Berkeley Student Food Cooperative

Purpose

The food system is broken. Huge corporate-owned farms are running family farmers out of business; the food and agriculture sector accounts for 30% of annual global greenhouse gas emissions; one out of five American meals is consumed in the car. From abused farmworkers growing our tomatoes to Styrofoam to-go containers we use every day, our choices surrounding what we eat have huge global consequences. We need structures that helps turn our food system into something healthy for our bodies, our fellow human beings, and our planet. Our college campuses are centers of cultural change in that habits formed here spread through newly created leaders into communities around the world. Although UC Berkeley should be providing leadership, there is currently no space on campus or central structure to educate our students around this vital issue. Berkeley has a strong tradition of student activism dating form the 60s, and though the values and aesthetics from that movement may not be reflected in our current population, one thing that most students would agree is missing from our university community is broad student involvement in important issues both local and global.

Project mission:

The mission of the Berkeley Student Food Cooperative (BSFC) is to provide fresh, healthy, environmentally sustainable, and ethically produced food at an affordable price to Berkeley students. The BSFC will be a student-run cooperative natural and sustainable foods cafe and market. It will promote community building, social justice and environmental stewardship through the cooperative model. A cooperative is a business or organization run by democratic decision where all workers participate in equal and equitable environment. The BSFC will utilize the cooperative cost-saving model to offer our customers 20-40% savings on healthy, sustainable, delicious food. The Berkeley Student Food Cooperative will be an expansion of the already existing ASUC Sustainability Team "The Local", which provides affordable sustainable food items to the UC Berkeley campus.

The BSFC is designed with the same structure as The Local produce stand and will source from local sustainable farmers, giving UC Berkeley a choice to eat healthy, fresh, and affordable food. We can provide quality fresh products at affordable prices because we source specifically from local family and small farmers. The BSFC is the business model for the 21st century; it is based on financial stability and growth in this turbulent economy while maintaining our core mission and values. We highlight the human element in the food system through true collaboration with local farmers, other cooperatives, and our community.

Potential impact:

Benefits

Health benefits
According to the Center for Disease Control, 2/3 of American adults are overweight or obese. "Since 1980, obesity rates for adults have doubled and rates for children have tripled. Obesity rates among all groups in society—irrespective of age, sex, race, ethnicity, socioeconomic status, education level, or geographic region—have increased markedly" (http://www.cdc.gov/NCCDPHP/publications/AAG/obesity.htm). In the midst of this rapidly increasing threat to our health and well-being, the UC Berkeley physical education budget has been cut by 50%. Berkeley is a health-conscious place, but we aren't immune to the nationwide obesity epidemic. College students in general, and UC Berkeley students in particular, are often too busy to worry about their health. Fast food chains like Panda Express offer convenient, attractive alternatives to nourishing food - the only item on Panda Express's menu offering fewer than 30% calories from fat, which is a standard set for healthy food by the American Heart Association, is their steamed rice. When options like Panda Express are juxtaposed with healthy food choices nearby (the ASUC auxiliary is currently negotiating a contract for Panda Express in a space that would likely be adjacent to the BSFC), students will contextualize their consumption choices around their bodies', communities' and planet's best interests.

The BSFC will serve only "real" food, as outlined in the Real Food Calculator (attached). In addition to sourcing responsibly produced food, we won't serve any food with high fructose corn syrup, hydrogenated oil, MSG, rGBH/rBST, sodium nitrate, sodium nitrite, or trans fats. Our prepared foods will all meet high standards for health, providing Berkeley students with cheap, quick, and delicious meals that will truly nourish them. In our grocery section, students can also buy healthy goods to prepare at home. Our community education program will include cooking classes to help students fully realize their healthy eating potential.

Economic benefits
The cost of living in Berkeley is 71% above the national average (www.bestplaces.net/col). Many college students are already financially stretched to their limit simply from living in Berkeley, but add to that the recent tuition raises and current state of the economy, and we may soon find students in crisis. They are going to have to cut back somewhere, and the food budget is often the first thing affected. Our cooperative is a viable, cheap alternative to ramen noodles. According to the Cooperative Grocery, "the average for-profit grocery spends 70% of its revenue on labor," which forces the business to drive up the prices of their goods in order to maintain a profit margin. By utilizing the cooperative model, where everyone pitches in with volunteer labor, we will be able to offer 20-40% savings to our customers (based on the numbers from Park Slope Cooperative in Brooklyn).

