As grocery prices continue to surge, an increasing number of Australians are struggling to afford nutritious food, prompting many to explore alternatives to large supermarket chains. New research highlights that community-run food co-operatives (co-ops) are becoming a growing solution to combat food insecurity and enhance healthy eating habits.
Recent findings from an inquiry into Australia’s supermarket sector, conducted by the Australian Competition and Consumer Commission (ACCC), revealed that the country’s grocery market is highly concentrated, with few competitors and increasing retail margins. Consumers in rural and remote areas face even higher prices and limited options. In response, many Australians are turning to food co-ops, a model that is quickly gaining popularity across the nation.
Food co-ops are non-profit, member-run organizations where individuals collaborate to purchase food in bulk directly from farmers or wholesalers. These co-ops can operate in various forms, such as storefronts, neighborhood hubs, or subscription-based box delivery services. Common products offered include fresh produce, dairy, bread, and pantry essentials. By organizing bulk orders, members reduce costs, minimize packaging waste, and bypass supermarket markups, all while contributing to the reduction of transport emissions.
The latest research, led by experts from the University of Wollongong and Western Sydney University, underscores the potential of food co-ops to tackle food insecurity and improve diets. Their study surveyed over 2,200 members of Box Divvy, a food co-op serving New South Wales and the Australian Capital Territory. Participants reported significant improvements in both food security and diet quality after joining the co-op.
Before joining, more than half of the surveyed members were classified as “food insecure”—a figure significantly higher than the national average of 22%. After becoming co-op members, food insecurity among participants dropped by nearly 23%, with the rate of severe food insecurity falling by more than half. Moreover, members increased their weekly consumption of vegetables by 3.3 servings and fruit by 2.5 servings, improving their overall diet.
For those experiencing severe food insecurity, the improvements were even more pronounced, with vegetable intake rising by 5.5 servings per week and fruit consumption by 4.4 servings. These increases bring participants closer to meeting national dietary recommendations, which are linked to a reduced risk of chronic diseases like heart disease, diabetes, and some cancers.
The benefits of food co-ops are not limited to the Australian context. Research from other countries has shown similar positive outcomes. A 2020 study from Sydney found that co-op members were more likely to meet the recommended servings of fruits and vegetables compared to non-members. In Melbourne, a community initiative known as The Community Grocer has helped low-income and culturally diverse communities access produce up to 40% cheaper than nearby supermarkets. International studies, including those in Canada and Wales, also highlight the positive impact of community-based food initiatives in improving access to healthy food.
Additionally, food co-ops provide a more dignified alternative to traditional food relief programs. Members have greater choice and control over the food they receive, which can help reduce the stigma often associated with food assistance.
Despite the clear advantages, food co-ops are still underutilized in Australian policy discussions. With ongoing debates about price gouging and supermarket dominance, there is an opportunity to support and expand these community-driven models. Challenges such as varying regulatory requirements and logistical complexities hinder the growth of food co-ops, particularly in rural and remote areas.
Government support could help address these challenges. Potential measures include offering seed funding, subsidizing memberships for low-income households, investing in digital platforms to improve co-op operations, and simplifying regulatory processes. As the Albanese government’s “Feeding Australia” strategy evolves, integrating food co-ops into the national effort to combat food insecurity could further strengthen local food systems and improve access to affordable, nutritious food.
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