How does co-operation improve the profitability of farmers and growers?
Co-operation captures value. Co-operation may remove the requirement for intermediaries in supply and marketing chains, and ensure that markets work properly by preventing other companies from profiteering at the expense of farmers’, growers’ and other rural interests. Capital, machinery and skills can all be organised more effectively through co-operation. Co-operation equips rural communities to determine and provide for their own needs and priorities. Farmers expect their co-op to help them achieve one or more of the following over a period of time: • lower fixed and/or variable costs • competitive prices returned for their produce • a share in value added by their co-op • increased security of market access, payment and risk management • opportunities to supply new markets and to expand their production.