Cooperatives springing up in times of economic crisis is not a new phenomenon. The Berkeley Student Cooperative (BSC), which today provides housing for almost 1300 UCB and Bay Area students, was founded in the midst of the Great Depression. Cooperatives are a logical and proven economic model to counteract rising costs of living and decreased income. There is ample evidence of student interest in cooperative living: the BSC is at capacity and currently has over 800 students on their waiting list.

The UC Berkeley website suggests a budget of $5000/semester for food. The BSC is able to offer high-quality, complete board 7 days a week for under $1,000/semester through bulk ordering and volunteer labor. The BSFC will operate under this same cooperative model and will use the BSC's Central Kitchen for bulk orders to ensure the lowest prices possible.

In addition to lower costs for students, the BSFC would also strengthen our local economy in the face of this recession. Our cooperative will buy locally grown, processed, and distributed goods whenever possible, providing much-needed revenue to our local farmers and food workers. Rather than filling an empty ASUC-owned space with an outside organization which siphons money off-campus and out of the region, we will employ students and local residents to keep money circulating within our community. We will also provide free classes to the student community on cooking with a budget.

Leadership and Service
Students at Berkeley are in a unique position. For the most part, we are young adults preparing ourselves for the "real life" that we will be forced to confront once we graduate. In addition to gaining necessary knowledge and skills, we come to Berkeley to learn how to lead. A student who simply attends classes for four years will be missing out on this crucial aspect of a UC Berkeley education. A student-owned cooperative encourages the growth of leadership skills, as organizers and volunteers take responsibility for the success of the coop. Student interns will develop sustainability curricula for colleges and high schools, do research projects on food issues, and gain valuable experience at local farms and food organizations. Volunteers will serve as the core of the BSFC; they will be the reason the business survives and flourishes. We are not using students for menial labor, nor are we creating superfluous positions to make students feel like they're doing something important. They will be doing something important. The student owners will develop leadership skills in order to ensure the success of this business and organization that belongs to all of us. Unlike any other food provider on campus, the BSFC will help students define themselves as participants rather than consumers.

The BSFC will also encourage community service. As student member-owners get used to volunteering and working for something they believe in, while supported by a community of friends as well as discounts on our food, they will begin to take ownership over their community and see that their work can really make a difference in people's lives. These effects aren't limited to our cooperative, or even our campus; we are hoping to cultivate a generation of volunteers, community organizers, activists, and generally concerned and aware citizens.

Community benefits
There are many different student organizations on campus that deal with food - The Sustainability Team, The Local, Cal Cooking Club, and the Society for Agriculture and Food Ecology, to name a few. All these organizations are working separately on related issues: sustainable agriculture, health and nutrition, climate change, farmer and farmworker rights, and many more. Although they sometimes work together, there is no central location for all these movement-builders to meet. The physical space of the BSFC would provide a hub for student foodies and activists. Through classes, presentations, and weekly meetings, the student food community can truly become a community, creating a space and forum for best practices, struggles, campaigns, and opportunities.

Creation of community isn't limited to student foodies. Our goal with the BSFC is not to create a bubble of liberal activism, but rather to facilitate a space that reflects the Berkeley student body. Since our cooperative will be student-owned, it will take on the shape of the students. Unlike a branded fast-food franchise, the BSFC will encourage student ownership over the space, the business, and the idea of responsible food. There will be students farming some of the food we sell, students preparing the food, students selling the food, students buying the food - we will even have student artwork decorating our space.
Our project targets the entire student body and will encourage greater student traffic and utilization of the Lower Sproul plaza. We are currently negotiating a subsidized rent from the Store Operations Board based on meeting this need. Our marketing and outreach will emphasize broad appeal, particularly into segments of the student body not usually engaged in sustainability issues. Because of our commitment to diversity and anti-oppression work, we hope to engage with communities outside sustainability and cooperatives by hosting Poetry 4 the People events, culture and heritage-based cooking classes, and skill shares on everything from music to IT training.

