What is the agricultural cooperative?

6 Agricultural cooperative, or a cooperative of farmers, does what all other teams do, but do this in a way that is specific to farmers. This may include association of resources to buy seeds, selling grain, trade in a period or even help with marketing efforts. Agricultural cooperative is often involved in all these matters. They are often used for storing or drying grain, but most small farmers do not have resources or time to buy and build one of these structures themselves. Therefore, it belongs to the agricultural cooperative. The money they have inserted with their membership used to build an elevator and storing grain for all members. In this case, Cooranerative serves as a discount seller. It buys a seed in bulk and then sells this seed to farmers as needed. Cooperative is a non -profit organization and therefore does not have to charge more than what the cost of seed, along with a small fee for administrative duties and maintenance of the equipment.

When it is time to sell the product that produces the seed, agricultural cooperatives can also be a big advantage. This site can serve as a central place for farmers who supply their grains and beans. Once in the position of the agricultural cooperative, the organization then distributes grain and beans on the basis of contracts that have already been purchased on the commodity market. Distribution can be made by a truck, rail or boat, depending on the site.

While these basic agricultural services are important, agricultural cooperatives often often do even more for membership. For example, somspolečnosti E offers petrol and diesel fuel, where farmers can not only fulfill their agricultural machines, but also their passenger vehicles. Since the cooperative is a non -profit organization, it can sometimes offer better offers than farmers could find at a traditional gas station.

Marketing can also be performed by an agricultural cooperative.Members can sell through a brand of cooperating brands and thus get more product recognition. While most of these efforts are local, occasionally, such an effort is so successful that they lead to products that receive national recognition and which many consumers mistakenly assume that they are owned by the main corporations.