A Business Analysis of Cooperative Oil Associations in Nebraska

The purpose of this study is to point out some of the strong and weak factors in the operation of cooperative oil associations. Cooperative marketing associations have to meet the competition from private companies and many of the large companies which carry on some form of research to aid in the solution of the problems. This research enables these large companies to overcome many obstacles which also effect cooperatives. If by putting the results of this study into practice some of the pitfalls which cause cooperatives to fail, thus causing a hardship on those remaining, can be prevented an improvement in the business principles of cooperative management will result. Cooperation will progress much faster if mistakes can be avoided rather than corrected. Data were gathered by the Omaha Bank for Cooperatives, and the Agricultural Extension Service, University of Nebraska, through personal visits to cooperative oil associations for the years 1936, 1937, and 1938. These three years covered a period when the associations were first faced with a depression followed by drouth conditions. The associations attempted to meet this situation by cutting margins and issuing credit in order to hold their business. Advisor: L. F. Garey, L. B. Snyde