2 MISC. rUBLICATION 14, U. S. DEFT. OF AGRICULTURE 



returns, but to q special class in this group — those that emphasize 

 c(nitr()l of a iaii^e volume with, probably, control of price as an ob- 

 jective. Con>e(iuenliy, the orij^inal conception of pooling has been 

 expaniled by tiiese li-aders to include certain economic theories and 

 jiolicies with reference to cooperative maiketing; in their minds it 

 IS an essential pj-incii)Ie of cooperation rather thiin a practice which 

 may viry with eacii organization. 



Others have bi'lievetl that only associations engaged in marketing 

 n single commodit}' were actually engaged in pooling. Hence the 

 rather conmion use of the term "pool " to describe an association 

 handling only one product such as wheat. According to this con- 

 ception of pooling, an association whidi handles several kinds of 

 fruits and vegetables or is engnged in marketing one or more prod- 

 ucts and is also engagetl in the purchase of farm supplies is not prac- 

 ticing pooling and is not a pool, although it may embrace many of the 

 characteristics of one. 



It is believed by the author that a definition of pooling should 

 cover the practice as it concerns not only sales returns but also oper- 

 ating expenses, marketing, and other business risks, or any combina- 

 tion of these. For instance, the local farmers' elevator associations 

 and the Kice Growers Association of Ciilifornia are types of organi- 

 zations that ajjply their ])ooling activities principally to selling ex- 

 penses. On the other hand, certain local citrus-fruit packing associa- 

 tions pool their cultivation and harvesting activities in addition to 

 pooling sales expenses and returns from sales. In the usual method 

 of j>ooling sales returns, like that followed by the New York Dairy- 

 men's League, for instance, the members receive returns upon the 

 total net sales of the association, according to the quantity and qual- 

 ity of product delivered. 



In other wortls, the pooling practice ai)pears in one form or another 

 in every cooj)erative marketing association. It is one of a number of 

 features inheient in cooj)erative organization. This does not imply, 

 however, that all the activities within a cooperative association are 

 pooling operations nor that pooling is synonymous with cooperative 

 marketing. 



ADVANTAGES OF GROUP EFFORT FACILITATED BY POOLING 



The aiin of pooling is to distribute equitably to all member-patrons 

 the results which accriie [i-om grouji effort anrl which can not be 

 iittained by individuals acting alone. The following are some of the 

 economic advantages of group effort facilitated by pooling: (1) Im- 

 provenu'nt of the bargaining position of individual growers, through 

 cooi'dination of their efforts; (2) elimination of waste; (3) spread- 

 ing marketing risks among all members; and (4) possibility of effec- 

 tive market ex|)ansion thi-ough control of the time, j)lace, and form 

 in which the couunodity is sold. 



i.mikovi:mf:nt of bargaining position of individual growers 



Ade(iuate control of the utility factors in the nuirketing of any 

 commodity is important if the full market price is to be realized. 

 This control must include the power to decide the time when, the 

 place wiicre, and the form in which, the commodity shall be sold. 



