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The role of the marketing year and its implications for business strategy and finance

In: Handbook of Research on Cooperatives and Mutuals

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  • Michael A. Boland

Abstract

The objective is to describe the role of the marketing year and its relationship to the business model for a producer cooperative in agriculture. Marketing cooperatives were formed to help pool risk from all producers and manage this risk within the cooperative. The crop is harvested in the fall in the northern hemisphere, and over the course of the year the value of the crop becomes known as the cooperative discovers its value during the marketing year. The pooling concept for a producer cooperative requires coordination between the cooperative and producers regarding the production, harvesting, and delivery of commodities. Each producer-participant is paid the average price received for all product of like quality delivered during the duration of the pool. Examples of their use in cooperatives is provided.

Suggested Citation

  • Michael A. Boland, 2023. "The role of the marketing year and its implications for business strategy and finance," Chapters, in: Matthew S. Elliott & Michael A. Boland (ed.), Handbook of Research on Cooperatives and Mutuals, chapter 14, pages 230-235, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:21014_14
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