Australian food coops can help tackle food insecurity and improve diets, new research finds

SYDNEY,  May 13, 2025 – As food prices continue to rise across Australia and more households face food insecurity, new research has found that community food cooperatives could play a vital role in improving access to nutritious food and supporting healthier diets, particularly among vulnerable groups.

The study, conducted by researchers from Western Sydney University [WSU] and the University of Wollongong [UOW], surveyed members of Box Divvy, a food cooperative operating in New South Wales and the Australian Capital Territory.

The online survey gathered data on members’ demographic characteristics, levels of food security, and fruit and vegetable consumption. Prior to joining Box Divvy, more than 50 percent of surveyed members reported experiencing some level of food insecurity—well above the national average of 22 percent.

“Younger people, single-parent households, and those on lower incomes were significantly more likely to experience food insecurity, suggesting these groups are seeking alternatives to major supermarkets,” said lead author Dr Katherine Kent of UOW, an adjunct researcher at WSU.

However, after joining the cooperative, reported food insecurity decreased by approximately 23 percent. Notably, the rate of severe food insecurity—defined as frequently skipping meals or going hungry—was more than halved.

Members also reported improved diets, with average weekly vegetable consumption increasing by 3.3 servings and fruit intake by 2.5 servings. Among those who had previously experienced severe food insecurity, the improvements were even more pronounced: an increase of 5.5 servings of vegetables and 4.4 servings of fruit per week.

“These dietary improvements bring members closer to meeting national nutrition guidelines, which is crucial given the strong link between fruit and vegetable intake and lower risks of chronic diseases such as diabetes—especially in food-insecure populations,” said co-lead and co-author Prof. Freya MacMillan from WSU’s Division of Research and Enterprise.

The research follows a recent summary report from the Australian Competition and Consumer Commission [ACCC], released in March, which highlighted increasing profit margins among the major supermarket chains—ALDI, Coles, and Woolworths—particularly for branded packaged foods.

The ACCC noted that these three retailers are among the most profitable in the world, operating in a tightly concentrated market where Coles and Woolworths dominate both supply and pricing of fresh produce. Their monopsony power—where one buyer dominates the market—combined with aggressive discounting practices, was found to hinder consumers’ ability to assess value for money.

The Commission also found that Australians in remote areas face disproportionately high grocery prices, limited access to supermarkets, and could benefit significantly from locally run, community-based stores.

Despite their proven benefits, food coops remain largely overlooked in Australian public policy. Researchers argue that amid national discussions on supermarket price gouging and market concentration, the case for sustainable, community-led alternatives is growing stronger.

“This work adds to the growing body of evidence supporting affordable, healthy food solutions that go beyond the conventional supermarket model,” said Dr Cristy Brooks, co-lead and co-author from WSU’s School of Health Sciences and the Translational Health Research Institute. “Our findings suggest that community food cooperatives offer a range of positive health benefits, with potential implications for environmental sustainability and future policy development.”

https://thecooperator.news/first-development-fund-launched-for-australian-co-ops/

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