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The functions of a dairy cooperative society can be listed as follows: 1) Collection of milk twice a day from farmers. 2) Make regular payment to suppliers. 3) Dispatch the milk collected to Milk union.
However, rapid consolidation among dairy co-ops limits the number of options for farmers. In addition to representing more than 13,000 dairy farmers, DFA controls 30 percent of milk production in the U.S.
Cooperatives and partnerships benefit small farms by providing economies of scale, which helps lower production costs for individual farms. These lower production costs can be passed along to the consumer too, which helps small farms compete on pricing against their larger rivals.
COOPERATIVE BUSINESS WORK? A Co-op is a member-owned and member-controlled business that operates for the benefit of its members. Everyone who owns a co-op has a need for the products and services offered. The motivation is utilitarian, not for financial gain.
Milk marketing cooperatives, or groups of cooperatives, often secure a fluid milk price above federal order minimum prices through collective bargaining. Cooperatives operate within a dairy policy context that includes milk marketing orders, the price support program, trade programs, and generic commodity advertising.
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.
What is a dairy cooperative? A dairy cooperative brings together farmers to market their milk and collectively further the economic well-being of the cooperative's member-owners. They are owned and democratically governed by members who share in the cooperative's profits and expenses.
All the dairy cooperative societies in a milk-shed are affiliated to an apex organisation -The District Cooperative Milk Producers Union. The milk union procures milk collected by the member dairy cooperative societies, processes the same and arranges marketing of liquid milk and milk products.
A dairy co-op uses the milk produced by its members' cows to make dairy foods like cheese and yogurt. A single dairy co-op might have hundreds of dairy farm families as members. These farms may be in the same state or in neighboring states. The milk from each dairy farm goes to a processing plant owned by the co-op.