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Infographic: The Power of Cooperatives Explained

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This World Food Day, October 16, celebrates the power of cooperatives, "Key to Feeding the World."

Why co-ops?

By banding together in a co-op, farmers can buy inputs, like fertilizer and seed, directly from providers, saving expensive middleman costs. They can efficiently learn new techniques. They can share costs of storage or processing and bulk their crop to sell to larger companies who want products measured in tons not in bushels.

Whether in grain or coffee, cooperatives connect farmers to markets and to each other.

Take the case of the Ferro coffee cooperative in Ethiopia. The Ferro co-op accomplished a remarkable feat when it connected its rural, smallholder farmers to the global market for specialty coffee, and the co-op's dry-processed coffee was designated a Starbucks' Black Apron Exclusive™. For these Ethiopian farmers, selling straight to the buyer meant careful processing and high quality were all-important. And it ultimately meant more--much more--revenue. Cooperatives, with their collective selling and purchasing power, can be the difference between hunger and feast.

"Without cooperatives," said Asnake Bekele, general manager of the Sidama Coffee Farmers Cooperative Union, which represents 80,000 smallholders, "Ethiopian coffee growers would be out of the market."

ACDI/VOCA, a nonprofit development organization, has its roots in cooperative development. It now has approximately 83 active projects in 38 countries around the world, 36 of which work with cooperatives.

Infographic by ACDI/VOCA's Kate Thomas.