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Agricultural co-ops play a role as a facilitator, not competitive economic
unit. Typically, agricultural co-ops are a group of farmers who are unable to get
sensible credit arrangements or who are unable to purchase supplies or sell their products at a reasonable price through the existing market system. In other words, farmers or members focuses much more on their own benefit than agricultural
co-ops’ strength financial performance improvement. Due to lack of competition
forces among cooperatives, agricultural co-ops are seldom encouraged to
benchmark their performance against each other. As a result, they have higher operating costs than they should. Agricultural co-ops seldom view themselves as performance-oriented business unit. The success of the agricultural cooperatives movement should be considered more by the quality of its performance than by the size of its membership or volume of its operation. |
