The Cost of Groceries
Hello Co-op Community,
Note: This is a longer letter than usual because the topic is more complex. You might want to grab a cup of tea before diving in. 🙂
OK, so let’s talk about grocery prices.
I’ve been a grocer for more than 30 years, and I’ve never seen prices rise as persistently as they have over the past six years. The increases began during COVID, when panic buying (aka hoarding) caused unprecedented supply chain disruptions and put pressure on an already fragile food system. While some of those disruptions have eased, most of the underlying cost increases have not. The result is that grocery prices are higher today, and many of us are feeling the strain on our household budgets.
I think it’s important to share a bit about why prices are higher and how we’re working at the Co-op to bring more value to our shoppers while staying true to our buying standards and our mission.
Why Food Costs More Today
Since 2020, costs have increased at every stop along the supply chain highway, from seed suppliers and farm workers to food processors, truck drivers, and store staff. Paying fair wages across the food system was long overdue and absolutely the right thing to do, but it does raise the real cost of food. Add fuel surcharges (now common on most invoices), sharply rising insurance and utility costs, and tariffs (so dumb), and the impact is significant. Coffee prices alone have increased by nearly 40% in some cases, depending on where it was grown.
With nearly all input costs higher and unlikely to come back down, higher grocery prices are, unfortunately, the new normal.
The True Cost of Food
When I talk about the true cost of food, I mean pricing that reflects the full impact of how food is grown, processed, and delivered. That includes fair wages and healthcare for workers, environmental stewardship, animal welfare, and public health.
When those costs aren’t reflected in the price at the shelf, food can appear cheaper, but the real costs don’t disappear. They’re shifted onto farmworkers through low wages, onto animals through poor treatment, onto communities through pollution, and onto all of us through environmental damage and public health consequences. At the Co-op, we believe those costs should be accounted for transparently at the shelf, not hidden.
Why Organic and Natural Foods Often Cost More
It’s also true that organic and natural foods generally cost more than their conventional counterparts, and there’s meaningful reasons for that.
Conventional agriculture is heavily subsidized by the federal government. For example, conventional dairy farmers benefit from programs that provide direct payments to farmers when milk prices fall — our government actually purchases surplus milk to better control the price, and farmers buy government-subsidized feed like corn and soy. These programs significantly lower the cost of producing conventional milk.
Organic dairy farmers, on the other hand, don’t benefit from most of these subsidies. They have to buy organic feed, which is significantly more expensive, and meet higher standards for animal welfare and environmental care. These standards are more labor-intensive and, in our view, essential rather than optional. As a result, conventional milk prices are often artificially low, while organic milk prices more closely reflect the true cost of production.
Our Standards and Why They Matter
At the Co-op, we invest heavily in local, organic, and independent farmers and small food producers. We intentionally do not sell products that are known to be harmful to the health and well-being of workers, consumers, animals, or the environment. That means saying no to certain shortcuts that can lower prices elsewhere.
For example, we don’t allow artificial preservatives, colors, flavors, or sweeteners. We don’t sell products linked to exploitative labor practices, including child labor. We prioritize higher animal welfare standards and responsible fishing practices. We source heavily from local and regional farms whenever possible because local farms are critical to our food sovereignty, farmland preservation, and long-term resilience.
Simply put, it’s way cheaper to farm with chemical pesticides, to crowd animals into confined spaces, or to ignore how seafood is caught and cocoa is sourced. But we, and you, our members, have consistently chosen a different path, knowing that good food is foundational to the health of people, communities, and the planet.
How We’re Working to Offer More Value
We know budgets are tight. One advantage of shopping at the Co-op is that we’re part of a network called National Co+op Grocers (NCG), which is itself a cooperative of grocery stores. NCG helps co-ops like ours get better pricing by aggregating purchases across hundreds of co-ops nationwide. So instead of having the buying power of just our two Bellingham stores, we benefit from the scale of co-ops across the nation.
This doesn’t apply to everything — especially local products, where we work directly with farmers to set fair, seasonal prices — but it does apply to many everyday staples.
As of February 1, you’ll see a refreshed everyday value program in our stores called Co-op Basics, supported by NCG. You’ll find Co-op Basics items throughout the store, clearly marked with bright purple signs. The program focuses on staple items many of us buy on the regular — things like canned beans and tuna, bulk oats, milk, eggs, cheese, potatoes, apples, ground beef, and more — priced lower to offer consistent, everyday value. We’ll refresh the list quarterly, so it stays relevant to the season and your shopping needs.
We’re also rolling out new digital punch cards for members for both coffee and smoothies. After you purchase 10 coffee drinks, or 10 smoothies, your 11th beverage is free. It’s a small way to say thank you for continuing to prioritize the Co-op as part of your shopping routine.
Another reliable way to save is by shopping our Bulk Department. Bulk prices are often lower than packaged alternatives, and buying only what you need helps reduce food waste — one of the most common (and unrecognized) ways food budgets get stretched. Research shows that shopping more frequently, rather than doing large stock-up trips, can reduce waste and save up to 40% of a household food budget.
Access, Community, and The Cooperative Difference
Increasing access to healthy food is a core goal of our Strategic Plan. In 2025, we increased our student discount to 10%. We also instituted a temporary “Lend a Hand” discount of 25% off during the government shutdown for those affected by the suspension of SNAP, and we’re now actively working on a needs-based discount program for SNAP/WIC customers. More on that soon.
There are many other ways to save too, including special orders, biweekly sales, and member-only offers. In 2026, members will enjoy four (instead of three) 10% discounts, along with exclusive department sales on bulk, supplements, and body care. Check out the full list of member sales here. Oh, and friendly reminder, the first 10% off member discount is happening now, through Feb. 15.
As a community-owned grocery store, we work hard to balance value, quality, and mission. When you shop with us, you’re supporting good-paying union jobs with best-in-class benefits, local farmers and producers, sustainable business practices, community giving and programs that make a difference, like Co-op Basics.
I hope this gives you a clearer picture of why food costs what it does today and how we’re working to provide value while staying true to who we are. Thank you, as always, for being a member and for supporting a cooperative model that puts people, community, and taking the long view first.
With gratitude,
Lisa Sedlar
CEO/GM