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This solution was created and presented by Ajit Balasundaram and Faiq Farooq
Supply chain issues in Northern Manitoba cause increased transportation costs on the side of distributors. Food is thus sold at a higher price to sellers who increase prices themselves in order to make a profit. This leads to food unaffordability, which causes food insecurity(Mino Bimaadiziwin, 2017).
Introducing food co-ops into these regions would remove the profit incentive from sellers. By acting as shareholders, residents will have a say in all areas of the business, and prices would always be affordable, as the goal of a co-op is to adhere to the needs of its community(FCI, 2017).
What are “food co-ops”? The long answer:
Co-ops allow grocery stores to be deeply rooted within their own community. Social responsibility is emphasized more than profitable business practices, making addressing the needs of the community the greatest priority. Co-ops are non-profits, so money made from them goes back to residents, or towards their needs(Co+Op, 2020). As members of the co-op, a community takes part in making impactful business decisions, such as which distributors to buy from, all in an effort to negotiate for better food for cheaper prices(FCI, 2017).
The greatest hurdle in starting a co-op is gaging community interest. However, I believe in this case it would be more of a need than an added benefit. Still, research must be conducted to see if Northern Manitoban communities will actually accept this as a solution. However, one hurdle we may not come across is the capital needed to start co-ops that is usually needed. By converting existing grocery stores into co-ops, we can use the existing resources available.
Why is this a good solution?