What is the difference between a consumer co-operative and a producer co-operative in Ontario?

The difference is about who the co-operative exists to serve. A consumer co-operative is organized so its members can purchase goods or services from the co-op, often at better terms or with surplus returned to them based on how much they bought — a food co-op or a housing co-operative are common examples. A producer co-operative, by contrast, is organized so its members can jointly process, market, or sell what they produce, such as farmers pooling their product through a shared co-operative rather than each selling individually.

Both are incorporated under the same Co-operative Corporations Act framework and share the same core structural features — member control on a one-member-one-vote basis and surplus distributed based on member activity (patronage) rather than shareholding — but the "activity" being measured differs: purchases for a consumer co-op, and supply or production for a producer co-op. Some co-operatives blend elements of both depending on their purpose. If you're setting up a new co-operative, being clear about which model fits your members' actual relationship with the co-op will shape both its bylaws and how patronage is calculated.