Food prices in Australian supermarkets are rising, and as an increasing number of consumers experience food insecurity, new research has found that community food cooperatives can play a crucial role in improving diet and food access among vulnerable groups. 

Researchers from Western Sydney University (UWS) and the University of Wollongong (UOW) conducted an online survey of Box Divvy members, a food co-op active in New South Wales and the Australian Capital Territory.

The survey measured social demographics, fruit and vegetable consumption, and food security status. The findings indicate that before joining the food co-op, over 50% of the participating members reported experiencing some food insecurity, above the national average of 22%.

“Younger age, single-parent households, and lower income were significant predictors of food insecurity, suggesting these groups are particularly at risk and are looking for alternatives to big supermarkets,” says UOW’s Dr. Katherine Kent, the lead author and an adjunct researcher at UWS.

However, after joining Box Divy, food insecurity dropped by approximately 23%, with the rate of severe food insecurity, defined as people skipping meals frequently and experiencing hunger, decreased by more than 50%.

Co-op members also reported increasing vegetable consumption by 3.3 servings and fruit intake by 2.5 servings every week, on average. The researchers found that the benefits were more prominent for members who reported severe food insecurity, who consumed 5.5 more servings of vegetables and 4.4 more fruits while being part of the co-op.

“These improvements bring people closer to meeting national dietary guidelines, which is important given links between fruit and vegetable intake and lower risk of chronic diseases like diabetes, especially among food-insecure populations,” says project co-lead and co-author, professor Freya MacMillan from UWS’ Division of Research and Enterprise.

Supermarkets increase profit margins

The study comes shortly after the Australian Competition and Consumer Commission (ACCC) released a supermarket enquiry summary this March, which indicated that ALDI, Coles, and Woolworths increased their average product margins over the past five financial years, specifically for branded goods in the packaged foods category.

The authority noted that the three retailers are the most profitable globally.

It also revealed that the supermarket industry follows an oligopoly structure, dominated by Coles and Woolworths. These companies have a monopsony (a market condition heavily influenced by one buyer) over acquiring fresh produce. Moreover, their discount practices can make it difficult for consumers to assess value for money.

The ACCC observed that consumers in remote Australia will likely pay higher grocery costs, may not have access to supermarkets, and can benefit from community-run stores.

However, the researchers note that despite their demonstrated successes, food co-ops are overlooked in Australian policy, even though national debates about price gouging and supermarket concentration call for sustainable, community-based alternatives.

“This work strengthens the evidence base for affordable healthy food solutions beyond the traditional supermarket approach. Our findings suggest community-based food co-ops may have a range of positive health benefits, with the potential for important environmental and policy implications in the future,” notes project co-lead and co-author Dr. Cristy Brooks from the School of Health Sciences and Translational Health Research Institute at UWS.