FA LMER, ALASKA
Dorothy M. Boll, Editor
Published^every Friday at Pnlrqpr, •‘'■laska, for the MatRnuska valley
Farmers’ Cooperating association for the purpose of giving news, of the
Associations Work, Problems, and Accomplishments.' ' /
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WHAT IS COOPERATIVE MARKETING?
i
There are three types of agencies'which engage in the marketing of
Fern products. These are Private, Government and Cooperative.
A u ivatc agency may be'in the form of a proprietary,' partnership or a -
co 'orate business enterprise.
A governmental agency may be any division of the government which engages
In marketing. Inis form of marketing is almost unknown in America.
The Cooperative method has become very important and has expanded
greatly during the last 25 years. -The cooperative marketing Associa
tions may perform many different functions 3\ich ns process ing,packing,
storing- financing', bargaining, In their handling and marketing of the
farmers products.
Peopl •) have many different reasons for joining cooperative marketing
associations. The most common is the desire for pers.onal gain. There
for the purpose bf a farmer's cooperative marketing is t^ obtain the
highest price possible for the farmer who belongs and sells through the
Association. The ultimate' purpose, however, may be the desire to raise
the piano of" living on the farms. The Cooperative, therefore, must
excel it3 competitors in Collective marketing or it is. doomed to fa^Jure.
It must also provide for its member^ a better income thru that Associate
tion and pooling products. The C00p,3rative can gain these things for it3
members in three ways: .
1. It may be able to obtain a better" price than -could.-be obtained by a
private agency.
2. It might obtain the same price as a competitor, but have a lower
marketing margin so that the net price received by the producer is
higher than that paid by a private agency,
3. A combination of the first two of these.
Cooperatives have becomd essential to agriculture because agriculture
production is a small unit business. If -Agricultural enterprises were
as big as the major industrial concerns--Cooperative*s probably would not
be needed. I'hey could effect their own distribution more economically,
but few farmers have a single carload of livestock, potatoes, cabba,_,3
or lettuce. They are dependent upon a Central agency to assemble,pack,
and ship oT’ store their products collectively.
The grouping together in Cooperatives lowers the cost of distribution
an aid in improving production, eliminates waste, prevents expensive
duplication of agencies and finally effects the distribution of products
in a systematic manner.
V/hy was the Cooperative method chosen i-n order to improve markr ting
conditions for farmers? There are several methods that might be ust-d'l
ma; iceting of the farmers products-*-— Competition, government regulation,
monopoxy, governmental distribution or cooperatioh.
Competition has not proved to be a dependable medium for improvement
Monopoly lias also failed. Governmental regulation has been incapable
of being completely effective. Distribution of farm products by the
government is very unlikely in a democratic form of government. People,
generally speaking .,are not favorable to any form of government control
The Cooperative method has been found to be the most suitable method
for farmers because it is based on what the farmers have to sell-- *
farm products*--and not on what many farmers have net—Capital, Capi4-^!
is very essential ‘in a Cooperative Organization, but it is not nearly y
so important to the Association as patronage. Many Co-ons have started
with a very small capital, and have built large and very successful
Cooperatives. This is a very important point for Co-op members to keep
in mind when tempted to sell outside the Association. Every bit of
your produce that is handled through your association, adds that much
more to the strength of your own organization and ultimatly returns
added benefits to you.__
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