Sustainability benefits
"Greenhouse gas emissions from the food and agriculture sector contribute over 30 percent of the current annual total emissions," according to the United Nations Food and Agriculture Organization (“Climate change and food security,” Bali Climate Change Conference Press Kit, FAO-UN, December 2007). Supporting sustainable food services on campus is an important component of what UC Berkeley has committed to do through Cal CAP. Every item that is sold at the co-op will be background checked by our staff and member-owners to ensure the products and businesses that produce them meet our standards of sustainability, social and economic justice, and health. (Please see the Real Food Calculator, attached, for a more detailed look at our purchasing standards.) Our metrics give an estimation of actual emissions reductions (35 tons/yr) based on the relevant, available numbers. When we open our doors, we will have an excellent opportunity to do important research related to sustainable foods purchasing patterns and CO2 reduction simply by keeping accurate records and consumer surveys.

Since education is one of our foremost sustainability goals, and food-related CO2 lacks awareness as well as measurability, we will be working with Erin Gaines, the Sustainable Foods Coordinator of Stanford Dining as well as Ian Quirk, the BSC Sustainability Coordinator, to create metrics or comparative analyses that are simple and compelling enough to be printed onto compostable food wrapping or pamphlets for customer education.

Our research, as well as our efficient and ethical store operations and purchasing will continue to garner positive regional and national press that helps define Berkeley's progressive culture as leadership for the nation rather than radical posturing.

Our project is officially endorsed by the Real Food Challenge, a national campaign to change university food spending practices. This campaign has served as the model for the UC-wide sustainable foods policy. Last year, the UC system signed on to this campaign and agreed to meet the goal of spending 20% of its total food budget on "real" food - defined as fair, ecologically sound, community based, and/or humane - by 2020.

Required resources:

1. Total project needs: $300,000

News:

• http://realfoodchallenge.org/blog/uc-berkeley-students-take-down-panda-express-a...
• http://www.dailycal.org/article/104661/students_propose_food_co-op_as_panda_expr...

Our sponsors:

We'd like to thank our current sponsors: Bears Breaking Boundaries ($5,000); The Green Initiative Fund ($91,000); Berkeley Student Cooperative ($10,000)

Project page URL:

• http://www.berkeleyfoodcoop.com/

Links to external blogs or wikis:

• http://wiki.berkeleyfoodcoop.com/

Additional info:

Management and Structure

Legal Structure
 
The Berkeley Student Food Cooperative is a hybrid worker-consumer cooperative; it will be legally recognized as a worker cooperative under California’s Consumer Cooperative Law.  As a corporation, a cooperative has the same protections against liability, as do other corporations, while essentially enjoying the tax advantages of a partnership. The tax advantages derive from the IRS provision that all net income arising from business activities from or with worker members is deductible from the corporation’s taxable income. In effect, worker member-generated profits (surplus earnings) can be passed through to members without paying a corporate tax. Only 20% of these profits must be paid out in cash, allowing the business to credit “Member Accounts” while using the funds for business expansion, equipment upgrades, etc.

Decision Making:

Decisions will be made through a modified consensus model.  Members can object to a motion through two means: minor or major objections.  Minor objections are expressed if a member does not completely condone a motion, however would rather not stall the group decision making process.  If three or more members express a minor objection the motion fails and discussion will continue.  A major objection is expressed when a member feels passionately against a motion proposed.  If one major objection is expressed a motion fails.   A quorum is defined as 2/3 of total voting membership. 

Changes to the Articles of Incorporation for the Berkeley Student Food Cooperative constitutes a quorum of ¾ of total voting membership.

Council Meetings

The BSFC will hold bi-weekly meetings for membership.  This space will be utilized to vote on proposals, to evaluate progress, and to get input from our community, it will also be a forum for workshops, trainings, and presentations. We will encourage students and community members to present their skills and knowledge to the rest of the group, be that through workshops on sustainability issues, cooking classes, anti-oppression trainings, talks about issues in the food system, or any other number of possible events.

All voting membership has the right to speak at council meetings.  Meetings will begin with Reports from each member of the Board of Directors and a General Membership Announcement/Report, where general and voting membership may contribute feedback or announcements to council.  

Membership

All voting members are given one-vote. All members will be given a 5% discount on goods and have rights as to the functioning and democratic decision making model based on member qualifications defined below:

Consumer Membership:

Deposit Membership:
A one-time membership fee of $15 and a refundable deposit of $500 paid in full or in monthly deposits of $20.   

Volunteer Membership:
Membership is based on 4 hours of monthly volunteer service for the Berkeley Student Food Cooperative.  To become a voting member, Volunteer Consumer Members must attend at least 2 BSFC council meetings and complete a Democratic decision-making training.  If a member misses three consecutive meetings they will loose their voting member privilege and must attend two meetings as a non-voting member before they can become a voting member again. 

