Formation of the Producers Export Company (PEC) in 1958 was a first attempt by grain cooperatives to develop an export merchandising program. PEC's nationwide membership had different export needs and financial resources which imposed constraints on PEC's strategy and operations. A lack of consensus by the directors prevented them from effectively adapting and changing PEC's methods of operation. This historical report explores the development of PEC and analyzes reasons for its termination in 1969.