Agricultural Organization. 2(;i 



inefficiency, of individual indifference and of an all-pervadino- owner- 

 ship." 



Conditions Faronrahle to Successful Co-operation. 



There is no mag-ic about co-operation ; it is not worth while to 

 co-operate just for the sake of co-operating. There must be some real 

 service to perform — either because of a lack of marketing facilities, 

 or dishonesty of local buyers, or some other vital reason, before a 

 farmer's economic organization should be called into existence, and 

 then only after steps have been taken to ensure efficient management 

 — at least as efficient as that of the individuals or firms with which 

 the new organization has to compete. 



Other essential features are that a co-operative organization must 

 have sufficient business to make it worth while; sufficient capital to 

 carry on its business efficiently ; sufficient loyalty on the part of its 

 members to stick to the organization in the face of the fierce competi- 

 tion to which it will he subjected ; and sufficient patience to build up 

 the organization gradually and not expect it to be a whirlwind success 

 from the start. Most farmers have exaggerated ideas about the 

 possible saving's through co-operation, and are disappointed with the 

 results of the first few months of it. Unless marketing facilities are 

 actually non-existent, a farmers' organization mast compete with 

 experienced specialists already in the field, and unless it can perform 

 the service with greater efficiency, or by eliminating some wasteful 

 method, there is no reason for its existence. These things cannot be 

 accomplished without efficient management and improved business 

 methods, which are among the principal essentials to success. 

 " There are many failures of co-operative enterprises, largely due 

 to inefficient management. Education of farmers in the fundaments 

 of marketing, education of managers in the technique of marketing 

 methods, and the perfection of simple and efficient accounting 

 systems, are all necessary before we may expect a more wide-spread 

 development of co-operative marketing."* 



Benefits Derived from Co-operation. 



In the first place there are certain commodities where proper 

 grading and packing cannot be accomplished except through co- 

 operative endeavour. The best example is perhaps in the fruit 

 business, where growers cannot hope to attain the highest efficiency 

 through individual effort. The accomplishments of the California 

 Fruit Growers' Exchange furnish valuable object lessons. By pro- 

 viding efficient means of marketing, co-operative organizations also 

 serve as an inducement to farmers to raise larger and better crops. 

 In addition to improvements in quality and grading and packing, 

 co-operation also saves money to the farmer (if the management is 

 efficient) both by retaining the profits otherwise taken by local buyers 

 and by concentrating a larger business through a shipping agency, 

 thereby reducing (unit) handling costs. 



In addition to the direct economic gains derived from organiza- 

 tion, important social and business benefits result. The individu- 

 alistic tendencies of farmers are partly broken down through associa- 

 tion ; they have more in common, and their coming in contact with 



* " The Marketing of Farm Products," by Weld, 



