|
| I agree with you. A few of my observations...
1. A Coop in its true form should be the lowest priced place to buy any goods or services. There shouldn't be any dividends paid out at the end of the year because there should be no net income shown aside from a surplus fund for unexpected expenses. Fine in theory but very seldom what happens. If this was truly what happens there would no independents in the input or grain business because there would no opportunity for profit. Independents are in it for a profit and they run there business to achieve one. Non producer in this systems are not around very long. The coop system is one that a poor management can remain around a long time because it is well liked by the board or patrons. This results in multiple location coops showing a profit at some locations while others are losers.
2. I have seen two poorly managed coops merging as one is asset rich but cash poor and the other cash rich but asset poor. The new entity assume the management style of one of the former and in the few years they are looking to merge again due to the above problem once again. This happens until a mega location coop takes control (which is in the busines to make its patrons money), or it sold to an independent.
3. Local farmers are their own coops worst enemies. They don't get involved beyond clamoring for lower prices on inputs or higher prices on grain. If the coop doesn't meet these expections, whether good business or not, farmers take there business elswhere. This is fine but then these same people bemoan the fact that there local coop is failing. I here a lot of talk on here about how the coop agronomist is not cutting it so a consultant is hired. I feel the better solution would to get involved and get a good person hired and pay them accordingly. Ever wonder how good an agronomist the retailer could get for the same money the crop consultant that covers 20000 acres at $5 an acre gets? | |
|
Farm Coops
