMY DECAYS, THE TAX BASE DECAYS, THE ENVIRONMENT DECAYS. AND THE QUESTION BECOMES ‘ARE WE GOING TO SOMETHING OURSELVES? OR ARE WE GOING TO ALLOW THE DECAY TO GO ON?’”

In Cleveland, they expect the group of Co-op businesses to employ up to a-thousand people in the next five years – all from the neighborhoods that need the help. The plan is to start stabilizing the inner city one street at a time…

For The Environment Report, I’m Julie Grant.

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Wheat Farmers Reconsider Biotech

  • Wheat farmers are re-considering the genetically modified seed question (Photo courtesy of the USDA)

You’ve probably noticed the price of
bread is a lot higher than just a year ago.
A big reason is higher wheat prices. Bakeries
are trying to figure how to keep costs down,
and farmers think they have an answer: develop
genetically modified wheat seeds. Julie Grant
reports:

Transcript

You’ve probably noticed the price of
bread is a lot higher than just a year ago.
A big reason is higher wheat prices. Bakeries
are trying to figure how to keep costs down,
and farmers think they have an answer: develop
genetically modified wheat seeds. Julie Grant
reports:

Nearly every major US crop is grown with genetically modified seeds – corn,
soybeans, cotton.

Biotech companies take genes from other organisms and put
them into corn and soybean seeds. This alters the behavior
of crops. One of the most used alters crops to withstand
herbicides. So, when an herbicide is sprayed, it kills the
weeds, but the crops survive.

But wheat producers said thank you, but no, to those genetically altered seeds.

Daren Coppock is chief of the National Wheat Growers Association. He says a
lot of wheat farmers didn’t need the genetically altered traits being offered.

First, weeds just aren’t a big problem in some types of wheat.

And second, Coppock says wheat growers were worried about the export market
in Europe and Japan. In those countries, they call genetically altered crops
‘Frankenfoods’.

“And so, it was something where some of our members would get the benefit, but
everybody faced potential risk of having customers say, ‘we don’t want this in
wheat.’”

Since the farmers didn’t want it, Coppock says Monsanto and the other big seed
companies dropped research into biotech wheat. That was five years ago.
Coppock says turning down biotech has since proven to be a bad move for
wheat growers.

Now, the big biotech companies don’t do as much research on how to improve
wheat, including breeding drought resistant varieties. Drought in Australia and
Canada is part of the reason there’s a wheat shortage now, making prices
higher.

“And so the conclusion that the industry basically has come to is, we have to do
something to change the competitiveness equation or we will end up, wheat will
end up, being a minor crop.”

And that could mean wheat shortages in the future.

So wheat farmers are re-considering the genetically modified seed question.
They think asking for new biotech wheat strains might kick start research on
wheat.

Bakers say something needs to be done – wheat prices are way high. And the
people who bake breads, muffins, cookies, and cakes are concerned.

Lee Sanders is with the American Bakers Association, which represents
Pepperidge Farms, Sara Lee, and many smaller bakeries.

“When wheat prices go up 173% in one year, it certainly effects how bakers can
do business. And how smaller bakers, in particular, if they can keep their doors
open.”

Those rising wheat prices are being passed on to consumers. A loaf of bread
that cost $2.50 last year has jumped to $2.85.

But bakers aren’t convinced biotech seeds will lower wheat prices. They’re more
concerned about how their customers will respond to the idea of genetically
modified wheat.

(supermarket sound)

Shoppers in the bread aisle at this Ohio supermarket have mixed views.

“We buy the cheapest bread we can find, so it wouldn’t make much difference.”

(laughs) “If it’s bread and it’s 70 cents, I buy it. It doesn’t bother me at all.”

“I don’t know, it just doesn’t sound good. I mean, I don’t mind paying a little bit
more for bread. Everything else is more expensive now too.”

“If it would keep prices down, I’d probably actually go with genetically altered
wheat.”

You might not realize it, but you’re already eating lots of genetically modified
foods. They’re added to all kinds of processed foods, from frozen foods to juices
and cereals.

The US government says they’re safe – so they’re not labeled.

But people in many other countries are more aware – and a lot more concerned
about biotech foods.

Doug Gurian Sherman is a senior scientist with the Union of Concerned
Scientists. If American wheat goes biotech, he says farmers will probably lose
their export markets.

“They can go elsewhere and they will go elsewhere. They really are trying to
avoid it for any kind of human food use.”

Even if wheat growers can persuade Monsanto and the others to start
researching genetically modified wheat, it will take at least five to ten years
before anything is in the field.

By then, farmers say, climate change may make
some places so dry that people will need biotech wheat whether they like it or
not.

For The Environment Report, I’m Julie Grant.

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Food to Fuel Drives Wheat Prices

  • Mary Morran at Avalon International Breads in Detroit (Photo by Sarah Hulett)

Short supply and high demand for wheat means
prices are at record levels, and rising. But the high
cost of wheat is bad news for people who buy it. And
in North America, where most people’s diets are based
on wheat, that means just about everyone. Sarah Hulett
has this look at what’s behind the run-up in prices:

Transcript

Short supply and high demand for wheat means
prices are at record levels, and rising. But the high
cost of wheat is bad news for people who buy it. And
in North America, where most people’s diets are based
on wheat, that means just about everyone. Sarah Hulett
has this look at what’s behind the run-up in prices:

Jackie Victor is sitting on a stack of 50-pound bags of organic wheat flour inside the
bakery she co-owns. And these days, it’s a pretty expensive seat.