Worker Membership:
 
Worker membership is comprised of the Project Director, the Operations Manager, and Hourly Workers.  Worker membership is required to attend all council and board meetings.  If a worker member misses three consecutive meetings they will loose their voting member privilege and must attend two meetings as a non-voting member before they can become a voting member again. 

Employment: All worker-member applicants will be interviewed and reviewed by a Selection-Committee of 5 voting members.  The Selection-Committee will present findings and recommendations and voting members will vote to employ worker members. 

Termination: Each worker member may be terminated at the discretion of the voting membership.  If voting membership finds a worker member to not fulfill worker duties, a Termination-Committee will be formed of 5 voting members who will collect further information into the matter and make a recommendation to voting membership.  Voting membership will vote to decide if a member will be terminated. 

Project Director:
The Project Director will oversee the programmatic aspects of the BSFC: he or she will align purchasing practices with values, support volunteers and part-time staff, coordinate education and outreach programs, provide general oversight of business practices and ensure commitment to BSFC's core mission. The Project Director must have managerial experience in a mission-driven organization. We expect the Project Director's resume to reflect the values of the BSFC.  The project director must be self-motivated, organized, passionate, and reliable, and have experience organizing and managing people, facilitating, and working within both for-profit and non-profit structures.  The project director is a voting member required to attend all board meetings and report to the board bi-weekly. 

Operations Manager:
The Operations Manager will make sure the BSFC remains productive and solvent: he or she is charged with accounting, purchasing, and fundraising duties as well as ensuring organizational effectiveness. This person will have development and accounting experience, a strong knowledge of the inner workings of food service businesses, and a high level of computer proficiency. The Operations Manager will be detail-oriented, organized, efficient, and good with people.  The Operations Manager is a voting member required to attend all board meetings and report to the board bi-weekly. 

Hourly Workers: 
Employed for at least 5 hours per week at a living-wage hourly rate.  Each Hourly worker is a voting member required to attend all board meetings. 

The Board of Directors:

The Board of Directors will be comprised of the Project Director, the Operations Manager and 6 other voting members democratically elected by all voting membership at the beginning of the fiscal year.  The Board of Directors will meet bi-weekly to set the council meeting agenda.  The Board of Directors will serve as a liaison between the Advisory Board and the Voting Membership; they will send monthly reports to the Advisory Board and present recommendations/findings by the Advisory Board to voting membership at council meetings.  Any voting member can add an item to the meeting agenda decided by the Board of Directors.

The Advisory Board:

Comprised of four members of other cooperative enterprises who will be sent monthly reports by the Board of Directors and advise and make recommendations to voting membership.

 
Payment Structure:

  Payment structure within the BSFC will be based on a patronage system.  Worker Members will be given an hourly wage or salary depending on the position.  All working members and staff will be paid a living wage.  All hourly working members will be paid the same amount regardless of education, experience or other qualifications.  Patronage of profits will be distributed to hourly worker members at the end of the fiscal years based on a percentage of hours worked and salaried worker members at a rate based on 40 hours per week.  Ten-percent of salaried worker wages will be held and determined at the end of the fiscal year based on evaluations and a passed motion by a quorum of voting members. 

      
Training:

Training for worker members involves three components:  learning the fundamentals of nutrition, seasonal food preparation, and sustainable grocery product selection; learning business management; and learning democratic decision-making. 

1.    Nutrition, Seasonal Food Preparation, Sustainable Grocery Product Selection: Each worker member must attend workshops by veteran workers pertaining to Nutrition, Seasonal Food Preparation, and Sustainable Grocery Product Selection.

Before opening the BSFC: Training workshops will be conducted by Cooperative members from Rainbow Grocery and The Davis Food Co-op.  There will be a two weeks of intensive “dry-run” training just prior to opening:  once all equipment is installed, trainees work full-time producing the full output and range of goods as if open to the public. 
 
2.    Business management: Trainings address such areas as inventory management; vendor, customer and community relations; cash management; hiring and evaluation; and record-keeping.

3.    Democratic decision-making:  In the Month leading up to business’ opening, trainees participate in meetings and organizational work sessions designed to impart democratic management skills and perspective.  Trainers model democratic facilitation/leadership and support the development of leadership/organizational skills among the trainee group.