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Producer / Marketing Cooperatives Producers Co-ops are also known as marketing co-op where the members provide the co-op with the same production that the co-op markets in a processed or value-added form. The Co-ops' mandate is to commercialize the members input by seeking the best price possible on the market.
Overview. Through Farm Service Agency's (FSA) Cooperative Marketing Association Program (CMA), marketing cooperatives can obtain FSA marketing assistance loans and loan deficiency payments (LDPs) on behalf of their members.
EXEMPT VENDORSIf your stand meets the requirements to be exempt from licensing you do not need to secure licensing from the Pennsylvania Department of Agriculture or a local or county health department. If your stand is selling only raw agricultural commodities, you do not need to fill out an Application Packet.
Producer cooperatives are owned by people who produce similar types of goods or services. The members use the cooperative to more effectively negotiate prices and to access larger markets. The cooperative can further process member products to add value and increase producer returns.
A marketing cooperative is a business organization owned by farmers to collec- tively sell their products. It allows produc- ers to accomplish collectively functions they couldn't achieve on their own.
A phone store that bundles their products with complementary ones is an example of cooperative marketing. This offer takes advantage of products you'd already need to invest in when buying a phone, and uses that to entice you into purchasing.
Cooperatives are considered useful mechanisms to manage risks for members in agriculture. Through cooperatives, farmers could pool their limited resources together to improve agricultural output and this will enhance socio-economic activities in the rural areas (Ebonyi and Jimoh, 2002).
Marketing Cooperative Society Mostly for the benefit of farmers, these societies function to market the produce profitably at the best possible prices, increase the bargaining strength of the farmers and protect them from the trials of individual selling and market exploitation.
Therefore, marketing cooperatives facilitate producers' access into a market. The opportunity to serve a particular market or to buy particular products means that marketing cooperatives offer significant added value to producers 26,27.