Consumer Cooperative


The ratio for the distribution of surplus is determined by the cooperative. Who determines this should be clearly defined in the bylaws. Some cooperatives leave it up to their board to decide each year how this is distributed, other cooperatives have defined ratios in their bylaws, while still others may decide on the ratio each year at their annual meeting of the worker-owners.



A consumer cooperative is a cooperative business owned by its customers for their mutual benefit. It is a form of free enterprise that is oriented toward service rather than pecuniary profit. Consumers’ cooperatives often take the form of retail outlets owned and operated by their consumers. The customers or consumers of the goods and/or services the cooperative provides are often also the individuals who have provided the capital required to launch or purchase that enterprise.