A cooperative marketing agreement is a LEGAL DOCUMENT recording the rights and duties of members and with regards to marketing agricultural products.

It REQUIRES the members to market product through the COOPERATIVE and it requires the COOPERATIVE to obtain the best possible price.

It is a CONTRACT between the member and the COOPERATIVE and between the member and the rest of the membership.

It is DIFFICULT to enforce unless it is tightly written.

It has PROVISIONS for what happens when a member breaks the contract.

It outlines LIQUIDATED DAMAGES that will be assessed for willful nondelivery.

It must be ENFORCED quickly and equitably.

When a member BREAKS the contract, it not only hurts the COOPERATIVE, it hurts all the other members.

It is ESSENTIAL in developing marketing plans that will enable the COOPERATIVE to get the best possible price for your product.

A marketing agreement ENSURES a market for your products.

It is REQUIRED by banks for obtaining capital.

It ESTABLISHES a multiple year commitment and gives members an annual opportunity to terminate the contract.

It OUTLINES quality requirements.

L you will not be able to share in the long range benefits of belonging to a cooperative,

L you will have no voice in how your product is marketed,

L you will be subject to the whims and demands of other wholesalers,

L you will have no chance to build equity in the COOPERATIVE,

    L you will pay a higher price for other services offered by the COOPERATIVE

Last Revised: August 29, 2001

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