A group model building process based on system dynamics was developed to assess the potential of a cooperative manufacturing and marketing goat cheese in a community near Xalapa. The process identified important outcomes, key variables to consider, parameter values, and relevant scenarios. This information facilitated development of a dynamic simulation model including key biological and economic factors affecting cooperative success. Model analyses indicated that the cooperative potentially could increase community incomes while controlling risk under a range of environmental and market conditions. A system dynamics-based participatory approach can help inform ex ante assessment of potential development and agribusiness interventions.