Processing products for the consumer or industrial markets. Marketing cooperatives enable producers to 1) correct market failure where prices are too low or buyers have left the market; 2) provide a service not available otherwise; 3) gain market power (negotiating power) against much larger buyers; 4) spread risks and costs; and 5) have enough volume to operate a processing plant efficiently or enough to meet the demands of buyers. Marketing cooperatives are found in every region of the United States and handle most types of farm product. The importance of these cooperatives to particular commodity sectors varies.

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