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University of Wisconsin. College of Agriculture. Dept. of Agricultural Economics / Cooperation principles and practices: the application of cooperation to the assembling, processing and marketing of farm products, to the purchase of farm supplies and consumers' goods and to credit and insurance

XIV. Cooperative selling,   pp. 110-117 PDF (2.3 MB)

Page 110

                   XIV. COOPERATIVE SELLING
         RODUCTION of quality products available in large
    P quantities of uniform grade is essential to any suc-
          cessful merchandising program. The experiences of
    America's outstanding cooperative associations indicate
    that success is predicated upon the extent to which the as-
    sociations are able to secure a uniformity in quality and
    grade of the products which are placed upon the markets
    of the country. Large scale sales associations through their
    bargaining power have a voice in the price registering
    markets of the country which cannot be achieved by small
    associations or by individual farmers. Likewise, important
    buyers prefer to deal with organizations that are in a posi-
    tion to serve them with the varieties, grades and volume of
    products which their customers prefer.
    THE BUSINESS of producing, assembling and processing of commodities
alone will not bring the full benefits of cooperative marketing efforts unless
it is also accompanied by efficient and effective merchandising. The production
of a quality product, available in large quantities of uniform grade, is
to any successful merchandising program. And this requires, in many cases,
not only the cooperation of farmers but that of their local cooperatives
as well.
The primary producers may not realize the fullest benefits from quality
products, regularly supplied in uniform and dependable grades, unless the
tributive and merchandising machinery effectively builds consumer confidence
and reflects the premium prices back to the producers.
    When it comes to building cooperative organizations for the manufacturing
and merchandising phases of the dairy business in Wisconsin, for instance,
there are two distinct functions or services that lend themselves to group
effort. First, is the local assembling and manufacturing of the product whether
it be cheese, butter, or evaporated milk. Here the manufacture of quality
products of uniform and dependable grade becomes the most important func-
tion in the local or the first step in cooperative effort.
    Quality products of a uniform grade or standard are the foundation for
any successful merchandising program. No group of agricultural producers
can hope to realize the benefits of cooperative selling until and unless
there is
available a large quantity of a quality product of a uniform grade or standard.
    Similarly, the business of producing and manufacturing a quality cheese,
butter, or other farm commodity of a uniform grade has not been completed
until this product has been efficiently placed before the buying public as

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