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Abstract
Questionnaires were mailed to cooperatives in the mid-western states of
the U.S. and selected provinces in Canada to evaluate the impact of type of
organization and level of competition on the choice of cooperative pricing and
payment methods. Traditional marketing cooperatives are more likely to choose
the “spot market cash price” for payment to members and are more responsive
to increased competition in commodity markets. New Generation Cooperatives
are more likely to choose a “pooled” price, and appeared indifferent to short run
increased competition in commodity markets. The type of cooperative has an
impact on the pricing and payment methods used to pay for commodities
supplied by members of the cooperative. The reasons for these differences may
be rooted in the competitive pressures which these cooperatives face, the degree
of processing that they undertake, and the goals of their membership.