What is agricultural cooperative


Why are cooperatives important?

What Are Cooperatives Core Principles?

  • Education, training and information
  • Cooperation among cooperative
  • Concern for community

How do cooperatives function?

  • The goal of a marketing cooperative is to benefit members by helping them increase their margins, maintain control of their product to point of sale, and secure a reliable and …
  • Purchasing cooperatives achieve discounts on bulk purchases and pass the savings on to members. …
  • Service cooperatives provide members access to services. …

What does an agricultural worker do?

An agriculture employer who didn’t use more than 500 “man-days” of agricultural labor in any calendar quarter of the preceding calendar year is exempt from the minimum wage and overtime requirements of the FLSA for the current calendar year. A “man-day” is defined as any day during which an employee performs agricultural work for at least one hour.

What is rural development vs. agriculture?

  • Employment. …
  • Related economy. …
  • In remote and peripheral areas, where society has identified a legitimate priority to prevent depopulation, farming is likely to be one of a limited range of economic activities possible to …
  • Throughout rural areas, farming may contribute to rural development by providing environmental and cultural services to society.

What does an agricultural cooperative do?

A farm cooperative involves a network of member farmers who reap many benefits of doing business as a unit. Individual farms work together to buy necessary supplies and services, as well as distribute, market and sell their products. Farmers save costs and access goods and services otherwise unavailable to them.

What are two characteristics of an agricultural cooperative?

Characteristics of an Agricultural Cooperative Cooperative members control the organization due to their roles as patrons; there are no equity investors. Membership in the cooperative is limited to patrons. At least half of the cooperative’s business is performed on a patronage basis.

What are the four types of farmers cooperatives?

Marketing, supply, and service cooperatives are the most common types of agricultural cooperatives in the United States. Marketing cooperatives assemble, pack, process, and sell members’ products in both domestic and foreign markets.

What are the three main types of cooperatives?

Types of Cooperatives1) Retail Cooperatives. Retail Cooperatives are a type of “consumer cooperative” which help create retail stores to benefit the consumers making the retail “our store”. … 2) Worker Cooperatives. … 3) Producer Cooperatives. … 4) Service Cooperatives. … 5) Housing Cooperatives.

What are the two most important types of agricultural cooperatives?

There are two primary types of agricultural service cooperatives: supply cooperatives and marketing cooperatives. Supply cooperatives supply their members with inputs for agricultural production, including seeds, fertilizers, fuel, and machinery services.

How do agricultural coop help the society and its main functions?

Agricultural cooperatives play a key role in linking farmers to markets, providing a collective platform for negotiating with buyers, offering aggregating, marketing and processing services, providing distribution channels for primary products, and delivering training, business planning and capacity building services …

What are the problems of agricultural cooperatives?

Lack of marketing skills. Most of the groups or cooperatives usually do not have marketing skill. … Lack of cooperation. … Weak economic status. … Access to local market. … Poor management. … Leadership and understanding. … Lack of communication and participation among the members. … Absence of common brands.More items…•

What is management of agricultural cooperative society?

Cooperative societies are managed and controlled by the members. A management committee is elected on a one-member one-vote basis to direct the affairs of the cooperative.

Who owns a cooperative?

membersMost simply put, a cooperative is a business 1) voluntarily owned by the people who use it, and 2) operated for the benefit of its members. Regardless of the goods and services provided, co-ops aim to meet their member’s needs.

What are the 7 principles of cooperative?

Cooperative PrinciplesOpen and Voluntary Membership. … Democratic Member Control. … Members’ Economic Participation. … Autonomy and Independence. … Education, Training, and Information. … Cooperation Among Cooperatives. … Concern for Community.

What is the best type of cooperative?

Consumer Cooperatives This is one of the best known forms of cooperatives. They are owned and controlled by the people that buy the products and services sold, managed or distributed by the co-ops.

Why do small agro businesses form cooperatives?

The main motivation for small agro-businesses to form or join cooperatives is to combine their efforts and resources, while reducing the costs. In the United States, agricultural cooperatives specialize in marketing, supply, and providing services.

How many agricultural co-ops are there in the US?

According to the University of California there are over 3000 agricultural co-ops in the United States today, with 2.8 million members. They operate according to the principles based on the modified traditional Rochdale Society concepts of 1844, such as “one member, one vote,” and “service at cost”.

Why are childcare cooperatives so attractive?

What makes them so attractive is that parents can be members as well, and, consequently, have a say in many decisions . The childcare cooperatives often provide high quality preschool programmes and services.

What is the primary goal of a coop?

All members of such a coop are policyholders, and their primary goal is to provide insurance services . Their secondary goal is to generate revenues that will reduce cost of providing the services. As usual, members receive the patronage dividends from the available profit and have an owner-control over the coop.

