OPINION: Co-ops help build Alaska

We celebrated National Co-op Month in October, a time to recognize the contributions of cooperatives (“co-ops”) in Alaska and address misconceptions. Despite the belief that “co-ops don’t work here,” co-ops have a long history of success in the state, serving groups from as few as five members to thousands.

Co-ops, which are member-owned businesses, have flourished across Alaska, including in rural areas. Producer co-ops have supported small-scale farmers, such as peony and oyster producers in Homer and the Mat-Su, by providing access to markets and storage solutions. Artist co-ops in Sitka, Valdez, Juneau and Anchorage help local artists sell their work through shared storefronts. Electric cooperatives power 90% of Alaskan residents, serving both small villages like Twin Hills and larger cities like Anchorage. Food co-ops in Sitka, Kodiak, and Fairbanks have improved access to fresh, affordable, local food. Even the now-defunct Copper River Fishing Cooperative, which helped establish the Copper River salmon brand, increased fishermen’s earnings by 13–25%, benefiting even non-members.

Co-ops operate across all sectors and can scale and innovate, with well-known national brands like Global CU, ACE Hardware, Welch’s, Land O’Lakes, and REI as examples. These for-profit businesses are designed to meet the economic needs of their member-owners. Co-ops are resilient, embodying self-help and shared ownership, which is a strength, not a challenge. However, co-ops aren’t a solution for saving failing businesses — they must generate enough revenue to remain sustainable. Unlike traditional businesses focused on investor profits, co-ops prioritize their members, leading to higher satisfaction and loyalty. Notably, 44% of co-ops last more than 10 years, compared to 33% of traditional businesses.

USDA Rural Development has a long history of supporting co-op development in Alaska. The USDA recognizes that co-ops build local wealth and keep money circulating within communities, multiplying the impact of local dollars. USDA supports co-op and business development through a variety of programs. The Rural Cooperative Development Grant supports the UAA Alaska Cooperative Development Center (ACDC), the only organization in the state specializing in providing co-op business development assistance. The Value-Added Producer Grant Program helps agricultural producers engage in value-added activities to create new products and expand marketing opportunities. Other USDA programs, such as the Socially Disadvantaged Groups Grant, Electric Loan Program, Rural Energy for America Program, and Rural Economic Development Loan and Grant (REDLG) programs, also play critical roles in supporting co-op growth.

These programs have a long-lasting impact. Since its inception in 2006, UAA’s ACDC has promoted the development of new co-ops in underserved sectors and introduced innovative cooperative models. Thanks to the USDA RCDG grant, ACDC provides free technical assistance and board training. This year, the center launched a statewide monthly co-op call, offering a platform for co-ops to share best practices. In collaboration with the Alaska Small Business Development Center, ACDC also developed a series of on-demand webinars, expanding access to co-op education and resources across the state.

In Fairbanks, the impact of these programs is evident. Over a decade ago, the Fairbanks Food Co-op partnered with Golden Valley Electric Association to bring the REDLG program to Alaska. This program provides financing to eligible borrowers to promote rural economic development and job creation. This year, GVEA repurposed the grant, reinvesting it in Fairbanks in partnership with the Fairbanks Economic Development Corp. to benefit local businesses without affecting member rates.

We will continue working to empower rural people and organizations to fully utilize USDA Rural Development programs designed to support co-ops, helping create and sustain economic prosperity in our communities. To learn more, contact the UAA Alaska Cooperative Development Center or your local USDA Rural Development office in Palmer.

Julia Hnilicka is the Alaska State Director for USDA Rural Development. She is a lifelong Alaskan with rural roots in small business and a deep love for community.

Barbara Johnson is the director of the UAA Alaska Cooperative Development Center.

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