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Unlike, say, cocaine, which is illegal in any circumstance, meat from cattle, chicken, hogs, etc., is always a legal product. A co-op is a private arrangement not a public accommodation. A farm family may eat their own milk, produce, grain, and meat without it being inspected by the government. Co-ops are, like families, voluntary associations. While there are sales at a co-op, the price strictly covers the cost of the goods sold, and ownership in the co-op is collective, so that a member does not have a membership that he can sell. Hence, it falls under the area of private association, and should be exempted from laws regarding food inspection for items sold to the general public.

I suspect this co-op is radically anti-processed food. For example, there are people who say that, if the cattle are raised under the right conditions and the milk is processed in a sanitary facility, the unpasteurized product is safe and is in fact better for you than the pasteurized variety. I do not believe this, as there were many instances of people being sickened by unpasteurized milk in the 19th Century. I would not drink the stuff in any case. However, if people join the co-op and want to drink it, that is their business and not yours, mine, or that of the government.