What are the principles of cooperatives?

According to the US Department of Agriculture, four general traditional principles distinguish cooperatives from any other type of business: 1 Service at cost; 2 Financial obligation and benefits proportional to use; 3 Limited return on equity capital; 4 Democratic control

What is a worker cooperative?

Worker Coops. Members are the workers of their own business. They take part in management, allocate income and net losses, spread risks among each other, and share profit according to their contributions. All around the world, workers form cooperatives to ensure steady income and employment for themselves.

Why is precision important in agriculture?

Precision allows for a more rational use of resources, time, and budget, leading to both higher crop productivity and increased profitability. Agricultural producers have to manage their fields on a regular basis, relying on traditional scouting, conventional weather forecasts, and historical harvest data records.

Cooperatives in Sub-Saharan Africa

Frederick O. Boadu, in Agricultural Law and Economics in Sub-Saharan Africa, 2016

Agriculture in Southern Brazil

Obviously there are agricultural cooperatives not only in the southern region, but across the country. According to national statistics collected by OCB in 2013, there are 1,516 agricultural cooperatives in Brazil, with more than 1 million members and 164,000 employees.

Marketing healthy fruit

J. Mellentin, K. Crawford, in Improving the Health-Promoting Properties of Fruit and Vegetable Products, 2008

Beer farms in Tuscany: a case study

Maria Cipollaro, … Sara Fabbrizzi, in Case Studies in the Beer Sector, 2021

Optimized food supply chains to reduce food losses

Recent research found that higher levels of collaboration between producers and agricultural cooperatives could reduce food losses (Despoudi, 2016; Despoudi et al., 2018 ). Forms of collective action at the producers’ stage can significantly support producers in sharing best practices, resources, and information to enable food loss reduction.


In Taiwan, cooperative setup is relatively strong and citrus growers are involved actively in marketing their produce. The farmers’ associations, agricultural cooperatives, and the Taiwan Provincial Fruit Marketing Cooperative are the three important organizations that handle fruit in the cooperative marketing system.

Management Strategies for Bark Beetles in Conifer Forests

The use of attractants in traps to detect or monitor bark beetles is common ( Figure 14.8 ), and often used to survey for exotic, invasive species. For example, the United States Cooperative Agricultural Pest Survey (CAPS) for I. typographus includes use of cis -verbenol, ipsdienol and 2-methyl-3-buten-2-ol in multi-funnel traps.

What is agricultural cooperative?

Agricultural Cooperative. a type of cooperative that unites agricultural producers for production or other activities needed by the members (such as processing, marketing of output, or supply of the means of production). Agricultural cooperatives appeared in Western Europe in the first half of the 19th century and came to Eastern Europe …

How do agricultural cooperatives organize?

Agricultural cooperatives often organize on the basis of vertical integration: the purchase-supply cooperatives process and market farm products and organize technical service by establishing appropriate enterprises, and the credit cooperatives, in addition to financial transactions, increasingly carry on trade operations (supply and marketing).

What is the trend of agricultural cooperatives in Latin America?

In Latin America the trend of development of agricultural cooperatives corresponds in general to the practice of the developed capitalist countries, but with specific features based on preexisting forms of communal land use and ownership and on the implementation of agrarian reforms in many countries.

What percentage of the market output was sold through agricultural cooperatives in the 1960s?

In the United States in the late 1960’s the agricultural cooperatives were responsible for 20–25 percent of the market output sold and 20 percent of farmer purchases of the means of production. In Great Britain in the second half of the 1960’s, 10 percent of the market output was sold through the agricultural cooperatives, …

What was the new stage of the cooperative movement?

A fundamentally new stage in the development of the cooperative movement came when the countries received their political independence. The governments of most new states assign a significant place to cooperation in their programs for the development of agricultural production and the entire national economy.

Which countries have developed agricultural cooperatives?

Among the capitalist countries agricultural cooperation is most highly developed in the Scandinavian countries, the Netherlands, Iceland, and Japan, where at the end of the 1960’s agricultural cooperatives processed and marketed up to 75–90 percent of all market farm products and delivered up to 60–75 percent of the means of production.

Which countries have cooperative agriculture?

Sweden, Norway, and, to some extent, Japan have uniform agricultural cooperative systems directed from a single center; most countries have several large agricultural cooperative centers that act independently of one another and sometimes compete. During the transitional period from capitalism to socialism the proletarian state uses …

What is co-ops in agriculture?