Victor says in the last year, what she pays for those bags of flour has doubled.

“So it’s a very scary time, and I don’t think just – really for the industry, although it is
scary for us – it should be a warning sign for the country that something here is amiss.”

In the fall, Victor raised her retail prices at Avalon International Breads in Detroit.

So a loaf of bread that comes out of this batch getting mixed by baker Kevin Boyer will
cost you 50 to 75 cents more today.

“This is the multigrain bread. This is our Motown Multigrain.”

Soon, one of those loaves will probably cost even more, because the price of flour keeps going up.

(forklift sound)

Avalon Bakery buys its flour from Dawn Food Products. Inside one of its central
warehouses, forklift operators move pallets of baking ingredients into tractor-trailors. It smells like a kitchen pantry. And that’s basically what this is: a gigantic
pantry full of baking ingredients that will be shipped all over the world.

Miles Jones points out a pallet full of wheat gluten, which is used in most commercially-produced baked goods.

“That’s vital wheat gluten there. The price of that vital wheat gluten, just as an example,
has about tripled here in the last six months.”

Jones is co-chairman of the board at Dawn Foods. He’s been in the baking industry for close to four decades, and he says he’s never seen prices so high.

There are several reasons for the spike in wheat prices. Drought and other bad weather
wiped out a lot of the global wheat crop over the past two years. And fast-developing countries like China
and India are consuming more food made from wheat.

And then there’s the ethanol factor. More farmers are planting corn to sell to ethanol
refineries. Jones says that’s gobbling up land that used to be planted with wheat and other
crops. And he says it’s put us on a dangerous path.

“The end results are in the paper every day. You can see the skyrocketing food prices. And when you start trading food for energy, that’s not a good trade long-term.”

With wheat prices at record levels, more farmers might decide to plant it this year. That would boost supply and bring prices down.

Bruce Babcock is an economist, and he heads the center for Agricultural and Rural Development at Iowa State University. He says the test for that theory will be the amount of spring wheat that gets planted in April and May.

“The problem of course, for farmers, it’s not really a problem, it’s a great thing for farmers, is that they can pick wheat or soybeans or canola or any crop and the price is out of this world. So because the price of everything else is up so high, I don’t think we’ll see wheat increase as much as we would hope.”

Babcock says there is some good news on the global supply front. Australia and Argentina are expected to harvest a normal amount of wheat this year. Those are two major wheat producers that had a couple of years of terrible crops.

A big question will be whether farmers in the US and Canada will get the kind of weather they need and a bumper wheat crop this year.

For The Environment Report, I’m Sarah Hulett.

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“24 Carrot” Farmers

According to the USDA, the number of farmers’ markets in the United States has increased nearly 80 percent in the past decade, with roughly 3,100 in operation. Like many other Midwesterners, Great Lakes Radio Consortium commentator Julia King buys much of her warm-weather produce from local growers. But King thinks those farmers grow something else that might be just as important as food:

Transcript

According to the USDA, the number of farmers’ markets in the United States has
increased nearly 80 percent in the past decade, with roughly 3,100 in operation. Like
many other Midwesterners, Great Lakes Radio Consortium commentator Julia King buys
much of her warm-weather produce from local growers. But King thinks those farmers
grow something else that might be just as important as food…


Not long ago, my ten-year-old daughter gathered her allowance, dropped her coins into a
see-through, polka-dot plastic purse and journeyed with me to our local farmers’ market.
Inside the old warehouse-turned-emporium, we strolled up and down the aisles. She
sniffed bars of soap and fragrant candles, poked bags of cheese bread and gazed at
almond croissants. But it was a large butternut squash that finally caught her eye.


She smiled and pointed at the unusual treasure. The farmer behind the counter called out
a price and I watched from a distance as she dug into her little plastic purse, pulling out a
quarter here, a dime there. As she calculated the numbers, her smile faded; she was fifty
cents shy of the total.


“Oh, you go ahead and take it anyway,” he told her. “It’s a little bit old, really.”


She paused, uncertain. I stepped into view and offered a dollar to the farmer, but he
stood his ground. He wanted to sell the squash to my daughter for the price she could
afford. He said it was a fair exchange. We thanked him repeatedly and my daughter took
the big pear-shaped vegetable in her arms like it was a baby doll.


It was not the first time one of the market’s farmers had put kindness before cash. Shop
there long enough and someone is bound to say, “Oh, take two, they’re small” or “This
one’s a little bruised; I’ll throw it in for free.”


These aren’t “blue light specials” or “supersaver sales;” they’re gifts from people who
never tire of the magic that springs from the earth. In a year of Saturdays, I’ve been
invited to marvel at the shape of a carrot, to behold the size of a potato, to delight in the
beauty of a snapdragon.


In a nation of box stores and billionaire wannabes, a nation where “excess” is master, the
men and women who labor in the soil offer a glimpse of something different. It’s a
commerce measured not only by what they gain, but also by what they give.


John Greenleaf Whittier put it best in his poem, “Song of Harvest”:


Give fools their gold, and knaves their power;
Let fortune’s bubbles rise and fall;
Who sows a field, or trains a flower,
Or plants a tree, is more than all.


HOST TAG: Julia King lives and writes in Goshen, Indiana. She comes to us by way of
the Great Lakes Radio Consortium.

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