Future Structure And Management Of Dairy Cooperatives

By 1985, 300 or fewer dairy cooperatives will market 80 percent of the Nation's milk, 46 percent sold raw and 34 percent bottled or manufactured. About half will be marketed by 15-25 full-service co-ops, one fifth by 50-80 manufacturing co-ops, and one-fourth by small bargaining associations and nonproducers. Organizational and operating options, such as federation or centralization, dairy specialization or diversified operations, need to be explored. Managers must become more cost conscious and improve reporting significant operating results to boards. Di rectors must become more knowledgeable at their cooperative's operations, milk marketing, and role of· policy making. Increased equity capital of $0.6 billion to a needed total of $1.3 billion will require member investments of 13 cents a hundredweight, assuming a 10-year revolving plan