AGRICULTURAL COOPERATION IN DENMARK. 13 
CONTRACTS. 
Within both the local and central cooperative associations con- 
tracts exist between the members and the association, binding the 
members to deliver their total production of that particular com- 
modity, except what is needed for home use, to the marketing asso- 
ciation for a definite period ; and, in case of purchasing associations, 
to buy their necessary supplies of that commodity from the asso- 
ciation for a definite period. 
The length of this period varies not only with the nature of the 
commodity handled but with different associations. It ranges from 
1 to 20 years. The contract delivery period with the cooperative 
creameries is 5 to 20 years, but usually 10 years; with cooperative 
bacon factories 5, 7, or 10 years; with cattle export associations, 3 
years; with cooperative butter export associations, 1 year; and the 
membership is automatically renewed for another year unless 6 
months' advance notice is given previous to the close of each fiscal 
year. The contract in the cooperative egg export association is for 
1 year, with 3 months' advance notice required for withdrawal at 
the end of each fiscal year. In the cooperative purchasing associa- 
tions, the members are obligated, by a contract agreement, to pur- 
chase their necessary supplies from the association for a definite 
period: 5 years with the feeding-stuffs associations, 10 years with 
the fertilizer association, 5 years with the cement association, and 
5 years with the coal association. 
POOLING. 
As a general rule, the Danish cooperative associations operate on 
a pooling basis. As each member's products are assembled at the 
cooperative association's headquarters the products are classified, as 
to quality and grades, by the association. On the basis of the 
classification the association remits a partial payment for the 
products to the respective members on or soon after the deliver}' of 
products, and balance is paid to them at the close of a 6 or 12 month 
period. The quotations fixed by the different producers' associa- 
tions usually serve as a basis for making this initial partial pay- 
ment. The use of this quotation feature may well be illustrated 
as follows: When a member delivers hogs to a cooperative bacon 
plant, the first partial payment is made within a few days after the 
hog is slaughtered and has been classified as to weight and quality. 
The amount of this partial payment is determined by the weekly 
quotation set by the association. It is usually about 90 per cent of 
the market value of the hog. The balance is remitted in a final pay- 
ment at the close of the 6 or 12 month period. A similar plan is 
used in the creamery, egg, and butter marketing associations. 
These principles are common in Danish cooperation, but in the 
final analysis the commodity involved and the nature of the industry 
determine the more specific features in each cooperative enterprise. 
A specific and detailed treatment of the cooperative organization 
in each branch of Danish agriculture will be found in the succeed- 
ing pages. 
