20 BULLETIN 1414, U. S. DEPARTMENT OF AGRICULTURE 



objects of these boards are: (1) To form a common meeting ground 

 between the shippers and the carriers, (2) to study production, mar- 

 kets, and trade channels as related to transportation, (3) to promote 

 car and operating efficiency in connection with maximum loading 

 and the proper handling of cars, and (4) to obtain a proper under- 

 standing by the railroads of the transportation needs of the shippers. 



OTHER ORGANIZATION AND MANAGEMENT PROBLEMS 



PROBLEMS OF ORGANIZATION 



There are several general questions that should be considered in 

 forming a cooperative marketing association. Of primary im- 

 portance are: (1) The volume of business the proposed organization 

 may hope to obtain, (2) whether this business is scattered or con- 

 centrated, (3) the exact services the cooperative organization aims 

 to perform for its members, and (4) the cost of these services in 

 relation to the volume of business. 



Successful cooperation is based on the performance of certain 

 services as well as, or better than, the private agencies already exist- 

 ing. Too many cooperatives are organized with rather vague ideas 

 of the work to be done. 



Unless a study has been made that shows clearly the particular 

 objects that could be accomplished by an association, and unless this 

 point of view is clearly in the minds of those making up the organi- 

 zation there is danger of failure. It is very easy to be confused by 

 generalities on this point. It may be said that the object of an 

 association is to market potatoes or apples or some other kind of fruit 

 or vegetable. The farmers are already marketing those products as 

 individuals. The first object of such a study should be to inquire 

 if there is anything fundamentally wrong with the existing system of 

 marketing, and secondly, if it possesses weaknesses, how these may 

 be corrected through associated action. 



It may be decided, after investigation, that the marketing connec- 

 tions of the individual producers are weak or uncertain. When there 

 are excess supplies, or when demand is weak, the dealers may be 

 unwilling to buy the producers' products. Or possibly, the farmers 

 are paying too much for their marketing services under existing 

 methods of marketing. This is a factor that requires careful 

 analysis. It can not be stated with certainty that a cooperative 

 association will reduce marketing costs until the costs of existing 

 systems have been carefully analyzed, and until a carefully prepared 

 estimate has been made of the probable operating cost of the pro- 

 posed cooperative organization. It may be true also that the growers' 

 products are shipped under a great variety of brands and grades. 

 Operating cooperatively they should be able to correct this lack 

 of standardization and thus render a service to the producer not 

 possible under existing systems. This is an essential step in better 

 marketing. 



The factors mentioned do not cover the entire field. They are 

 simply suggestive and indicate the scope and complexity of the 

 questions which should be considered if a cooperative enterprise is 

 to be established on the stable basis of better and more economical 

 service to its members. 



