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SUCCESS IN COOPERATIVE MARKETING
By- G. Alvin Carpenter
Many successful'business orgonizations,
whether private, corporate, or cooperative
in nature, have started from snail begin
nings. Mary such organizations have reach
ed their present development because those
responsible for their direction have grov.n
up with them end have learned the fino art
of working together. They have learned
to cooperate by cooperating. In dealing
with farmers’ cooperative associations, re
ncod to recognize that "it is the non rho
cooperate and not the commodity.*’
It takes non vrorking together intelligent
ly in accordance with sound business rules
to make cooperatives function successfully.
It is thi3 human factor in cooperative
business undertakings that explains why
cooperatives must build from the ground lip
and must start as snail economic vontures.
Just because there is an opportunity to
improve the marketing situation through
cooperative organization docs not, in it
self mean that the goal will"be roalized
by end through a cooperative. It will not1
be realized unless and until fanners learn
to work together in the carrying out of
some of the functions of marketing Ctnd
distribution in which they have a comon
interest.
TThon once a group of farmers has mado a '
successful start in a cooperative venture,
thorc is no more basic ossontial for con
tinued success than to have within it a
membership that is thoroughly familiar v
with its'activities and rosponsivo to its
needs*•,•
Farmers are not likely to stick together
for tho more sake of organization. They
work togothor in their associations for
the sane reason that business non or labor
unions unito—namely, that it is to their
individual advantage to pool thoir offorts
to obtain iertain bargaining advantages in
the market.
If an association is managed in such a my
as to yiold its members more returns in the
way of services or prices for the product
than private marketing agencies con givo,
that association has little trouble in
securing and maintaining a strdng member
ship, If such is not t lie caso, the members
soon lose interest.
One of tho first principles for a succossfr
ful cooperative enterprise is that tho
association nnst meet some specific econ
omic noed. It may be that existing facil
ities arc alroady available for efficient
marketing of the particular product in a
givo$ area*..,
Competition for products within a specified
area cither from private concerns or other
cooperative marketing associations should
be considered darcfully. It may be that
transportation, storage and othor market
ing facilities arc inadequato. It may bo
that tho products produced by the members
are not among the most profitable varieties
and that the economic outlook for’tho
particular product is unfavorable.
Cooperatives, like'all other foms of bus
iness organization,.must be ostnblishcd and
operated upm sound business bases and
business principles, ..
Only a woll-finaneod association can
weather the -stem of distress without
either being seriously crippled or without
injury to its members. Propor financing
calls for adequate resorves built up by
small'but regular deductions or assess
ments. The size of this rescfvo will vary
with the typejof organizatiofi, and with
tho commodity to bo marketed. Small risks
are found in some cooperative marketing
organizations. In others there is a great
er need for larger liquid reserves to take
care of violent price fluctuations and do-'
tcrioration in quality .of product handled..
Tho theory of cooperative marketing holds
that much can be done together which could
not be done by famors individually. It
stands to roason, .howovor, that a coopera
tive association must follow tho rules of
good business if it succeeds in perfoining
economically the functions performed by
private middlemen. Tho woll managed co
oporatives succeed and the poorly managed
ones fail. . * :
From the—Cooperative Digost,