On July 2nd 2019, the board unanimously voted to approve dissolution proceedings. Please review the FAQ below to make an informed vote as a member of Friends and Farmers Cooperative. If you have any questions, please email firstname.lastname@example.org.
Q: What do the bylaws say about dissolution?
A: Article VI of the bylaws prescribes the methodology for and steps toward dissolution:
ARTICLE VI: Dissolution
6.1 Dissolution: The cooperative may be dissolved upon a decision of the Board and a two-thirds (⅔ vote) of the members who participate in the vote.
6.2 Asset Distribution: Upon dissolution of the Cooperative, its assets shall be distributed in the following manner and order:
- Paying or making provisions for payments of all liabilities and expenses of liquidation;
- Paying back membership fees to members which, if they cannot be paid in full, shall be paid in order of the membership date, from earliest to most recent; then
- Distributing any remaining assets to another cooperative or cooperative development organization as determined by the Board.
Q: What was the board’s work plan for 2019?
A: In November of 2018, the Board voted to pause business operations of the Online Market effective December 18th, 2018. The Board then went into “hiatus” to determine the future of Friends and Farmers Cooperative. In February of 2019, the Board conducted two focus groups which attracted 50 member-participants. In March of 2019, the Board released a membership survey which had 109 member-participants. The Board then explored several business options that members expressed interest in. The Board hosted a membership party at Rhoneymeade Arboretum and Sculpture Garden which had 25 member-participants in attendance. In July of 2019, the Board determined that no business options would be financially feasible due to financial constraints of member equity and lack of membership engagement.
Q: What do membership numbers currently look like? How have they increased throughout the years?
A: Currently, Friends and Farmers Cooperative has 530 members. The chart below shows membership growth through new members and total members.
Q: What does the Cooperative’s assets currently look like? How has that fluctuate throughout the years?
A: The Cooperative currently has $47,691 in assets. The chart below shows assets throughout the years.
Q: The local food movement is so strong. Why has the Cooperative had trouble maintaining its momentum in the last two years?
A: Increased competition (new grocery stores, upgrades to Giant and Weis, meal delivery kits, grocery delivery services, farm to table restaurants, etc) along with the inability to find a pricing model of the Online Market (OLM) compromised the Cooperative’s ability to sell a sufficient volume of food at the OLM for a profit has decreased the success of Friends and Farmers Cooperative. This combination has decreased the Cooperative’s ability to attract new members.
Q: What was the Cooperative’s net operating income over the years?
A: The Cooperative has operated at a loss since 2014, which means that the cost of goods sold and operating expenses are greater than sales. If you wish to see additional financial history, please email email@example.com