still in business, compared to 3-5% of businesses. Benefits Market benefits Cooperatives have potential spillover effects on the rest of the grocery store market. According to researchers at the University of Wisconsin, “Cooperatives play a key role in agricultural markets not only because they account for a significant fraction of economic activity in this sector, but also because they are believed to generate a pro-competitive effect in imperfectly competitive markets.” The grocery market, in particular, is often not very competitive in geographically isolated areas, with only enough consumer base to support one major supermarket. In response to high prices caused by this monopoly, a cooperative may spring up, supported by a network of consumers looking for lower prices. Because the profits are redistributed to the members, a traditional grocery store must reduce its profits in order to compete. Lastly, some studies indicate the spillover benefits to the community are significant. One found that “For every $1,000 spent at a food co-op, $1,606 goes to the local economy; for every $1 million in sales, 9.3 jobs are created”. Agricultural sector benefits Academic research has also described the benefits cooperatives can have in economically connected sectors, namely food production: “Cooperatives play other socially beneficial roles in the agricultural sector. They provide an opportunity for farmers to share risk and to control managerial decision-making for their direct benefit. Additionally, they offer a credence attribute — farmer ownership — which can be attached to farm commodities, thus providing additional value to some consumers.” Consumer benefits Another potential benefit to members is the different niche of the food market often occupied by cooperatives. Cooperatives often have a focus on local, organic, or otherwise more sustainably sourced products. Consumers often support the local ownership of the cooperative model, in contrast to many grocery store chains owned by multinational corporations. Geography In the United States, food cooperatives are also far more common in the northern states of the US, with Vermont, Minnesota, and Wisconsin having the highest concentrations. Vermont, in particular, has a concentration three times higher than any other state. Food cooperatives are also co-located with higher incomes, higher educational attainment, the presence of land trusts, and population over age 65. In the United States, there are a number of regional associations of food cooperatives. These associations can provide logistical support, a distribution network, or operate under the franchise model, which can provide a recognizable brand.