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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
([1937])

XV. How to organize a cooperative,   pp. 118-123 PDF (1.6 MB)


Page 119


       4. The degree of refinement in quality which producers have attained
          through improved cultural practices. Variations in the quality
of the
          product offered by different producers complicates the problem
of mak-
          ing sales.                            o    liaethprbeofmk
          It also tends to increase the costs of grading, keeping records
and per-
          fecting an equitable system of distributing proceeds.
      6. General price relationships. The relationship between local, terminal,
         and retail prices of a commodity or the relationship of prices between
         different commodities prior to and following organization might
in-
         dicate, in a measure, the influence of associations.
      6. Alternative means of transportation
           a. Railroads
           b. Motor trucks
           c. Water transportation
      7. Present market outlets and probable future ones.
      8. The traditions and cultural background of the people.
      9. The success or failure of past cooperative efforts in the community.
      After a survey has been made to appraise "the lay of the land",
some
 definite conclusions might be formed relative to the need for organization
and
 the obstacles that may be encountered during and following positive action.
 The results of the investigation should be submitted to a responsible body
 which will act in an advisory capacity and serve as the agency to carry
for-
 ward plans of action.
     The Organization Committee Usually the original idea of a survey has
its inception in a self-appointed group of public spirited individuals of
the
community. In some instances this group may have only an indirect interest
in any eventual organization. For this and other reasons It is advisable
to
consider the selection of a temporary organization committee to assume the
responsibility of critically reviewing all preliminary work, devising and
approv-
ing plans, deciding on a course of action and directing activities. The strenu-
ous tests put to the temporary organization committee are generally -regarded
as "a proving ground" for directorate timber. Consequently, it
has become
customary to elect those performing meritorious services on the organiza-
tion committee to the first directorate of a newly formed association, al-
though this courtesy is neither obligatory nor in all instances advisable.
Be-
fore the final ceremonies of creating an association are performed it is
assumed
that the organization committee after having ascertained the need for organiz-
ation, has taken every possible precaution with regard to the availability
of:
    Sufficient volume of business
    Ample financial resources
    Facilities to store and properly handle materials
    Suitable transportation services
    A eapabl, managerial personnel
                                     119
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