This chapter introduces both operational and financial management in agricultural cooperatives (co-ops), which are owned, controlled, and also invested-in by a group of farmers who collaborate by pooling resources for their mutual benefit. It begins with an introduction to co-ops’ definitions, principles, and features, in comparison to other types of businesses. It then explains co-ops operational practices, focusing on quality management issues and payment schemes, and also presents co-ops financial management and capital structure innovations. At the end of the chapter two case studies—the New Zealand Kiwifruit Industry under Zespri International Ltd and New Zealand Dairy Industry under Fonterra Cooperative Group Ltd—are discussed to illustrate each aspect.

What is ABC bank?

The predecessor of the Agricultural Bank of China (ABC) was the Agricultural Cooperative Bank established in 1951. On 15 January 2009 the bank was restructured into a joint stock limited liability company. Capitalizing on its comprehensive business portfolio, extensive distribution, and advanced IT platform, the bank provides various corporate and retail banking products and services for a broad range of customers. At the end of 2011, it had 441,144 employees across 23,624 branches and banking offices in mainland China, two overseas branches in Hong Kong and Singapore, and five representative offices in New York, London, Tokyo, Frankfurt, and Seoul. According to its annual statement, the total assets of the bank reached RMB11.7 trillion at the end of 2011. Its total deposits and total loans reached RMB9.62 and 5.63 trillion in 2011, respectively. In addition, the operating profit achieved in 2011 was RMB122 billion with a growth rate of 22.2 per cent over the previous year. The capital adequacy ratio achieved 11.94 per cent, while the non-performing loan ratio was 1.55 per cent.

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What is cooperative business?

cooperative is a special type ofcorporation that is owned andcontrolled by those who use itsservices. In furtherance of theirmutual benefit, members financeand operate the business. Byworking together, members may beable to meet objectives that theycould not meet as individuals.

What is an ACCO?

The Agricultural CooperativeCouncil of Oregon (ACCO) is atrade association of about 25 stateand regional agricultural coopera-tives that do business in Oregon.ACCO focuses on supportingeducational programming related toagricultural cooperatives and alsosupports lobbying efforts onlegislative issues of broad interestto its members. An annual meetingusually centers on educationaltopics of interest to agriculturalcooperative managers, directors,and members.

What is a farmer owned co-op?

Farmer-owned co-ops help producer-members market and process their crops and livestock, and secure needed production supplies and services. Consumer-owned rural utility co-ops provide electrical power and telecommunications services. Financial co-ops provide credit and financial services.

What is the USDA agency that helps cooperatives?

Some other USDA agencies also have programs that help cooperatives, including the Agricultural Marketing Service (AMS ) and the Cooperative State Research, Education and Extension Service which is now known as the National Institute of Food and Agriculture (NIFA).

What is a co-op business?

Co-ops are producer- and user-owned businesses that are controlled by — and operate for the benefit of — their members, rather than outside investors. The co-op business model is highly flexible and can address a wide variety of needs.

What is the purpose of USDA Rural Development?

The goal of the Cooperative Programs of USDA Rural Development is to promote understanding and use of the cooperative form of business. This is accomplished through education (including a large library of co-op publications), research and statistics, and technical assistance.


Types of Cooperative Organizations

Agricultural Cooperatives in The United States

  • According to the University of Californiathere are over 3000 agricultural co-ops in the United States today, with 2.8 million members. They operate according to the principles based on the modified traditional Rochdale Society concepts of 1844, such as “one member, one vote,” and “service at cost”. Out of these principles come all the benefits asso…

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How Do Co-Ops Work? Principles of Cooperatives

  • Traditionally, what makes cooperatives so different from any other business enterprise is the principles they are founded on. These principles define and guide the co-ops, ensuring, among other things, democratic self-ownership, tolerance (lack of discrimination), open membership, independence from the government, and equal economic responsibilities distributed among the …

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Advantages of Cooperatives

  • All of the pros and cons of agricultural cooperatives stem directly from these four principles. No benefit or risk should come as a surprise to the co-op members: what you see is what you get. Thanks to the principles of democratic control and proportional use, members of a farming cooperative get access to services, products, materials, and markets otherwise unavailable to th…

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Disadvantages of Cooperatives

  • The flip side of the independence and democratic control is the equally distributed economic responsibilities of the co-op members. Since no investment can enter the cooperative by outsourcing, loss of profit impacts every member. Every individual patronage has to be reduced to compensate for the loss. Still, members’ support for each other is always a consolation. No one …

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Farming Co-Ops and Eos Crop Monitoring

  • There are many ways how producer cooperatives can benefit from using EOS Crop Monitoring. Our digital agro-platformintegrates satellite imagery, vegetation indices, and weather data, to provide precision-driven agricultural solutions to farmers, traders, insurers, and advisors. Precision allows for a more rational use of resources, time, and budget, leading to both higher cr…

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