@article{Henehan:121836,
      recid = {121836},
      author = {Henehan, Brian M.},
      title = {An Overview of Dairy Marketing Cooperatives Operating in  New York State},
      address = {2007-04},
      number = {639-2016-41876},
      series = {EB 07-3},
      pages = {48},
      year = {2007},
      abstract = {Agricultural cooperatives have historically played an  important role in marketing farm
products produced in New  York State dating back to the 1800’s. Some of the first  dairy
marketing cooperatives organized in the U.S. were  formed in New York. Many early
dairy cooperatives were  created to bargain for prices and terms of trade on behalf  of
farmer members with dairy processors. The number of  dairy processing plants and firms
in the U.S. and New York  State have decreased significantly over the past fifty  years.
However, the number of New York dairy cooperatives,  especially bargaining
cooperatives, did not decrease at the  same rate as the rest of the U.S. over the  same
period.
There is a wide range of types of cooperatives  operating in New York performing various
functions  throughout the dairy value chain. Some dairy cooperatives  operate at the first
handler-level of the value chain as  bargaining associations, while others operate further
up  the value chain by adding value to member milk in a number  of ways. New York
dairy cooperatives utilize a variety of  organizational structures including:  centralized,
federated, marketing agency in common,  strategic alliances and joint ventures both  with
cooperatives or other types of firms. Cooperatives can  qualify for special status within
the Federal Market Order  system obtaining some privileges or voting rights not  available
to proprietary handlers.
New York State reported  the highest number (65) of dairy cooperatives of any state.  The
average gross volume per New York dairy cooperative as  well as the average gross
business volume per member was  relatively low compared to other major dairy states.
There  are a relatively larger number of small scale bargaining  cooperatives headquartered
in New York State.
Proximity to  market; a large number of smaller volume processing plants;  the previous
ability of smaller bargaining cooperatives to  secure beneficial terms for their members;
the lack of a  strong, pre-eminent dairy cooperative in the region; past  Federal Market
Order provisions in New York, and major  cooperative financial failures were all factors
that  provided a climate for small bargaining cooperatives to  operate in.
Ten of the top 50 dairy cooperatives in the  U.S. operate in New York. Four New York
cooperatives with  processing operations are among the top 100 U.S. dairy  processors. A
number of national, international  cooperatives or associations of cooperatives include  or
support New York cooperatives such as the National Milk  Producers Federation,
Cooperatives Working Together, Dairy  America, and the National Council of  Farmer
Cooperatives.
Dairy cooperatives operating in New  York State are adjusting to significant changes in
the  regional, national, and global markets for milk and dairy  products. Since the data
were collected for this report in  2003, a number of major changes have occurred in the
number  and scope of New York dairy cooperatives. Those  developments will be
reviewed in a future report.},
      url = {http://ageconsearch.umn.edu/record/121836},
      doi = {https://doi.org/10.22004/ag.econ.121836},
}