After a recent annual board meeting, the Allegany Harvest Co-op appears to be at a crossroads. This past Wednesday, board president Sunshine Sullivan, along with other board members, met with the rest of the board to address questions regarding the future sustainability of the community organization. Presenting financial data, membership information, and volunteer availability, the board and other co-op members are attempting to secure enough income to hire a manager in the near future, a task which proves to be difficult.
“We did a lot of research to figure out if [the co-op] was something that [was] actually possible in this small rural area,” stated Sullivan. Although emphasizing community development through contact and transactions with local farmers and businesses, the board also recognized a need for a balance between fair prices for farmers and fair prices for consumers in order to maintain a regular consumer base.
However, membership in the co-op has continued to be lower than expected, with the number of regular shoppers even lower as most residents in the area continue to opt for more distant but larger supermarket chains.
According to Peter Meilaender, vice president of the board for the co-op, original targets for membership were around 200 to 250 members. Sullivan cites a current figure of around 100 actual members, 75 to 80 of which Meilaender estimates to be regular shoppers.
Co-op member-owners had originally prepared to operate at a loss, but not at the loss that has shown up in sales figures. A lack of growth in membership and purchases in this case translates to low sales, undermining the co-op’s goals. “With the initial plan, it was assumed that the co-op would lose money for about the first three years before it started to break even,” explained Meilaender. “We have in fact lost money more rapidly than we were supposed to, primarily because sales have been much under where they need to be.” Sullivan cited some figures, adding, “For our budget that we’ve outlined in our business plan to work, we actually need to have $4400 in sales every week. Not only to get our fixed costs taken care of, but also to be positioned to actually hire a new manager,” explained Sullivan. “Our best week has been $2400, but in reality, in the summer it was hovering between $900 and $1500.” As community members, faculty, and students leave to travel or return home during the summer and as residents begin to rely more on their personal gardens, sales tend to go down.
In addition to struggles with raising membership and sales, the co-op faces difficulties after running into unexpected expenses. After the first manager stepped down for medical reasons, the co-op decided to take on a new manager, one who was eventually let go due to mishandling of finances. “We realized our finances weren’t being handled in the way it was reported to us,” explained Sullivan, a situation which resulted in several outstanding debts, many of which the co-op is still working to fulfill.
Recently all of the board members decided to serve as different facets of management, saving the co-op a projected $10,000 through December. Balancing what amounts to about 15 volunteer hours per week can be difficult, though, especially for those working outside the co-op. Several of the board members are full-time professors at Houghton College, some undertaking research as well. “That’s quite a bit to hold onto as a volunteer,” said Sullivan.
“We’re trying to transition from that to a place where we can hire someone to do that job again,” added Dani Johnson, volunteer coordinator and board member. The viability of this transition will be seen at the end of next month. “We’ll see how sales go in October and, based on that, we will decide if we are going to have enough money to start looking for a manager,” Sullivan stated. “If not, we’ll be making plans to start closing at the end of the fall semester,” she explained.
For now, outlook amongst board members remains mixed but hopeful. “I’m cautiously optimistic about it continuing,” stated Johnson. “If you look at co-ops on a national level, co-ops are doing really well.”
Said Sullivan, “With all of these businesses that are connected with us, they are invested in us succeeding because they need business in this area. It’s amazing the community that is really supporting [the co-op]—we just need more people to shop there.”