POOLING BY COOPETRATTVE MARKETING ASSOCUTIONS 3 



It is recof^nized that supply and demand, in the absence of unusual 

 factors, determine a price ran<re within which a commodity may be 

 sold, and that within this ran<re tiie advanla<re of a few cents, which 

 often determines profit or loss. «roes to the airency that can barirain 

 most effectively. The combination of lar<ie <iuantities of a«rricul- 

 tural commodities under the control of one or<:anization facilitates 

 adaptation of tiie commodity to actual demand conditions. The 

 min<rlinf^ by rrrowers of certain marketinir functions, under the con- 

 trol of efficient management, permits an etfective distribution 

 projrram. 



Tiie collection, analysis, and use of pertinent market information, 

 wliich is essential to a knowledge of true market value, can be made 

 most effective thr()U<rh fjroup effort in large-scale opei-ations. Fur- 

 thermore, in enteriuir the markets, lai'ge-scale organization can offci- 

 commodities in suVistantial quantities of uniform and desired <|iialitv. 

 This attracts the large buyer, who thereby has opportunity to obtain 

 his requirements from a single seller and thus reduce materially the 

 expense and effort incident to making contacts with a large number 

 of small sellers. For these reasons large and reputable distributors 

 are constantly attracted to such cooperative associations as the 

 United Dairies of Washington, the Land O'Lakes Creameries (Inc.). 

 the Pacific Egg Producers, and the Staple Cotton Cooperative 

 Association. 



ELIMINATION OF WASTE 



The average farmer usually does not have a sufficient quantity of 

 product available for market at any one time to enable him to take 

 i.d vantage of the most economical ways of getting his product to 

 market. The assembling, grading, and preparation for market of 

 .small lots of produce by numerous individuals at a local point are 

 more expensive than they are if many small lots can be combined and 

 handled as a few largo units under a common administration. Sim- 

 ilar economies may be effected in the transportation of agricultural 

 products. 



Furthermore, the accumulation of huge quantities of commodities 

 a( buying points eliminates the waste involved in making a large 

 number of individual contacts on the part of both sellers and juir- 

 cliasci-s. In addition to the unified selling power which results fiom 

 pooling, the wool coopei'atives, l)y assembling their wool at im|)ortant 

 distributing j)oints, have made it possible for wool buyers and mills 

 to decrease considerably the effort and expense of purchasing. This 

 decrease tends to reduce the total cost of distributmn and to narrow 

 the spread between producer and consumer. 



SPREADING MARKKTINC; RISKS AMONG AI,L MEMBERS 



The pooling feature in a coopciative association faciiilMtes the 

 spreadmg of maiketing risks among all meujbiMs. 



Any organization eUL'aL'ed in the marketing of agricultural coni- 

 modilies must always icckon with a munber of market in;,' rislcs, ,sii<"h 

 as juice fhicluations. physical deterioration of the product, and finaii- 

 cial losses. Ajfiicultural products, as well as other conuuodities, aiv 

 always subject to price fluctuations. These may cause severe los.scs 

 during the time re(|uired to assemble, process, and shij) to market. 



