Farmer Co-ops Growing,
j *
But Not Keeping Pace
Farmer cooperatives l are
growing faster than 1 other
agribusinesses blit remain
“comparatively sma{l” [When
stacked against those firms in
similar activities, i But
cooperative and non-cooperative
businesses serving agriculture
are lagging national economic
growth and at an increasing rate.
Trends and comparisons of
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cooperative growth over the 20-
year period of 1950-70 are
discussed in a 106-page report
prepared by Farmer Cooperative
Service (FCS), U.S. Department
ofAgriculture.
Cooperatives have made
substantial progress, increasing
volume 2% times, from $8 billion
to $l9 billion, over the decades.
Gains on other agribusinesses
are reflected by cooperatives’
increasing market shares. The
proportion of products marketed
through cooperatives rose from
20 to 26 percent. Gains were
biggest in marketing of dairy
products, fruits and vegetables,
and cotton and cotton products.
The share of farm supply pur
chases through cooperatives
increased from 12 to 16 percent.
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Lancaster Farming, Saturday, March 31,1973—11
Biggest increases came in fer
tilizer and lime, petroleum
products, and pesticides.
Even so. the report states,
cooperative growth stated as an
index rose only 82 points while the
Gross National Product moved
up 120 points. Growth was
relative the first 15 years, then
the GNP gained ground in
creasingly m the period. 1965-70.
Cooperatives are still small
businesses, the report states;
"Only 7 percent of all
cooperatives had an annual
volume of $5 million or more and
nearly half of these were in the $5
million to $lO million size.”
The report makes “top four”
comparisons in 11 functions.
Differences are striking
Four biggest dairy
cooperatives, for example, had
combined sales of $2 billion in
1970 compared with $7 billion for
other dairy firms The
cooperatives’ assets were $493
million compared with $3.4
billion; net worth, $214 million
compared with $2 billion
Similar comparisons made in
10 other activites are livestock,
poultry, fruits and vegetables,
grain, tobacco, cotton, com
mercial feeds, commercial
fertilizers, petroleum, and
pesticides
A “Big Ten” comparison
showed a greater size disparity
between cooperatives and other
firms. The ten biggest
cooperatives produced $4.2
billion in sales for 1970 against $34
billion for other businesses with
similar activities The co-ops’ net
margin was against
$1.7 billion; total assets, $1.4
billion against $25 billion; and net
worth, $6lO million against $l4
billion.
“These data size up the
challenge cooperatives face to
match the growth of other
businesses,” the report states,
“to enable them to be effective
for the farmer in the market
place. “It cooperatives are to
serve members more efficiently.
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JOHN ADAMS
Route 1
New Bloomfield, Pa
717-582-2348
AMOS BLANK LEVI N. OBERHOLTZER.
Route 1 Route 1
Honey Brook, Pa. 19344 Richland, Pa. 17087
215-273-3182 717-933-8336
MARK G. LANDIS MARLIN PAUL & SON
Route 1 Route 1
Annville, Pa. 17003 Klmgerstown, Pa. 17941
717-867-9299 717-425-3480
IRWIN W. MARTIN
1648 W. Main St.
Ephrata, Pa. 17522
717-733-7434
EUGENE G. HOOVER, SUPR.
Route 3, Box 245
they will need to develop suc
cessful growth strategies.”
An outline in the report iden
tifies elements of growth that
management should consider in
developing strategy.
Single copies of FCS In
formation 87, “Cooperative
Growth—Trends, Comparisons,
Strategy," are available from
Farmer Cooperative In
formation. U S. Department of
Agriculture, Room 1474 South
Building. Washington. D.C. 20250.
Hiring Handicapped
Called Good Business
The President’s Committee
on Employment of the Handi
capped, observing its twenty
fifth anniversary this year,
enters its second quarter
century of operation with a
campaign to remove architec
tural barriers which hamper
the disabled in using public
buildings and transportation
facilities.
According to Harold Rus
sell, Chairman of the Presi
dent’s Committee, “A large
number of handicapped men
and women find it impossible
to hold jobs because of envi
ronmental and architectural
barriers.”
Mr. Russell said that each
year finds a growing number
of employers who are con
vinced of the business advan
tages in hiring the handi
capped. “Records of produc
tivity, reliability and loyalty,
set by the handicapped them
selves, provide the convincing
evidence,” he said.
He summarized the na
tional effort by saying, “This
year, let’s make the basic
question, ‘Can the man or
woman do the job V ”
CLARENCE NEFF & SON
Route 1
Ronks,Pa. 17572
717-687-6404
ROY STONER & SON
Route 2
Lititz, Pa. 17543
717-626-8473
Lititz, Pa. 17543