FOREWORD 



This report grow out of w-rk carried on jointly by the Utah Agricultural 

 Experiment Station and the Farmer Cooperative Service. It is being 

 issued as a means of bringing information on the subject to many agri- 

 cultural groups who are interested in the. use of 'bargaining associations. 



The report is part of a study of G. Alvin Carpenter on bargaining coop- 

 eratives undertaken in partial fulfillment of his requirements for the 

 Ph.D. degree in Economics granted by Cornell University,, Other phases 

 of the study will be published by the Utah Agricultural Experiment Station 

 where Mr. Carpenter is Assistant Director of Extension. 



Bargaining cooperatives, are wo 11 "known. - Many .dairy cooperatives have 

 been organized to bargain with"milk-distributprs'oh'prices for raw 

 milk. Likewise- in the beet sugar industry prices of beets are deter- 

 mined largely by bargaining between' the .gro.wprs 1 organization and re- 

 finers". In 'the fruit and vegetable 'field producers of canning' crops 

 now have a considerable , amount of interest in the organization of bar- 

 gaining 'cooperatives, wbich would represent them in dealing with processor; 



In many area' the processor contracts with grower's to produce the vege- 

 tables" for 'processing. Since 'those contracts are initiated by the canner 

 there 'may be the feeling on the part of 'producers that the terms favor 

 the canner. The individual grower may be, at a disadvantage since his 

 production makes up such a small portion, of the processor's needs. The 

 canner also Is bettor .informed than grower on price, supply and demand. 



Canning crop growers, have sought to -meet the processor -on equal terms 

 through the development of bargaining cooperatives'.' Some have had 

 long and successful relations with processors. r>, n the whole, however, 

 producers except under vory favorable conditions or location, have net 

 bean too successful to date in negotiating with processors through a 

 cooperative organization even though there appears to be sound reasons 

 for growers to engage in this activity. 



This publication de; ; ls with some of the techniques of bargaining between 

 the growers' organization and processors, points up some of the require- 

 ments for a successful cooperative organization. and also presents a theorj 

 of bargaining. 



J. K. Samuels 

 Acting Director 

 Marketing Division 



