Retained Patronage at Work in Our Community

By Jennifer Kennelly, Director of Finance

Since November 2008, the Co-op has issued Patronage Dividends to our members. The Patronage Dividend is broken down into two parts – the check that is sent to each member, called the Patronage Refund, and the Retained Patronage that is held at the Co-op. 

Do you ever wonder what the Co-op does with the Retained Patronage? Just like other co-ops around the country, a portion of the Retained Patronage is put to work for the good of the Co-op and its members. For example, The Wedge, a Minneapolis co-op has been issuing Patronage Dividends for much, much longer than us. They’ve used their Retained Patronage to pay off their mortgage, buy/preserve a local farm and still have quite a Retained Patronage account!

As we’re only three years into Patronage Dividends, our goals are more modest but still very effective. Since we’ve been in our current location for just over ten years, we invest a portion of Retained Patronage back into the replacement of aging equipment and improving the operations of the Co-op. Some of these projects include LED lighting upgrades, meat and deli scale replacements, new display cases in the Produce and Seafood departments, and a redesign of the Bulk area.

Retained Patronage is also used to provide additional support to our Global Ends. This year we had two exciting projects to support. We’ve been able to help the new Monadnock Community Market Co-op (Keene, N.H.) get off the ground. For our second project, we helped the Intervale Community Farm (ICF) acquire the recently vacated Intervale Compost facility. IFC’s Fourth Season Project will redevelop this now vacant site with new greenhouses, a new storage and distribution facility, and additional acreage to plant. This will allow ICF to provide CSA shares and products to the Co-op on a year-round basis!

As our Fiscal Year 2012 comes to a close on June 30, we’re excited to consider all of the new opportunities for Retained Patronage projects. We’re continually grateful for your patronage of the Co-op that makes these projects possible!