The purpose of this study is to evaluate the advantages and disadvantages of pooling used by agricultural cooperatives and create pooling strategies. Pooling is a way to share risk, expenses, and revenue with other producers by marketing agricultural ...
The purpose of this study is to evaluate the advantages and disadvantages of pooling used by agricultural cooperatives and create pooling strategies. Pooling is a way to share risk, expenses, and revenue with other producers by marketing agricultural products together. The advantages of pooling in agricultural marketing can be achieved through the economies of scale and scope. Agricultural marketing cooperatives should try to meet the changing consumer demands for environment-friendly organic products, branded agricultural products, small packaged products and ready-to-eat processed foods. Also, agricultural marketing cooperatives should pay close attention to eliminate the moral hazard problem and to prevent low quality products from being marketed in the process of pooling.